Table of Contents
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF FEBRUARY
COMMISSION FILE NUMBER: 333-11910
MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
(Exact name of Registrant as specified in its Charter)
MAXCOM TELECOMMUNICATIONS, INC.
(Translation of Registrant’s name into English)
GUILLERMO GONZALEZ CAMARENA NO. 2000
COLONIA CENTRO DE CIUDAD DE SANTA FE
MEXICO, DF 01210
(Address of Registrant’s principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (1):
Yes o No þ
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (7):
Yes o No þ
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No þ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
TABLE OF CONTENTS
| SIGNATURE | ||||||||
Table of Contents
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
| MAXCOM TELECOMUNICACIONES, S.A. DE C.V. |
||||
| By: | /s/ Gonzalo Alarcon | |||
| Name: | Gonzalo Alarcon | |||
| Date: February 28, 2006 | Title: | General Counsel | ||
Table of Contents
4Q06 EARNINGS REPORT |
 |
February 27, 2007
MAXCOM TELECOMUNICACIONES FOURTH QUARTER 2006 AND
FULL YEAR 2006 UNAUDITED RESULTS
FULL YEAR 2006 UNAUDITED RESULTS
| • | 4Q06 Revenues of Ps$477.3 million increased 49% from 4Q05 and 2% from 3Q06 | |
| • | Full year revenues grew 40% from 2005 | |
| • | Adjusted EBITDA1 was Ps$132.4 million in the quarter, 41% above 4Q05 and 9% over 3Q06 | |
| • | Full year Adjusted EBITDA was Ps$455.8 million, 47% above 2005 | |
| • | EBITDA of Ps$129.2 million increased 37% from 4Q05 and 18% from 3Q06 | |
| • | Full year EBITDA of Ps$440.6 million increased 42% from 2005 | |
| • | Lines in service increased 31% from 4Q05 and 5% from 3Q06 | |
| • | Total customers (voice and data) grew 23% from 4Q05 and 4% from 3Q06 |
LINES:
The number of voice lines in service at the end of 4Q06 increased 31% to 269,590 lines, from
206,292 lines at the end of 4Q05, and 5% when compared to 256,328 lines in service at the end of
3Q06.
During 4Q06, 25,591 new voice lines were installed, 49% higher than 17,155 lines installed during
4Q05. When compared to 3Q06, the number of installations decreased 15% from 30,030 lines.
During the quarter, the monthly churn rate for voice lines was 1.7%, higher than the 1.4% monthly
average churn experienced during 4Q05, and was also above 1.6% churn rate in 3Q06.
Data equivalent lines (at 64Kbps) increased 53% to 42,074 at the end of 4Q06 from 27,586 at the end
of 4Q05, and 9% when compared to 38,640 equivalent lines at the end of 3Q06.
CUSTOMERS:
Total customers (voice and data) grew 23% to 192,716 at the end of 4Q06, from 157,120 at the end of
4Q05, and 4% when compared to 185,879 customers at the end of 3Q06.
REVENUES:
Revenues during 4Q06 increased 49% to Ps$477.2 million, from Ps$321.5 million reported in 4Q05.
Voice revenues in the quarter increased 34% to Ps$346.7 million, from Ps$259.3 million during 4Q05,
and were primarily driven by a 31% increase in voice lines and an increase in average revenues per
line (ARPU), mainly as a result of higher public telephony services. Data revenues in 4Q06 were
Ps$27.8 million, a 99% increase when compared to Ps$14.0 million in 4Q05. Wholesale revenues in
4Q06 were Ps$102.8 million, twice as much as Ps$48.1 million recorded in 4Q05.
4Q06 revenues represented a 2% increase from the Ps$466.2 million reported in 3Q06. Voice revenues
in 4Q06 decreased 1% from Ps$351.5 million in 3Q06, while data revenues increased to Ps$27.8
million, and were 50% higher than those reported in 3Q06 at Ps$18.5 million. During 4Q06, revenues
from Wholesale customers grew 7% to Ps$102.8 million from Ps$96.2 million in 3Q06.
