TELE CELULAR SUL PARTICIPAÇÕES S.A.
Contact
Ruggero Caterini
Chief Financial Officer and Director of Investor Relations
J...
The Management
“Tele Celular Sul achieved in the second quarter an EBITDA
margin of 4...
It must be pointed out that the decrease in the service revenue over
the first quarter 2001 was ba...
In 2001, some items previously classified as “operating costs” were
segregated and reclassified as “o...
Investment and Financing
In the quarter, the Company invested, through its subsidiaries, R$
...
looking statements. The results may differ materially from the expectations expressed in the forecasts and/or
forward-loo...
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TELE CELULAR SUL PARTICIPAÇÕES S.A. E
...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
Balance Sheet
Informa...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
Statements of Income
...
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Press Release 2 Q01 Tele Celular Sul En

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


Transcripts - Press Release 2 Q01 Tele Celular Sul En

  • 1. TELE CELULAR SUL PARTICIPAÇÕES S.A. Contact Ruggero Caterini Chief Financial Officer and Director of Investor Relations Joana Dark Fonseca Serafim Investor Relations (41) 312-6862 Jserafim@timsul.com.br Rafael J. Caron Bósio Investor Relations (41) 312-6623 rbosio@timsul.com.br Website http://www.timsul.com.br TELE CELULAR SUL PARTICIPAÇÕES S.A. ANNOUNCES ITS CONSOLIDATED RESULTS FOR THE SECOND QUARTER OF 2001 Curitiba, August 2, 2001 – Tele Celular Sul Participações S.A. (BOVESPA: TCLS3 e 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 2nd quarter 2001. 2nd Quarter 2001 Highlights Electricity Shortage The Southern region of Brazil, served by Tele Celular Sul, was not included in the first phase of the government power-rationing plan. The region is self-sufficient in power generation and even exports the surplus to other Brazilian states. Notwithstanding its present situation, the region might be impacted by future macroeconomic effects of the energy crisis the country is facing. Tele Celular Sul designed a contingency plan, under which routine maintenance and periodical equipment tests are performed and replacements made as needed. The radio base station systems were configured to reduce energy consumption. A Company-Wide Rationing Plan was also developed jointly with the employees. Tele Celular Sul meets Anatel goals In the second quarter, the Company met all nine goals set forth by Agência Nacional de Telecomunicações – Anatel (the national telecom regulatory agency). It must be pointed out that the indicators show a marked decrease in customer complaints, tribute to the effictiveness of the Company's customer satisfaction policy, as part of its effort to gain and maintain a healthy market share. 1
  • 2. The Management “Tele Celular Sul achieved in the second quarter an EBITDA margin of 48% of service revenues, resulting from strict cost management and from the year-over-year growth in the net revenue, resulting from a cleanup of the bad debt since the 2nd quarter 2000.” In R$ thousand 2Q01 2Q00 1Q01 1H01 1H00 Gross Handset Revenue 15,098 23,493 7,739 22,837 61,840 Gross Service Revenue 223,454 197,538 264,687 488,141 412,002 Gross Operating Revenue 238,552 221,031 272,426 510,978 474,002 Total Net Revenue 180,091 173,709 187,771 367,862 367,753 EBITDA 80,845 45,451 76,369 157,214 106,510 EBITDA Margin 45% 26% 41% 43% 29% EBITDA Margin (without 48% 30% 42% 45% 34% handset sales) Net Income 17,587 (776) 14,573 32,160 11,066 Net Income per 1000 0.05 - 0.04 0.10 0.03 shares – R$ Market Share Tele Celular Sul's estimated market share for the second quarter 2001 was 71%. The total penetration rate in the concession area was approximately 14%. On June 30, 2001, the Company had 1.51 million customers, of which 56% are pre-paid service customers. Forty thousand subscribers were cancelled in the second quarter, to purge the customer base of default. Operating Revenue In R$ thousand 2Q01 1Q01 1H01 2Q/00 1Q00 1H/00 Net Services Revenue 167,333 181,693 349,026 152,950 161,279 314,229 Net Handsets Revenue 12,758 6,078 18,836 20,759 32,765 53,524 Total Net Revenue 180,091 187,771 367,862 173,709 194,044 367,753 Bad Debt Expenses 3,611 5,360 8,971 22,546 17,685 40,231 % of the Net Service Revenue 2.2% 3.0% 2.6% 14.7% 11.0% 12.8% Net services revenue for the quarter amounted to R$ 180.1 million, Strong over the R$ 173.7 million for the 2Q00. The growth in revenue for the reduction in Bad Debt period was accompanied by a marked reduction in Bad Debt Expenses expenses. In the 2Q00 those expenses peaked at 14.7% of the net services revenue, dropping to 2.2% in the 2Q01. Net services revenue for the half-year, purged of the bad debt effects, increased by more than 20% over the first half 2000. 2
