Tricom (NYSE:TDR)
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Tricom Reports Fourth Quarter and Full Year Results
SANTO DOMINGO, Dominican Republic, Feb. 19 /PRNewswire-FirstCall/ -- Tricom,
S.A. today announced consolidated unaudited financial results for the fourth
quarter and year ended December 31, 2003.
On February 19, 2004, the Company announced the sale of its Central American
assets. The sale is part of the Company's ongoing strategy to streamline its
operations and reduce costs by divesting under-performing or non-strategic
assets and focusing resources on its most attractive segments and markets.
Consequently, the Company has elected to report its Central American digital
trunking operations as discontinued operations in accordance with Statement of
Financial Accounting Standards No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets" ("SFAS No.144"). The Company believes that the
presentation of its Central American digital trunking services, as discontinued
operations will allow for a more meaningful comparison of the results from the
Company's continuing operations.
"Our fourth quarter and full year results reflect a continued difficult
operating environment marked by a weak economy. Our revenues from continuing
operations remained under intense pressure by currency devaluation," said Carl
Carlson, Chief Executive Officer. "Despite these challenges, we made progress in
a number of key areas during this past year in terms of rationalizing our
capital investments, and reducing our cost structure. We set out to do this
while maintaining our commitment to our customers, without diminishing our
operational and service capabilities. Our focus for 2004 will remain on
investing prudently to support our key growth drivers, while improving our
customer base by targeting the most attractive segments."
Results of Continuing Operations
Continuing operations consist of the Company's local service, long distance,
mobile, cable television and broadband data transmission and Internet services
in the Dominican Republic, as well as the Company's facility-based international
long distance operations in the U.S. The Company's operating results principally
reflect the impact of currency devaluation affecting the conversion of Dominican
peso-generated revenues into U.S. dollars. The value of the Dominican peso,
against the U.S. dollar, declined by approximately 25 percent during the 2003
fourth quarter, and by approximately 84 percent during the year. The inflation
rate was approximately 43 percent for the year ended December 31,2003, compared
to approximately 11 percent during 2002.
Operating revenues from continuing operations totaled $50.3 million for the 2003
fourth quarter, a decrease of 16.8 percent from the 2002 fourth quarter. Total
operating revenues from continuing operations for the 2003 fourth quarter grew
by 3.6 percent on a sequential basis, primarily driven by international long
distance revenues. For the year, operating revenues from continuing operations
totaled $206.6 million, a 19.1 percent decrease from 2002. Adjusted EBITDA
totaled $14.2 for the 2003 fourth quarter and $61.1 million for 2003, compared
to Adjusted EBITDA of $22.3 million and $83.6 million for the 2002 fourth
quarter and 2002, respectively.
Long distance revenues grew by 8.6 percent to$26.3 million in the 2003 fourth
quarter from the 2002 fourth quarter and by 6.6 percent to $99.7 million for the
year, primarily as a result of higher long distance termination rates to the
Dominican Republic, coupled with an increase in traffic volume originated by the
Company's U.S.-based international long distance wholesale and retail
operations. Long distance revenues for the 2003 fourth quarter grew by 9.0
percent on a sequential basis.
Domestic telephony revenues totaled $13.2 million in the2003 fourth quarter and
$59.5 million for the year, representing a 31.9 percent and 29.0 percent
decrease from the year-ago periods, respectively. The decrease in domestic
telephony revenues was primarily the result of the decline in value of the
Dominican peso coupled with a lower average subscriber base during the year.
Fourth quarter business and contract residential lines grew by 3.2 percent on a
sequential basis. At December 31, 2003, lines in service totaled approximately
135,000, representinga 10.4 percent decrease year-over-year. The decrease in
lines in service for the year reflects the Company's previously announced
strategy of disconnecting low-usage wireless local loop customers and targeting
high-usage consumer and business costumersin order to maximize the return on
its existing network assets and resources.
