MEXICO CITY, July 28 /PRNewswire-FirstCall/ -- Maxcom
Telecomunicaciones, S.A.B. de C.V. ("Maxcom", or "the Company")
(NYSE:MXT) (BMV: MAXCOM CPO), one of the leading integrated
telecommunications companies in Mexico, today announced its
unaudited financial and operating results for the quarter ended
June 30, 2009. NOTE: The monetary amounts presented in these tables
have been prepared in accordance with Mexican Financial Reporting
Standards ("NIF" or "Mexican GAAP"). Figures are expressed in
millions of current Mexican Pesos. Results | Second Quarter 2009
Financial Highlights: -- Second quarter 2009 revenues reached Ps.
645 million, sequentially, and in comparison to the first quarter
revenue increased by 1%. -- Sequentially and in comparison to the
first quarter of 2009, network operating costs decreased by 3% to
reach Ps. 286 million in comparison to Ps. 295 million. -- EBITDA
increased sequentially by 7% to reach Ps. 161 million in the second
quarter in comparison to Ps. 150 million the first quarter of 2009.
-- EBITDA margin increased sequentially from 24% in the first
quarter of 2009 to 25% this reporting quarter. vs. % 2Q09 change
Million Pesos 2Q09 1Q09 2Q08 1Q09 2Q08 YTD09 YTD08 % change
Revenues 645 638 670 1% (4%) 1,282 1,294 (1%) EBITDA 161 150 204 7%
(21%) 312 396 (21%) EBITDA Margin 25% 24% 30% 24% 31% Adj. EBITDA
162 151 208 7% (22%) 314 402 (22%) Adj. EBITDA Margin 25% 24% 31%
24% 31% Net Income (64) (115) 11 N.A. N.A. (179) 20 N.A. Operating
Highlights: -- Total company Revenue Generating Units, or RGUs,
increased to 485,913 or 11% in the second quarter of 2009 compared
to the same period last year. The Company recorded RGU net adds of
8,162 in the quarter. -- Total company customer base decreased by
6% to reach 216,063 customers. -- When compared to the same period
last year, voice RGUs (formerly voice lines in service) decreased
by 1% to reach 360,968. Voice RGUs include residential voice,
commercial voice, public telephony lines and wholesale lines. --
Data residential RGUs increased by 118% to 44,439. -- The number of
coin operated public phones reached 40,328, an increase of 29% in
comparison to those in the second quarter of 2008. -- The total
mobile RGU base reached 54,755 units, which is 39% higher than the
number registered in 2008. -- Pay TV number of RGUs reached 22,354
units, which is two times the number registered in 2008. --
Residential RGU per customer increased from 1.4 in the second
quarter of 2008 to 1.6 in the second quarter of 2009. -- Commercial
RGU per customer increased from 13.7 in the second quarter of 2008
to 16.8 in the second quarter of 2009. Operating Results 2Q09 2Q08
% Change Residential Customers 211,221 224,690 (6%) Voice 204,606
220,991 (7%) Data 39,945 17,272 131% Mobile 47,424 36,595 30% TV
22,354 11,217 99% Residential RGUs 341,041 305,379 12% Voice
220,104 235,387 (6%) Data 44,439 20,354 118% Mobile 54,144 38,421
41% TV 22,354 11,217 99% RGU per Residential Customer 1.6 1.4
Commercial Customers 4,800 5,756 (17%) Voice 4,511 5,501 (18%) Data
1,394 1,329 5% Mobile 57 99 (42%) Other 187 144 30% Commercial RGUs
80,544 78,766 2% Voice 76,536 74,399 3% Data 2,932 2,947 (1%)
Mobile 611 1,094 (44%) Other 465 326 43% RGU per Commercial
Customer 16.8 13.7 Public Telephony RGUs 40,328 31,292 29%
Wholesale RGUs 24,000 23,970 0% Total RGUs 485,913 439,407 11%
Voice RGUs (voice lines in service) 360,968 365,048 (1%) Total
Number of Customers 216,063 230,498 (6%) Revenues Maxcom total
revenues for the second quarter of 2009 were Ps. 645 million, a
decrease of 4% over revenues of Ps. 670 million, recorded in the
second quarter of 2008. In comparison to the first quarter of 2009,
revenue increased by 1%. The following table is a breakdown of the
sources of revenue for the Company. 2Q09 Weight % 1Q09 Weight % %
change Residential Ps. 230 36% Ps. 238 37% (3%) Commercial 208 32%
185 29% 12% Public Telephony 115 18% 113 18% 2% Wholesale 88 14% 98
15% (10%) Other Revenue 4 0% 4 1% 0% Total Ps. 645 100% Ps. 638
100% 1% 2Q09 Weight % 2Q08 Weight % % change Residential Ps. 230
36% Ps. 272 41% (15%) Commercial 208 32% 203 30% 2% Public
Telephony 115 18% 102 15% 13% Wholesale 88 14% 81 12% 9% Other
Revenue 4 0% 12 2% (67%) Total Ps. 645 100% Ps. 670 100% (4%) Total
revenues for the first six months ended June 30, 2009 were Ps.
