TELE CELULAR SUL PARTICIPAÇÕES S.A.
Contacts
Ruggero Caterini
Chief Financial Officer and Director of Investor Relations
...
The Management
“In the first quarter 2001, Tele Celular Sul kept costs under rigid
co...
The marketing campaign for the 4Q00 and the 1Q01 included
granting free minutes of use to new prepaid and ...
Depreciation and amortization for the quarter were R$ 47.4 million
(including the amortization of the go...
take advantage of an estimated R$204 million tax benefit along 8
years, until 2008. Tele Celular Sul ...
Highlights
1Q01 1Q00 4Q00
...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
QUARTERLY INFORMATION AS OF MARCH 31, 2001 AND DECEMBER 31,2000
...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
QUARTERLY INFORMATION AS OF MARCH 31, 2001 AND DECEMBER 31,2000
...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
STATEMENTS OF INCOME FOR THE QUARTERLY INFORMATION
...
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Press Release 1 Q01 Tele Celular Sul En

Published on: Mar 4, 2016
Source: www.slideshare.net


Transcripts - Press Release 1 Q01 Tele Celular Sul En

  • 1. TELE CELULAR SUL PARTICIPAÇÕES S.A. Contacts Ruggero Caterini Chief Financial Officer and Director of Investor Relations Joana Dark Fonseca Serafim Investor Relations (5541) 312-6862 jserafim@timsul.com.br Rafael J. Caron Bósio Investor Relations (5541) 312-6623 rbosio@timsul.com.br Website http://www.timsul.com.br/tcf/ TELE CELULAR SUL PARTICIPAÇÕES S.A. ANNOUNCES ITS CONSOLIDATED RESULTS FOR THE FIRST QUARTER OF 2001 Curitiba, May 14, 2001 – Tele Celular Sul Participações S.A. (BOVESPA: TCLS3 and TCLS4; NYSE: TSU), the holding Company of Telepar Celular S.A., Telesc Celular S.A. and CTMR Celular S.A., leading providers of cellular telecommunication services in Southern Brazil, announces its results for the first quarter of 2001. Highlights of the 1st Quarter 2001 Tele Celular Sul meets Anatel goals Throughout the first quarter, the Company met all nine goals set by Agência Nacional de Telecomunicações – Anatel (the national telecom regulatory agency). New Corporate Plans The Company launched the Corporate 1000 Plan, geared to the corporate market, and the Business 200 Plan, geared to small businesses within the corporate market. Rates Adjustment and Simplification Tele Celular Sul standardized long-distance call rates in the States of Paraná and Santa Catarina for the Corporate and Special Plans (TIM 50, TIM 100, TIM 200 and TIM 30). The Company's Rate Realignment Plan also encompassed an average 5.6% adjustment to the rates for all Postpaid Plans, including the TIM Basic Plan. Launching of Intelligent Network and WAP Service The Intelligent Network combines a number of services for corporate customers, and also allows the creation of a virtual private network with a mobile PABX. The WAP Service not only allows surfing the sites developed in Wireless Markup Language but also provides access to the TIMnet.com portal, with TIM group exclusive contents. 1
  • 2. The Management “In the first quarter 2001, Tele Celular Sul kept costs under rigid control, resulting in increased profitability, evidenced by the 41% EBITDA margin for the period.” In R$ thousand 1Q01 1Q00 4Q00 Gross Handset Revenue 7,739 38,347 14,213 Gross Service Revenue 264,687 214,624 220,046 Gross Operating Revenue 272,426 225,971 234,259 Total Net Operating Revenue 187,771 194,044 177,305 EBITDA 76,369 61,059 67,393 EBITDA Margin 41% 31% 38% Net Income 14,573 11,842 8,246 Income per 1000 shares – R$ 0,04 0,03 0,02 Market Share Tele Celular Sul's estimated market share for the first quarter 2001 was 73%. The total penetration rate in the concession area was nearly 14%, over the average Brazilian penetration of 14.5%. On March 31, 2001, the Company had 1.48 million customers, of which 50.5% were prepaid service users. Operating Revenue Gross operating revenue from services for the 1Q01 amounted to R$ 