On a full year basis, revenues increased 40% to Ps$1,678.6 million, from Ps$1,197.1 million in
2005. Voice revenues in 2006 increased 35% to Ps$1,302.9 million, from Ps$967.9 million in 2005,
while data revenues increased 43% to Ps$76.5 million, from Ps$53.5 million in 2005. During 2006
revenues from Wholesale customers increased 70% to Ps$299.2 million, from Ps$175.8 million in 2005.
| 1 | We define Adjusted EBITDA as net income (loss) excluding depreciation and amortization, total integral cost of financing, other (income) expenses, special items, tax and stock option plan expense. Adjusted EBITDA has material limitations that impair its value as a measure of a company’s overall profitability since it does not address certain ongoing costs of our business that could significantly affect profitability such as financial expenses and income taxes, depreciation or capital expenditures and associated charges. Adjusted EBITDA is not a recognized financial measure under Mexican GAAP or U.S. GAAP and do not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activity as a measure of liquidity. We believe Adjusted EBITDA can be useful to facilitate comparisons of operating performance between periods and with other companies because it excludes the effect of stock option plan expense, which is a non-cash compensation item. You should review EBITDA and Adjusted EBITDA, along with consolidated financial statements, when trying to understand our operating performance. However, companies define EBITDA and Adjusted EBITDA in different ways and caution must be used in comparing these measurements to other companies. |
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4Q06 EARNINGS REPORT |
|
February 27, 2007
COST OF NETWORK OPERATION:
Cost of Network Operation in 4Q06 was Ps$196.4 million, 84% above the cost of Ps$106.6 million in
4Q05. During the same period, outbound traffic decreased 17%, showing an increase on a cost per
minute basis as a result of higher operating costs in our public phones and higher long distance
termination charges, driven by volume, as well as calls to cellular phones. Local traffic
represented 83% of total traffic in 4Q06, down from 90% in 4Q05. The Ps$89.8 million increase in
the Cost of Network Operation was generated by: (i) Ps$83.7 million, or 105% increase in network
operating services, as a result of Ps$29.6 million higher long distance interconnection fees,
Ps$24.4 million higher cost of operation of public telephones, Ps$3.2 million higher calling party
pays interconnection fees, Ps$15.9 million higher leases of circuits and ports, Ps$3.4 higher
internet services cost and Ps$7.1 million increase in other services cost, such as CATV and
Cellular operations; (ii) Ps$5.3 million, or 23% increase in technical expenses; (iii) Ps$0.6
million, or 15% increase in installation expenses and cost of disconnected lines; and, (iv) Ps$0.2
million increase in cost of sales of customer premises equipment (CPE).
Cost of Network Operation increased 2% quarter-over-quarter when compared to Ps$191.9 million in
3Q06. The Ps$4.5 million increase in Cost of Network Operation was generated by: (i) Ps$5.3
million, or 3% increase in Network operating services, as a result of Ps$5.0 million higher leases
of circuits and ports, Ps$4.5 million higher cost of operation of public telephones, Ps$3.2 higher
internet services cost, and Ps$3.2 million higher other services cost, such as CATV and Cellular
operations; these increases were partially offset by Ps$6.8 million lower long distance
interconnection fees and Ps$3.9 million lower calling party pays interconnection fees; (ii) Ps$1.3
million decrease in technical expenses, (iii) Ps$1.2 million increase in installation expenses and
cost of disconnected lines; and, (iv) Ps$0.6 million decrease in cost of sales of CPE.
On a full year basis, the Cost of Network Operation increased Ps$253.1 million to Ps$ 652.4
million, from Ps$399.3 million in 2005. Cost of network operating services increased Ps$240.7
million, or 84%, driven by our larger scale of operations combined with a shift towards products
that carry higher volumes but lower margins; installation expenses and cost of disconnected lines
increased Ps$0.3 million, or 2%, and technical expenses grew by Ps$12.1 million, or 13%.
