MEXICO CITY, July 24 /PRNewswire-FirstCall/ -- Maxcom Telecomunicaciones, S.A.B. de C.V. ("Maxcom", or "the Company") (BMV: MAXCOM CPO), one of the leading integrated telecommunications companies in Mexico, today announced its unaudited financial and operating results for the quarter ended June 30, 2008.
NOTE: The monetary amounts presented in these tables have been prepared in accordance with Mexican Financial Reporting Standards ("NIF" or "Mexican GAAP"). Figures for the year 2008 are expressed in millions of historical Mexican pesos, as explained in section "Adoption of New Accounting Standards". Figures for the year 2007 are expressed in millions of Mexican pesos of purchasing power at December 31, 2007. Monetary amounts may vary due to rounding.
Results | Second Quarter 2008 Financial Highlights:
-- Second quarter 2008 revenues reached Ps. 670 million and increased by Ps. 91 million or 16% in comparison to the second quarter of 2007.
-- EBITDA increased by 26% to reach Ps. 204 million in comparison to the second quarter of 2007.
-- EBITDA margin increased by 240 basis points to 30% this reporting quarter, when compared to the same period last year.
-- The Company posted net income during the second quarter of Ps. 11 million, which compares favorably to a net income of Ps. 0.2 million reported in the second quarter of 2007.
2Q08 2Q07 Var.% YTD08 YTD07 Var.% Million Pesos Revenues 670 579 16 % 1,294 1,109 17 % EBITDA 204 162 26 % 396 308 28 % EBITDA Margin 30 % 28 % 31 % 28 % Adj. EBITDA 208 166 25 % 402 314 28 % Adj. EBITDA Margin 31 % 29 % 31 % 28 % Net Income 11 0.2 20 (17) N.A. Pesos Earnings per Share Basic 0.01 - - Earnings per Share Diluted 0.01 - - Operating Highlights:
-- Total company Revenue Generating Units or RGUs, increased to 439,407 or 39% in the second quarter of 2008 compared to the same period last year. The Company recorded RGU net adds of 47,930 in the quarter.
-- Total company customer base increased by 15% to reach 230,498 customers.
-- Voice RGUs (formerly voice lines in service) increased 20% to reach 365,048. Voice RGUs include residential voice, commercial voice, public telephony lines and wholesale lines.
-- Data residential RGUs increased by 97% to 20,354.
-- The Company added 24,669 mobile RGUs to its residential and commercial business divisions during the second quarter, which brought to 39,515 the mobile RGU base.
-- Pay TV number of RGUs reached 11,217. The Company recorded TV net adds of 3,034 in the quarter.
-- The Company installed 3,562 public telephones during the quarter bringing the number of coin operated phones to 31,292.
-- Residential RGU per customer increased from 1.1 in the second quarter of 2007 to 1.4 in the second quarter of 2008.
-- Commercial RGU per customer increased from 11.4 in the second quarter of 2007 to 13.7 in the second quarter of 2008.
Operating Results 2Q08 2Q07 Var.% Residential Customers 224,690 194,775 15 % Voice 220,991 194,036 14 % Data 17,272 8,761 97 % Mobile 36,595 - N.A. TV 11,217 - N.A. Residential RGUs 305,379 217,056 41 % Voice 235,387 206,745 14 % Data 20,354 10,311 97 % Mobile 38,421 - N.A. TV (*) 11,217 - N.A. RGU per Residential Customer 1.4 1.1 Commercial Customers 5,756 5,870 (2 %) Voice 5,501 5,695 (3 %) Data 1,329 1,203 10 % Mobile 99 - Other 144 89 62 % Commercial RGUs 78,766 66,632 18 % Voice 74,399 63,973 16 % Data 2,947 2,540 16 % Mobile 1,094 - N.A. Other 326 119 174 % RGU per Commercial Customer 13.7 11.4 Public Telephony RGUs 31,292 24,415 28 % Wholesale RGUs 23,970 8,610 178 % Total RGUs 439,407 316,713 39 % Voice RGUs (voice lines in service) 365,048 303,743 20 % Total Number of Customers 230,498 200,645 15 % (*) TV RGUs in terms of subscribers, include 15,081 TV sets Revenues
Maxcom total revenues for the second quarter of 2008 were Ps. 670 million, an increase of 16% over revenues of Ps. 579 million, recorded in the second quarter of 2007. The following table is a breakdown of the sources of revenue for the Company.