  • 3. It must be pointed out that the decrease in the service revenue over the first quarter 2001 was basically a result of seasonality, since the first quarter encompasses the summer, school holidays, and high tourist flow in the region, particularly in the State of Santa Catarina. Net revenue from sale of handsets was R$ 12.8 million, surpassing the 1Q01 amount, since in the 2Q01 there was a significant increase in the sale of used handsets. The reduction in relation to the 2Q00, in turn, is attributed to the outsourcing of the marketing and sale of handsets to dealers effected in May 2000. Gross Revenue Breakdown Total Gross Operating Revenue Total Gross Operating Revenue 2Q01 - R$ 238.5 million 2Q00 - R$ 221.0 million Handset Sales Hamdset Sales Others 15,1 Interconnection 23,5 2,9 55,7 73,7 Interconnection 45,0 47,9 101,8 93,9 Monthly Fee Usage Monthly Fee Usage Operating Costs and Expenses In R$ thousand 2Q01 2Q00 1Q01 1Q00 1H01 1H00 Cost of Services and Sales of Handsets 83,150 98,058 95,749 110,506 178,899 208,564 Cost of Services 65,942 74,858 77,374 70,427 143,316 145,285 Cost of Handset Sales 17,208 23,200 18,375 40,079 35,583 63,279 Selling Expenses 1 39,077 49,147 47,671 44,444 86,748 93,591 General and Administrative Expenses 2 16,788 12,712 16,478 10,964 33,266 23,676 TOTAL 139,015 159,917 159,898 165,914 298,913 325,831 Bad Debt Expenses 3,611 22,546 5,360 17,685 8,971 40,231 Note: (1) Selling Expenses include: a) expenses with Bad Debt; and b) Effective 2001, the Fistel charge, previously recorded as "cost of services” (2) In 2001 some "cost of services" items are being reclassified as "G&A expenses". Operating costs and expenses totaled R$ 139.0 million for the Decrease of 84% in Bad quarter, representing a 13% decrease from the 2Q000 and 1Q01. Debt Expense The decrease stems basically from the reduction in the handset over 2Q00 selling cost, after the outsourcing of the marketing and distribution to dealers, and also to the decrease in Bad debt expenses, amounting to R$ 3.6 million in the period, i.e., 84% below the 2Q00. 3
  • 4. In 2001, some items previously classified as “operating costs” were segregated and reclassified as “operating expenses - selling and/or General and Administrative”, to better reflect their origin, without affecting the total operating costs and expenses figure. Subscriber acquisition cost (SAC) for the 2Q01 was R$ 172 (R$ 132 SAC in the 2Q00) and R$ 186.00 accumulated in the 1H01, reflecting the of R$ 172 increase in selling costs, particularly the impact of the real devaluation to the US dollar on handset prices. Depreciation and amortization Expenses for the quarter were R$ 47.5 million (including the amortization of the goodwill), equivalent to the 1Q01 amount, over R$ 35.9 million in the 2Q00. EBITDA EBITDA amounted R$ 80.8 million in the quarter, a EBITDA margin Profitability growing of 45% over the total net revenue (or 48 % over net service revenues). The EBITDA increased 78% over the 2Q00, mainly as a result of the cost control and of the growth in the net revenue over the 2Q00, purged from the effects of default. EBITDA 45% 100 50% Margin of 41% 48% of net 39% 38% 80 36% 40% service 31% 30% 80,8 60 26% 30% revenues 76,8 14% 15% 61,1 67,4 40 57,3 20% 57,8 52,1 45,4 20 23,3 32,2 10% 0 0% 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 EBITDA EBITDA Margin (%) Net Income 2Q01 2Q00 1Q01 1Q00 1H01 1H00 Net Income (Loss) -R$ 17,587 (776) 14,573 11,842 32,160 11,066 thousand Net Income (Loss) per 1,000 0.05 - 0.04 0.03 0.10 0.03 shares – R$ Net Income The Company achieved a R$17.6 million net income in the quarter, of R$ 17.6 leading to a R$ 32.2 million accumulated income in the 1H01, 190% million in 2Q01 above the net income accumulated in the 1H00. The increase in the Company's income is a consequence of the cost and expense reduction policy. 4