SG&A:
SG&A expenses were Ps$151.6 million in 4Q06, 26% above Ps$120.8 million in 4Q05. The Ps$30.8
million increase was mainly driven by: (i) higher salaries, wages and benefits of Ps$22.8 million
as a result of larger headcount; (ii) Ps$3.1 million compensation charge related to stock options
plans; (iii) Ps$2.8 million higher advertising and promotion expenses; (iv) Ps$1.6 million higher
sales commissions; (v) higher bad debt reserve of Ps$1.2 million; (vi) higher external advisors of
Ps$0.5 million, and (vii) higher maintenance expenses of Ps$0.4 million. These increases were
partially offset by: (i) Ps$1.2 million lower general and corporate expenses; and, (ii) Ps$0.4
million lower insurance expenses.
SG&A expenses in 4Q06 decreased 8% from Ps$164.7 million in 3Q06. The Ps$13.1 million decrease was
generated by: (i) lower compensation charge related to stock options plan of Ps$8.9 million; (ii)
lower general and corporate expenses of Ps$2.5 million; (iii) Ps$1.5 million lower external
advisors; (iv) lower salaries, wages and benefits of Ps$0.9 million; (v) lower bad debt reserve of
Ps$0.6 million; and, (vi) lower lease expenses of Ps$0.2 million. These decreases were partially
offset by: (i) Ps$1.3 million higher sales commissions; and, (ii) Ps$0.3 million higher advertising
and promotion expenses.
On a full year basis, SG&A expenses increased 20% to Ps$585.5 million from Ps$487.3 million in
2005.
SG&A expenses in 4Q06, before the effect of the non-cash stock option compensation charge were
Ps$148.5 million, a 23% increase from Ps$120.8 million in 4Q05 and a 3% decrease from Ps$152.7 in
3Q06.
On a full year basis, SG&A expenses, before the effect of the non-cash stock option compensation
charge, increased 17% to Ps$570.3 million in 2006, from Ps$487.3 million in 2005.
Adjusted EBITDA:
Adjusted EBITDA for 4Q06 was Ps$132.4 million, 41% higher from Ps$94.1 million in 4Q05, and 9%
higher from Ps$121.6 million in 3Q06.
On a full year basis, adjusted EBITDA grew 47% to Ps$455.8 million from Ps$310.5 million in 2005.
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4Q06 EARNINGS REPORT |
|
February 27, 2007
EBITDA:
EBITDA for 4Q06 was Ps$129.2 million, 37% higher from Ps$94.1 million in 4Q05, and 18% higher from
Ps$109.6 million in 3Q06.
On a full year basis, EBITDA grew 42% to Ps$440.6 million from Ps$310.5 million in 2005.
OPERATING INCOME:
For the second consecutive year, Maxcom achieved operating income, which amounted Ps$127.2 million
in 2006. This result represents more than six-times increase from Ps$17.5 million in 2005.
CAPITAL EXPENDITURES:
Capital expenditures in 4Q06 totaled Ps$268.7 million, 42% above Ps$189.7 million recorded in 4Q05,
and 66% below Ps$161.6 million spent in 3Q06.
Capital expenditures for 2006 were Ps$852.5 million, which compares to Ps$465.2 million invested in
2005.
CASH POSITION:
Maxcom’s cash position at the end of 4Q06 was Ps$735.1 million in cash and temporary investments,
including Ps$22.6 million in restricted cash, as most of the funds from the financing described
below were available, compared to Ps$240.5 million at the end of 4Q05, which included Ps$7.9
million in restricted cash. Cash and temporary investments at the end of 3Q06 were Ps$179.1
million, including Ps$10.7 million in restricted cash.
NEW FINANCING:
On December 13, 2006, Maxcom completed a private placement of debt instruments denominated “Senior
Notes” in the United States of America and some European, Latin American and Asian countries
amounting to US$150,000,000.00 (one hundred fifty million dollars 00/100 U.S. currency), in
accordance with Rule 144A and Regulation S of the Securities Act of 1933. In addition, on January
5, 2007, Maxcom executed a supplemental offering of the transaction in the amount of
USD$25,000,000.00 (twenty five million dollars 00/100 U.S. currency). The use of proceeds went to
refinance debt and capital expenditures.