1,282 million, a decrease of 1% over revenue of Ps. 1,294 million
recorded in the same period of last year. The following table is a
breakdown of the sources of revenue for the Company. YTD09 Weight %
YTD08 Weight % % change Residential Ps. 468 36% Ps. 529 41% (12%)
Commercial 393 31% 393 30% 0% Public Telephony 227 18% 196 15% 16%
Wholesale 188 15% 153 12% 23% Other Revenue 6 0% 23 2% (74%) Total
Ps. 1,282 100% Ps. 1,294 100% (1%) Residential Residential revenues
represented 36% of the total during the second quarter, compared
with 41% in the same quarter of 2008. Revenues in the residential
business segment reached Ps. 230 million, a decrease of 15% or Ps.
42 million in comparison to Ps. 272 million in the second quarter
of 2008. The Ps. 42 million decrease in revenues is the combination
of a 6% decrease in lines, and: 1. the duration and the number of
calls which are charged by the minute leading to a decrease in
usage charges for mobile and long distance by approximately Ps. 25
million; 2. Installation charges for the quarter were lower by Ps.
18 million; and, 3. Local usage decreased by Ps. 12 million.
However, and partially offsetting this decrease in revenue,
recurrent charges increased by Ps. 13 million, due to a larger
contribution of data, TV and mobile products. For the six months
ended June 30, 2009 revenues from the residential business totaled
Ps. 468 million, or 36% of total revenues from Ps. 529 million
recorded in the same period of 2008. Residential RGU per customer
increased from 1.4 in the second quarter of 2008 to 1.6 in the
second quarter of this year. Although the Company has continued to
increase the take rate year over year, the lower price point that
is applied when bundling products continues to affect residential
revenues. Commercial Commercial revenues represented 32% of the
total during the second quarter of 2009, compared with 30% in the
same quarter of 2008. Revenues in the Commercial Business reached
Ps. 208 million, an increase of 2% in comparison to Ps. 203 million
in the same period of 2008. The 2%, or Ps. 5 million, increase in
revenues during the second quarter of 2008 is mainly explained by:
1. An increase in monthly recurrent charges of approximately Ps. 15
million; 2. An increase of Ps. 3 million in long distance usage; 3.
A decrease of Ps. 10 million in local usage; and, 4. A decrease of
Ps. 3 million in installation charges. For the six months ended
June 30, 2009, revenues from the commercial business totaled Ps.
393 million, or 31% of total revenues, compared to Ps. 393 million
recorded in the same period of 2008. In addition, RGU per
commercial customer increased from 13.7 in the second quarter of
2008 to 16.8 in the second quarter of 2009. Public Telephony Public
Telephony represented 18% of total revenues during the second
quarter of 2009. Revenues in this business unit totaled Ps. 115
million, an increase of 13% when compared to Ps. 102 million in
2008. The increase in revenues is attributed to the 29% growth in
the base of public telephones installed. However, and partially
offsetting this, the growth in the number of public telephones has
outpaced revenues due to a decrease in average revenue per unit.
