Cablemas 1Q08 Net Revenue and Adjusted EBITDA Up 18.4% and 19.9% YoY
Cablemas 1Q08 Net Revenue and Adjusted EBITDA Up 18.4% and 19.9% YoY
MEXICO CITY, May 29 /PRNewswire/ -- Cablemas, S.A. de C.V., (Cablemas), the second-largest cable television operator in Mexico based on number of subscribers and homes passed, today announced results for the three-month period ending March 31, 2008.
Cablemas CEO Carlos M. Alvarez Figueroa commented, "As expected, this quarter revenue increased 18.4% with EBITDA up 19.9% year-on-year. Adjusted EBITDA margin rose to 39.0% from declined 38.4% in 1Q07."
"We continued to execute our strategy further increasing market penetration across the board. Cable television subscribers were up 7.7%, high speed internet 14.4% and IP telephony 102.3% year-on-year."
"We also continued making progress in expanding our operations and launched IP telephony in three new cities this quarter meeting our target for the year. In addition, in February we acquired 2,058 subscribers in the city of Progreso, in the state of Yucatan, which allows us to leverage our current operations in Merida."
"During the quarter, our shareholder Alvafig made a capital contribution of US$100 million to Cablemas in exchange of convertible limited voting shares representing approximately 11% of all the capital stock of the Company. A portion of these funds were used to reduce total debt by Ps.476.8 million, thus bringing the debt to LTM Adjusted EBITDA ratio of 2.3 times in 1Q08 from 2.9 times in 4Q07," closed Mr. Alvarez Figueroa.
Financial and Operational Highlights(1) (in million Mexican Pesos) 1Q07 1Q08 % Chg. Financial Highlights Net revenue 651.3 770.9 18.4% Operating profit 134.2 147.8 10.1% Adjusted EBITDA(2) 250.4 300.3 19.9% Net income 115.6 33.2 -71.3% Operating margin 20.6% 19.2% -143 bps Adjusted EBITDA margin(2) 38.4% 39.0% +51 bps Net income margin 17.7% 4.3% -1344 bps Total Debt 2,016.3 2,420.3 20.0% Net Debt 1,965.7 1,839.4 -6.4% Total Debt/ LTM Adj. EBITDA(2) 2.2x 2.3x Net Debt/ LTM Adj. EBITDA(2) 2.1x 1.7x EBITDA/ Net interest expense 3.9x 3.9x Operational Highlights Homes passed 2,148,228 2,285,974 6.4% Cable Television subscribers 736,205 793,236 7.7% High-speed internet subscribers 198,471 226,962 14.4% IP Telephony lines 26,567 53,781 102.4% (1) Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with Mexican Financial Reporting Standards and represent comparisons between the three-month periods ended March 31, 2008, and the equivalent three- month period ended March 31, 2007. Results for 1Q07 are expressed in constant Mexican pesos as of December 31, 2007, while 1Q08 results are in nominal pesos. Tables state figures in millions of pesos, unless otherwise noted. (2) Adjusted EBITDA is calculated by adding amortization and depreciation, net comprehensive financial results, net other income, special items, total income tax and asset tax, total employee statutory profit sharing, effects from associated companies and minority interest to net income/loss. FIRST QUARTER 2008 CONSOLIDATED RESULTS Net Revenues
Net revenues increased 18.4%, or Ps.119.6 million, during 1Q08 to Ps.770.9 million, as described below:
-- Cable Television: The 12.2% growth in cable television revenues, from Ps.503.5 to Ps.565.0 was principally due to a 7.7% YoY increase in the number of subscribers to 793,236 with a penetration rate of 34%. Average monthly cable television revenues per subscriber (ARPU) declined year over year to Ps. 236.8 from Ps.238.1, as a result of the 19.0% increase in Minibasic subscribers, who pay lower monthly fees, while Basic subscribers increased 3.4%. On a sequential basis, however, ARPU rose 7.8% from Ps.219.6 in 4Q07. The average monthly net churn rates for cable television increased 72 bps to 3.0%, reflecting the initial reaction to the increase in rates at the Minibasic service implemented during the quarter. Churn rates towards the end of the quarter, however, have begun to stabilize. -- High Speed Internet: The 26.7%, or Ps.29.7 million, rise in high-speed Internet revenues to Ps.140.9 million resulted mainly from a 14.4% increase in the number of subscribers to 226,962, with a penetration rate of 11.8%. High-speed Internet ARPU increased to Ps.209.9 from Ps.209.5 in 1Q07, reflecting an increase in demand for higher speed service. On a sequential basis, ARPU rose 4.1% from 201.7 in 4Q07. Average monthly net churn rates for high-speed Internet rose 145 bps to 4.7% in 1Q08 due to high competition. -- IP Telephony: IP telephony revenues for the quarter rose by Ps.18.4 million, to Ps.43.2 million. The number of IP telephony lines in service rose 102.4% to 53,781 from 26,567 at the end of 1Q07. IP telephony ARPU for 1Q08 was Ps. 296.2. This does not include migration fees paid to Cablemas by Axtel for new subscribers which, if included, would increase IP telephony ARPU to Ps.303.8 for 1Q08. Quarter-over- quarter, ARPU rose 11.8% from Ps.264.9 in 4Q07. Table 1. Revenues by Service Offering 1Q07 1Q08 % of Total % of Total % Chg. Revenue Revenue Revenue Revenue Cable Television 503.5 77.3% 565.0 73.3% 12.2% High-Speed Internet 111.2 17.1% 140.9 18.3% 26.7% IP telephony 24.8 3.8% 43.2 5.6% 74.1% Advertising 11.0 1.7% 18.4 2.4% 67.5% Other(1) 0.8 0.1% 3.4 0.4% 351.2% Total Net Revenue(2) 651.3 100.0% 770.9 100.0% 18.4% (1) Includes revenue relating to rental and sale of cable decoders and charges relating to customer's change of residence. (2) All net revenue figures are net of value-added taxes and other taxes on sales. Table 2. Number of Subscribers and Revenue per Service Offering % Chg. in 1Q07 1Q08 Subscribers Minibasic 203,608 242,374 19.0% Basic(1) 515,782 533,310 3.4% Superbasic(1) 44,379 44,585 0.5% Premium (1) 29,173 33,912 16.2% Hotel 16,815 17,552 4.4% Total Cable Television 736,205 793,236 7.7% High-Speed Internet 198,471 226,962 14.4% IP Telephony lines 26,567 53,781 102.4% (1) The number and percentage of Basic subscribers includes Basic, Superbasic and Premium subscribers due to the fact that all Superbasic and Premium subscribers must also be Basic subscribers. Table 3. ARPUs and Churn Per Service Offering 1Q07 1Q08 % Chg. Homes passed 2,148,228 2,285,974 6.4% Cable Television - Revenue 503.5 565.0 12.2% - Subscribers 736,205 793,236 7.7% - ARPU 238.1 236.8 -0.5% - Avg. Monthly Churn 2.3% 3.0% +72 bps High-Speed Internet - Revenue 111.2 140.9 26.7% - Subscribers 198,471 226,962 14.4% - ARPU 209.5 209.9 0.2% - Avg. Monthly Churn 3.3% 4.7% +145 bps IP Telephony - Revenue 24.8 43.2 74.1% - Lines 26,567 53,781 102.4% - ARPU (without migration fee) 280.1 296.2 5.7% Operating Profit
Operating profit for 1Q08 increased by 10.1%, or Ps.13.6 million, to Ps.147.8 million, driven mainly by a Ps.46.7 million increase in gross profit, which more than offset the Ps.33.1 million rise in SG&A. Operating margin fell 143 bps to 19.2% from 20.6% in 1Q07.
