Rua Levindo Lopes, 258 Funcionários
Cep: 30.140-170 Belo Horizonte (MG) - Brazil
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André Machado Mastrobuono | |
CEO, CFO and Head of Investor Relations | |
Ricardo Antunes Agostini | |
Finance Executive Director | |
Renata Pantoja | |
Investor Relations Manager | |
Phone: +55 (31) 9933-3535 |
TELE NORTE CELULAR PARTICIPAÇÕES S.A.
REPORTS THIRD QUARTER 2007 RESULTS
- EBITDA of R$26.3 million, or 23.0% of net service revenues in the 3Q07
- Net additions of 20,383 clients in the quarter
- Net debt of R$173.9 million at the end of the quarter, R$19 million lower than the previous quarter
- Highest prepaid ARPU since the 1Q04
Belo Horizonte, Brazil, November 07, 2007 Tele Norte Celular Participações S.A. (BOVESPA: TNCP3 (Common)/TNCP4 (Preferred); NYSE: TCN), the holding Company of the wireless telecommunications service provider in the States of Amapá, Amazonas, Maranhão, Pará and Roraima in Brazil, today announced its results for the third quarter of 2007 (3Q07). Net additions amounted to 20,383 clients in the quarter, increasing the Companys client base to 1,311,865. In the 3Q07, EBITDA reached R$26.3 million, representing 23.0% of net service revenues. Year-to-date EBITDA reached R$83.6 million, representing 24.9% of net service revenues. When compared to the same period of previous year, the Company registered an increase of 39.1% in the year-to-date EBITDA and 3.3 p.p. in EBITDA margin.
Operating Highlights:
Client base of 1,311,865 in the 3Q07 |
The Companys client base reached 1,311,865 in the third quarter of 2007, representing increases of 1.6% and 3.0% when compared to the 2Q07 and 3Q06, respectively. Net additions totaled 20,383 clients in the quarter. Year-to-date client base increased 8,3%.
In the third quarter of 2007, prepaid segment increased by 2.1%, reaching 1,103,510 clients, or 84% of the total base. The postpaid base decreased by 2,722 clients, ending the quarter with 208,355 clients or 16% of the total base.
www.telenorteholding.com.br - 1/13
CLIENT BASE (000s)
Churn Rate |
Blended annualized churn rate reached 47.7% in the 3Q07, higher than the 42.7% registered in the previous quarter, as a consequence of the increase in the prepaid churn rate. When compared to the 47.9% posted in the 3Q06, blended annualized churn rate remained practically stable.
Annualized churn rate for the postpaid segment reached 23.1% in the 3Q07, lower than the 26.7% recorded in the 2Q07. This reduction was due to the initiatives for retention of high value clients. When compared to the 3Q06, annualized churn rate for the postpaid segment remained practically stable.
Prepaid annualized churn rate totaled 52.5% in the 3Q07, a reduction of 1.5 p.p. when compared to the 3Q06. When compared to the 46.0% posted in the 2Q07, the prepaid churn rate increased by 6.4 p.p., reflecting the periods seasonality.
CHURN RATE (annualized)
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Operating Revenues |
Net service revenues totaled R$114.7 million in the 3Q07, an increase of R$2.2 million, or 1.9% over the previous quarter, due to the 0.8% increase in total traffic (0.4% in incoming and 1.1% in outgoing traffics). When compared to the 3Q06, the first quarter with the adoption of the full billing, net service revenues increased by R$7.0 million or 6.5% in the quarter, due to a better quality client base and return of campaigns to stimulate use of cellular phones.
Data revenues totaled R$5.3 million in the 3Q07, lower than the R$6.0 million posted in the 2Q07 and the R$6.6 million recorded in the 3Q06.
Net equipment revenues totaled R$5.3 million in the quarter, lower than the R$7.2 million recorded in the 2Q07, as a result of lower handset sales. When compared to the 3Q06, net equipment revenues were reduced by R$9.0 million due to higher volume of direct sales from manufacturers to the Companys dealers.