For the six months ended June 30, 2009, revenues from the public
telephony business totaled Ps. 227 million, or 18% of total
revenues, compared to Ps. 196 million recorded in the same period
of 2008. Wholesale In 2009, Wholesale revenues increased by 9% to
reach Ps. 88 million, in comparison to the Ps. 81 million
registered during the same quarter in the previous year. The
increase in the Wholesale Business revenues was mainly driven by a
combination in the year over year exchange rate fluctuation, in
addition to higher traffic and long distance termination. For the
six months ended June 30, 2009 revenues from the wholesale business
totaled Ps. 188 million, or 15% of total revenues, compared to Ps.
153 million recorded in the same period of 2008. Other Revenue
Other revenues contributed marginally and reached Ps. 4 million, in
comparison to Ps. 12 million or 2% of total revenues in the
previous quarter. For the six months ended June 30, 2009, revenues
from other businesses totaled Ps. 6 million, in comparison to Ps.
23 million recorded in the same period of 2008. Network Operation
Cost Network Operation Costs in the second quarter of 2009
increased by 8% or Ps. 22 million to reach Ps. 286 million in
comparison to Ps. 264 million last year. This increase was mainly
due to a 10% increase in network operating services and an 11%
increase in technical expenses. However, and partially offsetting
this increase, installation expenses decreased by 17%. The Ps. 22
million increases in network operating services were mainly in: 1.
Calling party pays interconnection; 2. Pay TV content; 3. Public
telephony traffic on GSM networks; 4. The lease of circuits and
ports; and, 5. Internet access capacity. However, these increases
were offset by lower long distance interconnection costs. For the
six months ended June 30, 2009, network operation costs totaled Ps.
581 million from Ps. 511 million, a 14% increase in comparison to
the same period last year. SG&A SG&A expenses were Ps. 198
million in the second quarter of 2009, 2% below Ps. 202 million in
the same period of 2008. The Ps. 4 million decrease was mainly
driven by a reduction in marketing expenses, the company's stock
option compensation plan, salaries and staff related costs,
maintenance, insurance and external advisory expenses. These
decreases were partially offset by higher bad debt expenses and
leases. For the six months ended June 30, 2009, SG&A expenses
totaled Ps. 390 million, 1% above Ps. 387 million reported in the
same period last year. EBITDA and Adjusted EBITDA EBITDA for the
second quarter of 2009 was Ps. 161 million, a 21% decrease from Ps.
204 million in the same period of last year. EBITDA Margin was 25%
during the period, lower than 30% in the second quarter of 2008.
For the six months ended June 30, 2009, EBITDA amounted to Ps. 312
million, 21% lower than the Ps. 396 million registered in the same
period of 2008. EBITDA margin for the first six months of 2009 was
24%, lower than the 31% margin recorded in the same period of 2008.
Adjusted EBITDA for the second quarter of 2009 was Ps. 162 million,
22% lower than Ps. 208 million in the same period of last year.
Adjusted EBITDA Margin was 25% during the period, lower than 31% in
the second quarter of 2008. For the six months ended June 30, 2009,
Adjusted EBITDA amounted to Ps. 314 million, 22% lower than the Ps.
402 million registered in the same period of 2008. Adjusted EBITDA
margin for the first six-month period of 2009 was 24%, lower than
the 31% margin reported in the same period of 2008. Operating
Income The Company recorded an operating loss for the second
quarter of 2009 of Ps. 21 million which does not compare favorably
with an operating income of Ps. 80 million for the same period of
2008. For the six months ended June 30, 2009 the company reported
an operating loss of Ps. 47 million, in comparison to operating
income of Ps. 150 million reported in the same period last year.
Besides the operating results explained above, the operating loss
during the quarter and the first six months of the year was also
affected by the Ps. 58 million and Ps. 113 million increase in
depreciation and amortization charges, respectively, directly
related to the overall growth in the fixed assets base.