2Q08 Weight % 2Q07 Weight % Var.% Residential Ps. 272 41 % Ps. 219 38 % 24 % Commercial 203 30 % 158 27 % 28 % Public Telephony 102 15 % 98 17 % 4 % Wholesale 81 12 % 95 16 % (15 %) Other Revenue 12 2 % 9 2 % 33 % Total Ps. 670 100 % Ps. 579 100 % 16 %
Total revenues for the first six months ended June 30, 2008 were Ps. 1,294 million, an increase of 17% over revenue of Ps. 1,109, million recorded in the same period of last year. The following table is a breakdown of the sources of revenue for the Company.
YTD08 Weight % YTD07 Weight % Var.% Residential Ps. 529 41 % Ps. 432 39 % 22 % Commercial 393 30 % 274 25 % 43 % Public Telephony 196 15 % 182 16 % 8 % Wholesale 153 12 % 201 18 % (24 %) Other Revenue 23 2 % 20 2 % 15 % Total Ps. 1,294 100 % Ps. 1,109 100 % 17 % Residential
Residential revenues represented 41% of the total during the second quarter, compared with 38% in the same quarter of 2007. Revenues in the residential business segment reached Ps. 272 million, an increase of 24% in comparison to Ps. 219 million in the second quarter of 2007.
The 24% increase in revenues is directly related to the 41% increase in RGUs and was mainly driven by:
1. An increase in the number of mobile RGUs to reach 38,421, and an increase in the number of pay TV RGUs to reach 11,217. The Company is now offering its bundled products to most of the customer base given the promotional offers, attractive pricing, additional digital services and expanding coverage;
2. An increase in the number of data RGUs which increased by 97% to reach 20,354; and,
3. A 14% increase in voice RGUs (formerly voice lines in service) in the residential business segment to reach 235,387.
For the six months ended June 30, 2008 revenues from the residential business totaled Ps. 529 million, or 41% of total revenues from Ps. 432 million recorded in the same period of 2007.
Our sales force has successfully been able to up sell different products and services as well as bundled products under double, triple and quadruple play. This quarter RGU per customer increased from 1.1 in the second quarter of 2007 to 1.4 in the second quarter of 2008.
Commercial
Commercial revenues represented 30% of the total during the second quarter of 2008, compared with 27% in the same quarter of 2007. Revenues in the Commercial Business reached Ps. 203 million, an increase of 28% in comparison to Ps. 158 million in the same period of 2007.
The 28% or Ps. 45 million increase in revenues during the second quarter of 2008 is mainly explained by an increase in the average revenue per customer that the company recorded and an 18% increase in the number of RGUs. The increase in RGUs was mainly driven by:
1. A higher number of voice RGUs (formerly voice lines in service) which have increased by 16% to 74,399, primarily due to several small and medium business accounts that acquired tailored telecommunications solutions;
2. A higher number of data customers in the quarter to reach 2,947; and,
3. The higher number of RGUs from other value added-services that the Company provides, including: firewall protection, IT outsourcing, hosting and other services.
It is important to highlight that the number of customers decreased by 2% in comparison to the second quarter of 2007. This decrease is due to a fewer number clients that had only one or two commercial voice lines. The Commercial business has been able to increase its voice line per customer from 11.2 in the second quarter of 2007 to 13.5 lines per customer in the second quarter of 2008.
For the six months ended June 30, 2008 revenues from the commercial business totaled Ps. 393 million, or 30% of total revenues, compared to Ps. 274 million recorded in the same period of 2007.
In addition, RGU per commercial customer increased from 11.4 in the second quarter of 2007 to 13.7 in the second quarter of 2008 demonstrating the ability of the commercial sales force to get customers to buy more tailored comprehensive products and outsourced services.
Public Telephony
Public Telephony represented 15% of total revenues during the second quarter of 2008. Revenues in this business unit totaled Ps. 102 million, an increase of 4% when compared to Ps. 98 million in 2007. The increase in revenues is attributed to the 28% growth in the base of public telephones installed. However and partially offsetting this revenue growth, as the number of public telephones continues to grow, the average revenue per public telephone tends to decline. For the six months ended June 30, 2008 revenues from the public telephony business totaled Ps. 196 million, or 15% of total revenues, compared to Ps. 182 million recorded in the same period of 2007.