  • 5. Investment and Financing In the quarter, the Company invested, through its subsidiaries, R$ 27.1 million in the expansion of the cellular telecommunications network. At the end of the quarter the Company's total debt amounted to R$ 339.1 million, resulting in a net indebtedness of R$ 266.6 million. From the total debt, the amount of R$ 66.6 million represents loans and financing in dollars, fully covered by hedge operations, as protection against the strongly oscillating exchange rate. Additionally, the interest rate of a specific part (R$ 17.4 million) of the BNDES (Banco Nacional de Desenvolvimento Econômico e Social) loan, is linked to the “BNDES´s basket of currencies”, including de U.S. dollar, and therefore is exposed to exchange rate fluctuation. Increase Capital Increase Capitalization of the Goodwill-Derived Tax Benefit On April 25, 2001 the Annual Shareholders' Meeting approved Tele Celular Sul's increase in capital, on behalf of Bitel Participações S.A (controlling company), concerning the tax benefit originating from the payment of the goodwill at the time of the Tele Celular Sul's privatization, as provided under art. 7, paragraph 1 of CVM Instruction 319/99. The capital increase amounts to R$ 9,907,980.05 (nine million, nine hundred and seven thousand, nine hundred and eighty reals and five cents). Capitalization of the exceeds amounts of retained earnings and legal reserve (Article 199 of Law 6404/76) The June 18 2001 Special Shareholders' Meeting approved the R$ 59,353,000.00 (fifty-nine million, three hundred and fifty-three thousand reals) capital increase, with no new share subscription, concerning the surplus in the Retained Earnings and Legal Reserve accounts in relation to the Capital, as provided in art. 199 of Lei 6404/76, no shares being issued. Dividends Dividends On June 25, 2001, Tele Celular Sul paid dividends and interest on own capital for the fiscal year 2000, equivalent to R$ 0.03424 per lot of 1,000 preferred and common shares, net of income tax and adjusted by the Taxa Referencial - TR (Reference Rate) for the period between December 31 and the actual payment date. ___________________________________________________________________ “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- 5
  • 6. 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.” Highlights 2Q01 2Q00 1Q01 1Q00 1H01 1H00 Total Subscribers 1.508.071 1.205.343 1.486.673 1.121.531 1.508.071 1.205.343 Postpaid 669.992 778.992 736.534 763.742 669.992 778.992 Prepaid 838.079 426.351 750.139 357.789 838.079 426.351 Estimated population in the region (million) 14,8 14,7 14,7 14,4 14,8 14,7 Municipalities Served 220 218 219 217 220 218 Estimated Total Penetration 14% 10% 14% 9% 14% 10% Market share 71% 83% 73% 85% 71% 83% ARPU Total (1) R$38 R$44 42 R$50 R$40 R$47 MOU Total 111 121 119 142 115 130 Investiment ( million ) R$27 R$7 R$30 R$51 R$57 R$57 Clean up ( subscribers cancelled) 39.949 - - 39.949 - Churn (2) 3% 3% 3% 4% 6% 7% Churn Total (included the clean up) (2) 6% - - - 9% - Total Staff 1.286 1.225 1.286 1.197 1.286 1.225 Notes: (1) Average revenue per subscriber (2) Calculated over the average subscriber base. xxxxxxxxxxxxxxxxxxxxxxxx EBITDA Calculation In R$ thousand 2Q01 2Q00 1Q01 1Q00 1H01 1H/00 Net Operating Revenue 180,091 173,709 187,771 194,044 367,862 367,753 Operating profit (loss) 25,102 (5,957) 20,159 18,981 45,261 13,024 Depreciation 40,766 33,452 40,732 28,349 81,498 61,801 Premium amortization 6,736 2,488 6,736 0 13,472 2,488 Financial revenue (13,295) (5,532) (10,785) (6,045) (24,080) (11,577) Financial expenses 21,536 21,000 19,527 19,774 41,063 40,774 EBITDA 80,845 45,451 76,369 61,059 157,214 106,510 EBITDA Margin (%) 45% 26% 41% 31% 43% 29% Operating Revenue In R$ thousand 2Q01 2Q00 1Q01 1Q00 1H01 1H00 Handsets Sales 15,098 23,493 7,739 38,347 22,837 61,840 Usage 101,841 93,876 143,141 94,027 244,982 204,890 Monthly Fees 44,977 47,880 42,866 47,603 87,843 95,483 Interconnection 73,766 55,679 78,062 72,583 151,828 111,275 Others 2,870 103 618 411 3,488 514 Gross Operating Revenue 238,552 221,031 272,426 252,971 510,978 474,002 Taxes and Other Deductions (58,461) (47,322) (84,655) (58,927) (143,116) (106,249) Net Operating Revenue 180,091 173,709 187,771 194,044 367,862 367,753 Net Operating Revenue from Services 167,333 152,950 181,693 161,279 349,026 314,229 Net Operating Revenue from Sales 12,758 20,759 6,078 32,765 18,836 53,524 6