Comprehensive Financial Result During the quarter, the Company
registered a Comprehensive Financial Result of Ps. 11 million, a
Ps. 32 million decrease when compared to Ps. 43 million in the same
period of 2008. change change change change 2Q09 2Q08 Ps. % YTD09
YTD08 Ps. % Interest Expense 71 58 (13) (22%) 150 132 (18) (14%)
Interest (Income) (2) (15) (13) (87%) (5) (39) (34) (87%) Exchange
Rate (Gain) Loss - Net (58) - 58 N.A. 3 14 11 83% Total 11 43 32
74% 148 107 (41) (38%) The lower Comprehensive Financial Result was
due to a net exchange rate gain in the second quarter of 2009 as a
result of an actual cash benefit of Ps. 16 million for the payment
on the interest of the senior notes related to the cross currency
swap and of the Peso appreciation, mainly due to the US$
denominated liabilities of the company affected by exchange rate
volatility quarter over quarter compared to a minimal exchange rate
variation during the second quarter of 2008. At June 30, 2009 the
exchange rate between the Mexican Peso and the United States Dollar
was Ps. 13.2023, compared to Ps. 14.3317 at the end of March 31,
2009. However this decrease was partially offset by an increase of
60% or Ps. 26 million in the amount of net interest paid which
increased from Ps. 43 million in the second quarter of 2008 to Ps.
69 million in the second quarter of 2009. For the six months ended
June 30, 2009, comprehensive cost of financing for the Company
reached Ps. 148 million when compared to Ps. 107 million recorded
in the same period of 2008. Taxes The Company, taking a
conservative stance, during the second quarter of 2009, recorded a
valuation allowance of Ps. 21 million for the deferred tax benefits
from previously recorded losses, due to a recent government
announcement of an expected contraction of the economy, compared to
Ps. 13 million in the second quarter of 2008. The Company is not
subject to pay single rate corporate tax for this reporting
quarter. For the six months ended June 30, 2009, the Company
recorded income tax provisions related to recorded losses of Ps.41
million, compared to Ps. 7 million in the first six months of 2008
related to income tax. Net Income The Company posted a net loss
during the second quarter of 2009 of Ps. 64 million, which compares
to a net income of Ps. 11 million reported in the second quarter of
2008. For the six months ended June 30, 2009, the Company
registered a net loss of Ps. 179 million in comparison to a net
income of Ps. 20 million, in the same period of 2008. Liquidity and
Capital Sources Millions of Pesos Quarter Ended Quarter Ended June
30, 2009 June 30, 2008 Resources from Operations and Working
Capital (55) 66 CAPEX (229) (352) Free Cash Flow (284) (286)
Financing Activities (139) (196) Cash and Cash Equivalents at the
Start of the Period 1,630 2,287 Cash and Cash Equivalents at the
End of the Period 1,207 1,805 For the Six For the Six Millions of
Pesos Months Months Ended June Ended June 30, 2009 30, 2008
Resources from Operations and Working Capital 292 156 CAPEX (536)
(714) Free Cash Flow (244) (558) Financing Activities (140) (177)
Cash and Cash Equivalents at the Start of the Period 1,591 2,540
Cash and Cash Equivalents at the End of the Period 1,207 1,805
Capital Expenditures Capital Expenditures during the period totaled
Ps. 229 million, lower than the Ps. 352 million recorded in the
second quarter of 2008. Capital Expenditures were primarily used
for telephone network systems, the build out of new clusters, and
equipment for Maxcom's network expansion. Indebtedness On June 30,
2009 the Company reported its Indebtedness level at Ps. 2,656
million. The Company's leverage ratio measured by Debt/EBITDA,
presented an increase, from 2.7 times in 2008 to 4.3 times in 2009.
About MAXCOM MAXCOM Telecomunicaciones, S.A.B. de C.V.,
headquartered in Mexico City, Mexico, is a facilities-based
telecommunications provider using a "smart-build" approach to
deliver last-mile connectivity to micro, small and medium-sized
businesses and residential customers in the Mexican territory.