Mobile revenues decreased by 27.5 percent to $6.7 million in the 2003 fourth
quarter from the 2002 fourth quarter and by 35.1 percent to $29.2 million for
the year. The decrease in mobile revenues is primarily attributable to currency
devaluation and the effect of a previously announced change in mobile revenue
recognition, beginning in the 2003 second quarter. Mobile revenues, which had
previously been accounted for on a gross basis, are now accrued net of prepaid
mobile commission fees. Cellular and PCS subscribers at December 31, 2003,
totaled approximately 433,000. Postpaid mobile subscribers at the end of the
fourth quarter grew by 3.3 percent on a sequential basis.
As part of its overall operational streamlining and in order to better focus on
active customers, beginning in the 2004 first quarter the Company reduced the
period in which a mobile prepaid customer can receive incoming calls without
generating outgoing calls. This change in policy has identified approximately
200,000 existing prepaid mobile customers who have not utilized the Company's
services for an extended period of time. The Company currently anticipates
continuing its policy of disconnectinga substantial number of its incoming
calls only cellular and PCS subscribers during 2004.
Cable revenues totaled $3.0 million in the 2003 fourth quarter, a 35.1 percent
decrease from the year-ago period. For 2003, cable revenues totaled $13.6
million,a 36.8 percent decrease from 2002. The decrease in cable revenues is
primarily the result of currency devaluation together with a lower average
subscriber base during the year. At December 31, 2003, cable subscribers totaled
approximately 61,000, representing a 14.4 percent decrease year-over-year. The
decline in the Company's cable subscriber base was partially offset by an
increase in the number of premium service and cable modem accounts.
Data and Internet revenues totaled $1.1 million in the 2003 fourth quarter and
$4.5 million in 2003, representing a 63.2 percent quarter-over-quarter and 59.2
percent year-over-year decrease. The decrease in data and Internet revenues is
attributable to the devaluation of the Dominican peso, coupled with revenue loss
resulting from the Company' cancellation during the 2003 first quarter of its
government contract to provide broadband satellite Internet access to public
high schools in the Dominican Republic.
Consolidated operating costs and expenses from continuing operations totaled
$236.9 million in the 2003 fourth quarter compared to $79.1 million in the 2002
fourth quarter. For the year, consolidated operating costs and expenses from
continuing operations totaled $404.2 million compared to $265.5 million during
2002. The increases in year-over-year operating costs and expenses reflect asset
impairments, restructuring costs and higher depreciation and amortization
expenses, offset in part by lower selling, general and administrative (SG&A)
expenses, as well as the elimination of expenses in lieu of income taxes.
Operating costs and expenses from continuing operations, excluding asset
impairments and restructuring costs, totaled $64.9 million for the 2003 fourth
quarter and $232.2 million for 2003.
Cost of sales and services increased by 4.5 percent to $23.2 million during the
2003 fourth quarter and remained flat during the year. Increases in fourth
quarter cost of sales and services were mainly attributable to higher transport
and access charges due to the indexation to the U.S. dollar of domestic
interconnection tariffs, offset in part by lower cable programming fees
resulting from contract renegotiations.
Selling, general and administrative (SG&A) expenses increased by 16.9 percent to
$22.9 million in the 2003 fourth quarter and decreased by 17.6 percent to $71.8
million for the year. Increases in fourth quarter SG&A expenses were primarily
driven by early lease cancellation costs of approximately $7.6 million, and
network maintenance expenses, offset in part by lower marketing and sales
commissions expenses. The year-over-year decrease in SG&A expenses reflect
expense reduction efforts and streamlined operations, as well as lower Dominican
peso-denominated expenses resulting from currency devaluation.
During the 2003 fourth quarter, the Company recognized $166.9 million in asset
impairments and approximately $5.1 million in restructuring costs. The non-cash
impairment charges represent a reduction of the Company's goodwill and the
carrying value of its long-lived telecommunication and cable network assets,
primarily resulting from currency devaluation, which have impacted the Company's
estimated, discounted future cash flows. Restructuring costs represent
severance-related charges resulting from work force reductions in response to
changes in business strategy and to the financial performance of certain
underlying businesses and service offerings, as well as legal and other
professional advisory services expenses related to the Company's debt
restructuring initiatives.
