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 third quarter an EBITDA margin
o...
revenue throughout the past three quarters. Accumulated bad debt
expenses until the 3Q01 amounted t...
especially the impact of the real devaluation to the US dollar on
handset prices.
D...
a specific part of the BNDES (Banco Nacional de Desenvolvimento
Econômico e Social) loan, correspondi...
Highlights
Accum....
TELE CELULAR SUL PARTICIPAÇÕES S.A. E
Balance sheets as of September 30, 2001 and June 30, 2001
...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
Balance sheets as of September 30, 2001 and June 30, 2001
...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
Income Statement
...
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Press Release 3 T01 Tele Celular Sul En

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


Transcripts - Press Release 3 T01 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/tcf TELE CELULAR SUL PARTICIPAÇÕES S.A. ANNOUNCES ITS CONSOLIDATED RESULTS FOR THE THIRD QUARTER 2001 Curitiba, November 7, 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 3rd quarter 2001. 3rd Quarter 2001 Highlights Customer Relations Quality and good customer relations are hallmarks of Tele Celular Sul. Throughout the quarter, in addition to keeping the focus on customer loyalty, the Company also intensified its investment in this distinctive realm. Tele Celular Sul modernized its Customer Service, widening the services provided through the Internet, and designed a new telephone bill layout. A program was created and implemented for the top consumer market customers, providing special service and a range of unique offers. New products and services catering for the corporate market were implemented, in order to meet a broader range of needs of large corporations and small businesses alike. Tele Celular Sul meets Anatel goals In the third quarter, the Company met all nine goals set 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, substantiating the efficacy of the Company's customer satisfaction policy, as part of the effort to gain and maintain a good market share. 1
  • 2. The Management “Tele Celular Sul achieved in the third quarter an EBITDA margin of 49% over the net services revenue, reflecting a more vigorous customer retention policy”. In R$ thousand 3Q01 3Q00 2Q01 Accum. Accum. until until Sep/01 Sep/00 Gross Handset Revenue 34,816 9,951 15,098 57,653 71,431 Gross Service Revenue 216,851 208,230 223,454 704,992 620,392 Gross Operating Revenue 251,667 217,821 238,552 762,645 691,823 Total Net Revenue 196,235 171,829 180,091 564,097 539,582 EBITDA 84,435 44,824 80,845 241,649 151,334 EBITDA Margin 43% 26% 45% 43% 28% EBITDA Margin (without 49% 27% 48% 46% 32% handset sales) Net Income 10,878 (3,944) 17,587 43,038 7,122 Net Income per 1,000 0.03 (0.01) 0.05 0.13 0.02 shares – R$ Market Share Tele Celular Sul's estimated market share for the third quarter 2001 was 68%. The total penetration rate in the concession area was approximately 15%. On September 30, 2001, the Company had 1.53 million customers, of which 59% use prepaid services. Thirty-four thousand customers were cancelled in the third quarter, to purge the customer base of default. Operating Revenue In R$ thousand Accum. Accum. 3Q01 3Q00 2Q/01 until until Sep/01 Sep/00 Net Services Revenue 173,369 163,615 167,333 522,395 477,844 Net Handsets Revenue 22,866 8,214 12,758 41,702 61,738 Total Net Revenue 196,235 171,829 180,091 564,097 539,582 Total Net Revenue for the quarter amounted to R$ 196.2 million, representing 14% and 9% increments over the 3Q00 and 2Q01. The Company started to market and to distribute Net Revenue from handsets sales was R$ 22.9 million. The 79% handsets among increase over the 2Q01 is attributed to the fact that the Company is its accredited taking over the marketing and distribution of handsets to its dealers. accredited dealers, activities formerly outsourced. As to the qualitative aspects, it is worth pointing out that bad debt levels below those of the preceding years have accompanied the 2
