UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of April, 2003
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GRUPO IUSACELL, S.A. de C.V.
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(Translation of registrant's name into English)
Prol. Paseo de la Reforma
1236 Col. Santa Fe, Deleg.
Cuajimalpa
05438, Mexico D.F.
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(Address of principal executive office)
Indicate by check mark whether the registrant files or will fill annual reports
under cover of Form 20-F or Form 40-F: Form 20-F __X__ Form 40-F ____
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g-3-2(b) under the Securities and Exchange Act of
1934. Yes __X__ No____ -
Documents Furnished By the Registrant
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1. Press Release of the Registrant dated April 29, 2003
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GRUPO IUSACELL, S.A. DE C.V.
Date: April 29, 2003 /s/ Russell A. Olson
----------------------------------------
Name: Russell A. Olson
Title: Executive Vice President and
Chief Financial Officer
Press Release dated April 29, 2003
First Quarter 2003 Results;
Iusacell Reports Improved Churn and EBITDA in the
First Quarter 2003 Compared with Fourth Quarter 2002
MEXICO CITY--(BUSINESS WIRE)--April 29, 2003--Grupo Iusacell, S.A.
de C.V. (Iusacell or the Company) (BMV:CEL), (NYSE:CEL) today
announced results for the first quarter ended March 31, 2003(1).
Highlights
-- 1Q03 EBITDA reached $399 million, up 8% from the fourth
quarter of 2002
-- EBITDA margin improved to 34% from 32% in the first quarter of
2002
-- Adjusted EBITDA margin(2) improved to 29% from 28% in the
first quarter 2002
-- Postpaid churn continues to improve, dropping 14% compared to
the first quarter of 2002
-- Enhanced pricing plans launched for prepaid and postpaid
segments
-- CDMA2000 1XRTT launch in January marks Mexico's most advanced
network deployment
"In the first quarter, we reaffirmed our commitment to the
customer's experience, launching a new set of postpaid and prepaid
value proposition price plans and the first high speed wireless data
application in Mexico using CDMA2000 1X technology. At the same time,
we continued implementing important cost-cutting measures, as well as
service and support initiatives that will help us grow our high-value
customer base over the long term," said Carlos Espinal G., Chief
Executive Officer of Iusacell.
Operational Results
Subscribers as of March 31, 2003 totaled 2.0 million, a 2%
increase over the past 12 months. However, the subscriber base
decreased 2% when compared to year-end 2002. This decline is due to
fewer gross additions as the Company continues its focus on high-value
customers and constant deletions driven by the turnover of low-usage
Incoming Calls Only subscribers. Gross additions in the first quarter
of 2003 totaled 164,000, compared to 294,000 in the first quarter of
2002, and 169,000 in the fourth quarter of 2002.
(1) Unless otherwise noted, all monetary figures are in Mexican
pesos and restated as of March 31, 2003 in accordance with Mexican
GAAP, except for ARPU (which is in nominal pesos). The symbols "$" and
"US$" refer to Mexican pesos and U.S. dollars, respectively.
(2) Adjusted EBITDA expenses rather than capitalizes postpaid
handset subsidies and excludes non-operational transactions, such as
severance costs and gains from fiber-optic and tower sales.
The Company's postpaid customer base declined 4% from the fourth
quarter of 2002 and 11% year over year, ending at 343,000 due
primarily to the fewer gross additions. Prepaid customers decreased 2%
from the fourth quarter of 2002 but increased 5% year over year,
totaling 1.7 million as of March 31, 2003. The sequential decline in
the prepaid subscriber base is the anticipated result of the Company's
efforts to replace low-usage Incoming Calls Only customers with higher
value prepaid customers.
Blended churn in the first quarter of 2003 decreased to 3.4% from
the 4.1% per month registered in the fourth quarter of 2002, but was
up from the 2.7% reported in the first quarter of 2002. Postpaid churn
continued to improve at 3.2% in the first quarter of 2003, compared to
3.6% in the fourth quarter of 2002 and 3.7% in the first quarter of
2002. The improvement reflects the Company's continued efforts to
augment retention and renewal programs; these efforts are designed to
increase customer loyalty with compelling proposals for high value
postpaid subscribers.
Minutes of use (MOU) among postpaid customers increased 5% on a
year over year basis, while prepaid MOUs declined 10% over the prior
year. The proportionately higher number of prepaid customers from the
year ago period pushed down blended monthly MOU per subscriber by 12%.