Wholesale
In 2008, Wholesale revenues decreased by 15% to reach Ps. 81 million, in comparison to the Ps. 95 million registered during the same quarter in the previous year. The decrease in the Wholesale Business revenues was mainly driven by a change in the overall traffic mix in the network by terminating long distance minutes to less expensive top tier cities where the Company has excess capacity. For the six months ended June 30, 2008 revenues from the wholesale business decreased from Ps. 201 million recorded in the first six months of 2007 to Ps. 153 million.
Other Revenue
Other revenue represented 2% of total revenues and reached Ps. 12 million, in comparison to Ps. 9 million or 2% of total revenues in the previous quarter. Other revenues are primarily comprised of lease of microwave frequencies and CPE sales. For the six months ended June 30, 2008 revenues from other businesses totaled Ps. 23 million, or 2% of total revenues from Ps. 20 million recorded in the same period of 2007, also 2% of total revenues.
Network Operation Cost
Network Operation Costs in the second quarter of 2008 increased 7% or Ps. 18 million to reach Ps. 264 million in comparison to Ps. 246 million in the previous year, and was mainly due to a 9% increase in network operating services and an increase in installation expenses of 30%. However and partially offsetting this increase, technical expenses decreased by 5%.
The increases in network operating services were mainly in: 1. The lease of circuits and ports; 2. The amounts paid for connection to internet services; 3. Higher costs in long distance interconnection; and, 4. The amounts paid for pay TV content.
However, these increases were offset by lower costs in the amounts paid to carriers for calling party pays.
For the six months ended June 30, 2008 network operation costs totaled Ps. 511 million from Ps. 471 million, a 9% increase in comparison to the same period last year.
Gross margin for the second quarter of 2008 was 61%, 308 basis points higher than the 58% gross margin recorded in the same period of 2007. For the six months ended June 30, 2008 gross margin was 60%, 294 basis points higher than the 58% gross margin recorded in the same period of 2007.
SG&A
SG&A expenses were Ps. 202 million in the second quarter of 2008, 18% above Ps. 171 million in the same period of 2007. The Ps. 31 million increase was mainly driven by higher salaries and staff related costs, wages and benefits as a result of an increasing headcount specifically in the residential and commercial sales forces which have increased as a result of the increased coverage areas. In addition, an increase in insurance costs, bad debt expenses, external advisory expenses and stock option compensation. These increases were partially offset by lower sales commissions and marketing expenses, among others.
For the six months ended June 30, 2008 SG&A expenses totaled Ps. 387 million, 17% above Ps. 330 million reported in the same period last year.
EBITDA and Adjusted EBITDA
EBITDA for the second quarter of 2008 was Ps. 204 million, a 26% increase from Ps. 162 million in the same period of last year. EBITDA Margin was 30% during the period, 240 basis points higher than 28% in the second quarter of 2007. For the six months ended June 30, 2008, EBITDA amounted to Ps. 396 million, 28% higher than the Ps. 308 million registered in the same period of 2007. EBITDA margin for the six months of 2008 was 31%, 282 basis points higher than the 28% margin recorded in the same period of 2007.
Adjusted EBITDA for the second quarter of 2008 was Ps. 208 million, 25% higher than Ps. 166 million in the same period of last year. Adjusted EBITDA Margin was 31% during the period, 244 basis points higher than 29% in the second quarter of 2007. For the six months ended June 30, 2008, Adjusted EBITDA amounted to Ps. 402 million, 28% higher than the Ps. 314 million registered in the same period of 2007. Adjusted EBITDA margin for the six month period of 2008 was 31%, 273 basis points higher than the 28% margin reported in the same period of 2007.
Operating Income
Operating Income for the second quarter of 2008 was Ps. 80 million, 43% higher than Ps. 56 million in the previous year. Operating margin for the second quarter was 12%. For the six months ended June 30, 2008, operating income for the Company reached Ps. 150 million, 34% higher than the result registered in the same period of 2007 of Ps. 112 million.