Table 4. Operating Profit 1Q07 1Q08 % Chg. Million % of Million % of Ps. Revenues Ps. Revenues Service revenues 651.3 100.0% 770.9 100.0% 18.4% Cost of services 321.3 49.3% 394.2 51.1% 22.7% Gross Profit 330.0 50.7% 376.7 48.9% 14.1% SG&A 195.8 30.1% 228.8 29.7% 16.9% - Selling 65.8 10.1% 78.4 10.2% 19.3% - Administrative 118.2 18.2% 124.8 16.2% 5.6% - Amortization and depreciation 11.8 1.8% 25.6 3.3% 117.2% Total operating profit 134.2 20.6% 147.8 19.2% 10.1% Cost of Services
Cost of Services for 1Q08 rose 22.7%, or Ps.72.9 million. The increase in cost of services was primarily due to:
-- A Ps.19.8 million increase in Internet costs related to the incremental cost for bandwidth as the company began offering higher Internet speeds at the same price to make its service more attractive. The increase also reflected the 14.4% growth in the number of Internet subscribers; -- A Ps.22.5 million increase in depreciation & amortization resulting from an increase in fixed assets investments. -- A Ps.9.4 million increase in telephony costs resulting from the roll out of IP telephony in new cities; and -- A Ps.7.8 million increase in payroll due to a rise in the number of technical employees from 1,023 people in March 31, 2007 to 1,212 in March 31, 2008. Selling, General and Administrative Expenses
Selling, General and Administrative Expenses (including depreciation and amortization) or SG&A, increased Ps.33.1 million, or 16.9% YoY to Ps.228.8 million. As a percentage of sales, however, SG&A declined to 29.7%, from 30.1% in 1Q07. The absolute increase in SG&A principally reflected the following changes:
-- Selling expenses rose 19.3% to Ps.78.4 million. As a percentage of revenues, selling expenses rose slightly to 10.2% from 10.1% in 1Q07. The increase reflects higher advertising expenses to promote the launch of IP telephony and triple play. The Company employed 1,202 salespersons as of March 31, 2008 compared to 990 as of March 31, 2007. -- Administrative expenses increased 5.6% to Ps.124.8 million. As a percentage of revenues, administrative expenses fell to 16.2% from 18.2% in the year-ago quarter. The absolute rise in administrative expenses was principally due to: - A Ps. 2.5 million increase in salaries and fees principally due to the increase in the number of employees resulting from the Company's growth; - A Ps. 2.7 million increase in leases of additional warehouses and telephony facilities; -- Amortization and depreciation rose 117.2%, or Ps.13.8 million, to Ps.25.6 million in 1Q08, principally due to the increase in office equipment and the amortization of intangibles resulting from recent acquisitions. Adjusted EBITDA
Adjusted EBITDA for 1Q08 increased 19.9%, or Ps.49.9 million, to Ps.300.3 million. The adjusted EBITDA margin rose 51 bps to 39.0%. The following table sets forth the reconciliation between net income and adjusted EBITDA:
Table 5. Adjusted EBITDA 1Q07 1Q08 % Chg. Net income (loss) 115.6 33.2 -71.3% Add (subtract): Amortization and depreciation 116.2 152.5 31.2% Comprehensive financial results, net 10.2 90.5 786.0% Other (income) expense, net (19.8) (1.5) n/a Total income tax and asset tax 32.6 21.6 -33.6% Employee profit sharing 2.0 0.6 -68.7% Effects from associated companies (6.6) 3.3 n/a Minority interest 0.2 0.1 -44.1% Adjusted EBITDA 250.4 300.3 19.9% -- Depreciation and amortization increased 31.2%, or Ps.36.3 million, to Ps.152.5 million, principally due to an increase in fixed asset investments. -- Net comprehensive financial results were an expense of Ps.90 million compared with an expense of Ps.10.2 million in 1Q07, principally reflecting lower gains from financial instruments and monetary position. -- During the quarter the company recorded a Ps.21.6 million provision for income taxes and asset taxes, compared to Ps.32.6 million in 1Q07. Comprehensive Financial Results, Net
Net comprehensive financial results were an expense of Ps.90.5 million for the three-months ended March 31, 2008, an increase of Ps.80.3 million over an expense of Ps.10.2 million for 1Q07. The increase primarily reflected a Ps.42.3 million financial instrument loss in 1Q08 compared with a Ps.30.2 million gain in 1Q07. In addition, pursuant to NIF B-10, inflation accounting is not applicable for 2008 and thus the result from monetary position is not determined for 2008. The non-monetary financial instruments loss was the result of the Company's hedging strategy. The Ps.29.7 million non-monetary foreign exchange gain reflects the appreciation of the Mexican peso against the US dollar.