Postpaid usage was up 2% from the fourth quarter 2002 as a result of
new packages that include more minutes. Prepaid MOUs declined 7%
sequentially in the first quarter of 2003, reflecting the impact of
special promotional plans implemented in January and February that
included non-invoiced minutes. These special prepaid incentive
promotions ended on March 1, 2003.
Average revenue per user (ARPU) declined from $221 in the first
quarter of 2002 to $178 in the first quarter of 2003 primarily due to
a higher proportion of prepaid subscribers in the Company's customer
base. The increased proportion of hybrid customers in the postpaid
base impacted postpaid ARPUs, which decreased 8% compared to the
previous year. Prepaid ARPU decreased 14% compared to the first
quarter of 2002, driven primarily by a higher proportion of
lower-revenue generating customers in the prepaid subscriber base.
Sequentially, postpaid ARPU increased 1% due to an improved postpaid
subscriber mix and higher postpaid MOUs.
Operating Highlights
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----------------------------------------------------------------------
First Quarter
----------------------------------------------------------------------
2003 2002 % Change
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Cellular subscriber base 2,035,731 1,995,257 2%
Gross cellular additions 163,837 294,304 -44%
Net cellular additions (45,469) 140,091 -
Blended churn 3.4% 2.7% -
Avg. monthly MOU per subscriber(a) 61 69 -12%
Postpaid 227 217 5%
Prepaid 27 30 -10%
Monthly ARPU(1)(a) 178 221 -19%
Postpaid 681 740 -8%
Prepaid 75 87 -14%
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(1) ARPUs in pesos of each period.
(a) Total subscriber base, including Calling Party Pays Only
subscribers within Prepaid.
Commercial Initiatives
New service plans: In March 2003, Iusacell launched a new set of
compelling prepaid and postpaid value propositions aimed to position
the Company as the best alternative for the targeted high-value market
segment. Ten new postpaid plans grouped in three targeted value
propositions and 4 new prepaid options, all supported by advertising
and marketing campaigns, anchor the effort to regain a leading
position among high volume customers.
The three new postpaid value propositions include a NAFTA
proposition, in which local calls, as well as calls within Mexico, the
U.S. and Canada, are all priced at the same per minute rate; an
Unlimited Nights and Weekends proposition designed to incent cellular
traffic leveraging non-pick utilization hours; and a Basic plan with
affordable rates designed to compete directly with competitors' plans
by incorporating higher baseline minutes. New prepaid cards with
aggressive prices per minute were launched in an effort to incent
airtime recharges and to respond to the new tax initiatives
implemented by the Mexican government in January 2003. Furthermore,
the Company launched international SMS service with 109 carriers in
the U.S., Canada and 14 more countries in Latin America, Europe and
Asia, enabling the Company's customers to send and receive messages
worldwide.
Advanced services: In January 2003, the Company commercially
launched the country's first CDMA2000 1XRTT voice and high-speed data
network in Mexico City. With this advanced network, the Company
increased its voice capacity and offered subscribers new data services
such as high-speed instant messaging, e-mail and Internet access at
speeds of up to 144 kilobits per second (kbps). Iusacell offers the
corporate sector mobile office capabilities and applications designed
to meet the needs of specific mobile users such as field sales and
service personnel.
Verizon relationship: The Company continued to integrate network
services with Verizon Communications during the first quarter of 2003.
As a Verizon Wireless Preferred Roaming Partner (PRP), Iusacell's
roaming airtime generated by Verizon Wireless customers increased 320%
over the first quarter of 2002.
Financial Results
Revenue in the quarter decreased 18% from the year ago period and
9% from the previous quarter to $1,176 million, as a result of the
lower subscriber base and lower ARPU. The Company believes the
initiatives taken since the latter part of 2002, combined with
attractive new product offerings, as well as high-value customer
retention programs, will drive high-value sales and stem the negative
revenue trend.
