TIWI,.31 per share earnings for Q,News just out.Picked up some.The stock now .42, on .31 earnings for Q alone.
See if we make some fast $$ on it.
(BSNS WIRE) ClearWave Records Eight Consecutive Quarter of Profitable Growth
ClearWave Records Eight Consecutive Quarter of Profitable Growth
Business Editors
AMSTERDAM, The Netherlands & MONTREAL--(BUSINESS WIRE)--May 2,
2003--ClearWave N.V. ("ClearWave" or the "Company"), a subsidiary of
Telesystem International Wireless Inc. ("TIW") (NASDAQ: TIWI) (TSX:
TIW) (TSX:TIW.UN), today announced its financial and operating results
for the first quarter ended March 31, 2003. The Company controls
cellular operations in Romania and the Czech Republic.
ClearWave achieved profitability for the eighth consecutive
quarter, with a net income of $26.3 million, or $0.31 per share, for
the first quarter, compared to $2.0 million, or $0.02 per share, for
the corresponding period in 2002. The 2003 first quarter net income
includes a gain of $19.8 million on the sale of a minority interest in
MobiFon.
Service revenue in the first quarter of 2003 increased 37% to
$189.4 million compared to $138.7 million for the same period last
year. Selling, general and administrative ("SG&A") expenses declined
to 24% of service revenues from 28% for the first quarter of 2002.
Operating income before depreciation and amortization (EBITDA)
increased 56% to $82.8 million compared to $53.0 million for the first
quarter last year. Operating income increased 68% to $31.7 million
compared to $18.9 million for the same 2002 period.
"Both MobiFon and Cesky Mobil are off to a fast start in 2003,
despite the first quarter being traditionally the slowest quarter of
the year for subscriber growth. Cesky Mobil's strategy of targeting
postpaid subscriber growth is generating strong results. Cesky Mobil
added 75,000 postpaid subscribers representing 83% of its net
additions during the quarter," said Alexander Tolstoy, President and
Chief Executive Officer of ClearWave. "In Romania, MobiFon moved
swiftly to take advantage of the newly liberalized market with a
strong focus on offering new international long distance services to
its key and corporate accounts while it continues to record an
outstanding financial performance, generating strong EBITDA."
ClearWave added 128,300 net subscribers during the quarter to
reach 3,943,300 total subscribers, a 24% increase compared to
3,167,600 subscribers at the end of the first quarter of 2002.
MobiFon S.A. - Romania
MobiFon, the market leader in Romania with an estimated 51% share
of the cellular market, added 37,500 net subscribers for the first
quarter for a total of 2,672,700, compared to 2,180,500 subscribers at
the end of the same 2002 period, an increase of 23%. The
prepaid/postpaid mix at the end of the first quarter 2003 was 65/35
compared to 64/36 a year ago, consistent with the higher proportion of
prepaid subscribers added during the last 12 months. MobiFon has
recently positioned itself to take advantage of the telecom market
deregulation which ended Romtelecom's monopoly as of January 1, 2003
and enabled direct interconnection with a number of international
service providers and this positioning has already generated improved
international revenue margins.
Service revenues reached $113.1 million, an increase of 18%, due
to a larger subscriber base, including a larger proportion of prepaid
subscribers, compared to $96.0 million for the first quarter last
year. SG&A expenses decreased to 21% of service revenues compared to
22% for the 2002 corresponding period. EBITDA increased 25% to $65.8
million compared to $52.6 million for the same period last year and
EBITDA as a percentage of service revenue improved to 58% compared to
55% in the quarter ending March 31, 2002. Operating income rose 12% to
$35.8 million compared to $32.0 million for the first quarter in 2002.
Cesky Mobil a.s. - Czech Republic
Cesky Mobil added 90,800 net subscribers in the first quarter to
reach 1,270,600, an increase of 29% compared to 987,100 subscribers at
the end of the first quarter of 2002. The Company's focus on post paid
growth was very successful and resulted in the addition of 75,300
postpaid subscribers representing 83% of net additions during the
quarter. As a result, the Company's prepaid/postpaid mix as of March
31, 2003 was 61/39 compared to 73/27 at March 31, 2002. Cesky Mobil
estimates it held a 14% share of the national cellular market as of
March 31, 2003, compared to a 13% share at the same time last year.
During the past 12 months, management estimates cellular penetration
in the Czech Republic increased to 86% from 73% at the end of the
first quarter of 2002 when Cesky Mobil recorded 128,700 net subscriber
additions.