Table 6. Comprehensive Financial Results, Net 1Q07 1Q08 % Chg. Interest income 1.7 3.6 111.4% Interest expense -65.7 -81.5 24.0% Financial instruments (loss) 30.2 -42.3 -239.9% Foreign-exchange (loss) gain, net -2.0 29.7 n/a Monetary position (loss) gain 25.5 0.0 n/a Comprehensive financial results, net (10.2) (90.5) 786.0% Net Income
For 1Q08, Cablemas posted a net gain of Ps.33.2 million, compared with a net gain of Ps.115.6 million 1Q07. Net income margin fell to 4.3% from 17.7% for 1Q07.
CAPEX
Capital expenditures for 1Q08 increased 17.5%, or Ps.31.6 million, to Ps.211.7 million from Ps.180.2 million in 1Q07. Capital expenditures were principally related to investments incurred in connection with the roll out of IP telephony and to expand and upgrade Cablemas' network.
As of March 31, 2008, Cablemas had a network of 14,066 km, of which 84% was bi-directional, 89% was operating at or greater than 550 MHz and 77% was operating at or greater than 750 MHz.
DEBT STRUCTURE AND CASH FLOW
Consolidated gross debt as of March 31, 2008, totaled Ps. 2,420.3 million, of which Ps.2,414.0 million was long-term and Ps.6.3 million was short term. Consolidated gross debt rose YoY by 20.0%, from Ps.2,016.3 million as of March 31, 2007. This was mainly the result of the 5-year term syndicated loan facility for US$50 million entered with JP Morgan on December 21, 2007, which funds were used to finance our proportionate ownership share of Cablestar, S.A. de C.V. in the acquisition of the majority of the assets of Bestel, S.A. de C.V. On a sequential basis, however, consolidated debt declined by 16.5%, or Ps.476.8 million, from Ps.2,897.1 as of December 31, 2007.
Net debt, which is calculated as total debt minus cash and cash equivalents, fell YoY by 6.4% to Ps.1,839.4 million, from 1,965.7 million as of March 31, 2007. As of March 31, 2008, Cablemas had a cash balance of Ps.580.9 million. Quarter-over-quarter, net debt fell 54.5%, or Ps.1,003.2 million, from Ps.2,842.6 million in 4Q07. As a result, net debt to LTM Adjusted EBITDA declined to 1.7 times in 1Q08 from 2.8 times in 4Q07.
Table 7. Debt Indicators 1Q07 1Q08 % Chg. Total Debt 2,016.3 2,420.3 20.0% Short-Term Debt 67.0 6.3 -90.6% Long-Term Debt 1,949.3 2,414.0 23.8% Cash and Cash Equivalents 50.6 580.9 1047.4% Total Net Debt 1,965.7 1,839.4 -6.4% Leverage Total Debt/ LTM Adjusted EBITDA 2.2x 2.3x Total Net Debt/ LTM Adjusted EBITDA 2.1x 1.7x Interest Coverage Adjusted EBITDA / Net Interest Expense 3.9x 3.9x
Cash flow from operations during 1Q08 increased 5.1%, or Ps.8.5 million, to Ps.174.9 million. Net borrowings increased Ps.632.0 million. CAPEX for 1Q07 decreased Ps.31.6 million to Ps.211.7 million. Investments were principally related to the upgrade and expansion of Cablemas' network, customers' premises equipment investments and the roll out of IP telephony.