# # #
Maxcom Telecomunicaciones, S.A. de C.V., headquartered in Mexico City, Mexico, is a
facilities-based telecommunications provider using a “smart-build” approach to deliver last-mile
connectivity to micro, small and medium-sized businesses and residential customers in the Mexican
territory. Maxcom launched commercial operations in May 1999 and is currently offering local, long
distance, data, value-added, CATV and IP-based services, on a full basis in greater metropolitan
Mexico City, Puebla, Queretaro and Toluca, and on a selected basis in several cities in Mexico. The
information contained in this press release is the exclusive responsibility of Maxcom
Telecomunicaciones, S.A. de C.V. and has not been reviewed by the National Banking and Securities
Commission of Mexico (CNBV). The registration of the securities described in this press release
before the Special Section of the National Registry of Securities (Registro Nacional de Valores)
held by the CNBV does not imply a certification of the investment quality of the securities or of
Maxcom’s solvency. The securities described in this press release have not been registered before
the Securities Section of the National Registry of Securities held by the CNBV and therefore can
not be publicly offered or traded in Mexico. The trading of these securities by a Mexican investor
will be made under such investor’s own responsibility.
For more information contact:
| Jose-Antonio Solbes | Lucia Domville | |
| Mexico City, Mexico | New York City, NY | |
| (52 55) 1163 1005 | (646) 284-9416 | |
| investor.relations@maxcom.com | ldomville@hfgcg.com |
This document may include forward-looking statements that involve risks and uncertainties that are
detailed from time to time in the U.S. Securities and Exchange Commission filings of the Company.
Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” and
similar expressions may identify such forward-looking statements. The Company wants to caution
readers that any forward-looking statements in this document or made by the company’s management
involves risks and uncertainties that may change based on various important factors not under the
Company’s control. These forward-looking statements represent the Company’s judgment as of the date
of this document. The company disclaims, however, any intent or obligation to update these
forward-looking statements.
(Financial Statements to follow)
3/6
Table of Contents
4Q06 EARNINGS REPORT |
|
February 27, 2007
MAXCOM TELECOMMUNICACIONES, S.A. DE C.V.
CONSOLIDATED BALANCE SHEET
In thousands of Mexican
pesos (“Ps”) in purchasing power as of December 31, 2006 and thousands of U.S. dollars (“$”)
| December 31, 2005 | September 30, 2006 | December 31, 2006 | ||||||||||||||||||||||
| Pesos | US Dollars | Pesos | US Dollars | Pesos | US Dollars | |||||||||||||||||||
ASSETS |
||||||||||||||||||||||||
CURRENT ASSETS: |
||||||||||||||||||||||||
Cash and cash equivalents |
Ps | 232,479 | $ | 21,376 | Ps | 168,400 | $ | 15,484 | Ps | 712,508 | $ | 65,515 | ||||||||||||
