* Revenues increased 27% over 4Q02, and 10% over 3Q03
* Full year revenues increased 37% over 2002
* Positive EBITDA for the 3rd consecutive quarter: 36% growth over 3Q03
* 2003 EBITDA at Ps$105.1 million
* Lines in service increased 10% over 4Q02
* Number of customers grew 12% over 4Q02, and 8% over 3Q03
MEXICO CITY, April 16 /PRNewswire-FirstCall/ --
LINES:
The number of lines in service at the end of 4Q03 increased 10% to 137,544
lines, from 125,231 lines at the end of 4Q02, and remained flat when compared
to 137,222 lines in service at the end of 3Q03. Out of the total outstanding
lines at the end of 4Q03, 6,850 lines, or 5.0% were from Wholesale customers,
which compares to 4,480 lines, or 3.6% at the end of 4Q02, and 6,920 lines, or
5.0% at the end of 3Q03.
During 4Q03 lines construction was lower by 72% at 1,232 lines, from 4,414
constructed lines in the same period of 2002; and, lower by 65% when compared
to 3,513 constructed lines during 3Q03. Inventory of constructed lines for
sale at the end of the quarter was 48,484 lines. On a full year basis, lines
construction declined 88% from 76,426 in 2002 to 9,367 in 2003.
During 4Q03, 9,694 new lines were installed, 58% below the 22,983 lines
installed during 4Q02. When compared to 3Q03, the number of installations
decreased 17% from 11,650 lines. The 50,185 lines installed during 2003 were
35% lower than the 77,411 installed during 2002.
During 4Q03, the monthly churn rate was 2.4%, higher than the 2.1% monthly
average churn during 4Q02. When compared to 3Q03, churn rate decreased from
2.6%. Voluntary churn in 4Q03 resulted in the disconnection of 2,273 lines, a
rate of 0.6%, lower than the 0.8% registered in 3Q03 with 3,112 disconnected
lines. Involuntary churn resulted in the disconnection of 7,029 lines, a rate
of 1.8%, which is slightly higher than the 6,875 disconnected lines, or 1.8%
during 3Q03.
Churn improved to 2.8% in 2003 when compared to 3.3% in 2002. Voluntary
churn during 2003 resulted in the disconnection of 10,740 lines, a rate of
0.8% lower than the 1.2% registered in 2002 equivalent to 10,936 disconnected
lines. Involuntary churn for 2003 resulted in the disconnection of 29,502
lines, a rate of 2.0% which compares to 18,015 disconnected lines, or 2.1%
during 2002.
During 4Q03, net additions for Wholesale customers were negative in 70
lines, which compares to 710 negative net additions during 4Q02 and 900 net
additions during 3Q03. Net additions for wholesale customer during 2003 at
2,370 were 196% higher than the 1,210 negative net additions during 2002.
CUSTOMERS:
Total customers grew 12% to 101,137 at the end of 4Q03, from 89,950 at the
end of 4Q02, and 8% when compared to 93,467 customers as of the end of 3Q03.
The growth in number of customers by region was distributed as follows:
(i) in Mexico City customers increased by 8% from 4Q02 and 9% when compared to
3Q03; (ii) in Puebla customers grew 16% from 4Q02 and 8% when compared to
3Q03; and, (iii) in Queretaro, the number of customers increased 27% from 4Q02
and decreased 1% when compared to 3Q03.
The change in the number of customers by category was the following: (i)
business customers decreased by 5% from 4Q02 and were flat when compared to
3Q03; and, (ii) residential customers increased by 13% from 4Q02 and by 9%
from 3Q03.
REVENUES:
In 4Q03 we started a new business line, the lease of transmission capacity
through our fiber optic ring. Revenues for this new business reached Ps$23.4
million during 4Q03, including Ps$11.2 of one-time installation charges and
Ps$12.2 of equipment installed to one single customer under a 13 year service
agreement with annual revenues of US$0.154 million. We are going to report
revenues from this business as "lease of capacity," as part of Data revenues.