20% of gross 264.7 million, over R$ 214.6 million and R$ 220.1 million in the 1Q00 operating and 4Q00, respectively. revenue from Gross Revenu service growth comparing to the 1Q00 Gross revenue from handsets sales was R$ 7.7 million and the reduction in relation to the 1Q00 stems basically from the fact that the sale and distribution of handsets to accredited dealers are performed by a specialized company since May 2000. The Company is therefore booking only the sale of handsets effected by its own shops. It is worth pointing out that the decrease over the 4Q00 is related to the typical increase in sales in the last quarter. Composition of the Total Gross Operating Revenue Composition of the Total Operating Revenue 1Q01 - R$ 272.4 million 1Q00 - R$ 252.9 million Handset Others Sales Others Handset 0,6 0,4 Sales 7,7 38,3 Interconnectio 78,1 72,6 Interconnection 42,9 143,1 47,6 94 Monthly Fee Usage Monthly Fee Usage 2
  • 3. The marketing campaign for the 4Q00 and the 1Q01 included granting free minutes of use to new prepaid and postpaid customers. Those credits or bonuses in minutes are being deducted from the Gross Revenue, having a impact particularly on the 1Q01. Operating Costs and Expenses In R$ thousand 1Q01 1Q00 4Q00 Cost of Services and Goods 95,749 110,506 104,086 Cost of Services 77,374 70,427 88,068 Cost of Goods (handsets) 18,375 40,079 16,018 Selling Expense 47,671 44,444 33,273 General and Administrative Expenses 16,478 10,964 11,747 TOTAL OPERATING COSTS AND EXPENSES 159,898 165,914 149,106 Expenses with the Allowance for Doubtful Debtors 5,360 17,685 1,773 and Losses - PCLD1 Note (1): the PCLD is included in Selling Expenses. Operating costs and expenses for the quarter totaled R$ 159.9 70% of Bad Debt million, representing a 4% decrease over the 1Q00 and a 7% decrease increase over the 4Q00. The decrease stems mainly from the over 1Q00 reduction in the handset selling costs, as a consequence of the outsourced sale and distribution of handsets to accredited dealers, as well as to a decrease in bad debt expenses with defaulting customers, amounting to R$ 5.4 million for the quarter, that is, 70% below the 1Q00. It’s important to point out that on the 4Q00, when the new collecting procedures were implemented, the Company recovered higher amounts of bad debt originated in previous quarters than in the 1Q01. Cost of Goods for the quarter was increased by the selling costs of used handsets. However, when considering the allowance for the marking to market under “Other Operating Expenses”, amounting to R$ 9.4 million, the net costs of goods of that allowance represented R$ 8.9 million. In the quarter, some items entered to “operating costs” were segregated and entered to “operating expenses - selling and/or administrative” to better reflect their origin without affecting the total operating costs and expenses. SAC Subscriber acquisition cost (SAC) was R$ 200.00, over R$ 156.00 of R$200 and R$ 127.00 for the 1Q00 and 4Q00, respectively. The increment in the subscriber acquisition cost in the period is related to the increase in the expenses with advertisement, as well as, the elevation of the costs of the handsets due to the devaluation of the Real front to the Dollar, occurred in the quarter. 3
  • 4. Depreciation and amortization for the quarter were R$ 47.4 million (including the amortization of the goodwill), over R$ 48.2 million for the 4Q00 and R$ 28.3 million for the 1Q00. EBITDA EBITDA EBITDA for the quarter was R$ 76.4 million, representing a 41%. EBITDA Margin of EBITDA margin. The EBITDA increased by 26% and 14% over the 41% in the 1Q00 and 4Q00, respectively, basically as a consequence of cost 1Q01 control. 