In the third quarter 2007, handset subsidies for client acquisition totaled R$2.6 million or R$14.6 per gross addition, higher than the R$1.6 million or R$9.1 per gross addition recorded in the 2Q07. This increase is related to actions to face stronger competition and Fathers Day campaign. When compared to the 3Q06, handset subsidies for client acquisition remained fairly stable.
As a result, total net revenues reached R$120.1 million in the 3Q07, practically in line with the R$119.8 million recorded in the previous quarter. When compared to the 3Q06, total net revenues were reduced by R$2.0 million.
Operating costs and expenses |
In the 3Q07, cost of services totaled R$49.8 million, higher than the R$47.1 million recorded in the previous quarter. This was mainly due to the increase in interconnection costs and higher volume of outgoing minutes. When compared to the 3Q06, cost of services was reduced by R$0.6 million.
Selling and marketing expenses in the 3Q07 totaled R$24.7 million, in line with the R$24.5 million recorded in both 2Q07 and 3Q06.
Customer acquisition cost in the 3Q07 reached R$142, slightly above the R$141 recorded in the 2Q07, due to higher subsidies expenses and the Fathers Day campaigns. When compared to the third quarter of 2006, customer acquisition cost increased by R$12, as a consequence of higher expenses related to acquisition discounts, personnel and sales campaigns.
Retention costs totaled R$15.7 million in the 3Q07, higher than the R$13.1 million recorded in the 2Q07, as a consequence of higher expenses with subsidies, discounts and relationship programs. When compared to the 3Q06, retention costs decreased by R$1.2 million as a consequence of rationalization of retention and relationship campaigns.
General and administrative expenses reached R$11.5 million in the 3Q07, a 19.4% increase over the R$9.7 million recorded in the previous quarter, mainly due to higher expenses with administrative consulting services and accounting reallocation of civil contingencies. When compared to the 3Q06, G&A expenses increased by R$5.7 million in the 3Q07 also as a result of higher consulting expenses and accounting reallocation of civil contingencies
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Other operating revenues reached R$3.1 million in the 3Q07 and are related to recognition of tax credits (mainly PIS/Cofins).
Bad debt provisions totaled R$2.8 million in the 3Q07, practically in line with the R$2.6 million recorded in the previous quarter. When compared to the 3Q06, bad debt decreased by R$0.5 million, due to the introduction of stricter rules governing the client acquisition process, focused on credit analysis and new collection actions. As a percentage of net service revenues, 3Q07 bad debt provisions totaled 2.4%, versus 2.3% and 3.1% posted in the 2Q07 and 3Q06, respectively. As a percentage of total net revenues, bad debt provisions totaled 2.3% in the 3Q07.
BAD DEBT PROVISIONS (R$ million)
Average Revenue Per User (ARPU) |
Postpaid MOU (minutes of use) totaled 246 in the 3Q07, higher than the 244 recorded in the previous quarter, as a result of period seasonality. When compared to the 3Q06, postpaid MOU increased by 18 minutes due to a better quality client base and campaigns to stimulate the use of cell phones.
Postpaid ARPU reached R$86.7 in the 3Q07, lower than the R$86.9 recorded in the 2Q07. When compared to the 3Q06, postpaid ARPU increased by R$1.8 in the quarter as a result of a better quality client base.
Prepaid MOU totaled 43 in the 3Q07, in line with the previous quarter. When compared to the 3Q06, 3 minutes of use per client were added as a result of a better quality client base and campaigns to stimulate the use of phone credits.
Prepaid ARPU totaled R$17.6 in the 3Q07, higher than the R$17.1 recorded in the previous quarter. When compared to the third quarter of 2006, prepaid ARPU increased by R$3.5 due to a better quality client base and campaigns to stimulate the use of prepaid credits.