Table 8. Cash Flow 1Q07 1Q08 Change Cash at the beginning of the period 56.0 54.5 (1.5) Net Income 115.6 33.2 (82.4) + Depreciation and amortization 117.8 154.0 36.2 + Change in Working Capital 58.1 (50.2) (108.3) + Other (124.9) 38.0 162.9 Cash Flow from Operations 166.5 174.9 8.5 - Capex (180.2) (211.7) (31.6) - Other 45.5 (31.6) (77.2) Net Investing Activities (134.6) (243.3) (108.7) + Debt 0.6 (430.8) (431.4) + Other (37.8) 1,025.6 1,063.4 Net Financing Activities (37.2) 594.8 632.0 Cash at the end of the period 50.6 580.9 530.3 KEY EVENTS Cablemas Pays a Total Cash Dividend of Ps.98.6 million
In February 2008, the Company's shareholders approved a cash dividend of Ps.98.6 million. The dividend was paid in two installments. The first installment of Ps.54.8 million took place on February 28, 2008 and the second one for a total of Ps.43.8 million took place on April 30, 2008.
Acquisition of Subscriber Base in the City of Progreso
In February 2008 Cablemas acquired 2,058 subscribers in the city of Progreso, in the state of Yucatan, for a total of US$1.2 million. This acquisition allows Cablemas to leverage its current operations in Merida, 35 kilometers from Progreso.
COFECO Approved conversion of long term notes issued by Alvafig to a subsidiary of Televisa
On May 13, 2008, the Mexican Antitrust Commission announced that Televisa has complied with certain conditions imposed by the commission, authorizing the conversion of the long term notes issued by Alvafig into 99.99% of its capital stock. Our shareholder, Alvafig, holds 49% of the voting stock of Calbemas, and all of the convertible limited voting shares of the Company which represent approximately 11% of the total capital stock of the Company.
Main Changes in Accounting Practices
During 1Q08 the Company began implementing several changes in accounting practices as a result of the following changes in Mexican Financial Reporting Standards (NIFs) and Mexican Interim Financial Reporting Standards (INIFs) which became effective on January 1, 2008:
-- Pursuant to NIF B-10, inflation accounting is not applicable for 2008. The most significant impact of this change is that the result from monetary position is not determined for 2008. Under NIF B-10, inflation accounting will henceforth apply only during periods in which the cumulative inflation rate over the previous three years equals, or exceeds, 26%. As a result of this change, results for 1Q08 are expressed in nominal pesos. -- To address issues relating to the transition to NIF B-10, the comparative figures for 1Q07 will continue to be expressed in constant pesos as of December 31, 2007 pursuant to INIF 9. FIRST QUARTER 2008 EARNINGS CONFERENCE CALL Date: Friday, May 30, 2008 Time: 11:30 AM US ET - 10:30 AM Mexico City Time Dial Information: 888-713-4213 (U.S.) or 617-213-4865 (international) Passcode: 36206353 Pre-registration: If you would like to pre-register for the conference call use the following link: https://www.theconferencingservice.com/prereg/key.process?key=PHYH7H37B Pre-registering is not mandatory but is recommended as it will provide you immediate entry into the call and will facilitate the timely start of the conference. You will receive a code that allows you to enter the call directly. Pre-registration only takes a few moments, and you may do so at any time, including up to and after call start time. To pre-register, please click the link above. Alternatively, if you would rather be placed into the call by an operator, please call at least 15 minutes prior to call start time. Replay: Starting Friday, May 30, 2008, at 1:30 PM US ET, ending at midnight US ET on Friday, June 6, 2008, 888-286-8010 (U.S.) or 617-801-6888 (international). Passcode: 57641946. About Cablemas
Cablemas is the second-largest cable television operator in Mexico based on number of subscribers and homes passed. As of March 31, 2008, Cablemas' cable network served over 793,236 cable television subscribers, 226,962 high-speed internet subscribers, and 53,781 IP telephony lines, with 2,285,974 homes passed.
Cablemas is the concessionaire with the broadest coverage in Mexico, operating in 46 cities throughout the country's oil, maquiladora and tourist regions as of March 31, 2008. Cablemas has consistently introduced innovative products in Mexico and is the first cable operator in the country to provide a "Triple Play" bundled service package of cable television, high speed internet and IP telephony. More information about Cablemas can be found at www.cablemas.com.
