Check out this hot IPO!!! They are the first corporation from the Dominican Republic to go public on the NYSE. They were the first telecom company to have an internet service in the Dominican Republic, not to mention the other services like local and long distance calling, cellular service and data services. Tricom has increased its revenues by a factor of 24 when comparing 1997 1Q to 1998 1Q. They practically have a monopoly on many of the telecom services in the Dominican Republic. Their IPO priced at $13/share and went down to around $10.50/share. Get in while it's still cheap!!!!
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Friday May 8, 5:51 pm Eastern Time
Company Press Release
SOURCE: TRICOM, S.A.
TRICOM, S.A. Announces First Quarter 1998 Results
SANTO DOMINGO, Dominican Republic, May 8 /PRNewswire/ -- TRICOM, S.A. released the following on April 29:
April 29 -- TRICOM, S.A., a diversified telecommunications services provider, announced results for the first quarter ended March 31, 1998.
Net earnings increased by US$2.3 million to US$2.4 million in the first quarter of 1998 from US$110,000 for the first quarter of 1997. Net earnings as a percentage of total revenues increased to 8.9 percent for the first quarter of 1998 compared to 0.6 percent for the same period in 1997, evidencing improved profitability in the Company's business.
EBITDA increased by 86.7 percent to US$11.1 million for the first quarter of 1998 from US$5.9 million for the first quarter of 1997, reflecting the Company's improved operating performance.
Total revenues grew by 48.5 percent to US$27.0 million for the first quarter of 1998 from US$18.2 million for the same period in 1997. The Company attributes the increase to the expansion of its local access and international network which generated increased revenues primarily from local service, installations, cellular, toll and international settlement revenues.
As a result of the significant growth in the number of local access lines in service during the first quarter of 1998, local service revenues increased by 206.7 percent to US$2.7 million for the first quarter of 1998 from US$874,000 for the first quarter of 1997 while installation revenues increased by 328.9 percent to US$2.4 million for the first quarter of 1998 from US$560,000 for the first quarter of 1997.
The Company added 8,386 net local access lines during the first quarter of 1998, which represents the highest number of net line additions in any quarter since it commenced installing local access lines in 1994. Cellular revenues increased by 71.6 percent to US$4.2 million during the first quarter of 1998 compared to US$2.5 million for the same period in 1997 due to the prepaid cellular program implemented in the third quarter of 1997. Toll revenues increased by 34.7 percent to US$4.5 million for the first quarter of 1998 compared to US$3.4 million for the first quarter of 1997 primarily as a result of the increased outbound and domestic long distance traffic. International settlement revenues increased by 34.8 percent to US$10.8 million for the first quarter of 1998 compared to US$8.0 million for the first quarter of 1997 as a result of increased inbound traffic, reflecting new volume based agreements and the contribution of TRICOM USA, Inc.'s operations in the United States. International settlement revenues accounted for 40.1 percent of total revenues during the first quarter of 1998 compared to 44.2 percent of total operating revenues for the first quarter of 1997.
TRICOM, S.A. is a full service telecommunications provider in the Dominican Republic. Since it began operations in 1992 as a low-cost international long distance service provider, the Company has expanded its services to include basic local service, national long distance, cellular, paging and Internet access.
TRICOM, S.A.
Consolidated Statement of Operations
(in US$)
Three Months Ended
March 31,
1997 1998
(unaudited) (unaudited)
Operating revenues:
Toll US$ 3,365,905 US$ 4,533,777
International settlement 8,045,227 10,843,462
Local service 874,402 2,681,624
Cellular 2,468,683 4,235,646
Paging 1,156,246 1,264,116
Sale and lease of equipment 1,717,526 997,386
Installations 559,041 2,397,536
Other 3,183 62,137
Total operating revenues 18,190,213 27,015,684
Operating costs:
Satellite connections
and carrier 7,286,379 7,478,406
Network depreciation 1,633,977 2,363,897
Expense in lieu of
income taxes 1,225,112 1,926,880
General and administrative
expenses, including
depreciation charges of
US$444,888 in 1997
and US$637,266 in 1998 4,652,868 8,083,068
Other 766,240 1,022,133
Total operating costs 15,564,576 20,874,384
Operating income 2,625,637 6,141,300
Other income (expenses):
Interest expense (2,523,339) (4,365,511)
Interest income 66,461 1,177,995
Foreign currency
exchange loss -- (106,223)
Other (59,085) (436,869)
Total other
expenses, net (2,515,963) (3,730,608)
Net earnings US$ 109,674 US$ 2,410,692
TRICOM, S.A.