As a result, blended MOU reached 76 minutes, lower than the 77 registered in the 2Q07 and in line with the 76 recorded in the 3Q06. Blended ARPU totaled R$28.7 in the 3Q07, lower than the R$28.9 posted in the 2Q07 and higher than the R$27.9 recorded in the 3Q06.
www.telenorteholding.com.br - 4/13
ARPU (R$)
Estimated market share of 21.1% in the 3Q07 |
Market share was estimated at 21.1% in the 3Q07, versus 21.9% registered in the 2Q07. In a year-to-date basis, the company reduced its market share in 1.1 p.p., representing half of the reduction registered in the same period of the previous year reflecting the successful change in company strategy. Total gross sales share in the 3Q07 was estimated at 22.7%, lower than the 24.7% recorded in the previous quarter.
EBITDA of R$26.3 million in the 3Q07 |
EBITDA and EBTIDA margin (excluding handset revenues) in the 3Q07 totaled R$26.3 million and 23.0% of net service revenues, respectively, compared to the R$28.9 million and 25.6% posted in the 2Q07. When compared to the 3Q06, EBITDA and EBTIDA margin increased
by 23.7% (R$5.1 million) and 3.2 p.p., respectively.
EBITDA (R$ million)
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Depreciation and amortization |
Depreciation and amortization expenses totaled R$27.0 million in the 3Q07, in line with the
R$ 27.1 million recorded in the 2Q07 and slightly higher than the R$26.3 million posted in the 3Q06.
Net financial expense of R$9.5 million |
|
R$ million | |
|
2Q07 |
3Q07 |
Interest Expenses (a) |
(24.3) |
(19.1) |
Interest Income (b) |
2.2 |
1.5 |
Foreign Exchange Gain (Loss) (c) |
13.6 |
8.1 |
Net Financial Income (Expense) |
(8.5) |
(9.5) |
Note: a) Interest expense: includes financial expenses related to debt, losses on hedging operations (if any), taxes on gains with hedge operations and revenues from interest on own capital (if any); b) Interest income: includes results of cash investing activities, clients interest and gains on hedging operations (if any); and, c) Foreign exchange gain (loss): almost exclusively reflects currency devaluation changes on debt principal and interest payable.
DETAILED FINANCIAL INCOME/EXPENSE INFORMATION
|
R$ million | |
|
2Q07 |
3Q07 |
Expense related to debt denominated in foreign currency |
8.8 |
4.5 |
Gain (loss) on hedging operations |
(15.6) |
(12.1) |
Sub-total |
(6.8) |
(7.6) |
Net financial expense (not related to debt)* |
(3.2) |
(2.8) |
Sub-total |
(10.0) |
(10.4) |
Interest income cash investing activities |
1.5 |
0.9 |
Net Financial Income (Expense) |
(8.5) |
(9.5) |
* Net financial expenses not related to debt are primarily associated with taxes such as CPMF and IOF.
Negative net result of R$8.2 million in the quarter |
Net result was negative in R$8.2 million in the 3Q07, or R$1.216 per ADS (R$1.216 per share), versus a net loss of R$4.7 million, or R$0.698 per ADS (R$0.014 per thousand shares) recorded in the 2Q07.
Total debt of R$201.7 million |
On September 30, 2007, the Companys total debt amounted to R$201.7 million, of which R$157.6 million related to short and long-term debt and R$44.2 million related to accounts payable from hedging operations. Short and long-term debt (R$157.6 million) was entirely denominated in US Dollars and hedged.
www.telenorteholding.com.br - 6/13
Net debt of R$173.9 million |
On September 30, 2007, the Companys total debt was partially offset by cash (cash equivalents and short-term cash investments) in the amount of R$27.9 million, resulting in a
net debt of R$173.9 million. When compared to the 2Q07, net debt was reduced by R$19 million.