This document may contain certain forward-looking statements concerning Cablemas' operations, performance, business, financial condition and growth prospects. These statements are based upon beliefs of management as well as a number of assumptions and estimates, which are inherently subject to significant uncertainties, many of which are beyond Cablemas' control. Actual results may differ materially from those expressed or implied by such forward- looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Mexican economy, including changes in inflation rates or exchange rates, changes in political conditions and government policies in Mexico, increased competition, regulatory developments and customer demand. These statements are made as of the date of this press release and Cablemas undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise in light of these risks and uncertainties, there can be no assurances that the events described or implied in the forward-looking statements contained in this document will in fact transpire.
- UNAUDITED FINANCIAL TABLES TO FOLLOW - CABLEMAS, S. A. DE C. V. AND SUBSIDIARIES Consolidated Balance Sheets March 31st. 2008 and 2007
(1Q07 figures are in thousands of constant Mexican pesos as of December 31,
2007 while 1Q08 figures are in thousands of nominal Mexican pesos) (Unaudited) ASSETS 2008 2007 Current assets: Cash and cash equivalents Ps. 580,900 50,626 Trade accounts receivable, less allowance for doubtful accounts of Ps. 10,332 in 2008, Ps. 10,748 in 2007 42,788 44,140 Other accounts receivable, net 163,472 186,204 Prepaid expenses 36,286 44,493 Total current assets 823,446 325,463 Financial Instruments 395,995 508,087 Inventory of components of signal distribution systems, net 310,880 297,550 Investment in associated companies 653,110 96,764 Property, signal distribution systems and equipment, net 3,917,144 3,295,763 Deferred employee statutory profit sharing 11,663 6,431 Goodwill, net 1,076,294 1,023,483 Intangible asset from pension and seniority premium plans and severance compensation for reasons other than restructuring 12,714 19,620 Other non-current assets, net 208,361 189,776 Ps. 7,409,607 5,762,937 LIABILITIES 2008 2007 Current liabilities: Current installments of: Bank loans Ps. 278 66,437 Obligations under capital leases 6,045 522 Senior notes 69,159 69,297 Accounts payable 192,233 202,841 Accruals 101,847 101,998 Accrued liabilities 17,448 16,494 Taxes payable 11,922 37,200 Employee statutory profit sharing 6,607 8,652 Productora y Comercializadora de Television, S. A. de C. V. (related company) 43,677 36,173 Subscriber deposits and advances 71,636 59,768 Total current liabilities 520,852 599,382 Financial instruments 455,040 466,064 Senior notes 1,872,273 1,949,083 Bank loans, excluding current installments 534,935 - Obligations under capital leases, excluding current installments 6,799 253 Pension and seniority premiums plans and severance compensation for reasons other than restructuring 53,986 47,939 Income tax long-term 8,647 9,329 Deferred income tax 467,819 360,661 Total liabilities 3,920,351 3,432,711 STOCKHOLDERS' EQUITY Majority stockholders' equity: Capital stock 760,925 751,417 Additional paid-in capital 2,271,201 1,200,309 Retained earnings 546,244 457,180 Valuation effects of financial instruments (84,338) (72,540) Effect from labor obligations (532) (1,564) Cumulative deferred Income Tax effect 3,448 3,448 Equity adjustment of non-monetary assets (10,298) (10,298) Total majority stockholders' equity 3,486,650 2,327,952 Minority interest 2,606 2,274 Total stockholders' equity 3,489,256 2,330,226 Commitments and contingent liabilities Ps. 7,409,607 5,762,937 CABLEMAS, S. A. DE C. V. AND SUBSIDIARIES Consolidated Statements of Income Three months period ending March 31st, 2008 and 2007 (1Q07 figures are in thousands of constant Mexican pesos as of December 31, 2007 while 1Q08 figures are in thousands of nominal Mexican pesos) (Unaudited) 