Comprehensive Financial Result
During the quarter, the Company registered a Comprehensive Financial Result of Ps. 43 million, a Ps. 39 million increase when compared to Ps. 4 million in the same period of 2007.
2Q08 2Q07 Var.Ps. Var.% YTD08 YTD07 Var.Ps. Var.% Net Interest Paid 43 39 4 10 % 93 92 1 1 % Exchange Rate (Gain) Loss - Net - (41) 41 N.A. 14 (19) 33 236 % Monetary Position Gain (Loss) - 6 (6) N.A. (5) 5 N.A. Total 43 4 39 107 68 39 57 %
The higher Comprehensive Financial Result was due to a marginal net exchange rate gain in the second quarter of 2008, compared to a net exchange rate gain of Ps. 41 million recognized in the same period of last year as a result of the Peso revaluation, mainly due in part to the US$ cash position of the company. At June 30, 2008 the exchange rate between the Mexican Peso and the United States Dollar was Ps. 10.2841, compared to Ps. 10.7926 at the end of June 30, 2007. Also, the Company recorded an increase of 11% or Ps. 4 million on the amount of net interest paid which increased from Ps. 39 million in the second quarter of 2007 to Ps. 43 million in the second quarter of 2008.
For the six months ended June 30, 2008, comprehensive cost of financing for the Company reached Ps. 107 million when compared to Ps. 68 million recorded in the same period of 2007.
As a result of the change in the accounting standards in Mexico (see "Adoption of New Accounting Standards"), inflationary accounting (NIF B-10) is not required in a low-inflation environment. As of the second quarter of 2008 the Company prepared its financial statements in terms of historical Mexican pesos. Therefore, the comprehensive financial result will no longer be affected by the results in monetary position. In this case the company recorded a monetary position gain of Ps. 6 million in the second quarter of 2007 which does not compare to the second quarter of 2008.
Taxes
During the first quarter of 2008 and according to the latest tax reform in Mexico, asset tax was replaced with the flat corporate tax (Impuesto Empresarial a Tasa Unica). The IETU is calculated on a cash-flow basis, with the base determined by reducing taxable revenue (mainly income derived from the sale of goods, the rendering of independent services and the leasing of tangible goods) with specific deductions. Since Capex is deductible, the Company is able to minimize tax payments given the aggressive Capex plan for 2008.
The Company recorded Ps. 13 million in taxes during the second quarter 2008, compared to Ps. 49 million in the second quarter of 2007. For the six months ended June 30, 2008, the Company recorded Ps. 7 million in taxes, which compare to Ps. 58 million recorded in the same period of 2007.
While Asset Tax, IETU and Income Tax represent cash outflows, Deferred Income Tax is a non-cash item.
2Q08 2Q07 YTD08 YTD07 Asset Tax - 6 - 15 IETU 7 - 7 - Income Tax 3 2 6 2 Deferred Income Tax 3 41 (6) 41 Total Taxes 13 49 7 58 Net Income
The company posted net income during the second quarter of 2008 of Ps. 11 million, which compares favorably to net income of Ps. 0.2 million reported in the second quarter of 2007. For the six months ended June 30, 2008, the company registered a net income of Ps. 20 million in comparison to a net loss of Ps. 17 million, in the same period of 2007.
Liquidity and Capital Sources Millions of Pesos Quarter Ended Quarter Ended June 30, 2008 June 30, 2007 Resources from Operations and Working Capital 66 180 CAPEX (352) (431) Free Cash Flow (286) (251) Financing Activities (196) (376) Cash and Cash Equivalents at the Start of the Period 2,287 787 Cash and Cash Equivalents at the End of the Period 1,805 160 For the Six Months For the Six Months Millions of Pesos Ended June 30, Ended June 30, 2008 2007 Resources from Operations and Working Capital 156 184 CAPEX (714) (664) Free Cash Flow (558) (480) Financing Activities (177) (123) Cash and Cash Equivalents at the Start of the Period 2,540 763 Cash and Cash Equivalents at the End of the Period 1,805 160 Capital Expenditures
Capital Expenditures during the period totaled Ps. 352 million, lower than the Ps. 431 million recorded in the second quarter of 2007. Capital Expenditures were primarily used for telephone network systems, the build out of new clusters, and equipment for Maxcom's network expansion.