NET DEBT (R$ million)
Investments totaled R$5.3 million in the quarter |
During the third quarter of 2007, Amazônia Celulars capital expenditures reached R$5.3 million. The breakdown of such investments is as follows:
CAPEX BREAKDOWN
CAPEX (R$ million) |
3Q06 |
4Q06 |
1Q07 |
2Q07 |
3Q07 |
Network |
4.0 |
19.5 |
2.5 |
-3.2 |
4.3 |
IS/IT |
1.2 |
4.9 |
0.1 |
0.1 |
0.0 |
Others |
0.4 |
3.4 |
0.7 |
0.6 |
1.0 |
T O T A L |
5.6 |
27.8 |
3.3 |
-2.5 |
5.3 |
Debt payment schedule |
Year |
R$ million |
% denominated in US$ |
2007 |
- |
- |
2008 |
84.0 |
100.0% |
2009 |
73.6 |
100.0% |
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Financial Ratios |
Indicadores |
3Q06 |
4Q06 |
1Q07 |
2Q07 |
3Q07 |
Net Debt/EBITDA (1) |
2.71 |
6.25 |
4.31 |
3.50 |
2.89 |
Net Debt/EBITDA (1) adjusted * |
2.71 |
2.76 |
2.15 |
1.90 |
1.63 |
Net Debt/Total Assets |
39% |
36% |
32% |
35% |
33% |
Interest Coverage Ratio (1) |
4.3 |
1.6 |
1.8 |
2.4 |
2.6 |
Interest Coverage Ratio (1) adjusted * |
4.3 |
3.6 |
3.6 |
4.5 |
4.5 |
Current Liquidity Ratio |
0.7 |
0.5 |
0.6 |
0.7 |
0.7 |
(1) Last twelve months.
* Excluding the effects of additional provisions related to disputes concerning the payment of value added tax (ICMS) on activations, monthly subscription fees and VAS.
*****************
For further information please contact:
Tele Norte Celular Participações S.A.
Investor Relations Department
André Mastrobuono / Ricardo Agostini / Renata Pantoja / Carolina Anastasia
Phone: (+55 31) 9933-3535
E-mail: ri@telepart.com.br
This press release contains forward-looking statements. Such statements are not statements of historical fact, and reflect the beliefs and expectations of the Company's management. The words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects" and "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Accordingly, the future results of the Companys operations may be different from the Company's current expectations, and the reader should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments.
www.telenorteholding.com.br - 8/13
OPERATIONAL DATA
2006 | 2007 | Var. % (3Q07/2Q07) | ||||||||||||
3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | YTD | |||||||||
Licensed Pops (in millions) | 17.6 | 17.6 | 17.6 | 17.6 | 17.6 | 17.6 | -0.3% | |||||||
Clients | 1,273,256 | 1,210,780 | 1,256,134 | 1,291,482 | 1,311,865 | 1,311,865 | 1.6% | |||||||
Postpaid | 240,941 | 232,271 | 219,614 | 211,077 | 208,355 | 208,355 | -1.3% | |||||||
Prepaid | 1,032,315 | 978,509 | 1,036,520 | 1,080,405 | 1,103,510 | 1,103,510 | 2.1% | |||||||
MOU Incoming | ||||||||||||||
Postpaid | 82 | 84 | 80 | 83 | 83 | 82 | 0.3% | |||||||
Prepaid | 25 | 28 | 26 | 27 | 27 | 27 | -1.5% | |||||||
MOU Outgoing | ||||||||||||||
Postpaid | 146 | 155 | 152 | 161 | 163 | 158 | 1.3% | |||||||
Prepaid | 15 | 17 | 18 | 16 | 16 | 16 | 2.6% | |||||||
Total Outgoing Traffic (Million of Minutes) | 152.0 | 158.9 | 156.5 | 153.3 | 155.0 | 464.8 | 1.1% | |||||||
Total Incoming Traffic (Million of Minutes) | 136.9 | 142.9 | 133.1 | 139.7 | 140.3 | 413.1 | 0.4% | |||||||
Average Revenue per User - ARPU (R$) | 27.9 | 28.6 | 28.4 | 28.9 | 28.7 | 28.7 | -0.7% | |||||||