Revenues for 4Q03 increased 27% to Ps$212.7 million (including Ps$23.4
from the lease of capacity), from Ps$168.1 million reported in 4Q02. Voice
revenues for 4Q03 increased 4% to Ps$157.1 million, from Ps$151.3 million
during 4Q02, driven by an 8% increase in voice lines partially compensated by
a 10% reduction in ARPU. Data revenues for 4Q03 were Ps$6.2 million and
contributed 3% of total revenues; during 4Q02 data revenues were Ps$3.8
million. Wholesale revenues for 4Q03 were Ps$26.0 million, a 100% increase
from Ps$13.0 million in 4Q02.
Revenues for 4Q03 increased 10% to Ps$212.7 million (including Ps$23.4
from the lease of capacity), from Ps$193.1 million reported in 3Q03. Voice
revenues for 4Q03 decreased 4% to Ps$157.1 million, from Ps$163.6 million
during 3Q03. Data revenues in 4Q03 increased 6% to Ps$6.2 million, from Ps$5.9
million during 3Q03. During 4Q03, revenues from Wholesale customers increased
10% to Ps$26.0 million, from Ps$23.7 million in 3Q03.
On a full year basis, revenues increased 37% to Ps$765.6 million, from
Ps$557.3 million reported in 2002. Voice revenues for 2003 increased 27% to
Ps$635.9 million, from Ps$499.8 million in 2002. Data revenues for 2003
increased 111% to Ps$21.4 million, from Ps$10.1 million in 2002. During 2003
revenues from Wholesale customers increased 79% to Ps$85.0 million, from
Ps$47.4 million in 2002.
COST OF NETWORK OPERATION:
Cost of Network Operation in 4Q03 was Ps$76.0 million, a 20% increase when
compared to Ps$63.2 million in 4Q02. Over the same period, outbound traffic
grew 49%, showing a sensitive improvement on a cost per minute basis. The
Ps$12.8 million increase in Cost of Network Operation was generated by: (i)
Ps$1.9 million, or 4% increase in network operating services, mainly driven by
higher calling party pays charges as traffic increased and a higher number of
lines in service, partially compensated by Ps$0.8 million reduction of long
distance reselling cost as a result of lower reselling rates and better
routing of long distance traffic, (ii) Ps$9.4 million, or 108% increase in
technical expenses basically as a consequence of higher maintenance costs;
and, (iii) Ps$1.5 million or 16% increase installation and disconnection
expenses.
Cost of Network Operation increased 16% quarter-over-quarter when compared
to Ps$65.5 million in 3Q03. While network operating services increased Ps$0.4
million, or 1%, and installation expenses and cost of disconnected lines
increased Ps$7.5 million, or 223%, technical expenses increased Ps$2.6 million
or 16%. The main drivers of the variation are: Ps$2.0 million higher network
maintenance basically as a result of the maintenance cost of our new fiber
optic that we are no longer capitalizing because now it is under commercial
operation; Ps$1.0 million higher lease of sites and poles; and, Ps$7.5 million
higher installation expenses which include installation expenses related to
the new lease of capacity business. When we compare cost per minute on a
traffic-related cost basis, cost per minute improved as outbound traffic
increased 8% while network operating services increased 1%, however, on a cost
per minute basis, there was no improvement when compared to the previous
quarter, as outbound traffic grew 8% while Cost of Network Operation increased
16%.
On a full year basis, Cost of Network Operation increased 27% over 2002 to
reach Ps$275.1 million in 2003. While network operating services increased
Ps$46.6 million or 33%, and installation expenses and cost of disconnected
lines decreased Ps$4.5 million or 15%, technical expenses increased Ps$16.6
million or 38%. On cost per minute basis, there was an improvement when
compared to the previous year, as outbound traffic grew 65% while Cost of
Network Operation increased 27%.
Gross margin improved from 62% in 4Q02 to 64% in 4Q03 and decreased from
66% in 3Q03. On a full year basis, gross margin improved from 61% in 2002 to
64% in 2003.