Revenue Breakdown
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(In millions of constant pesos as of March 31, 2003)
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First Quarter
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2003 2002 % Change
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Monthly fee 339 418 -19%
Airtime consumption 602 671 -10%
Long distance 92 141 -34%
Value-added services + roaming 74 93 -21%
--------------------------------
Total service revenues 1,107 1,322 -16%
Equipment sales & other 69 116 -41%
--------------------------------
Total revenues 1,176 1,438 -18%
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Cost of sales in the first quarter of 2003 decreased 17% from the
year ago period, from $509 million to $420 million. Ongoing headcount
initiatives and cost controls enabled the Company to realize better
cost savings despite higher lease costs associated with an increased
number of non-strategic towers sold to (and leased-back from) the
Mexican subsidiary of American Tower Corporation.
Operating expenses: Sales and advertising expenses in the quarter
declined 20% year over year due primarily to fewer gross subscriber
additions, however, as a percentage of revenues it remained stable at
23%. Lower headcount and expense containment helped reduce general and
administrative expenses to $86 million, a 34% decline from the
previous year's first quarter. As a percentage of revenues, general
and administrative expenses decreased from 9% in the first quarter of
2002 to 7% in the first quarter of 2003.
EBITDA(3) in the quarter increased 8% sequentially to $399
million, from $370 million in the fourth quarter of 2002 due to the
tighter cost structure. EBITDA in the first quarter of 2002 was $462
million. EBITDA margin in the first quarter of 2003 was 34%, compared
to 29% in the fourth quarter of 2002 and 32% in the year ago period.
Adjusted EBITDA margin, which expenses rather than capitalizes
postpaid handset subsidies and excludes non-operational transactions,
was 29% in the first quarter of the year, improved over the 28% margin
recorded in the first quarter of last year and the 24% registered in
the fourth quarter of 2002.
Depreciation and amortization expenses of $625 million in the
first quarter of 2003 increased 1% from the first quarter of 2002, due
to the capitalization of completed projects throughout 2002 and the
first quarter of 2003.
Postpaid subscriber acquisition costs in the quarter improved from
US$237 per new subscriber in the first quarter of 2002 to US$191 in
the most recent quarter, due to restructured commission plans aimed to
support the new value proposition packages, more efficient handset
purchases and targeted subsidies.
Operating loss in the quarter increased from the $154 million
recorded in the year ago period to $226 million in the current quarter
driven by lower revenues, partially offset by continued cost control
and headcount initiatives.
Integral financing cost in the quarter totaled $429 million,
compared to $160 million in the same quarter of last year. The higher
cost in the first quarter of 2003 was mainly driven by a $280 million
foreign exchange loss resulting from the 4% depreciation of the peso
against the U.S. dollar during the period, compared to a 1% peso
appreciation against the U.S. dollar registered in the first quarter
of 2002 and the resultant $33 million foreign exchange loss in that
period, as well as a $9 million increase in interest expense in the
first quarter of 2003 compared to the same period of 2002.
(3) This press release contains a reference to EBITDA and provides
the components of EBITDA on the face of the Consolidated Income
Statement. EBITDA is used by management for comparisons to other
companies within our industry as an alternative to GAAP measures and
is used by investors and analysts in evaluating performance. EBITDA,
which is earnings before interest, taxes, depreciation and
amortization, is computed by adding back net interest expense, income
and asset tax expense, depreciation expense and amortization expense
to net income (loss) before minority interest and loss of subsidiaries
as reported. EBITDA should be considered in addition to, but not as a
substitute for other measures of financial performance reported in
accordance with accounting principles generally accepted in Mexico.
EBITDA, as defined above, may not be comparable to similarly titled
measures reported by other companies.
Integral Financing Cost
-----------------------
(In millions of constant pesos as of March 31, 2003)
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First Quarter
---------------------------------------------------------------------
2003 2002 % Change
---------------------------------------------------------------------
Net interest expense (229) (220) 4%
Exchange loss (280) (33) -748%
Monetary correction gain 81 94 -14%
--------------------------------------
Total integral financing loss (429) (160) -169%
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Net loss in the quarter of $694 million reflected the higher
operating loss and integral financing costs. This compares to a net
loss of $353 million in the year ago period.
Liquidity: During the first quarter of 2003, the Company funded
its operations, capital expenditures, handset purchases, principal and
interest payments primarily with internally generated cash flow. As of
March 31, 2003, the Company's operating cash balance was US$5 million.
Capital Expenditures: Iusacell invested approximately US$1 million
in its cellular regions during the first quarter of 2003 to expand
coverage. This capex reflects Iusacell's strategic focus on maximizing
existing capacity and prioritizing investments that directly benefit
the high-value customer base.