Postpaid | 84.9 | 75.2 | 85.4 | 86.9 | 86.7 | 86.3 | -0.3% | |||||||
Prepaid | 14.1 | 17.3 | 15.8 | 17.1 | 17.6 | 16.9 | 3.1% | |||||||
Service Revenues (R$ millions) | ||||||||||||||
Monthly Fee | 20,675 | 11,219 | 19,926 | 19,126 | 17,741 | 56,793 | -7.2% | |||||||
Outgoing Traffic | 34,470 | 38,079 | 33,794 | 36,974 | 39,226 | 109,994 | 6.1% | |||||||
Incoming Traffic | 50,310 | 55,043 | 52,130 | 54,091 | 55,291 | 161,512 | 2.2% | |||||||
Other | 2,317 | 2,297 | 2,598 | 2,378 | 2,484 | 7,459 | 4.5% | |||||||
TOTAL | 107,772 | 106,638 | 108,447 | 112,570 | 114,742 | 335,759 | 1.9% | |||||||
Data Revenues (% of net serv. revenues) | 6.1% | 5.8% | 6.4% | 5.3% | 4.6% | 5.4% | -0.7 p.p. | |||||||
Cost of Services (R$ millions) | ||||||||||||||
Leased lines | 9,416 | 8,900 | 8,548 | 8,742 | 9,794 | 27,084 | 12.0% | |||||||
Interconnection | 29,189 | 27,920 | 24,655 | 25,894 | 27,522 | 78,071 | 6.3% | |||||||
Rent and network maintenance | 5,050 | 5,767 | 6,152 | 5,471 | 6,354 | 17,977 | 16.2% | |||||||
FISTEL and other taxes | 5,830 | 3,554 | 6,448 | 6,095 | 5,721 | 18,264 | -6.1% | |||||||
Other | 901 | 227 | 1,128 | 882 | 444 | 2,454 | -49.7% | |||||||
TOTAL | 50,386 | 46,369 | 46,931 | 47,083 | 49,835 | 143,849 | 5.8% | |||||||
Churn - Annualized Rate | 47.9% | 86.4% | 35.9% | 42.7% | 47.7% | 42.2% | 5,0 p.p. | |||||||
Postpaid | 22.8% | 27.4% | 27.0% | 26.7% | 23.1% | 25.7% | -3,6 p.p. | |||||||
Prepaid | 54.0% | 100.5% | 37.9% | 46.0% | 52.5% | 45.7% | 6,5 p.p | |||||||
Cost of Acquisition (R$) | 130 | 96 | 139 | 141 | 142 | 141 | 0.9% | |||||||
Retention Costs (% of net serv. revenues) | 15.7% | 13.3% | 13.8% | 11.6% | 13.7% | 13.0% | 2,1 p.p | |||||||
CAPEX (R$ millions) | 5.6 | 27.8 | 3.3 | (2.5) | 5.3 | 6.0 | -307.4% | |||||||
Number of locations served | 214 | 212 | 212 | 213 | 213 | 213 | 0.0% | |||||||
Number of cell sites | 681 | 690 | 693 | 692 | 697 | 697 | 0.7% | |||||||
Number of switches | 14 | 14 | 14 | 14 | 14 | 14 | 0.0% | |||||||
Headcount | 829 | 814 | 374 | 359 | 391 | 391 | 8.9% | |||||||
Market Share | 23.5% | 22.2% | 22.3% | 21.9% | 21.1% | 21.1% | 0.8 p.p. | |||||||
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INCOME STATEMENT (BR GAAP)
(in R$ 000) | ||||||||||||||
2006 | 2007 | Var. % (3Q07/2Q07) | ||||||||||||
3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | 3rd Quarter | YTD | |||||||||
Service Revenues - GROSS | 179,776 | 192,202 | 191,604 | 185,995 | 189,513 | 567,112 | 1.9% | |||||||
Equipment Revenues - GROSS | 20,395 | 16,559 | 9,970 | 10,729 | 7,663 | 28,362 | -28.6% | |||||||
Total Revenues - GROSS | 200,171 | 208,761 | 201,574 | 196,724 | 197,176 | 595,474 | 0.2% | |||||||
Taxes | (78,124) | (91,138) | (86,135) | (76,969) | (77,121) | (240,225) | 0.2% | |||||||
Service Revenues - NET | 107,772 | 106,638 | 108,447 | 112,570 | 114,742 | 335,759 | 1.9% | |||||||
Equipment Revenues - NET | 14,275 | 10,985 | 6,992 | 7,185 | 5,313 | 19,490 | -26.1% | |||||||
Total Revenues - NET | 122,047 | 117,623 | 115,439 | 119,755 | 120,055 | 355,249 | 0.3% | |||||||
Cost of Services | 50,386 | 46,369 | 46,931 | 47,083 | 49,835 | 143,849 | 5.8% | |||||||