Restricted Cash |
— | — | — | — | — | — | ||||||||||||||||||
| 232,479 | 21,376 | 168,400 | 15,484 | 712,508 | 65,515 | |||||||||||||||||||
Accounts receivable: |
||||||||||||||||||||||||
Customers, net of allowance |
179,116 | 16,470 | 302,433 | 27,809 | 321,850 | 29,594 | ||||||||||||||||||
Value added tax refundable |
23,676 | 2,177 | 89,955 | 8,271 | 107,000 | 9,839 | ||||||||||||||||||
Other sundry debtors |
22,388 | 2,059 | 32,362 | 2,976 | 38,340 | 3,524 | ||||||||||||||||||
| 225,180 | 20,706 | 424,750 | 39,056 | 467,190 | 42,957 | |||||||||||||||||||
Inventory |
16,027 | 1,474 | 37,101 | 3,411 | 34,493 | 3,172 | ||||||||||||||||||
Prepaid expenses |
79,898 | 7,347 | 79,490 | 7,309 | 63,358 | 5,825 | ||||||||||||||||||
Total current assets |
553,584 | 50,903 | 709,741 | 65,260 | 1,277,549 | 117,469 | ||||||||||||||||||
Restricted Cash Long Term |
7,983 | 734 | 10,793 | 992 | 22,612 | 2,079 | ||||||||||||||||||
Frequency rights, Net |
89,592 | 8,238 | 85,344 | 7,848 | 83,271 | 7,657 | ||||||||||||||||||
Telephone network systems & Equipment, Net |
2,167,218 | 199,275 | 2,763,224 | 254,078 | 2,609,229 | 239,918 | ||||||||||||||||||
Pre-operating expenses, Net |
127,262 | 11,702 | 98,935 | 9,097 | 115,174 | 10,590 | ||||||||||||||||||
Intangible Assets, Net |
315,829 | 29,040 | 310,034 | 28,508 | 649,234 | 59,697 | ||||||||||||||||||
Retirement obligations |
15,398 | 1,416 | 15,057 | 1,384 | 14,522 | 1,335 | ||||||||||||||||||
Deposits |
4,783 | 440 | 5,146 | 473 | 5,042 | 464 | ||||||||||||||||||
Other assets |
6,141 | 563 | 28,467 | 2,616 | 56,111 | 5,162 | ||||||||||||||||||
Total assets |
Ps | 3,287,790 | $ | 302,311 | Ps | 4,026,741 | $ | 370,256 | Ps | 4,832,744 | $ | 444,371 | ||||||||||||
LIABILITIES |
||||||||||||||||||||||||
CURRENT LIABILITIES: |
||||||||||||||||||||||||
Interest Payable |
||||||||||||||||||||||||
Accrued expenses and other accounts payable |
142,627 | 13,115 | 426,898 | 39,252 | 495,983 | 45,606 | ||||||||||||||||||
Bank Financing |
69,349 | 6,377 | 94,298 | 8,671 | — | — | ||||||||||||||||||
Senior notes, net |
— | — | 187,505 | 17,241 | 126,047 | 11,590 | ||||||||||||||||||
Notes payables |
119,029 | 10,945 | 120,148 | 11,048 | 40,335 | 3,709 | ||||||||||||||||||
Commercial paper |
157,641 | 14,495 | 152,625 | 14,034 | 150,000 | 13,792 | ||||||||||||||||||
Customers deposits |
4,161 | 383 | 1,732 | 159 | 1,920 | 177 | ||||||||||||||||||
Payroll and other taxes payable |
19,465 | 1,790 | 19,192 | 1,765 | 26,377 | 2,425 | ||||||||||||||||||
Total current liabilities |
512,272 | 47,105 | 1,002,398 | 92,170 | 840,662 | 77,299 | ||||||||||||||||||
LONG-TERM LIABILITIES: |
||||||||||||||||||||||||
Senior notes, net |
600,292 | 55,197 | 433,153 | 39,828 | 1,639,716 | 150,772 | ||||||||||||||||||
Bank Financing |
82,277 | 7,565 | 40,436 | 3,718 | — | — | ||||||||||||||||||
Notes payable |
146,147 | 13,438 | 273,120 | 25,113 | 37,521 | 3,450 | ||||||||||||||||||
Other accounts payable |