"The factors that affected the magnitude of the impairment charges include
management's revised operating plan based on current market conditions, the
results of the Company's current forecasting and long-term planning process, as
well as a valuation of assets and liabilities," said Ramon Tarrago, Chief
Financial Officer.
The asset impairment losses include estimates that are based on the best
information currently available to the Company. Adjustments tosuch estimates,
if any, would be reflected in the financial statements included in the Company's
future filings with the Securities and Exchange Commission.
Interest expense totaled $15.4 million in the 2003 fourth quarter compared with
$16.7 million in the prior year quarter, and totaled $62.4 million for 2003
compared to $64.4 million during 2002. The Company suspended interest payments
on its unsecured debt obligations beginning in October 1, 2003.
In the 2003 fourth quarter, the Company recognized $1.9 million in losses from
discontinued operations in Central America. Loss from discontinued operations
for the full year 2003 totaled $7.8 million. In accordance with SFAS No. 144,
the company will continue to report losses from discontinued operations in the
periods they occur. In the 2003 fourth quarter, the Company recognized a loss on
disposal of discontinued operations of approximately $38.2 million.
In the 2003 fourth quarter, the Company realized $2.6 million in deferred income
taxes from loss carry forwards relating to the aforementioned early lease
cancellation. Net loss, reflecting non-cash asset impairments and losses from
discontinued operations, totaled $237.5 million, or $3.68 per share for the 2003
fourth quarter, and $299.4 million, or $4.63 per share during 2003.
Liquidity and Capital Resources
Total debt, including capital leases and commercial paper, amounted to $449.5
million at December 31, 2003, compared to $467.6 million at December 31, 2002.
Total debt included $200 million principal amount of 11-3/8% Senior Notes due
2004, approximately $35.0 million of secured debt and approximately $214.5
million of unsecured bank and other debt. At December 31, 2003, the Company had
approximately $3 million of cash on hand. Net debt totaled $446.5 million at
December 31, 2003. The Company's net cash provided by operating activities
totaled $18.3 million for 2003 compared to $13.6 million for 2002. Capital
expenditures totaled $3.2 million during the 2003 fourth quarter and$15.0
million for the year, representing an approximate 71.8 percent
quarter-over-quarter and 76.5 percent year-over-year reduction.
About TRICOM
Tricom, S.A. is a full service communications services provider in the Dominican
Republic. We offer local, long distance, mobile, cable television and broadband
data transmission and Internet services. Through Tricom USA, we are one of the
few Latin American based long distance carriers that is licensed by the U.S.
Federal Communications Commission to ownand operate switching facilities in the
United States. Through our subsidiary, TCN Dominicana, S.A., we are the largest
cable television operator in the Dominican Republic based on our number of
subscribers and homes passed. For more information about Tricom, please visit
http://www.tricom.net/
Cautionary Language Concerning Forward-Looking Statements
Statements in this press release that are not strictly historical in nature are
forward-looking statements. These statements are only predictions based on
current information and expectations and involve a number of risks and
uncertainties. Actual events or results may differ materially due to various
factors. Factors which may cause actual results to differ materially from those
discussed herein include economic considerations that could affect demand for
telecommunications services and the ability of the Company to make collections,
inflation, regulatory factors, legal proceedings, exchange controls and
occurrences in currency markets, competition, and the risk factors set forth in
the Company's various filings with the Securities and Exchange Commission,
including its more recently filed Annual Report on Form 20-F. The Company
undertakes no obligation to revise these forward-looking statements to reflect
events or circumstances after the date hereof.
(Six tables to follow)
Non-GAAP and Other Financial Measures
This press release includes a discussion of the Company's historical financial
results using certain non-GAAP financial measures, including EBITDA, Adjusted
EBITDA, Free Cash Flow and Net Debt. Investors, analysts, valuation firms and
lenders, also frequently use these measures although their definitions may vary.