100 50% 41,0% 39,4% 38,0% 80 36,5% 40% 31,5% 30,3% 60 26,1% 76,4 30% 14,1% 15,3% 67,4 40 57,3 61,1 20% 57,8 52,1 45,4 20 23,3 32,2 10% 0 0% 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 EBITDA EBITDA Margin Net Income Net Profit of 1Q01 1Q00 4Q00 R$ 14.6 million in the 1Q00 Net Profit -R$ thousand 14,573 11,842 8,246 Net Profit per 1,000 shares – R$ 0.04 0.03 0.02 A R$14.6 million net profit was achieved in the quarter, representing a 77% and 24% increase over the 4Q00 and 1Q00. Financing Investment and Financing The Company invested, through its controlled companies, R$ 29.8 million in the quarter to enlarge its cell telephone network. By the end of the quarter the net indebtedness was R$ 227.2 million. Of the total debt, the amount of R$ 74.0 million represents loans and financing in dollars, covered by hedging and/or swap operations, as protection against the strong exchange rate oscillations. Goodwill- Capitalization of the Goodwill-Derived Tax Benefit On June 30, 2000, Tele Celular Sul and its operating companies completed their restructuring, resulting in the transfer of the goodwill paid at the privatization of Bitel Participações S.A., the Company’s controller, to each one of the carriers. The restructuring aim was to 4
  • 5. take advantage of an estimated R$204 million tax benefit along 8 years, until 2008. Tele Celular Sul and its carriers will capitalize the tax benefit derived from the amortization of the goodwill. On December 31, 2000, the consolidated amortization of the goodwill, net of the reversal of the allowance for the integrity of the shareholders' equity, was R$14.3 million, resulting in an R$9.9 million tax benefit. On April 25, 2001, the Annual General Meeting approved Tele Celular Sul's increase in capital, in behalf of Bitel Participações, amounting to R$ 9.9 million, equivalent to the tax benefit generated in that period. The increase in capital foresees the issue of two billion, eight hundred and nineteen million, five hundred and seventy-three thousand, one hundred and fifty (2,819,573,150) common shares for a subscription price of R$ 3.5140 (market average) per lot of 1,000 shares. The period for exercising the preemptive right is Apr/27/01 to May/28/01. The subscription factor for common shares is 0.00843176 for holders of common and preferred shares alike. ___________________________________________________________________ “This release contains forecasts and/or forward-looking statements. Those expectations are based on a number of assumptions. Those expectations are subject to the risks and uncertainties inherent to projections and/ forward- looking statements. The results may differ materially from the expectations expressed in the forecasts and/or forward-looking statements if one or more of those assumptions and expectations prove to be imprecise or unrealized.” 5
  • 6. Highlights 1Q01 1Q00 4Q00 Total Subscribers 1,486,673 1,121,531 1,416,484 Estimated population in the region (million) 14.7 14.4 14.7 Municipalities served 219 217 219 Estimated Total Penetration 14% 9% 13% Market share 73% 85% 75% TOTAL ARPU 1 R$42 R$50 R$42 TOTAL MOU 119 142 121 Investment ( million ) R$30 R$51 R$88 Net Additions 70,189 87,265 131,964 Churn 2 3% 4% 5% Total Staff 1,286 1,197 1,245 Notes: (1) Average revenue per subscriber ( Net and without the sale of handsets). (2) Calculated on the average subscriber base. EBITDA Calculation In R$ thousand 1Q01 1Q00 4Q00 Net Operating Revenue 187,771 194,044 177,305 Operating Profit 20,159 18,981 6,006 Depreciation 40,732 28,349 41,475 Goodwill amortization 6,736 0 6,732 Financial income (10,785) (6,045) (8,800) Financial expenses 19,527 19,774 21,980 EBITDA 76,369 61,059 67,393 EBITDA (%) Margin 41% 31% 38% Operating Revenue In R$ thousand 1Q01 1Q00 4Q00 Gross Handset Revenues 7,739 38,347 14,213 Usage 143,141 94,027 104,378 Monthly fee 42,866 47,603 42,996 Interconnection 78,062 72,583 70,767 Others 618 411 1,905 Gross Operating Revenue 272,426 252,971 234,259 Taxes and other deductions (84,655) (58,927) (56,954) Net Operating Income 187,771 194,044 177,305 Net Service Revenue 181,693 161,279 165,077 Net Handsets Revenue 6,078 32,765 12,228 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 6