SG&A:
SG&A expenses were Ps$88.2 million in 4Q03, which compares favorably to
Ps$130.6 million in 4Q02. The 32% decrease was mainly driven by: (i) lower
salaries, wages and benefits of Ps$25.9 million originated by the severance
expense recognized in December 2002 from our restructuring process, (ii) lower
external sales commissions of Ps$6.5 million, (iii) lower advertising expenses
of Ps$5.9 million, (iv) lower leasing and maintenance costs of Ps$4.0 million,
(v) lower bad debt reserve of Ps$1.6 million; and, (vi) lower general,
administrative expenses and insurance costs of Ps$1.2 million. Lower expenses
were partially offset by higher consulting fees of Ps$2.7 million.
SG&A expenses in 4Q03 decreased 4%, from Ps$92.0 million in 3Q03. This
variation was mainly driven by: (i) lower bad debt provisioning of Ps$7.8
million, (ii) lower general and administrative expenses, and insurance costs
of Ps$3.6 million; and, (iii) lower external sales commissions of Ps$1.9
million. Lower expenses were partially offset by: (i) higher salaries, wages
and benefits of Ps$6.6 million, (ii) higher leasing and maintenance costs of
Ps$1.9 million; and, (iii) higher external advisors and advertising of Ps$1.0
million.
On a full year basis, SG&A expenses decreased 14%, from Ps$445.8 million
in 2002 to Ps$385.5 million in 2003. This variation was mainly driven by: (i)
restructuring cost in 2003 of Ps$27.5 million, (ii) lower salaries, wages and
benefits of Ps$23.4 million, (iii) lower leases Ps$17.6 million, (iv) lower
advertising of Ps$13.3 million, (v) lower external sales commissions of Ps$7.1
million; and, (vi) lower general, administrative expenses and insurance costs
of Ps$0.9 million. Lower expenses were partially offset by: (i) higher bad
debt reserve of Ps$19.5, (ii) higher external advisors fees of Ps$8.0 million;
and, (iii) higher maintenance costs of Ps$2.0 million.
EBITDA:
EBITDA for 4Q03 was positive Ps$48.5 million, compared to negative Ps$25.7
million reported in 4Q02, and positive Ps$35.6 million registered in 3Q03.
EBITDA margin improved from negative 15% in 4Q02 to positive 18% in 3Q03, and
to positive 23% in 4Q03.
This is the 3rd consecutive quarter that Maxcom reported positive EBITDA.
Besides improving its EBITDA margin by 5 percentage points, in monetary terms,
EBITDA grew 36% on a quarter over quarter basis. Cumulative EBITDA for the
last three quarters was Ps$109.5 million, and Ps$105.1 million year-to-date.
During 2002 we generated a negative EBITDA of Ps$104.9 million.
CAPITAL EXPENDITURES:
Capital Expenditures for 4Q03 were Ps$26.1 million, a 57% decrease when
compared to Ps$60.9 million in 4Q02, and a 3% decrease when compared to
Ps$26.8 million in 3Q03. Full year Capital Expenditures for 2003 were Ps$116.9
million, 79% lower when compared to Ps$553.7 million in 2002.
CASH POSITION:
Maxcom's Cash position at the end of 4Q03 was Ps$41.7 million in Cash and
Cash Equivalents, compared to Ps$120.3 million at the end of 4Q02. Cash and
Cash Equivalents at the end of 3Q03 were Ps$38.3 million.
RECENT ACCOUNTING PRONOUNCEMENTS:
The provisions of Statement C-15 "Impairment of the Value of Long-Lived
Assets and their disposal", issued by the Mexican Institute of Public
Accountants ("MIPA"), went into effect on January 1, 2004. That statement
establishes general criteria for the identification and, if applicable,
recording of losses from impairment or decrease of value of long-lived
tangible and intangible assets, including goodwill. Additionally, it defines
concepts such as net sales price and value in use for the valuation of long-
lived assets. We are in the process of carrying out a study to determine value
in use of our long-lived assets and the amount of any possible impairment.