2008 2007 Service revenues Ps. 770,903 Ps. 651,310 Cost of services 394,236 321,329 Gross profit 376,667 329,981 Operating expenses: Selling 78,428 65,750 Administrative 124,788 118,217 Amortization and depreciation 25,605 11,787 Total operating expenses 228,821 195,754 Operating profit 147,846 134,227 Other income (expenses), net Employee statutory profit sharing: Current (2,678) (1,617) Deferred 2,037 (430) Total employee statutory profit sharing (641) (2,047) Other income (expenses) 1,503 19,780 Other income (expenses), net 862 17,733 Comprehensive financial results: Interest income 3,631 1,718 Interest expense (81,459) (65,697) Foreign exchange (loss) gain, net 29,654 (1,980) Valuation effects of financial instruments (42,283) 30,222 Monetary position gain - 25,527 Comprehensive financial results, net (90,457) (10,210) Effects from associated companies: Equity in the results of operations (3,343) 6,590 Total effects from associated companies (3,343) 6,590 Income before income taxes and minority interest 54,908 148,340 Income taxes: Current 6,098 43,559 Deferred 15,523 (11,000) Total income taxes 21,621 32,559 Income before minority interest 33,287 115,781 Minority interest (119) (213) Majority interest net income Ps. 33,168 Ps. 115,568 Basic earnings per share Ps. 0.12 Ps. 0.42 CABLEMAS, S. A. DE C. V. AND SUBSIDIARIES Consolidated Statements of Changes in Financial Position Three months period ending March 31st, 2008 and 2007 (1Q07 figures are in thousands of constant Mexican pesos as of December 31, 2007 while 1Q08 figures are in thousands of nominal Mexican pesos) (Unaudited) 2008 2007 Operating activities: Majority interest net income Ps. 33,168 Ps. 115,568 Add charges (deduct credit) to operations not requiring (providing) funds: Depreciation and amortization 154,019 117,783 Net gain on insurance recovery - (45,542) Effects from associated companies 3,343 (6,590) Accrual for pension, seniority premiums and severance 1,941 (164) Deferred income taxes 15,523 (11,000) Deferred employee statutory profit sharing (2,037) 430 Minority interest 119 213 Financial instruments 19,075 (62,286) Funds provided by operations 225,151 108,412 Net financing from (investing in) operating accounts: Trade and other accounts receivable, net (3,428) 59,702 Prepaid expenses (14,522) (24,658) Accounts payable (83,774) (50,287) Accruals and accrued liabilities 10,261 6,892 Taxes payable 3,806 12,614 Subscriber deposits and advances 30,778 14,251 Employee statutory profit sharing 2,418 1,583 Related parties 4,245 37,974 Funds provided by operating activities 174,935 166,483 Financing activities: Proceeds from (payments of) bank loans, net (438,968) (22,711) Proceeds from notes and payments of commercial paper obligations, net 9,957 23,464 Proceeds from (payments of) capital lease obligations (1,815) (145) Capital stock increases 9,507 - Additional paid-in capital 1,070,893 - Dividends paid (54,786) (38,211) Income tax long-term - 385 Funds provided by financing activities 594,788 (37,218) Investing activities: Inventory of components of signal distribution systems 26,534 (3,907) Capital expenditures (223,443) (169,465) Other assets, net (14,819) (6,802) Investment in associated companies (31,613) - Insurance recovery - 45,542 Funds used in investing activities (243,341) (134,632) (Decrease) increase in cash and cash equivalents 526,382 (5,367) Cash and cash equivalents: At beginning of year 54,518 55,993 At end of year Ps. 580,900 Ps. 50,626
First Call Analyst:
FCMN Contact:
Source: Cablemas, S.A. de C.V.
CONTACT: In Mexico, Allan Ituarte Hesles, Planning & IR Manager,
Cablemas, +5255-24-54-58-84, allan.ituarte@admcablemas.com.mx; In the United
States, Susan Borinelli, Breakstone Group, +1-646-452-2332,
sborinelli@breakstone-group.com, for Cablemas
Web site: http://www.cablemas.com/
Profile: International Entertainment
posted by EntertainmentNews @ 2:28 PM
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