A "non-GAAP financial measure" is defined as a numerical measure of a company's
performance that excludes or includes amounts so as to be different than the
most directly comparable measure calculated and presented in accordance with
generally accepted accounting principles ("GAAP"). Pursuant to the requirements
of Regulation G, the Company has included in its press release a reconciliation
of all non-GAAP financial measures disclosed in the press release to the most
directly comparable GAAP financial measure.
EBITDA is defined as earnings (loss) before interest, taxes, depreciation and
amortization. Adjusted EBITDA is defined as earnings (loss) before interest,
taxes, depreciation and amortization from continuing operations, adjusted to
exclude non-cash charges and certain expenses not included within the accepted
definition of EBITDA, but which management believes their exclusion provides a
more appropriate measure of the Company's operating performance and liquidity.
Until September 1, 2002, we made payments to the Dominican government in lieu of
income taxes. As a result, we calculated Adjusted EBITDA prior to the deduction
of payments to the Dominican government in lieu of income taxes. Our calculation
of Adjusted EBITDA from continuing operations also adds asset impairments, which
are non-cash charges related to fixed and intangible assets, restructuring
costs, extraordinary items, losses from discontinued operations, non-recurring
items, as well as changes in accounting charges. Adjusted EBITDA is the primary
basis used by our management to measure the operational strength and performance
of all of our operating segments and units. The Company believes Adjusted EBITDA
provides meaningful additional information on our performance and on our ability
to service our long-term debt and other obligations, and to fund capital
expenditures. Because we use Adjusted EBITDA as the measure to evaluate the
performance of our core businesses, we reconcile it to net earnings (loss), the
most directly comparable financial measure calculated and presented in
accordance with generally accepted accounting principles.
We define Free Cash Flow as cash provided by operating activities less cash
provided by investing activities. We believe Free Cash Flow is a non-GAAP
measure as contemplated by Regulation G. We believe that Free Cash Flow provides
useful information about the amount of cash our business is generating after
interest and capital expenditures for reinvesting in the business.
We define Net Debt as the total aggregate amount of our consolidateddebt (short
and long term), including capital lease obligations, less cash on hand and in
banks and equivalents (including investments). We believe Net Debt is a
non-GAAP measure as contemplated by Regulation G. Management believes that the
presentation of Net Debt provides useful information about the Company's ability
to satisfy its debt obligations with currently available funds.
EBITDA, Adjusted EBITDA and Free Cash Flow should not be considered as
substitutes for operating income (loss), net income (loss), net cash provided by
operating activities or other measures of performance or liquidity reported in
accordance with GAAP. Net Debt should not be considered a substitute for total
debt.
A quantitative reconciliation of EBITDA, Adjusted EBITDA, Free Cash Flow and Net
Debt follows:
TRICOM, S.A. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(In US$)
Three Months Ended Year Ended
December 31, December 31,
2002 2003 2002 2003
Adjusted EBITDA
Reconciliation
Add (subtract):
Net loss $(33,980,099) (237,488,784) $(76,553,362) (299,366,153)
Income taxes, net 1,515,284 (2,249,862) 948,192 (252,051)
Interest expense,
net 16,465,187 15,354,177 62,371,262 60,978,798
Depreciation and
amortization 17,554,725 18,745,669 66,352,488 73,998,602
EBITDA $1,555,097 (205,638,800) $53,118,580 (164,640,804)
Extraordinary item -- -- -- --
Cummulative effect
of accounting
change -- -- -- --
Lossfrom
discontinued
operations, net 959,585 1,914,568 4,846,833 7,819,690
Loss on disposal
of discontinued
operations -- 38,241,048 -- 38,241,048
Asset impairments 19,734,701 166,939,949 19,734,701 166,939,949
Restructuring
costs -- 5,080,132 -- 5,080,132
Expense in lieu of
income taxes 3,830 -- 5,896,644 --
Other non-
recurring items -- 7,616,465 -- 7,616,465
Adjusted EBITDA $22,253,213 14,153,362 $83,596,758 61,056,480
Year Ended
December 31,
2002 2003
Free Cash Flow
Reconciliation
Add (subtract):
Net cash provided
by operating
activities $13,607,956 18,334,139
Net cash used in
investing
activities (57,918,495) (3,359,960)
Free cash flow
surplus (deficit) $(44,310,539) 14,974,179
Period ended
December 31,
2002 2003
Net Debt
Reconciliation
Add (subtract):
Short-term debt $81,980,810 355,623,913
Long-term debt 385,583,631 93,849,870
Cash on hand and
investments (6,080,303) (2,963,825)
Net debt $461,484,138 446,509,958
TRICOM, S.A. AND SUBSIDIARIES
Selected Financial and Operating Data (unaudited)
(In US$)
Sequential Y-o-Y
4Q'02 3Q'03 4Q'03 %Chng. %Chng.