  • 3. revenue throughout the past three quarters. Accumulated bad debt expenses until the 3Q01 amounted to 3% of the net services revenue. This figure reached 12% at the end of the 3Q00. Gross Revenue Breakdown Total Gross Operating Revenue Total Gross Operating Revenue 3rd Q/2001 - R$ 251.7 million 3 rd Q/2000 - R$ 217.8 million Handset Sales Handset Sales Other Interconnection 9.5 1.0 34.8 64.3 Interconnection 74.5 1.0 45.5 95.9 Other 99.4 43.6 Monthly Fee Usage Monthly Fee Usage Operating Costs and Expenses In R$ thousand 3Q01 3Q00 2Q01 Accum. until Accum. until Sep/01 Sep/00 Cost of Services and Sale of Handsets 101,970 106,716 83,150 280,869 315,280 Cost of Services 70,737 83,253 65,942 214,053 228,368 Cost of Handset Sales 31,233 23,463 17,208 66,816 86,912 Selling Expenses 45,268 45,077 39,077 132,016 138,668 General and Administrative Expenses 15,127 12,926 16,788 48,393 36,602 TOTAL 162,365 164,719 139,015 461,278 490,550 6,481 17,047 3,611 15,452 57,278 Bad Debt Expenses Note: (1) Selling expenses include: a) Bad debt Expenses with; 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$ 162.4 million for the Increase in retention quarter, representing a 17% increase over the 2Q01. The Company expenses began marketing and distributing handsets to its accredited dealers in the quarter, thus increasing the revenues from the sale of handsets and the ensuing costs. There was also an increment in the expenses related to the customer retention program. The bad debt expenses for the period were R$ 6.5 million. The increase in the period is basically related to provisions of ammounts which are still under negotiation with other telecomunication companies. The level of collection has been mantained stable. Its worth pointing out that the bad debt expenses in the period, show a 62% decrease compared to 3Q00. The subscriber acquisition cost (SAC) for the 3Q01 was R$ 181.00 SAC (R$ 127.00 in the 3Q00) and R$ 185.00 accumulated in the nine of R$181.00 months of 2001, mirroring the increase in selling costs, and 3
  • 4. especially the impact of the real devaluation to the US dollar on handset prices. Depreciation and amortization expenses for the quarter were R$ 51.4 million (including the amortization of the goodwill), over R$ 47.5 million and R$ 43.5 million in the 2Q01 and 3Q00, respectively. EBITDA EBITDA amounted to R$ 84.4 million in the quarter, representing EBITDA of R$ 241.6 million 88% and 4% increases over the 3Q00 and 2Q01. EBITDA Margin until September was 43% and the reduction over the 2Q01 is mostly attributed to the 2001 increment in selling expenses. Net Income 100 44.9% 43.0% 50% 38.0% 41.0% 80 30.3% 40% EBITDA Margin 84.4 84,4 31.5% 80.8 of 49% over net 60 76.8 30% 26.1% 67.4 service revenue 52.1 40 61.1 20% in the quarter 45.4 20 10% 0 0% 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 EBITDA EBITDA Margin (%) Net Income 3Q01 3Q00 2Q01 Accum. Accum. until until Sep/01 Sep/00 Net Income (Loss) -R$ 10,878 (3,944) 17,587 43,038 7,122 thousand Net Income (Loss) per 1,000 0.03 (0.01) 0.05 0.13 0.02 shares – R$ Net Income The Company achieved an R$10.8 million net income in the quarter, of R$ 10.8 over the R$ 3.9 million loss and the R$ 17.6 million profit in the 3rd million in 3Q01 Quarter 2000 and 2nd Quarter 2001, respectively. The decrease over the preceding quarter is related to the increase in selling expenses and depreciation. Investment and Financing The Company, through its subsidiaries, invested R$ 35.0 million (R$102.0 million accumulated in the nine months of 2001) in the expansion of the cellular telecommunications network in the quarter. At the end of the quarter the Company's total debt amounted to R$ 344.6 million, resulting in a net indebtedness of R$ 224.2 million. From the total debt, the amount of R$ 58.9 million represents loans and financing in dollars, fully covered by hedge operations, as protection against the strongly oscillating exchange rate. Additionally, 4