  • 7. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx TELE CELULAR SUL PARTICIPAÇÕES S.A. E Balance Sheet Information as of June 30, 2001 and March 31,2000 (Expressed in thousands of Brazilian Reais) (translation of the original in Portuguese) Parent Company Consolidated 1H2001 1Q2001 1H2001 1Q2001 Assets Current assets Cash and banks 2,468 401 4,988 4,470 Marketable securities - - 67,555 105,722 Trade accounts receivable - - 120,786 117,511 Inventories - - 20,176 11,884 Associated companies - - 22,510 - Deferred and recoverable taxes 2,529 2,513 41,571 43,212 Dividends receivable - 2,497 - - Interest on own capital receivable - 7,905 - - Accounts receivable from sale of assets - - - 6,808 Other 1,281 1,736 42,668 29,672 6,278 15,052 320,254 319,279 Long-term receivables Subsidiaries 8,713 23,249 - - Deferred and recoverable taxes 807 773 243,777 245,844 Judicial deposits - - 10,775 10,729 Other 6 8 2,278 2,482 9,526 24,030 256,830 259,055 Permanent assets Investments 788,140 761,417 15,620 20 Property, plant and equipment 103 104 812,661 823,509 Deferred charges 15,830 15,836 48,676 55,179 804,073 777,357 876,957 878,708 Total 819,877 816,439 1,454,041 1,457,042 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 7
  • 8. TELE CELULAR SUL PARTICIPAÇÕES S.A. Balance Sheet Information as of June 30, 2001 and March 31,2000 (Expressed in thousands of Brazilian Reais) (Translation of the original in Portuguese) Parent Company Consolidated 1H2001 1Q2001 1H2001 1Q2001 Liabilities and stockholders' equity Current liabilities Trade accounts payable 2,087 3,286 62,885 85,423 Loans and financings - - 29,056 28,934 Salaries and social charges 6,026 3,673 8,076 5,048 Taxes and contributions payable 20 1,028 28,365 29,508 Employee profit sharing 936 1,952 1,270 2,889 Interest on own capital 2,813 4,861 5,546 8,859 Dividends payable 961 9,654 1,258 10,337 Subsidiaries and associated companies - 3,805 - - Other 2,343 1,177 3,963 3,341 15,186 29,436 140,419 174,339 Long-term liabilities Loans and financings - - 310,077 308,445 Taxes and contributions payable - - 47,217 40,584 Pension plan contributions 2,375 2,274 2,375 2,274 Provision for contingencies - - 2,577 1,952 Other 75 75 75 75 2,450 2,349 362,321 353,330 Minority interest 149,060 144,719 Stockholders' equity Capital 245,033 175,772 245,033 175,772 Capital reserve 195,695 205,603 195,695 205,603 Revenue reserves 111,740 111,740 111,740 111,740 Retained earnings 249,773 291,539 249,773 291,539 802,241 784,654 802,241 784,654 Total 819,877 816,439 1,454,041 1,457,042 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 8
  • 9. TELE CELULAR SUL PARTICIPAÇÕES S.A. Statements of Income Ended on June 30, 2001 and June, 2000 (Expressed in thousands of Brazilian Reais) (Translation of the original in Portuguese) Parent Company Consolidated 1H2001 1H2000 1H2001 1H2000 Gross revenues - - 510,978 474,002 Deductions from gross revenues - - (143,116) (106,249) Net revenues - - 367,862 367,753 Cost of goods sold and services rendered - - (178,899) (208,564) Gross profit - - 188,963 159,189 Selling expenses - - (86,748) (93,591) General and administrative expenses (1,389) (1,555) (33,266) (23,676) Equity in the earnings of subsidiaries 33,126 6,176 - - Other operating income (expenses), net (1,245) (2,204) (6,705) 299 Operating income (expenses) 30,492 2,417 (126,719) (116,968) Operating profit before financial results 30,492 2,417 62,244 42,221 Financial income 3,815 12,190 24,080 11,577 Financial expenses (645) (1,848) (41,063) (40,774) Operating profit 33,662 12,759 45,261 13,024 Non-operating income (expenses), net (256) - (78) 31 Income before taxes and profit sharing 33,406 12,759 45,183 13,055 Income tax and social contribution (82) (1,011) (5,576) (3,746) Employee profit sharing (1,164) (682) (1,495) (1,112) Minority interest - - (5,952) 2,869 Net income for the year 32,160 11,066 32,160 11,066 Net income per thousand shares (R$) 0.00010 0.00003 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 9

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