Economic Statistics
(1)
Consumer price index
(12 month aggregate) 10.51% 33.14% 42.66% -- --
Consumer price index
year-to-date 10.51% 26.47% 42.66% -- --
Exchange rate (at
period end) $22.50 33.21 41.50 25.0% 84.4%
Avg. period exchange
rate $20.55 34.06 38.13 11.9% 85.5%
Selected Financial
Data
Adjusted EBITDA from
continuing operations 22,253,213 13,626,344 14,153,230 3.9% -36.4%
Capital Expenditures,
including capital
leases 11,245,015 1,690,416 3,168,863 87.5% -71.8%
Total employess (at
period end) 1,519 1,584 1,469 -7.3% -3.3%
Selected Operating
Data
Lines in service (at
period end) 150,456 135,815 134,843 -0.7% -10.4%
Avg. revenue per line
in service $36.68 33.94 33.42 -1.5% -8.9%
Avg. monthly churn
rate 8.1% 2.6% 2.5% -- --
Cellular & PCS
subscribers (at
period end) (2) 432,058 429,053 433,224 1.0% 0.3%
Minutes of use (in
000s) 63,057 67,474 64,475 -4.4% 2.2%
Avg. revenue per user
(blended) $7.51 4.95 4.83 -2.4% -35.7%
Avg. monthly churn
rate 4.5% 3.7% 4.2% -- --
Digital trunking
subscribers (at
period end) (3) 7,011 10,331 10,157 -1.7% 44.9%
Avg. revenue per user $68.17 44.46 49.87 12.2% -26.8%
Avg. monthly churn
rate n.m. 4.4% 2.9% -- --
Cable subscribers (at
period end) 71,726 63,921 61,433 -3.9% -14.4%
Avg. revenue per
equivalent cable
subscriber $16.76 11.69 11.34 -3.0% -32.3%
Avg. monthly churn
rate 3.1% 2.3% 2.8% -- --
Data/Internet
subscribers (at
period end) 10,825 12,128 12,404 2.3% 14.6%
Paging subscribers 8,752 5,105 4,006 -21.5% -54.2%
Long distance minutes
(in 000s) (4) 311,594 266,092 313,120 17.7% 0.5%
Footnote:
(1) Source: Dominican Republic Central Bank
(2) Represents cellular and PCS subscribers in the Dominican Republic
(3) Represents mobile subscribers in Panama.
(4) Includes inbound, outbound and domestic long distance minutes.
TRICOM, S.A. AND SUBSIDIARIES
Consolidated Balance Sheets
(In US$)
December 31, December 31,
2002 2003
(Audited) (Unaudited)
Assets
Current assets
Cash on hand and in banks $6,080,303 $2,963,825
Accounts receivable:
Customers 26,253,107 17,626,196
Carriers 3,806,849 15,271,998
Others 2,848,287 1,613,102
32,908,243 34,511,296
Allowance for doubtful accounts (7,763,109) (5,446,244)
Accounts receivable, net 25,145,134 29,065,052
Inventories, net of allowances 3,937,678 920,101
Certificates of deposits 15,900,710 --
Prepaid expenses 7,099,415 315,429
Deferred income taxes 1,307,870 3,571,426
Total current assets 59,471,110 36,835,833
Mortgage investments 463,542 306,658
Property and equipment, net 668,120,192 429,420,015
Intangible assets 6,946,978 3,126,140
Goodwill, net of amortization 21,914,327 --
Other assets at cost, net of
amortization 25,312,934 22,982,400
$782,229,083 $492,671,046
TRICOM, S.A. AND SUBSIDIARIES
Consolidated Balance Sheets (cont.)