Cost of Equipment | 16,726 | 13,526 | 7,758 | 8,737 | 7,873 | 24,368 | -9.9% | |||||||
Selling & Marketing Expenses | 24,510 | 23,473 | 23,318 | 24,535 | 24,749 | 72,602 | 0.9% | |||||||
Bad Debt Expense | 3,318 | 5,465 | 3,330 | 2,637 | 2,800 | 8,767 | 6.2% | |||||||
General & Administrative Expenses | 5,824 | 52,170 | 8,718 | 9,655 | 11,530 | 29,903 | 19.4% | |||||||
Other operating expense (income) | - | (9) | (3,012) | (1,765) | (3,066) | (7,843) | 73.7% | |||||||
EBITDA | 21,283 | (23,371) | 28,396 | 28,873 | 26,334 | 83,603 | -8.8% | |||||||
% | 19.7% | -21.9% | 26.2% | 25.6% | 23.0% | 24.9% | -2,6 p.p. | |||||||
Depreciation & Amortization | 26,264 | 31,314 | 28,176 | 27,074 | 27,046 | 82,296 | -0.1% | |||||||
Interest Expense | 12,880 | 31,306 | 18,929 | 24,297 | 19,056 | 62,282 | -21.6% | |||||||
Interest Income | (2,125) | (3,177) | (2,808) | (2,192) | (1,528) | (6,528) | -30.3% | |||||||
Foreign Exchange Loss (Gain) | 1,827 | (4,257) | (8,559) | (13,616) | (8,067) | (30,242) | -40.8% | |||||||
Others | 386 | 326 | 14 | (627) | 504 | (109) | -180.4% | |||||||
Income Taxes | (5,001) | (12,424) | - | - | - | - | - | |||||||
Minority Interests | (3,129) | (17,263) | (1,763) | (1,388) | (2,527) | (5,678) | 82.1% | |||||||
Net Income (loss) | (9,819) | (49,196) | (5,593) | (4,675) | (8,150) | (18,418) | 74.3% | |||||||
Number of shares (thousand)* | 335,084,155 | 335,084,155 | 335,084,155 | 335,084,155 | 6,701,682 | 6,701,682 | n/a | |||||||
Earnings per thousands shares (R$)** | (0.029) | (0.147) | (0.017) | (0.014) | (1.216) | (2.748) | n/a | |||||||
Earnings per ADS (R$) | (1.465) | (7.341) | (0.835) | (0.698) | (1.216) | (2.748) | n/a | |||||||
(1) Interest paid: 3Q06 - R$7,312 thousand; 4Q06 - R$4,806 thousand; 1Q07 - R$7,820 thousand; 2Q07 - R$3,904 thousand; and, 3Q07 - R$6,961 thousand. | ||||||||||||||
* 3Q07 and YTD 2007: number of shares. | ||||||||||||||
** 3Q07 and YTD 2007: earnings per share (R$). | ||||||||||||||
N/A - share grouping |
www.telenorteholding.com.br - 10/13
BALANCE SHEET (BR GAAP)
(in R$ 000) | ||||||||||
3Q07 | 2Q07 | 3Q07 | 2Q07 | |||||||
Current Assets | Current Liabilities | |||||||||
Cash & cash equivalents | 4,499 | 3,277 | Loans & Financing | 84,025 | 99,170 | |||||
Tempory Cash Investments | 23,381 | 24,697 | Loan Interest | 1,323 | 4,931 | |||||
Accounts Receivable | 82,215 | 82,471 | Suppliers | 97,834 | 92,348 | |||||
Taxes Receivable | 16,899 | 15,350 | Taxes Payable | 4,315 | 7,101 | |||||
Other Assets | 18,417 | 24,928 | Dividends | 100 | 101 | |||||
145,411 | 150,723 | Other Current Liabilities | 17,316 | 24,588 | ||||||
204,913 | 228,239 | |||||||||
Long-term Assets | 94,239 | 94,921 | Loans & Financing | 73,556 | 77,048 | |||||
Deferred Assets | - | - | Other Long-term Liabilities | 146,696 | 137,547 | |||||
Plant & Equipment | Minority Interest | 24,517 | 27,043 | |||||||
Cost | 1,002,537 | 997,988 | ||||||||
Accum Depreciation | (722,791) | (695,891) | Shareholders' Equity | 69,714 | 77,864 | |||||
279,746 | 302,097 | |||||||||
519,396 | 547,741 | 519,396 | 547,741 | |||||||
CASH FLOW (BR GAAP)
3Q07 | YTD | |