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 and Internet & Data services in greater metropolitan
Mexico City, Puebla and Queretaro.
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.
Maxcom Telecomunicaciones, S.A. de C.V.
vs. vs.
LINES 4Q02 3Q03 4Q03 4Q02 3Q03
Business Lines 22,194 23,567 24,305 10% 3%
Residential Lines 98,557 106,735 106,389 8% 0%
Total Voice Lines 120,751 130,302 130,694 8% 0%
Wholesale 4,480 6,920 6,850 53% -1%
TOTAL 125,231 137,222 137,544 10% 0%
vs. vs.
CUSTOMERS 4Q02 3Q03 4Q03 4Q02 3Q03
Business 3,934 3,715 3,734 -5% 1%
Residential 86,016 89,752 97,403 13% 9%
TOTAL 89,950 93,467 101,137 12% 8%
Mexico 43,185 42,676 46,536 8% 9%
Puebla 44,813 48,290 52,121 16% 8%
Queretaro 1,952 2,501 2,480 27% -1%
TRAFFIC 4Q02
Million Minutes Oct Nov Dec Total
Inbound 56.2 60.5 62.8 179.4
Outbound 109.6 109.7 114.6 333.9
Outbound Local 94% 94% 94% 94%
Outbound LD 6% 6% 6% 6%
TRAFFIC 3Q03
Million Minutes Jul Ago Sep Total
Inbound 71.3 68.5 68.0 207.8
Outbound 147.9 155.4 156.9 460.2
Outbound Local 96% 96% 96% 96%
Outbound LD 4% 4% 4% 4%
TRAFFIC 4Q03
Million Minutes Oct Nov Dec Total
Inbound 71.2 66.6 63.4 201.2
Outbound 215.2 156.5 126.0 497.8
Outbound Local 96% 96% 95% 96%
Outbound LD 4% 4% 5% 4%
vs. vs.
ARPU (US$) 4Q02 3Q03 4Q03 4Q02 3Q03
Business
Monthly Charges 21.64 23.44 22.69 5% -3%
Usage 42.32 56.84 45.90 8% -19%
Subtotal 63.96 80.28 68.59 7% -15%
Non-recurring 4.96 2.77 2.24 -55% -19%
Total Business $68.92 $83.05 $70.83 3% -15%
Residential
Monthly Charges 17.11 15.66 16.44 -4% 5%
Usage 12.87 12.22 11.78 -8% -4%
Subtotal 29.98 27.88 28.22 -6% 1%
Non-recurring 3.74 0.68 0.16 -96% -76%
Total Residential $33.72 $28.56 $28.38 -16% -1%
Company
Monthly Charges 17.98 17.03 17.63 -2% 4%
Usage 18.54 20.05 18.27 -1% -9%
Subtotal 36.52 37.08 35.90 -2% -3%
Non-recurring 3.98 1.04 0.56 -86% -46%
Total Company $40.50 $38.12 $36.46 -10% -4%
ARPU (US$) FY02 FY03 vs. FY02
Business
Monthly Charges 22.66 23.28 3%
Usage 50.04 49.51 -1%
Subtotal 72.71 72.79 0%
Non-recurring 4.13 2.82 -32%
Total Business $76.84 $75.61 -2%
Residential
Monthly Charges 17.12 16.07 -6%
Usage 11.96 11.74 -2%
Subtotal 29.07 27.81 -4%
Non-recurring 2.82 1.17 -58%
Total Residential $31.89 $28.98 -9%
Company
Monthly Charges 18.28 17.40 -5%
Usage 19.99 18.70 -6%
Subtotal 38.28 36.10 -6%
Non-recurring 3.10 1.47 -52%
Total Company $41.37 $37.57 -9%
MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
CONSOLIDATED BALANCE SHEET
(Thousands of Mexican pesos "Ps" with purchasing power as of December 31,
2003 and thousands of US Dollars "$")
December 31, 2002 September 30, 2003
Pesos US Dollars Pesos US Dollars
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents Ps120,331 $10,709 Ps38,272 $3,406
Restricted cash -- -- -- --
120,331 10,709 38,272 3,406
Accounts
receivable:
Customers, net of