26,658 | 2,451 | 24,024 | 2,209 | 26,251 | 2,414 | ||||||||||||||||||
Deferred taxes |
27,024 | 2,485 | 1,350 | 124 | 29,367 | 2,700 | ||||||||||||||||||
Pensions and Postretirement Obligations |
17,370 | 1,597 | 20,328 | 1,869 | 30,524 | 2,807 | ||||||||||||||||||
Hedging Valuation |
19,601 | 1,802 | 11,941 | 1,098 | 14,573 | 1,340 | ||||||||||||||||||
Total liabilities |
Ps | 1,431,641 | $ | 131,640 | Ps | 1,806,750 | $ | 166,129 | Ps | 2,618,614 | $ | 240,782 | ||||||||||||
SHAREHOLDERS’ EQUITY |
||||||||||||||||||||||||
Capital stock |
2,855,853 | 262,595 | 3,205,472 | 294,742 | 3,206,932 | 294,877 | ||||||||||||||||||
Premium on capital stock |
228,524 | 21,013 | 240,757 | 22,138 | 243,927 | 22,429 | ||||||||||||||||||
Accumulated deficit |
(1,154,102 | ) | (106,119 | ) | (1,228,227 | ) | (112,935 | ) | (1,228,227 | ) | (112,935 | ) | ||||||||||||
Net loss for the period |
(74,126 | ) | (6,818 | ) | 1,989 | 182 | (8,502 | ) | (782 | ) | ||||||||||||||
Total shareholders’ equity (deficit) |
Ps | 1,856,149 | $ | 170,671 | Ps | 2,219,991 | $ | 204,127 | Ps | 2,214,130 | $ | 203,589 | ||||||||||||
Total liabilities and equity |
Ps | 3,287,790 | $ | 302,311 | Ps | 4,026,741 | $ | 370,256 | Ps | 4,832,744 | $ | 444,371 | ||||||||||||
NOTES TO FINANCIAL STATEMENTS:
Financial statements are reported in period-end pesos as of December 31, 2006 to
adjust for the inter-period effect of inflation. For readers’ convenience, all
Peso amounts were converted to U.S. dollars at the exchange rate of Ps$10.8755
per US$1.00.
4/6
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4Q06 EARNINGS REPORT |
|
February 27, 2007
MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
CONSOLIDATED STATEMENT OF OPERATIONS
2005 AND 2006 QUARTERLY PERIODS
In thousands of Mexican pesos (“Ps”) in purchasing power as of December 31, 2006 and thousands of U.S. dollars (“$”)
CONSOLIDATED STATEMENT OF OPERATIONS
2005 AND 2006 QUARTERLY PERIODS
In thousands of Mexican pesos (“Ps”) in purchasing power as of December 31, 2006 and thousands of U.S. dollars (“$”)
| October 1 to | July 1 to | October 1 to | ||||||||||||||||||||||||||||||||||
| December 31, 2005 | September 30, 2006 | December 31, 2006 | ||||||||||||||||||||||||||||||||||
| Pesos | US Dollars | % | Pesos | US Dollars | % | Pesos | US Dollars | % | ||||||||||||||||||||||||||||
Voice |
259,328 | 23,845 | 81 | % | 351,505 | 32,321 | 75 | % | 346,695 | 31,878 | 73 | % | ||||||||||||||||||||||||
Data |
13,994 | 1,286 | 4 | % | 18,542 | 1,705 | 4 | % | 27,802 | 2,556 | 6 | % | ||||||||||||||||||||||||
Wholesale |
48,156 | 4,428 | 15 | % | 96,160 | 8,842 | 21 | % | 102,758 | 9,449 | 22 | % | ||||||||||||||||||||||||
TOTAL REVENUES |
Ps | 321,478 | $ | 29,559 | 100 | % | Ps | 466,207 | $ | 42,868 | 100 | % | Ps | 477,255 | $ | 43,883 | 100 | % | ||||||||||||||||||
Network operating services |
79,431 | 7,304 | 25 | % | 157,878 | 14,516 | 34 | % | 163,165 | 15,003 | 34 | % | ||||||||||||||||||||||||
Technical expenses |