Indebtedness
At June 30, 2008 the Company reported its Indebtedness level at Ps. 2,074 million. The Company's leverage ratio measured by Debt/EBITDA, presented a decrease, from 3.4 times in 2007 to 2.7 times in 2008. In addition, net Debt/EBITDA ratio presented an even more important profile reduction from 3.1 times in 2007 to 0.5 times in 2008, as a result of the recent initial public offering which yielded cash resources for the Company's expansion plans.
Adoption of New Accounting Standards
B-10: As of January 1, 2008, the company has adopted the changes to "Inflationary Effects", B-10 in accordance with the Mexican Financial Standards ("NIF") which establishes the rules for the recognition of inflationary effects in the country; furthermore, it incorporates changes such as, reclassifying accumulated results for non-monetary assets and has the possibility of choosing between the INPC (national consumer price index) and the value of UDIs. It has been determined that the country does not face an inflationary environment, and therefore the company as of January 1, 2008 will suspend the recognition of these inflationary effects in its financial information. Consequently, the financial information corresponding to the period ended June 30, 2007 is expressed in Millions of Mexican Pesos of purchasing power at December 31, 2007 (date on which bulletin B-10 was still in effect) and the financial information for June 30, 2008 is in current Mexican Pesos.
About MAXCOM
MAXCOM Telecomunicaciones, S.A.B. 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, Tehuacan, San Luis, 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.B. de C.V. and has not been reviewed by the Mexican National Banking and Securities Commission (CNBV) or any other authority. The registration of the securities described in this press release before the National Registry of Securities (Registro Nacional de Valores) held by the CNBV, shall it be the case, does not imply a certification of the investment quality of the securities or of MAXCOM's solvency. The trading of these securities by an investor will be made under such investor's own responsibility.
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.B. DE C.V. AND SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEET Thousand Mexican Pesos ("Ps.") and US Dollars ("$") As of June 30, 2007 As of June 30, 2008 Pesos US Dollars Pesos US Dollars ASSETS CURRENT ASSETS: Cash and cash equivalents Ps. 157,660 $15,330 Ps. 1,805,477 $175,560 Restricted cash 2,785 271 - - 160,445 15,601 1,805,477 175,560 Accounts receivable: Customers, net of allowance 444,493 43,221 653,470 63,542 Value added tax refundable 195,474 19,007 154,480 15,021 Other sundry debtors 63,534 6,178 82,342 8,007 703,501 68,406 890,292 86,570 Inventory 33,895 3,296 34,360 3,341 Prepaid expenses 30,992 3,014 45,348 4,410 Total current assets 928,833 90,317 2,775,477 269,881 Frequency rights, net 84,455 8,212 77,048 7,492 Telephone network systems and equipment, net 3,806,137 370,099 4,663,048 453,423 Pre-operating expenses, net 78,601 7,643 66,623 6,478 Intangible assets, net 186,831 18,167 217,023 21,103 Implied derivatives 7,390 719 10,227 994 Retirement obligations 14,981 1,457 17,650 1,716 Deposits 5,477 533 7,780 757 Prepaid expenses long term 24,597 2,392 18,734 1,822 Other assets 6,357 618 6,357 618 Total assets Ps. 5,143,659 $500,157 Ps. 7,859,967 $764,284 LIABILITIES CURRENT LIABILITIES: Interest payable 9,390 913 9,913 964 Accrued expenses and other accounts payable 625,291 60,802 548,027 53,289 Notes payables 10,384 1,010 4,849 472 Deferred income 1,523 148 2,537 247 Payroll and other taxes payable 35,232 3,426 52,575 5,112 Total current liabilities 681,820 66,299 617,901 60,084 LONG-TERM LIABILITIES: Senior notes, net 1,948,368 189,454 2,056,820 200,000 Notes payable 11,086 1,078 2,852 277 Other accounts payable 9,858 959 9,556 929 Deferred taxes 129,848 12,626 86,672 8,428 Pensions and postretirement obligations 24,513 2,384 27,776 2,701 Other long term liabilities 67,276 6,542 67,658 6,579 Hedging valuation 4,581 445 13,315 1,294 Total liabilities Ps. 2,877,350 $279,787 Ps. 2,882,550 $280,292 SHAREHOLDERS' EQUITY Capital stock 3,328,141 323,620 5,410,244 526,079 Premium on capital stock 259,164 25,200 826,473 80,364 Accumulated deficit (1,303,664) (126,765) (1,267,466) (123,245) Net loss for the period (17,332) (1,685) 19,853 1,930 Share repurchase program - (11,687) (1,136) Total shareholders' equity (deficit) Ps. 2,266,309 $220,370 Ps. 4,977,417 $483,992 Total liabilities and equity Ps. 5,143,659 $500,157 Ps. 7,859,967 $764,284 NOTES TO FINANCIAL STATEMENTS:
Financial statements for 2007 are reported in Mexican pesos of purchasing power as of December 31, 2007.