Operating activities | ||
Net loss | (8,150) | (18,418) |
Adjustments to reconcile net income to net cash | ||
from operating activities | ||
Depreciation and amortization | 27,046 | 82,296 |
Foreign exchange gains and indexation (principal) | (11,312) | (29,772) |
Unrealized losses (gains) on cross-currency interest | (473) | 21,760 |
Minority interest | (2,527) | (5,678) |
Provision for contingencies and other | 5,277 | 6,158 |
Changes in operating assets and liabilities | 7,400 | (14,808) |
Cash provided by operating activities | 17,261 | 41,538 |
Investing activities | ||
Cash proceeds from disposals of property and | ||
equipment | 33 | 118 |
Additions to property and equipment | (5,266) | (6,044) |
Cash used in investing activities | (5,233) | (5,926) |
Financing activities | ||
Proceeds from issuance of debt | - | 150,497 |
Payment of debt | (10,805) | (204,281) |
Dividends paid | (1) | (3) |
Cash used in financing activities | (10,806) | (53,787) |
Increase (decrease) in cash and cash equivalents | 1,222 | (18,175) |
Cash and cash equivalents, beginning of the period | 3,277 | 22,674 |
Cash and cash equivalents, end of the period | 4,499 | 4,499 |
www.telenorteholding.com.br - 11/13
GLOSSARY OF KEY INDICATORS
I) Average Clients
a) Average clients monthly
Sum of clients at the beginning and the end of the month
2
b) Average clients quarterly and year to date
Sum of the average clients for each month of the period
Number of months in the period
II) Churn Rate (Annualized)
a) Churn % quarterly
Sum of deactivations / Sum of average monthly opening clients for the 3 months x 12
3
b) Churn % - year to date
YTD deactivations / Sum of avg monthly opening clients since beginning of the year x 12
Number of months in the period
III) MOU Minutes of Use (Monthly)
Number of total billable minutes for the period / Average clients for the period
Number of months in the period
IV) ARPU Average Revenue per User
Net service revenues for the period (excluding roaming-in revenues)
Average clients for the period
V) Client Acquisition Cost
(Sum of Marketing salaries, Selling salaries, Consulting (Sales and Marketing),
Commissions, Handsets subsidies, Advertising and promotions,
FISTEL tax (activation tax), less Activation fee for the period)
Number of gross activation in the period
VI) Free Cash Flow
Free Cash Flow = (EBITDA CAPEX Taxes Net Financial Expenses*
* Considers interest paid.
VII) Working Capital Variation
Working Capital Variation = (D Current Assets D Cash & Cash Equivalents )
(D Current Liabilities D Short Term Loans and Financing -D Loan Interest -D Dividends)
VIII) Interest Coverage Ratio
Interest Coverage Ratio = EBITDA / Interest Paid
IX) Current Liquidity Ratio
Current Liquidity Ratio = Current Assets / Current Liabilities
X) EBITDA
EBITDA = Operating Revenues Operating Costs Operating Expenses* - Bad Debt
* Does not include profit sharing.
www.telenorteholding.com.br - 12/13
TELE NORTE CELULAR PARTICIPAÇÕES S.A. | ||||
By: | /s/ André Mastrobuono | |||
Name: | André Mastrobuono | |||
Title: | CEO, CFO and Head of Investor Relations |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.