Service revenues increased 78% to $76.3 million compared to $42.7
million for the first quarter of 2002. Cesky Mobil recorded EBITDA of
$17.3 million, its fifth consecutive quarter of positive EBITDA,
compared to EBITDA of $0.9 million for the same period last year. This
improvement reflects the revenue impact of solid subscriber growth and
the economies of scale realized as fixed costs are spread over the
larger subscriber base. SG&A expenses declined to 29% of service
revenues compared to 39% for the same period last year. Operating loss
improved to $3.8 million compared to $12.6 million for the first
quarter of 2002.
Liquidity and Capital Resources
As of March 31, 2003, ClearWave held cash and cash equivalents of
$94.4 million.
Operating activities provided cash of $45.7 million for the first
quarter compared to $27.6 million for the same period in 2002. The
primary factor contributing to the higher operating cash flow was the
$29.8 million higher operating income before depreciation and
amortization, which was partially offset by higher income taxes in
2003.
Acquisitions of property, plant and equipment totaled $29.8
million for the first quarter compared to $53.8 million for the same
period in 2002, in line with lower subscriber growth experienced
during the period.
Financing activities used cash of $6.9 million for the first
quarter of 2003. During the quarter, ClearWave repaid $34 million in
inter-company demand notes due to TIW and drew $27.1 million in
long-term debt. During the first quarter of 2002, financing activities
consisting of $7.1 million advanced from TIW, $15.0 million from the
issuance of subsidiaries' shares to minority interests and $13.5
million drawn on Cesky Mobil's credit facility, provided cash totaling
$35.6 million.
In line with plans, Cesky Mobil drew $11.1 million from its
long-term syndicated Euro and Czech Koruna denominated credit facility
in the first quarter and MobiFon drew $16.0 million from its senior
loan facility. At March 31, 2003, the undrawn amount available under
Cesky Mobil's credit facility was Euro 25.1 million and Czech koruna
350.6 million (total of approximately $39.3 million) and there was
$29.0 million available under MobiFon's senior loan facility.
Long-term debt, including current portion, at the end of the first
quarter was $823.4 million, comprised of $287.8 million at MobiFon and
$535.6 million at Cesky Mobil. Long-term debt includes $23.8 million
payable to Cesky Mobil's network equipment vendors and long-term
unrealized losses associated with derivative financial instrument
positions of $42.4 million and $4.1 million in Cesky Mobil and
MobiFon, respectively.
During the quarter, we closed the sale of an 11.1 million share
interest in MobiFon to an affiliate of Emerging Markets Partnership
("EMP") for a total cash consideration of $42.5 million of which $40.0
million was received on March 19, 2003 and the remainder will be
received during the second quarter of 2003. A gain on disposal of
investment of $19.8 million was recorded on this transaction and
ClearWave used substantially all of the net proceeds from the sale to
EMP, to repay inter-company demand notes, accrued interest thereon and
other accounts payable due to TIW and affiliates.
On April 23, 2003 MobiFon paid a dividend of Lei 1.974 trillion
(approximately $59.1 million), to its shareholders. ClearWave's share
of the dividend was approximately $33.5 million. ClearWave also
already received, during 2002, its pro-rata share of distributions,
amounting to $24.6 million, from MobiFon's ongoing share repurchase
program. Shareholders have until June 30, 2003 to tender their shares
in order to realize their pro-rata share of this distribution amount.
Accordingly, ClearWave's ownership of MobiFon may vary between 57.1%
and 57.7%, throughout the tender period, depending on the timing and
the extent of each shareholder's participation in the repurchase.
We expect to have future capital requirements, particularly in
relation to the expansion of the Czech Republic cellular network, the
addition of capacity to our Romanian's network and to acquire, if
options are exercised, a certain number of shares of our operating
subsidiaries owned by minority interest. We intend to finance such
future capital requirements from cash flows from operating activities
and from Tranche II of our senior loan facility as it relates to
MobiFon. For Cesky Mobil, it will be financed by the syndicated senior
credit facility and by equity contributions from TIW Czech N.V.
As at March 31, 2003, our total indebtedness to TIW and its
affiliates amounted to $55.0 million, consisting primarily of demand
notes which are convertible into shares at the option of TIW and its
affiliates, subject to certain conditions. We intend to use available
cash surplus at corporate level, after considering potential funding
requirements in TIW Czech N.V. and corporate expenses, to reimburse
part of these advances. TIW reports a going concern uncertainty in its
financial statements. In the event that TIW's creditors enforce their
claims over our shares and advances, uncertainty may arise regarding
the timing for repayment of these advances.