23,357 | 2,147 | 7 | % | 29,978 | 2,757 | 6 | % | 28,663 | 2,635 | 6 | % | ||||||||||||||||||||||||
Installation expenses |
3,788 | 348 | 1 | % | 4,027 | 370 | 1 | % | 4,601 | 423 | 1 | % | ||||||||||||||||||||||||
Cost of Network Operation |
106,576 | 9,799 | 33 | % | 191,883 | 17,643 | 41 | % | 196,429 | 18,061 | 41 | % | ||||||||||||||||||||||||
GROSS PROFIT |
214,902 | 19,760 | 67 | % | 274,324 | 25,225 | 59 | % | 280,826 | 25,822 | 59 | % | ||||||||||||||||||||||||
SG&A |
120,800 | 11,108 | 38 | % | 164,710 | 15,145 | 35 | % | 151,619 | 13,941 | 32 | % | ||||||||||||||||||||||||
EBITDA |
94,102 | 8,652 | 29 | % | 109,614 | 10,080 | 24 | % | 129,207 | 11,881 | 27 | % | ||||||||||||||||||||||||
Depreciation and amortization |
8,092 | 744 | 83,612 | 7,689 | 109,148 | 10,036 | ||||||||||||||||||||||||||||||
Operating Income (Loss) |
86,010 | 7,908 | 26,002 | 2,391 | 20,059 | 1,845 | ||||||||||||||||||||||||||||||
Comprehensive (Income) Cost of Financing: |
||||||||||||||||||||||||||||||||||||
*Interest expense |
49,786 | 4,578 | 34,157 | 3,140 | 58,366 | 5,367 | ||||||||||||||||||||||||||||||
**Interest (income) loss, net |
(15,184 | ) | (1,396 | ) | (2,099 | ) | (193 | ) | (2,537 | ) | (233 | ) | ||||||||||||||||||||||||
Special item |
15,988 | 1,470 | — | — | — | — | ||||||||||||||||||||||||||||||
Exchange (income) loss, net |
(2,067 | ) | (190 | ) | (8,442 | ) | (776 | ) | (20,794 | ) | (1,912 | ) | ||||||||||||||||||||||||
Gain on net monetary position |
(10,389 | ) | (955 | ) | (10,396 | ) | (955 | ) | (6,409 | ) | (590 | ) | ||||||||||||||||||||||||
| 38,134 | 3,507 | 13,220 | 1,216 | 28,626 | 2,632 | |||||||||||||||||||||||||||||||
Other (income) expense |
(7,763 | ) | (714 | ) | (32 | ) | (3 | ) | 1,759 | 162 | ||||||||||||||||||||||||||
INCOME (LOSS) BEFORE TAXES |
55,639 | 5,115 | 12,814 | 1,178 | (10,326 | ) | (949 | ) | ||||||||||||||||||||||||||||
Provisions for: |
||||||||||||||||||||||||||||||||||||
Asset Tax |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Income Tax & Profit Sharing |
6,892 | 634 | 1,757 | 162 | 165 | 15 | ||||||||||||||||||||||||||||||
Total Provisions |
6,892 | 634 | 1,757 | 162 | 165 | 15 | ||||||||||||||||||||||||||||||
NET INCOME (LOSS) |
Ps | 48,747 | $ | 4,481 | Ps | 11,057 | $ | 1,016 | Ps | (10,491 | ) | $ | (964 | ) | ||||||||||||||||||||||
Adjusted EBITDA |
94,102 | 8,652 | 29 | % | 121,637 | 11,184 | 26 | % | 132,363 | 12,171 | 28 | % | ||||||||||||||||||||||||
NOTES TO FINANCIAL STATEMENTS:
* Interest related to Senior Notes, Banks and Vendor Financing
** Interest Income net
Financial statements are reported in period-end pesos as of December 31, 2006 to adjust for the inter-period effect of inflation.
For readers’ convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps$10.8755 per US$1.00.
** Interest Income net
Financial statements are reported in period-end pesos as of December 31, 2006 to adjust for the inter-period effect of inflation.
For readers’ convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps$10.8755 per US$1.00.