For readers' convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps.10.2841 per US$1.00.
MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS Thousand Mexican Pesos ("Ps.") and US Dollars ("$") 3 months ended as of June 30, 2007 US Pesos Dollars % TOTAL REVENUES Ps. 578,977 $56,298 100% Network operating services 206,762 20,105 36% Technical expenses 34,130 3,319 6% Installation expenses 5,125 498 1% Cost of network operation 246,017 23,922 42% GROSS PROFIT 332,960 32,376 58% SG&A 170,595 16,588 29% EBITDA 162,365 15,788 28% Depreciation and amortization 106,303 10,337 Operating income (loss) 56,062 5,451 Comprehensive (income) cost of financing: *Interest expense 50,318 4,893 **Interest (income), net (11,043) (1,074) Exchange (income) loss, net (41,511) (4,036) Gain on net monetary position 6,047 588 3,811 371 Other (income) expense 3,389 330 INCOME (LOSS) BEFORE TAXES 48,861 4,750 Taxes: Asset tax 5,637 548 Flat rate corporate tax - - Income tax 2,137 208 Deferred income tax 40,871 3,974 Total tax 48,645 4,730 NET INCOME (LOSS) Ps. 216 $20 *Adjusted EBITDA 165,921 16,134 % of revenue Adjusted EBITDA 29% 29% Weighted average basic shares 482,934 Weighted average fully diluted 529,016 Earnings per share basic 0.00 Earnings per share diluted 0.00 3 months ended as of June 30, 2008 US Pesos Dollars % TOTAL REVENUES Ps. 669,582 $65,108 100% Network operating services 224,733 21,852 34% Technical expenses 32,519 3,162 5% Installation expenses 6,648 646 1% Cost of network operation 263,900 25,660 39% GROSS PROFIT 405,682 39,448 61% SG&A 201,858 19,628 30% EBITDA 203,824 19,820 30% Depreciation and amortization 123,768 12,035 Operating income (loss) 80,056 7,785 Comprehensive (income) cost of financing: *Interest expense 58,314 5,670 **Interest (income), net (14,912) (1,450) Exchange (income) loss, net (31) (3) Gain on net monetary position - - 43,371 4,217 Other (income) expense 12,318 1,198 INCOME (LOSS) BEFORE TAXES 24,367 2,370 Taxes: Asset tax - - Flat rate corporate tax 6,783 660 Income tax 2,543 247 Deferred income tax 3,553 345 Total tax 12,879 1,252 NET INCOME (LOSS) Ps. 11,488 $1,118 *Adjusted EBITDA 208,209 20,246 % of revenue Adjusted EBITDA 31% 31% Weighted average basic shares 789,819 Weighted average fully diluted 832,548 Earnings per share basic 0.01 Earnings per share diluted 0.01 NOTES TO FINANCIAL STATEMENTS: * Interest related to Senior Notes, Banks and Vendor Financing ** Interest Income net
Financial statements for 2007 are reported in Mexican pesos of purchasing power as of December 31, 2007.
For readers' convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps.10.2841 per US$1.00.
MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS Thousand of Mexican Pesos ("Ps.") and US Dollars ("$") 6 months ended on June 30, 2007 Pesos US Dollars % TOTAL REVENUES Ps. 1,109,482 $107,883 100% Network operating services 394,952 38,404 36% Technical expenses 66,959 6,511 6% Installation expenses 8,979 873 1% Cost of network operation 470,890 45,788 42% GROSS PROFIT 638,592 62,095 58% SG&A 330,428 32,130 30% EBITDA 308,164 29,965 28% Depreciation and amortization 196,358 19,093 Operating income (loss) 111,806 10,872 Comprehensive (income) cost of financing: *Interest expense 115,475 11,228 **Interest (income), net (22,517) (2,189) Exchange (income) loss, net (19,012) (1,849) Gain on net monetary position (5,498) (535) 68,448 6,655 Other (income) expense 2,865 279 INCOME (LOSS) BEFORE TAXES 40,493 3,938 Taxes: Asset tax 14,817 1,441 Flat rate corporate tax - - Income tax 2,137 208 Deferred income tax 40,871 3,974 Total tax 57,825 5,623 NET INCOME (LOSS) Ps. (17,332) $(1,685) *Adjusted EBITDA 314,162 30,548 % of revenue Adjusted EBITDA 28% 28% 6 months ended on June 30, 2008 Pesos US Dollars % TOTAL REVENUES Ps. 1,293,949 $125,820 100% Network operating services 434,057 42,207 34% Technical expenses 65,686 6,387 5% Installation expenses 11,390 1,108 1% Cost of network operation 511,133 49,702 40% GROSS PROFIT 782,816 76,118 60% SG&A 386,986 37,630 30% EBITDA 395,830 38,488 31% Depreciation and amortization 245,651 23,886 Operating income (loss) 150,179 14,602 Comprehensive (income) cost of financing: *Interest expense 132,100 12,845 **Interest (income), net (39,407) (3,832) Exchange (income) loss, net 13,887 1,350 Gain on net monetary position - - 106,580 10,363 Other (income) expense 17,042 1,657 INCOME (LOSS) BEFORE TAXES 26,557 2,582 Taxes: Asset tax - - Flat rate corporate tax 6,783 660 Income tax 5,718 556 Deferred income tax (5,797) (564) Total tax 6,704 652 NET INCOME (LOSS) Ps. 19,853 $1,930 *Adjusted EBITDA 401,750 39,065 % of revenue Adjusted EBITDA 31% 31% NOTES TO FINANCIAL STATEMENTS: * Interest related to Senior Notes, Banks and Vendor Financing ** Interest Income net
Financial statements for 2007 are reported in Mexican pesos of purchasing power as of December 31, 2007.
For readers' convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps.10.2841 per US$1.00.
MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION Thousand of Mexican Pesos ("Ps.") and US Dollars ("$") 3 months ended 3 months ended 3 months ended as of June 30, as of June 30, as of June 30, 2007 2008 2008 Pesos Pesos US Dollars Operating activities: Net income (loss) Ps. (17,332) Ps. 19,853 $1,930 Depreciation and amortization 90,206 132,016 12,837 Long term obligations 1,482 1,457 142 Deferred income tax 44,030 3,554 346 Subtotal 124,384 162,800 15,831 Net change in operation: Resources provided by operation activities 183,256 105,844 10,291 Financing activities: Senior notes (240,152) (149,215) (14,509) Notes payables (3,633) (2,290) (223) Commercial paper (154,307) - - Capital stock 15,177 (74,167) (7,211) Resources provided by financing activities (382,915) (225,672) (21,943) Investing activities: Frequency rights 51 - - Telephone network systems and equipment, net (435,620) (337,065) (32,775) Intangible assets 7,395 (24,355) (2,368) Resources used in investing activities (426,518) (361,420) (35,143) Cash and cash equivalents: Increase / (decrease) in cash equivalents (626,177) (481,248) (46,795) Cash at beginning 783,837 2,286,725 222,355 Cash at end Ps. 157,660 Ps. 1,805,477 $175,560
Financial statements for 2007 are reported in Mexican pesos of purchasing power as of December 31, 2007.
For readers' convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps.10.2841 per US$1.00.
MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION Thousand of Mexican Pesos ("Ps.") and US Dollars ("$") 6 months ended 6 months ended 6 months ended as of June 30, as of June 30, as of June 30, 2007 2008 2008 Pesos Pesos US Dollars Operating activities: Net income (loss) Ps. (17,332) Ps. 19,853 $1,930 Depreciation and amortization 183,162 252,795 24,581 Long term obligations 2,787 1,194 116 Deferred income tax 43,289 (5,796) (564) Subtotal 217,904 273,966 26,639 Net change in operation: Resources provided by operation activities 178,298 155,067 15,077 Financing activities: Senior notes 115,079 (95,449) (9,280) Notes payables (59,312) (5,072) (493) Commercial paper (155,639) - - Capital stock 730 (67,510) (6,564) Resources provided by financing activities (99,142) (168,031) (16,337) Investing activities: Frequency rights 51 - - Telephone network systems and equipment, net (644,831) (692,575) (67,344) Intangible assets (16,007) (27,382) (2,663) Resources used in investing activities (660,787) (719,957) (70,007) Cash and cash equivalents: Increase / (decrease) in cash equivalents (581,631) (732,921) (71,267) Cash at beginning 739,291 2,538,398 246,827 Cash at end Ps. 157,660 Ps. 1,805,477 $175,560
Financial statements for 2007 are reported in Mexican pesos of purchasing power as of December 31, 2007.
For readers' convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of Ps.10.2841 per US$1.00.
MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES UNAUDITED CONDENSED CASH FLOW In Thousand Mexican Pesos ("Ps.") 3 months ended 3 months ended as of June 30, as of June 30, 2007 2008 Operating activities: Pesos Pesos Income before taxes Ps. 48,863 Ps. 24,368 Items without cash flow impact (213,515) 100,335 Items related to investment activities 95,596 109,934 Items related to financing activities 50,318 58,314 Cash flow from income/loss before taxes (18,738) 292,951 Cash flow from: accounts receivables 140,223 (119,078) inventory 1,064 (6,248) accounts payables 112,915 6,017 other assets and liabilities (54,948) 9,835 income taxes (4,616) (9,325) Cash flow from operation activities 194,638 (118,799) Net cash flow from operating activities 175,900 174,152 Cash flow from capital expenditures (430,764) (352,177) Cash in excess/(required) to be used in financing activities (254,864) (178,025) Cash flow from : senior notes (310,066) - vendor financing 40,684 (2,609) capital stock - (7) additional paid in capital 69 (64,262) other financing activities (106,907) (129,031) Cash flow from financing activities (376,220) (195,909) Increase (decrease) in cash and temporary investments (631,084) (373,934) Exchange effects on cash and cash equivalents 4,445 (107,311) Cash and cash equivalents at beginning of the period 787,080 2,286,725 Cash and cash equivalents at the end of the period Ps. 160,441 Ps. 1,805,480
Financial statements for 2007 are reported in Mexican pesos of purchasing power as of December 31, 2007.
MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES UNAUDITED CONDENSED CASH FLOW In Thousand Mexican Pesos ("Ps.") 6 months ended 6 months ended on June 30, on June 30, 2007 2008 Operating activities: Pesos Pesos Income before taxes Ps. 40,493 Ps. 26,557 Items without cash flow impact (216,545) 139,577 Items related to investment activities 174,176 208,010 Items related to financing activities 115,475 132,100 Cash flow from income/loss before taxes 113,599 506,244 Cash flow from: accounts receivables 77,072 (247,880) inventory 2,004 (1,057) accounts payables 101,058 45,038 other assets and liabilities (99,113) (2,358) income taxes (14,536) (12,500) Cash flow from operation activities 66,485 (218,757) Net cash flow from operating activities 180,084 287,487 Cash flow from capital expenditures (664,164) (714,130) Cash in excess/(required) to be used in financing activities (484,080) (426,643) Cash flow from: senior notes (16,884) - vendor financing (14,995) (3,955) capital stock 660 (7) additional paid in capital 69 (67,504) other financing activities (92,275) (105,639) Cash flow from financing activities (123,425) (177,105) Increase (decrease) in cash and temporary investments (607,505) (603,748) Exchange effects on cash and cash equivalents 5,193 (130,307) Cash and cash equivalents at beginning of the period 762,753 2,539,535 Cash and cash equivalents at the end of the period Ps. 160,441 Ps. 1,805,480
Financial statements for 2007 are reported in Mexican pesos of purchasing power as of December 31, 2007.