(In US$) December 31, December 31,
2002 2003
Liabilities and Stockholders' Equity (Audited) (Unaudited)
Current liabilities
Notes payable:
Borrowed funds $38,609,926 $38,316,393
Commercial paper 9,907,583 59,136,014
Current portion of long-term debt 30,724,888 252,376,875
79,242,397 349,829,282
Current portion of capital leases 2,738,413 5,794,631
Accounts payable:
Carriers 11,032,780 21,089,385
Suppliers 15,746,551 11,127,549
Others 7,384,780 3,350,020
34,164,111 35,566,954
Other liabilities 14,910,246 11,886,691
Accrued expenses 17,837,390 47,683,062
Total current liabilities 148,892,557 450,760,620
Reserve for severance indemnities 675,742 721,039
Deferred income tax 1,691,779 1,320,296
Commercial paper 41,708,647 -
Capital leases, excluding current
portion 11,792,908 8,736,691
Long-term debt, excluding current
portion 332,082,076 85,113,179
Total liabilities 536,843,709 546,651,825
Minority interest -- --
Stockholders' equity:
Class A Common Stock at par value
RD$10: Authorized 55,000,000 shares;
45,458,041 shares issued at December
31, 2002 and 2003 24,951,269 24,951,269
Class B Stock at par value RD$10:
Authorized 25,000,000 shares at
December 31, 2002 and 2003;
19,144,544 issued at December 31,
2002 and 2003 12,595,095 12,595,095
Additional paid-in-capital 275,496,964 275,496,964
Retained loss (65,634,197) (365,000,350)
Other comprehensive income-foreign
currency translation (2,023,757) (2,023,757)
Stockholders equity, net 245,385,374 (53,980,779)
$782,229,083 $492,671,046
TRICOM, S.A. AND SUBSIDIARIES
Consolidated Statement of Operations
(In US$) Three Months Ended Year Ended
December 31, December 31,
2002 2003 2002 2003
(Restated) (Unaudited) (Restated) (Unaudited)
Operating revenues:
Long distance $24,250,736 26,338,721 93,510,965 99,663,413
Domestic telephony 19,455,736 13,248,461 83,721,115 59,475,203
Mobile 9,187,124 6,659,521 45,073,022 29,231,686
Cable 4,635,220 3,007,224 21,487,466 13,587,250
Data and Internet 2,888,858 1,063,164 11,007,120 4,486,692
Other 81,142 6,262 498,245 121,448
Total operating
revenues 60,498,816 50,323,353 255,297,933 206,565,692
Operating costs and
expenses:
Cost of sales and
services 22,193,473 23,202,538 86,332,649 86,422,119
Selling, general
and administrative
expenses 19,608,410 22,929,078 87,139,040 71,770,957
Depreciation and
amortization 17,554,725 18,745,669 66,352,488 73,998,602
Asset impairments 19,734,701 166,939,949 19,734,701 166,939,949
Restructuring costs -- 5,080,132 -- 5,080,132
Expense in lieu of
income taxes 3,830 -- 5,896,644 --
Total operating
costs and expenses 79,095,139 236,897,366 265,455,522 404,211,759
Operating income (18,596,323) (186,574,013) (10,157,589) (197,646,067)
Other income
(expenses):
Interest expense (16,734,100) (15,418,806) (64,354,026) (62,359,034)
Interest income 268,913 64,629 1,982,764 1,380,236
Foreign currency
exchange gain
(loss) 3,862,699 2,359,955 2,881,442 4,962,628
Gain on Sale of
fixed assets, net -- -- 389,217--
Other, net (306,419) (14,795) (1,500,145) 104,771
Other expenses, net (12,908,907) (13,009,017) (60,600,748) (55,911,399)
Loss from
continuing
operations before
income taxes (31,505,230) (199,583,030) (70,758,337) (253,557,466)
Income taxes, net (1,515,284) 2,249,862 (948,192) 252,051
Loss from
continuing