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Table of Contents
4Q06 EARNINGS REPORT |
|
February 27, 2007
MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
CONSOLIDATED STATEMENT OF OPERATIONS
2005 AND 2006
In thousands of Mexican pesos (“Ps”) in purchasing power as of December 31, 2006 and thousands of U.S. dollars (“$”)
| January 1 to | January 1 to | |||||||||||||||||||||||
| December 31, 2005 | December 31, 2006 | |||||||||||||||||||||||
| Pesos | US Dollars | % | Pesos | US Dollars | % | |||||||||||||||||||
Voice |
967,852 | 88,994 | 81 | % | 1,302,910 | 119,802 | 78 | % | ||||||||||||||||
Data |
53,478 | 4,917 | 4 | % | 76,467 | 7,031 | 5 | % | ||||||||||||||||
Wholesale |
175,774 | 16,162 | 15 | % | 299,216 | 27,513 | 18 | % | ||||||||||||||||
TOTAL REVENUES |
Ps | 1,197,104 | $ | 110,073 | 100 | % | Ps | 1,678,593 | $ | 154,346 | 100 | % | ||||||||||||
Network operating services |
285,547 | 26,256 | 24 | % | 526,249 | 48,388 | 31 | % | ||||||||||||||||
Technical expenses |
97,154 | 8,933 | 8 | % | 109,290 | 10,049 | 7 | % | ||||||||||||||||
Installation expenses |
16,619 | 1,528 | 1 | % | 16,913 | 1,555 | 1 | % | ||||||||||||||||
Cost of Network Operation |
399,320 | 36,717 | 33 | % | 652,452 | 59,992 | 39 | % | ||||||||||||||||
GROSS PROFIT |
797,784 | 73,356 | 67 | % | 1,026,141 | 94,354 | 61 | % | ||||||||||||||||
SG&A |
487,250 | 44,803 | 41 | % | 585,496 | 53,836 | 35 | % | ||||||||||||||||
EBITDA |
310,534 | 28,553 | 26 | % | 440,645 | 40,518 | 26 | % | ||||||||||||||||
Depreciation and amortization |
293,051 | 26,946 | 313,385 | 28,816 | ||||||||||||||||||||
Operating Income (Loss) |
17,483 | 1,607 | 127,260 | 11,702 | ||||||||||||||||||||
Comprehensive (Income) Cost of Financing: |
||||||||||||||||||||||||
*Interest expense |
105,389 | 9,690 | 159,660 | 14,681 | ||||||||||||||||||||
**Interest (income) loss, net |
(4,331 | ) | (398 | ) | (8,279 | ) | (761 | ) | ||||||||||||||||
Special item |
15,988 | 1,470 | — | — | ||||||||||||||||||||
Exchange (income) loss, net |
(20,783 | ) | (1,911 | ) | 1,368 | 126 | ||||||||||||||||||
Gain on net monetary position |
(22,985 | ) | (2,113 | ) | (20,748 | ) | (1,908 | ) | ||||||||||||||||
| 73,278 | 6,738 | 132,001 | 12,138 | |||||||||||||||||||||
Other (income) expense |
(9,354 | ) | (860 | ) | 1,065 | 98 | ||||||||||||||||||
INCOME (LOSS) BEFORE TAXES |
(46,441 | ) | (4,271 | ) | (5,806 | ) | (534 | ) | ||||||||||||||||
Provisions for: |
||||||||||||||||||||||||
Asset Tax |
— | — | — | — | ||||||||||||||||||||
Income Tax & Profit Sharing |
27,685 | 2,546 | 2,696 | 248 | ||||||||||||||||||||
Total Provisions |
27,685 | 2,546 | 2,696 | 248 | ||||||||||||||||||||
NET INCOME (LOSS) |
Ps | (74,126 | ) | $ | (6,817 | ) | Ps | (8,502 | ) | $ | (782 | ) | ||||||||||||
Adjusted EBITDA |
310,534 | 28,554 | 26 | % | 455,824 | 41,913 | 27 | % | ||||||||||||||||
NOTES TO FINANCIAL STATEMENTS:
* Interest related to Senior Notes, Banks and Vendor Financing
** Interest Income net
Financial statements are reported in period-end pesos as of December 31, 2006 to adjust for the inter-period effect of inflation.
For readers’ convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps$10.8755 per US$1.00.
** Interest Income net
Financial statements are reported in period-end pesos as of December 31, 2006 to adjust for the inter-period effect of inflation.
For readers’ convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps$10.8755 per US$1.00.
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