Consolidated Balance Sheet
(in US$)
December 31, March 31,
1997 1998
(unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash
equivalents US$ 5,732,505 US$ 3,549,829
Accounts receivable:
Customers 5,612,123 3,528,842
Carriers 5,546,399 3,705,735
Related parties 625,248 406,806
Officers and employees 200,294 249,728
Current portion of
long term accounts
receivable 281,382 268,830
Other 3,525,123 6,746,570
15,790,569 14,906,511
Allowance for doubtful
accounts (668,827) (511,756)
Accounts receivable, net 15,121,742 14,394,755
Current portion of
pledged securities 22,750,000 11,375,000
Inventories, net 5,633,477 11,217,064
Prepaid expenses 2,518,052 1,954,924
Total current assets 51,755,776 42,491,572
Long-term accounts
receivable 966,592 599,088
Unearned interest (204,576) (192,050)
Long-term accounts
receivable, net 762,016 407,038
Investments:
Pledged securities 53,018,390 51,280,810
Other 1,796,521 1,697,066
Total investments 54,814,911 52,977,876
Property and equipment,
net 202,977,596 229,340,838
Other assets at cost,
less accumulated
depreciation 10,833,238 10,875,394
TOTAL ASSETS US$ 321,143,537 US$ 336,092,718
TRICOM, S.A.
Consolidated Balance Sheet (cont.)
(in US$)
December 31, March 31,
1997 1998
(audited) (unaudited)
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Short-term obligations US$ -- US$ 376,709
Notes payable:
Borrowed funds-banks 5,905,005 7,428,627
Borrowed funds-related
parties 4,849,818 1,000,000
Bonds payable-short term -- --
10,754,823 8,428,627
Accounts payable:
Carriers 2,327,768 2,266,915
Suppliers 17,746,637 38,324,166
Related parties -- 5,223
Other 1,023,478 843,781
21,097,883 41,440,085
Other liabilities 3,039,761 3,526,544
Accrued expenses 12,017,371 5,709,517
Total current liabilities 46,909,838 59,481,482
Reserve for severance
indemnities 140,641 107,486
Long-term debt:
Carifa Loan 32,000,000 32,000,000
Senior Notes 200,000,000 200,000,000
Total liabilities 279,050,479 291,588,968
Shareholders' equity:
Common stock at par value
at RD$ 100 43,357,343 43,357,343
Legal reserve 600,233 600,233
Retained earnings 718,290 3,128,982
Equity adjustment
for foreign currency (2,023,757) (2,023,757)
translation
42,652,109 45,062,801
Less treasury stock
at cost, 74,242 shares (559,051) (559,051)
42,093,058 44,503,750
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY US$ 321,143,537 US$ 336,092,718
TRICOM, S.A.
Consolidated Statement of Cash Flows
(in US$)
Three months ended
March 31,
1997 1998
(unaudited) (unaudited)
Cash flows from operating activities:
Cash received from
customers US$ 19,051,453 US$ 27,910,779
Cash paid to suppliers
and employees (12,232,659) (49,434)
Cash received from
(paid to) related
parties (68,309) 223,665
Interest paid (2,368,816) (4,378,037)
Interest received
on deposits 66,461 1,177,995
Income tax paid (1,225,112) (1,926,880)
Other income
(expenses), net 87,698 (441,818)
Net cash provided
by operating activities 3,310,716 22,516,270
Cash flows from investing activities:
Cancellation (acquisition)
of investments (12,098) 13,213,028
Acquisition of property
and equipment (610,775) (47,786,460)
Net cash used in
investing activities (622,873) (34,573,432)
Cash flows from financing activities:
Borrowed funds
(paid to) from banks (8,970,820) 1,900,330
Financing obtained
from suppliers -- 11,956,050
Principal payments
to related parties (14,913,919) (3,882,623)
Issuance of
short-term bonds 2,691,827 --
Issuance of
common stock 20,000,000 --
Net cash provided by
financing activities (1,192,912) 9,973,757
Effect of exchange
rate changes on cash -- (100,766)
Net increase (decrease)
in cash and cash
equivalents 1,494,931 (2,083,405)
Cash and cash equivalents
at beginning of the year 4,291,804 5,734,000
Cash and cash equivalents
at end of period US$ 5,786,735 US$ 3,549,829
SOURCE: TRICOM, S.A.
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