  • 5. a specific part of the BNDES (Banco Nacional de Desenvolvimento Econômico e Social) loan, corresponding to R$ 20.4 million, is subject to an interest rate linked to the “BNDES basket of currencies”, including de U.S. dollar There is no hedge facility for this specific case. ___________________________________________________________________ “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 Accum. Accum. 1Q01 2Q01 3Q01 3Q00 Sep/01 Sep/00 Total Subscribers 1,486,673 1,508,071 1,534,566 1,284,520 1,534,566 1,284,520 Postpaid 736,534 669,992 625,022 783,250 625,022 783,250 Prepaid 750,139 838,079 909,544 501,270 909,544 501,270 Estimated population in the region (million) 14,7 14,8 14,8 14,7 14,8 14,7 Municipalities Served 219 220 220 218 220 218 Estimated Total Penetration 14% 14% 15% 11% 15% 11% Market share 73% 71% 68% 80% 68% 80% 1 ARPU Total R$42 R$38 R$37 R$44 R$39 R$46 MOU Total 119 111 104 125 114 130 SAC R$200 R$172 R$181 R$127 R$185 R$141 Capex (million) R$30 R$37 R$35 R$59 R$102 R$116 Net Addition 70,189 21,398 26,495 79,177 26,495 79,177 2 3% 3% 3% 4% 9% 11% Churn 2 - 6% 5% - 14% - Churn (including clean up) Disconnections (Clean up) - 39,949 34,176 - 74,125 - Point of sales 722 751 825 672 825 672 Total Staff 1,286 1,286 1,243 1,264 1,243 1,264 Notes: (1) Average revenue per subscriber (2) Calculated over the average subscriber base. EBITDA Calculation In R$ thousand 3Q01 3Q00 2Q01 Accum. Accum. Sep/01 Sep/00 Net Operating Revenue 196,235 171,829 180,091 564,097 539,582 Operating profit (loss) 14,357 (14,225) 25,102 59,618 (1,201) Depreciation 44,630 38,450 40,766 126,128 100,251 Premium amortization 6,745 5,072 6,736 20,217 7,560 Financial revenue (15,460) (7,268) (13,295) (39,540) (18,845) Financial expenses 34,163 22,795 21,536 75,226 63,569 EBITDA 84,435 44,824 80,845 241,649 151,334 EBITDA Margin (%) 43% 26% 45% 43% 28% Operating Revenue In R$ thousand 3Q01 3Q00 2Q01 Accum. Accum. Sept/2001 Sept/2000 Handsets Sales 34,816 9,591 15,098 57,653 71,431 Usage 95,954 99,454 101,841 340,936 304,344 Monthly Fees 45,480 43,596 44,977 133,323 139,079 Interconnection 74,453 64,352 73,766 226,281 175,627 Others 964 828 2,870 4,452 1,342 Gross Operating Revenue 251,667 217,821 238,552 762,645 691,823 Taxes and Other Deductions (55,432) (45,992) (58,461) (198,548) (152,241) Net Operating Revenue 196,235 171,829 180,091 564,097 539,582 Net Operating Revenue from Services 173,369 163,615 167,333 522,395 477,844 Net Operating Revenue from Sales 22,866 8,214 12,758 41,702 61,738 6
  • 7. TELE CELULAR SUL PARTICIPAÇÕES S.A. E Balance sheets as of September 30, 2001 and June 30, 2001 (Expressed in thousands of Brazilian Reais) (Translation of the original in Portuguese) Parent Company Consolidated 3Q01 2Q01 3Q01 2Q01 Assets Current assets Cash and banks 3,604 2,468 5,280 4,988 Marketable securities 3,074 - 115,066 67,555 Trade accounts receivable - - 123,037 120,786 Inventories - - 22,787 20,176 Associated companies - - 7,342 22,510 Deferred and recoverable taxes 2,552 2,529 43,582 41,571 Dividends receivable - - - - Interest on own capital receivable - - - - Accounts receivable from sale of assets - - - - Other 1.841 1,281 31,919 42,668 11.071 6,278 349,013 320,254 Long-term receivables Subsidiaries 3,135 8,713 - - Deferred and recoverable taxes 842 807 241,744 243,777 Judicial deposits - - 10,839 10,775 Other 14 6 1,995 2,278 3,991 9,526 254,578 256,830 Permanent assets Investments 799,365 788,140 15,620 15,620 Property, plant and equipment 99 103 774,484 812,661 Deferred charges 15,402 15,830 77,306 48,676 814,866 804,073 867,410 876,957 Total 829.928 819,877 1,471,001 1,454,041 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 7