operations, net (33,020,514) (197,333,168) (71,706,529) (253,305,415)
Discontinued
operations:
Loss from
discontinued
operations in
Central America,
net (959,585) (1,914,568) (4,846,833) (7,819,690)
Loss on disposal of
discontinued
operations in
Central America -- (38,241,048) -- (38,241,048)
Net loss $(33,980,099) (237,488,784) (76,553,362) (299,366,153)
Loss per common
share:
Loss from
continuing
operations $(0.76) (3.05) (1.65) (3.92)
Loss from
discontinuted
operations (0.02) (0.03) (0.11) (0.12)
Loss on disposal of
discontinued
operations -- (0.59) -- (0.59)
Loss per common
share $(0.78) (3.68) (1.76) (4.63)
Average number of
common shares used
in calculation 43,390,464 64,602,585 43,390,464 64,602,585
TRICOM, S.A. and subsidiaries
Consolidated Statement of Cash Flows (Unaudited)
(In US$) Year ended
December 31,
2002 2003
(Audited) (Unaudited)
Cash flows from operating activities:
Net loss $(76,553,362) $(299,366,153)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Depreciation 66,194,501 73,681,369
Asset impairments 19,734,701 166,939,949
Allowance for doubtful accounts 7,099,263 2,318,235
Loss on disposal of discontinued
operations -- 38,241,048
Deferred income tax, net (164,268) (2,635,039)
Amortizations 6,257,060 4,391,452
Provision for inventory obsolence 1,941,517 1,272,755
Expense for severance indemnities 2,043,077 1,747,472
Minority interest (1,870,833) --
Loss (gain) on sale of fixed assets,
net (389,217) --
Net changes in assets and
liabilities:
Accounts receivable 2,254,256 (6,238,153)
Inventories 1,174,905 2,283,036
Prepaid expenses (1,249,148) 6,783,986
Other assets (5,355,941) 2,391,397
Accounts payable (2,961,953) 1,402,843
Other liabilities 1,160,162 (3,023,555)
Accrued expenses (2,699,711) 29,845,672
Reserve for severance indemnities (3,007,053) (1,702,175)
Total adjustments 90,161,318 317,700,292
Net cash provided by (used in)
operating activities $13,607,956 $18,334,139
Cash flows from investing activities:
Cancellation (acquisition) of
investments $2,804,459 $11,632,077
Proceeds from sale of fixed assets 5,041,173 --
Acquisition of property and equipment (65,764,127) (14,992,037)
Net cash used in investing activities (57,918,495) (3,359,960)
Cash flows from financing activities:
Borrowed (paid) funds 98,930,223 48,934,901
Principal payments to banks (173,268,664) (88,677,545)
Proceeds from issuance of commercial
paper 21,219,915 --
Current portion of capital lease (3,325,445) --
Payments of long-term debt (30,493,532) --
Proceeds from issuance of long term
debt 56,347,216 21,651,987
Issuance of common stock 68,405,079 --
Net cash provided by financing
activities 37,814,792 (18,090,657)
Net increase in cash and cash
equivalents (6,495,747) (3,116,478)
Cash and cash equivalents at
beginning of the period 12,576,050 6,080,303
Cash and cash equivalents at end of
period $6,080,303 $2,963,825
For Further Information Contact:
Miguel Guerrero, Investor Relations
Ph (809) 476-4044 / 4012
e-mail:
For additional information, please visit Tricom's Investor Relations website at
http://www.tdr-investor.com/ or contact our Investor Relations department at the
above numbers.
DATASOURCE: Tricom, S.A.
CONTACT: Miguel Guerrero, Investor Relations, Tricom, S.A.,
+1-809-476-4044, ext. 4012, or
Web site: http://www.tricom.net/
http://www.tdr-investor.com/