allowance 108,348 9,643 113,497 10,101
Value added tax
refundable 13,298 1,184 -- --
Other sundry
debtors 8,379 746 13,401 1,193
130,025 11,573 126,898 11,294
Inventory 19,901 1,771 18,452 1,642
Prepaid expenses 37,030 3,296 65,733 5,850
Total current
assets 307,287 27,349 249,355 22,192
Frecuency rights,
Net 108,572 9,663 103,586 9,219
Telephone network
systems &
Equipment, Net 1,651,338 146,968 1,531,156 136,274
Preoperating
expenses, Net 212,507 18,913 188,414 16,769
Intangible
Assets, Net 442,859 39,414 405,747 36,111
Other assets 30,769 2,738 28,406 2,528
Total assets Ps2,753,332 $245,045 Ps2,506,664 $223,093
LIABILITIES
CURRENT
LIABILITIES:
Interest Payable Ps4,492 $400 Ps9,315 $829
Accrued expenses
and other
accounts payable 170,794 15,201 129,265 11,505
Customers deposits 1,766 157 3,573 318
Payroll and other
taxes payable 33,106 2,946 48,307 4,299
Total current
liabilities 210,158 18,704 190,460 16,951
LONG-TERM
LIABILITIES:
Senior notes, net 1,918,854 170,777 1,990,151 177,123
Notes payable -- -- 25,876 2,303
Total
liabilities Ps2,129,012 $189,481 Ps2,206,487 $196,377
SHAREHOLDERS'
EQUITY
Capital stock 1,752,596 155,980 1,752,596 155,980
Additional paid-in
capital 437 39 1,468 131
Accumulated
deficit (366,874) (32,652) (1,128,713) (100,455)
Net loss for the
period (761,839) (67,803) (325,174) (28,940)
Total shareholders'
equity
(deficit) Ps 624,320 $55,564 Ps 300,177 $26,716
Ps 2,753,332 $245,045 Ps 2,506,664 $223,093
December 31, 2003
Pesos US Dollars
ASSETS
CURRENT ASSETS:
Cash and cash equivalents Ps41,736 $3,715
Restricted cash -- --
41,736 3,715
Accounts receivable:
Customers, net of allowance 116,675 10,384
Value added tax refundable -- --
Other sundry debtors 9,756 868
126,431 11,252
Inventory 18,451 1,642
Prepaid expenses 53,660 4,776
Total current assets 240,278 21,385
Frecuency rights, Net 96,272 8,568
Telephone network systems & Equipment, Net 1,537,430 136,830
Preoperating expenses, Net 179,626 15,987
Intangible Assets, Net 390,866 34,787
Other assets 28,158 2,506
Total assets Ps2,472,630 $220,063
LIABILITIES
CURRENT LIABILITIES:
Interest Payable Ps4,707 $419
Accrued expenses and other accounts payable 125,262 11,148
Customers deposits 2,132 190
Payroll and other taxes payable 57,852 5,149
Total current liabilities 189,953 16,906
LONG-TERM LIABILITIES:
Senior notes, net 2,011,494 179,022
Notes payable 13,015 1,158
Total liabilities Ps2,214,462 $197,086
SHAREHOLDERS' EQUITY
Capital stock 1,752,596 155,980
Additional paid-in capital 1,468 131
Accumulated deficit (1,128,713) (100,455)
Net loss for the period (367,183) (32,679)
Total shareholders' equity (deficit) Ps258,168 $22,977
Ps2,472,630 $220,063
NOTES TO FINANCIAL STATEMENTS:
Financial statements are reported in period-end pesos as of December 31,
2003 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$11.2360 per US$1.00.
MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
CONSOLIDATED STATEMENT OF OPERATIONS
YEAR 2002 AND 2003 QUARTERLY PERIODS
(Thousands of Mexican pesos "Ps" with purchasing power as of December 31,
2003 and thousands of US Dollars "$")
October 1 to
December 31, 2002
Pesos US Dollars %
Voice 151,267 13,463 90%
Data 3,834 341 2%
Wholesale 12,984 1,156 8%
TOTAL REVENUES Ps168,085 $14,960 100%
Network operating services 45,077 4,012 27%
Technical expenses 8,703 775 5%
Installation expenses 9,407 837 6%
Cost of Network Operation 63,187 5,624 38%
GROSS PROFIT 104,898 9,336 62%
SG&A 130,645 11,627 78%
EBITDA (25,747) (2,291) -15%
Depreciation and
amortization 87,631 7,799
Operating Loss (113,378) (10,090)
Comprehensive (Income) Cost of
Financing:
*Interest expense 13,515 1,203
**Interest income 199 18
Exchange (income) loss, net 27,618 2,458
Gain on net monetary
position (28,907) (2,573)
12,425 1,106
Other income (Expense) (84) (7)
INCOME (LOSS) BEFORE TAXES (125,719) (11,189)
Provisions for:
Asset Tax 2,126 189
Income Tax & Profit Sharing 324 29
Total Provisions 2,450 218
NET INCOME (LOSS) Ps(128,169) $(11,407)
MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
CONSOLIDATED STATEMENT OF OPERATIONS
YEAR 2002 AND 2003 QUARTERLY PERIODS
(Thousands of Mexican pesos "Ps" with purchasing power as of December 31,
2003 and thousands of US Dollars "$")
July 1 to
September 30, 2003
Pesos US Dollars %
Voice 163,568 14,557 85%
Data 5,872 523 3%
Wholesale 23,685 2,108 12%
TOTAL REVENUES Ps193,125 $17,188 100%
Network operating
services 46,593 4,147 24%
Technical expenses 15,526 1,382 8%
Installation expenses 3,366 300 2%
Cost of Network Operation 65,485 5,829 34%
GROSS PROFIT 127,640 11,359 66%
SG&A 92,036 8,191 48%
EBITDA 35,604 3,168 18%
Depreciation and
amortization 95,039 8,458
Operating Loss (59,435) (5,290)
Comprehensive (Income) Cost of
Financing:
*Interest expense 5,362 477
**Interest income 1,245 111
Exchange (income) loss, net 85,000 7,564
Gain on net monetary
position (17,842) (1,588)
73,765 6,564
Other income (Expense) 102 9
INCOME (LOSS) BEFORE TAXES (133,302) (11,863)
Provisions for:
Asset Tax 3,082 274
Income Tax & Profit Sharing 63 6
Total Provisions 3,145 280
NET INCOME (LOSS) Ps(136,447) $(12,143)
MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
CONSOLIDATED STATEMENT OF OPERATIONS
YEAR 2002 AND 2003 QUATERLY PERIODS
(Thousands of Mexican pesos "Ps" with purchasing power as of December 31,
2003 and thousands of US Dollars "$")
October 1 to
December 31, 2003
Pesos US Dollars %
Voice 157,077 13,980 74%
Data 29,566 2,631 14%
Wholesale 26,024 2,316 12%
TOTAL REVENUES Ps 212,667 $18,927 100%
Network operating services 47,009 4,184 22%
Technical expenses 18,080 1,609 9%
Installation expenses 10,874 968 5%
Cost of Network Operation 75,963 6,761 36%
GROSS PROFIT 136,704 12,166 64%
SG&A 88,248 7,854 41%
EBITDA 48,456 4,312 23%
Depreciation and
amortization 55,508 4,940
Operating Loss (7,052) (628)
Comprehensive (Income) Cost of
Financing:
*Interest expense 4,984 444
**Interest income 1,274 113
Exchange (income) loss, net 57,866 5,150
Gain on net monetary
position (34,561) (3,076)
29,563 2,631
Other income (Expense) (497) (44)
INCOME (LOSS) BEFORE TAXES (36,118) (3,215)
Provisions for:
Asset Tax 5,813 517
Income Tax & Profit Sharing 78 7
Total Provisions 5,891 524
NET INCOME (LOSS) Ps(42,009) $(3,739)
NOTES TO FINANCIAL STATEMENTS:
* Interest related to Senior Notes and Vendor Financing
** Interest Income net of bank commissions
Financial statements are reported in period-end pesos as of December 31,
2003 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$11.2360 per US$1.00.
MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
CONSOLIDATED STATEMENT OF OPERATIONS
YEAR 2002 AND 2003 PERIODS
(Thousands of Mexican pesos "Ps" with purchasing power as of December 31,
2003 and thousands of US Dollars "$")
January 1 to
December 31, 2002
Pesos US Dollars %
Voice 499,752 44,478 90%
Data 10,120 901 2%
Wholesale 47,379 4,217 8%
TOTAL REVENUES Ps557,251 $49,596 100%
Network operating
services 142,695 12,700 26%
Technical expenses 44,026 3,918 8%
Installation expenses 29,636 2,638 5%
Cost of Network Operation 216,357 19,256 39%
GROSS PROFIT 340,894 30,340 61%
SG&A 445,776 39,674 80%
EBITDA (104,882) (9,334) -19%
Depreciation and
amortization 330,191 29,387
Operating Loss (435,073) (38,721)
Comprehensive (Income)
Cost of Financing:
*Interest expense 215,898 19,215
**Interest income (4,651) (414)
Exchange (income) loss, net 214,833 19,120
Gain on net monetary
position (104,619) (9,311)
321,461 28,610
Other income (Expense) (2,748) (245)
INCOME (LOSS) BEFORE TAXES (753,786) (67,086)
Provisions for:
Asset Tax 7,091 631
Income Tax & Profit Sharing 962 86
Total Provisions 8,053 717
NET INCOME (LOSS) Ps(761,839) $(67,803)
MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
CONSOLIDATED STATEMENT OF OPERATIONS
YEAR 2002 AND 2003 PERIODS
(Thousands of Mexican pesos "Ps" with purchasing power as of December 31,
2003 and thousands of US Dollars "$")
January 1 to
December 31, 2003
Pesos US Dollars %
Voice 635,921 56,597 83%
Data 44,741 3,982 6%
Wholesale 84,968 7,562 11%
TOTAL REVENUES Ps765,630 $68,141 100%
Network operating services 189,286 16,846 25%
Technical expenses 60,637 5,397 8%
Installation expenses 25,143 2,238 3%
Cost of Network Operation 275,066 24,481 36%
GROSS PROFIT 490,564 43,660 64%
SG&A 385,493 34,309 50%
EBITDA 105,071 9,351 14%
Depreciation and
amortization 336,174 29,919
Operating Loss (231,103) (20,568)
Comprehensive (Income) Cost of
Financing:
*Interest expense 22,279 1,983
**Interest income 3,766 335
Exchange (income) loss,
net 173,134 15,409
Gain on net monetary
position (76,159) (6,778)
123,020 10,949
Other income (Expense) 148 13
INCOME (LOSS) BEFORE TAXES (354,271) (31,530)
Provisions for:
Asset Tax 12,306 1,095
Income Tax & Profit Sharing 606 54
Total Provisions 12,912 1,149
NET INCOME (LOSS) Ps(367,183) $(32,679)
NOTES TO FINANCIAL STATEMENTS:
* Interest related to Senior Notes and Vendor Financing
** Interest Income net of bank commissions
Financial statements are reported in period-end pesos as of December 31,
2003 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$11.2360 per US$1.00.
SOURCE Maxcom Telecomunicaciones, S.A. de C.V.
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Related links:
http://www.maxcom.com
CONTACT:
Jose-Antonio Solbes, Maxcom
Telecomunicaciones, in Mexico, +52-55-5147-1125,
investor.relations@maxcom.com; or Lucia Domville, Citigate
Financial Intelligence, +1-201-499-3548,
lucia.domville@citigatefi.com, for Maxcom
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