  • 8. TELE CELULAR SUL PARTICIPAÇÕES S.A. Balance sheets as of September 30, 2001 and June 30, 2001 (Expressed in thousands of Brazilian Reais) (Translation of the original in Portuguese) Parent Company Consolidated 3Q01 2Q01 3Q01 2Q01 Liabilities and stockholders' equity Current liabilities Trade accounts payable 997 2,087 58,050 62,885 Loans and financings - - 37,875 29,056 Salaries and social charges 7,061 6,026 8,949 8,076 Taxes and contributions payable 26 20 21,751 28,365 Employee profit sharing 1,431 936 1,925 1,270 Interest on own capital 2,779 2,813 5,467 5,546 Dividends payable 938 961 1,225 1,258 Subsidiaries and associated companies - - - - Other 837 2,343 5,767 3,963 14,069 15,186 141,009 140,419 Long-term liabilities Loans and financings - - 306,704 310,077 Taxes and contributions payable - - 53,615 47,217 Pension plan contributions 2,475 2,375 2,475 2,375 Provision for contingencies 190 - 3,127 2,577 Other 75 75 75 75 2,740 2,450 365,996 362,321 Minority interest - - 150,877 149,060 Stockholders' equity Capital 245,033 245,033 245,033 245,033 Capital reserve 195,695 195,695 195,695 195,695 Revenue reserves 111,740 111,740 111,740 111,740 Retained earnings 260,651 249,773 260,651 249,773 813,119 802,241 813,119 802,241 Total 829,928 819,877 1,471,001 1,454,041 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 8
  • 9. TELE CELULAR SUL PARTICIPAÇÕES S.A. Income Statement Balance sheets as of September 30, 2001 and June 30, 2001 (Expressed in thousands of Brazilian Reais) (Translation of the original in Portuguese Parent Company Consolidate Parent Company Consolidate Accum. Accum. Accum. Accum. 3Q01 3Q00 3Q01 3Q00 Sept/01 Sept/00 Sept/01 Sept/00 Gross revenues - - 251,667 217,821 - - 762,645 691,823 Deductions from gross revenues - - (55,432) (45,992) - - (198,548) (152,241) Net revenues - - 196,235 171,829 - - 564,097 539,582 Cost of goods sold and services rendered - - (101,970) (106,716) - - (280,869) (315,280) Gross profit - - 94,265 65,113 - - 283,228 224,302 Selling expenses - - (45,268) (45,077) - - (132,016) (138,668) General and administrative expenses (625) (761) (15,127) (12,926) (2,014) (2,316) (48,393) (36,602) Equity in the earnings of subsidiaries 11,224 (8,177) - - 44,350 (2,001) - - Other operating income (expenses), net 167 127 (810) (5,808) (1,078) (2,077) (7,515) (5,509) Operating income (expenses) 10,766 (8,811) (61,205) (63,811) 41,258 (6,394) (187,924) (180,779) Operating profit before financial results 10,766 (8,811) 33,060 1,302 41,258 (6,394) 95,304 43,523 Financial income 1,192 4,465 15,460 7,268 5,007 16,655 39,540 18,845 Financial expenses (583) 73 (34,163) (22,795) (1,228) (1,775) (75,226) (63,569) Operating profit 11,375 (4,273) 14,357 (14,225) 45,037 8,486 59,618 (1,201) Non-operating income (expenses), net - 2,130 (2) 2,123 (256) 2,130 (80) 2,154 Income before taxes and profit sharing 11,375 (2,143) 14,355 (12,102) 44,781 10,616 59,538 953 Income tax and social contribution (1) (1,426) (1,003) 7,282 (83) (2,437) (6,579) 3,536 Employee profit sharing (496) (375) (656) (529) (1,660) (1,057) (2,151) (1,641) Minority interest - - (1,818) 1,405 - - (7,770) 4,274 Net income for the year 10,878 (3,944) 10,878 (3,944) 43,038 7,122 43,038 7,122 Net income per thousand shares (R$) 0.03 (0.01) 0.03 (0.01) 0.13 0.02 0.13 0.02 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 9

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