Conference Call
The conference call with analysts on the first quarter 2003
results will be part of the TIW conference call. It will be made
available via an audio web cast from TIW's Internet site. The web cast
is scheduled to begin at 9:00 a.m. EDST on Monday, May 5, 2003 (at
tiw.ca). A replay of the conference call can also be heard
between 12:00 p.m. on May 5 and 11:59 p.m. on May 30. To access the
replay facility, dial (416) 695-5800 and you will be instructed to
enter the access code: 1405861.
Forward-looking Statements
This news release may contain certain forward-looking statements
that reflect the current views and/or expectations of the Company with
respect to its performance, business and future events. Such
statements are subject to a number of risks, uncertainties and
assumptions. Actual results and events may vary significantly.
About ClearWave N.V. and TIW
TIW, through its subsidiary ClearWave N.V., is a leading cellular
operator in Central and Eastern Europe with almost 4.1 million managed
subscribers. ClearWave is the market leader in Romania through MobiFon
S.A. and is active in the Czech Republic through Cesky Mobil a.s.
TIW's shares are listed on the Toronto Stock Exchange ("TIW") and
NASDAQ ("TIWI").
-0-
*T
ClearWave N.V.
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SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA
(in thousands of US dollars, except operating and per share data)
---------------------------------------------------------------------
Three months ended
March 31,
2003 2002
$ $
---------------------------------------------------------------------
(Unaudited)
STATEMENTS OF INCOME AND CASH FLOWS DATA: (3)
Revenues 199,462 146,801
Operating Income 31,738 18,945
Interest expense, net (17,480) (18,410)
Foreign exchange gain (loss) (334) 1,790
Gain on disposal of investment 19,821 -
Income taxes 10,405 6,829
Minority interest 2,988 6,600
Net income 26,328 2,096
Basic and diluted net income per share 0.31 0.02
Acquisitions of property, plant and
equipment (29,778) (53,808)
Net proceeds from the sale of ownership
in a subsidiary 39,000 -
OPERATING DATA: (3)
Operating income before depreciation
and amortization (5) 82,772 53,010
As of March 31,2003 As of December 31, 2002
$ $
---------------------------------------------------------------------
(unaudited)
BALANCE SHEET DATA: (3)
Cash and cash equivalents 94,412 46,383
Total assets 1,374,685 1,335,876
Long-term debt, including
current portion (1) 823,412 784,732
Funded capital (2) 185,332 185,332
Total shareholders' equity 175,506 148,751
OVERVIEW OF OPERATIONS
(As of March 31,2003)
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Start-up
Date of Licensed Total Equity Equity
Techno- Opera- POPs Subscri- Equity POPs Subscri-
logy tions (millions) bers(4) Interest (millions) bers (6)
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Central / Eastern Europe Cellular
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Romania
GSM Q2 1997 22.4 2,672,700 56.6% 12.7 1,512,700
Czech
Republic
GSM Q1 2000 10.3 1,270,600 23.1% 2.4 293,400
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32.7 3,943,300 15.1 1,806,100
(1) Includes long-term derivative financial instrument position
(2) Proceeds from share issuance and share premium.
(3) The results of Mobifon (Romania) and Cesky Mobil (Czech Republic)
are fully consolidated.
(4) Figures include 1,735,209 and 775,504 prepaid subscribers in
Romania and Czech Republic, respectively, but excludes internet
subscribers.
(5) The company uses the term operating income before depreciation and
amortization (or EBITDA) which may not be comparable to similarly
titled measures reported by other companies. Operating income
before depreciation and amortization should not be considered in
isolation or as an alternative measurement of operating
performance or liquidity to net income, operating income, cash
flows from operating activities or any other measure of
performance under GAAP.
The Company believes that operating income before depreciation and
amortization is viewed as relevant supplemental measure of
performance in the wireless telecommunications industry.
(6) Proportional financial figures and other operational data
represent the combination of ClearWave's ultimate proportionate
ownership in each of its subsidiaries and is not intended to
represent any measure of performance in accordance with generally
accepted accounting principles.
*T
--30--AS/na*
CONTACT: Telesystem International Wireless Inc.
Media:
Mark Boutet (North America), 514/673-8406
mboutet@tiw.ca
or
Investors:
Serge Dupuis (North America), 514/673-8443
sdupuis@tiw.ca
or
ClearWave N.V.
Igor Prerovsky (Central/Eastern Europe), + 4202.7117.1551
igor.prerovsky@oskarmobil.cz
or
Web site addresses are:
www.tiw.ca
www.clearwave.cz
www.oskarmobil.cz
www.connex.ro
KEYWORD: INTERNATIONAL CANADA EUROPE
INDUSTRY KEYWORD: TELECOMMUNICATIONS EARNINGS
SOURCE: ClearWave N.V.
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