  • 7. TELE CELULAR SUL PARTICIPAÇÕES S.A. QUARTERLY INFORMATION AS OF MARCH 31, 2001 AND DECEMBER 31,2000 (Expressed in thousands of Brazilian Reais) (Translation of the original in Portuguese) Parent Company Consolidated 1Q01 1Q00 1Q01 1Q00 Assets Current assets Cash and banks 401 225 4.470 8.008 Marketable securities - - 105.722 89.001 Trade accounts receivable - - 117.511 127.638 Inventories - - 11.884 12.365 Subsidiaries - - - - Deferred and recoverable taxes 2.513 4.069 43.212 47.183 Dividends receivable 2.497 2.489 - - Interest on own capital receivable 7.905 7.878 - - Accounts receivable from sale of assets - - 6.808 10.660 Other 1.736 1.553 29.672 17.319 15.052 16.214 319.279 312.174 Long-term receivables Subsidiaries 23.249 27.928 - - Deferred and recoverable taxes 781 725 245.844 246.910 Judicial deposits - - 10.729 10.683 Other - - 2.482 1.762 24.030 28.653 259.055 259.355 Permanent assets Investments 777.253 760.837 20 20 Property, plant and equipment 104 108 823.509 837.165 Deferred charges - - 55.179 52.839 777.357 760.945 878.708 890.024 Total 816.439 805.812 1.457.042 1.461.553 7
  • 8. TELE CELULAR SUL PARTICIPAÇÕES S.A. QUARTERLY INFORMATION AS OF MARCH 31, 2001 AND DECEMBER 31,2000 (Expressed in thousands of Brazilian Reais) (Translation of the original in Portuguese) Parent Company Consolidated 1Q01 1Q00 1Q01 1Q00 Liabilities and stockholders' equity Current liabilities Trade accounts payable 3.286 3.122 85.423 98.724 Loans and financings - - 28.934 39.022 Salaries and social charges 3.673 4.544 5.048 6.927 Taxes and contributions payable 1.028 2.877 29.508 28.245 Employee profit sharing 1.952 1.489 2.889 2.263 Interest on own capital 4.861 4.882 8.859 8.909 Dividends payable 9.654 9.626 10.337 10.313 Subsidiaries and associated companies 3.805 5.899 - - Provision for contingencies - - - - Other 1.177 1.085 3.341 4.735 29.436 33.524 174.339 199.138 Long-term liabilities Loans and financings - - 308.445 313.763 Taxes and contributions payable - - 40.584 32.367 Pension plan contributions 2.274 2.132 2.274 2.174 Provision for contingencies - - 1.952 1.517 Other 75 75 75 75 2.349 2.207 353.330 349.896 Minority interest 144.719 142.438 Stockholders' equity Capital 175.772 175.772 175.772 175.772 Capital reserve 205.603 205.603 205.603 205.603 Revenue reserves 111.740 111.740 111.740 111.740 Retained earnings 291.539 276.966 291.539 276.966 784.654 770.081 784.654 770.081 Total 816.439 805.812 1.457.042 1.461.553 8
  • 9. TELE CELULAR SUL PARTICIPAÇÕES S.A. STATEMENTS OF INCOME FOR THE QUARTERLY INFORMATION ENDED ON MARCH 31, 2001 AND MARCH, 2000 (Expressed in thousands of Brazilian Reais) (Translation of the original in Portuguese) Parent Company Consolidated 1Q01 1Q00 1Q01 1Q00 Gross revenues - - 272.426 252.971 Deductions from gross revenues - - (84.655) (58.927) Net revenues - - 187.771 194.044 Cost of goods sold and services rendered - - (95.749) (110.506) Gross profit - - 92.022 83.538 Selling expenses - - (47.671) (44.444) General and administrative expenses (669) (913) (16.478) (10.964) Equity in the earnings of subsidiaries 14.582 9.316 - - Other operating income (expenses), net (629) (660) 1.028 4.580 Operating income (expenses) 13.284 7.743 (63.121) (50.828) Operating profit before financial results 13.284 7.743 28.901 32.710 Financial income 2.257 6.126 10.785 6.045 Financial expenses (360) (368) (19.527) (19.774) Exchange variations, net - - - - Operating profit 15.181 13.501 20.159 18.981 Non-operating income (expenses), net - - 296 - Income before taxes and profit sharing 15.181 13.501 20.455 18.981 Income tax and social contribution (145) (1.360) (2.974) (6.711) Employee profit sharing (463) (299) (626) (518) Minority interest - - (2.282) 90 Net income for the year 14.573 11.842 14.573 11.842 Net income per thousand shares (R$) 0,04 0,04 9

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