MAXCOM launched commercial operations in May 1999 and is currently
offering local, long distance, data, value-added, CATV and IP-based
services on a full basis in greater metropolitan Mexico City,
Puebla, Tehuacan, San Luis, and Queretaro, and on a selected basis
in several cities in Mexico. The information contained in this
press release is the exclusive responsibility of MAXCOM
Telecomunicaciones, S.A.B. de C.V. and has not been reviewed by the
Mexican National Banking and Securities Commission (CNBV) or any
other authority. The registration of the securities described in
this press release before the National Registry of Securities
(Registro Nacional de Valores) held by the CNBV, shall it be the
case, does not imply a certification of the investment quality of
the securities or of MAXCOM's solvency. The trading of these
securities by an investor will be made under such investor's own
responsibility. For more information contact: Juan-Carlos Sotomayor
Mexico City, Mexico (52 55) 4770-1170 This document may include
forward-looking statements that involve risks and uncertainties
that are detailed from time to time in the U.S. Securities and
Exchange Commission filings of the Company. Words such as
"estimate," "project," "plan," "believe," "expect," "anticipate,"
"intend," and similar expressions may identify such forward-looking
statements. The Company wants to caution readers that any
forward-looking statements in this document or made by the
company's management involves risks and uncertainties that may
change based on various important factors not under the Company's
control. These forward-looking statements represent the Company's
judgment as of the date of this document. The Company disclaims,
however, any intent or obligation to update these forward-looking
statements. MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND
SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEET Thousands of
Mexican Pesos ("Ps.") As of June 30, 2008 2009 ASSETS CURRENT
ASSETS: Cash and cash equivalents Ps. 1,805,477 Ps. 1,206,679
1,805,477 1,206,679 Accounts receivable: Customers, net of
allowance 653,470 722,151 Value added tax refundable 154,480
164,623 Other sundry debtors 82,341 96,491 890,291 983,265
Inventory 34,360 26,159 Prepaid expenses 45,348 26,472 Total
current assets 2,775,476 2,242,575 Frequency rights, net 77,048
63,196 Telephone network systems and equipment, net 4,663,048
4,809,215 Pre-operating expenses, net 66,623 40,666 Intangible
assets, net 217,023 250,794 Financial instruments 10,227 55,439
Deposits 7,780 8,420 Deferred taxes - 188,977 Prepaid expenses long
term 18,734 12,952 Other assets 6,357 6,357 Total assets Ps.
7,842,316 Ps. 7,678,591 LIABILITIES CURRENT LIABILITIES: Interest
payable 9,913 12,726 Accounts payables and accrued expenses 548,027
517,835 Notes payables 4,849 2,453 Deferred income 2,537 2,337
Payroll and other taxes payable 52,575 55,438 Total current
liabilities 617,901 590,789 LONG-TERM LIABILITIES: Senior notes,
net 2,056,820 2,640,460 Notes payable 2,852 - Other accounts
payable 9,556 12,748 Deferred taxes 86,671 - Pensions and
post-retirement obligations 10,125 26,545 Other long term
liabilities 67,658 84,356 Hedging valuation 13,315 263 Total
liabilities Ps. 2,864,898 Ps. 3,355,161 SHAREHOLDERS' EQUITY
Capital stock 5,410,244 5,410,244 Premium on capital stock 826,473
817,444 Accumulated deficit (1,267,466) (1,705,230) Net profit
(loss) for the period 19,854 (178,844) Share repurchase program
(11,687) (20,184) Total shareholders' equity Ps. 4,977,418 Ps.
4,323,430 Total liabilities and equity Ps. 7,842,316 Ps. 7,678,591
MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS Thousands of Mexican
Pesos ("Ps.") 3 months ended June 30, 2008 % 2009 % TOTAL REVENUES
Ps. 669,583 100% Ps. 644,644 100% Network operating services
224,734 34% 246,643 38% Technical expenses 32,519 5% 36,167 6%
Installation expenses 6,648 1% 2,985 0% Cost of network operation
263,901 39% 285,795 44% GROSS PROFIT 405,682 61% 358,849 56%
SG&A 201,858 30% 197,521 31% EBITDA 203,824 30% 161,328 25%
Depreciation and amortization 123,768 182,013 Operating income
(loss) 80,056 (20,685) Comprehensive (income) cost of financing:
Interest expense 58,314 71,770 Interest (income), net (14,913)
(2,234) Exchange (income) loss, net (31) (58,289) 43,370 11,247
Other (income) expense 12,316 10,973 INCOME (LOSS) BEFORE TAXES
24,370 (42,905) Taxes: Flat rate corporate tax 6,782 - Income tax
2,543 - Deffered income tax 3,553 20,710 Total tax 12,878 20,710
NET INCOME (LOSS) Ps. 11,492 Ps. (63,615) Adjusted EBITDA 208,209
162,209 % of revenue Adjusted EBITDA 31% 25% Weighted average basic
shares 789,819 789,819 Weighted average fully diluted 832,548
829,337 Earnings per share basic 0.01 (0.08) Earnings per share
diluted 0.01 (0.08) MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND
SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
Thousands of Mexican Pesos ("Ps.") 6 months ended June 30, 2008 %
2009 % TOTAL REVENUES Ps. 1,293,949 100% Ps. 1,282,192 100% Network
operating services 434,057 34% 503,958 39% Technical expenses
65,686 5% 71,425 6% Installation expenses 11,390 1% 5,577 0% Cost
of network operation 511,133 40% 580,960 45% GROSS PROFIT 782,816
60% 701,232 55% SG&A 386,986 30% 389,565 30% EBITDA 395,830 31%
311,667 24% Depreciation and amortization 245,651 358,200 Operating
income (loss) 150,179 (46,533) Comprehensive (income) cost of
financing: Interest expense 132,100 150,384 Interest (income), net
(39,407) (5,232) Exchange (income) loss, net 13,887 2,416 106,580
147,568 Other (income) expense 17,041 26,165 INCOME (LOSS) BEFORE
TAXES 26,558 (220,266) Taxes: Flat rate corporate tax 6,783 -
Income tax 5,718 - Deffered income tax (5,797) (41,422) Total tax
6,704 (41,422) NET INCOME (LOSS) Ps. 19,854 Ps. (178,844) Adjusted
EBITDA 401,750 313,558 % of revenue Adjusted EBITDA 31% 24%
Weighted average basic shares 789,819 789,819 Weighted average
fully diluted 832,548 829,337 Earnings per share basic 0.03 (0.23)
Earnings per share diluted 0.02 (0.22) MAXCOM TELECOMUNICACIONES,
S.A.B. DE C.V. AND SUBSIDIARIES UNAUDITED CONDENSED CASH FLOW
Thousands of Mexican Pesos ("Ps.") 3 months ended June 30, 6 months
ended June 30, 2008 2009 2008 2009 Operating Activities: Income
before taxes Ps. 24,368 Ps. (42,903) Ps. 26,557 Ps. (220,267) Items
without cash flow (82,420) (225,880) (116,420) (67,200) Items
related to investment activities 114,934 205,475 213,010 384,245
Items related to financing activities 61,465 99,068 148,663 179,933
Cash flow from income/loss before taxes 18,347 35,760 271,810
276,711 Cash flow from: Accounts receivables (56,136) 27,229
(136,226) (5,948) Inventory (6,302) 10,987 (1,111) 14,717 Accounts
payables 6,017 (150,479) 45,038 3,003 Other assets and liabilities
13,845 21,166 (10,761) 3,532 Income taxes (9,325) - (12,500) - Cash
flow from operation activities (51,901) (91,097) (115,560) 15,304
Net cash flow from operating activities 66,446 (55,337) 156,250
292,015 Cash flow from: Telephone network systems and equipment,
net (352,177) (228,899) (714,130) (466,441) Other intangible assets
- - - (70,000) Cash flow from capital expenditures (352,177)
(228,899) (714,130) (536,441) Cash in excess/ (required) to be used
in financing activities (285,731) (284,236) (557,880) (244,426)
Cash flow from: Vendor financing (2,609) (828) (3,955) (1,901)
Additional paid in capital (59,877) 881 (61,584) 1,001 Other
financing activities (133,031) (139,505) (110,639) (139,400) Cash
flow from financing activities (195,517) (139,452) (176,178)
(140,300) Increase (decrease) in cash and temporary investments
(481,248) (423,688) (734,058) (384,726) Cash and cash equivalents
at beginning of the period 2,286,725 1,630,367 2,539,535 1,591,405
Cash and cash equivalents at the end of the period Ps.1,805,477
Ps.1,206,679 Ps.1,805,477 Ps.1,206,679 DATASOURCE: Maxcom
Telecomunicaciones, S.A.B. de C.V. CONTACT: Juan-Carlos Sotomayor,
Mexico City, Mexico, Maxcom, +011-52-55-4770-1170, Web site:
http://www.maxcom.com/
Copyright