Debt: As of March 31, 2003, debt, including trade notes payable
and notes payable to related parties, totaled US$815 million, compared
to US$841 million registered in the first quarter of 2002 and US$822
in the fourth quarter of 2002. All of the Company's debt is U.S.
dollar-denominated, with an average maturity of 2.7 years. As of
quarter-end, Iusacell's debt-to-capitalization ratio was 65%, versus
53% on March 31, 2002.
Recent Developments
Debt and Credit Facilities: As announced in December 2002, the
Company has begun a debt restructuring effort and has engaged Morgan
Stanley as its financial advisor. The Company has been in continuous
dialogue with its senior secured lenders.
As part of its debt restructuring effort, Grupo Iusacell Celular,
S.A. de C.V. ("Iusacell Celular") has requested and received a
temporary Amendment and Waiver (the "Amendment") of the Debt/EBITDA
ratio and certain other provisions and technical defaults under its
US$266 million Amended and Restated Credit Agreement dated as of March
29, 2001 (the "Credit Agreement"). Unless extended, the Amendment is
scheduled to expire on May 22, 2003. The lenders have agreed to
consider extending the waiver beyond May 22, 2003 based upon the
progress of the Company's restructuring plan. If the Amendment is not
extended, upon its expiration Iusacell Celular will be in default of
the Debt/EBITDA ratio, which will constitute an Event of Default under
the Credit Agreement, and the lenders under the Credit Agreement will
have the remedies they would otherwise have had if the Amendment had
not been executed.
The Amendment contains covenants which expire on June 30, 2003
which restrict Iusacell Celular from making any loans, advances,
dividends or other payments to the Company and require a proportionate
prepayment of the loan under the Credit Agreement if it makes any
principal payments on any of its indebtedness for borrowed money,
excluding capital and operating leases.
Listing standards on the NYSE: As previously reported, the Company
received notice from the New York Stock Exchange (NYSE) that it was
not meeting one of the NYSE's continued listing standards because the
30 average trading day price of Iusacell's ADRs was below US$1.00.
After consultation with the NYSE, the Company determined that it would
remedy this non-compliance by increasing the number of common shares
represented by each ADR. The Company obtained approval to implement a
1 for 10 ADR ratio change at the Ordinary Shareholders Meeting held on
April 21, 2003 and intends to implement the ratio change during the
second quarter of 2003.
New Telecommunications tax: In March 2003, the Company filed an
injunctive action ("amparo") to challenge the Mexican government's
implementation of a modified excise tax on certain wireless
telecommunications services approved by the Mexican Congress. Until
resolution, the Company will continue to pay the full 10% additional
tax to the Finance Ministry according to law, although new monthly
service offers increased airtime minutes in an effort to mitigate the
impact on the high-value postpaid segment. In the prepaid segment, the
10% excise tax is being applied to every prepaid plan with an airtime
per-minute rate of more than $3.50, which differs from the 2002
initiative that taxed prepaid cards with a face value equal to or in
excess of $200.
About Iusacell
Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE: CEL; BMV: CEL) is a
wireless cellular and PCS service provider in seven of Mexico's nine
regions, including Mexico City, Guadalajara, Monterrey, Tijuana,
Acapulco, Puebla, Leon and Merida. The Company's service regions
encompass a total of approximately 92 million POPs, representing
approximately 90% of the country's total population. Iusacell is under
the management and operating control of subsidiaries of Verizon
Communications Inc. (NYSE:VZ).
For additional corporate information please visit the Company's
web site at www.iusacell.com.
This press release contains statements about expected future
events and financial results that are forward-looking and subject to
risks and uncertainties. For those statements, the Company claims the
protection of the safe harbor for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995. Listed below
are some important factors which could affect future results and could
cause those results to differ materially from those expressed in the
forward-looking statements: materially adverse changes in the business
environment in Mexico, such as the change in value of the peso, the
imposition of exchange controls, inflation levels above those in the
U.S. and economic downturns; Iusacell's ability to develop new
technologies and hire and retain qualified personnel; the Company's
ability to obtain debt or equity financing necessary to pursue
business opportunities; and Iusacell's ability to adapt to rapid
technological change and significant competition.
Macroeconomic information used in the preparation of this report
considered a 5.3% inflation rate for the twelve months ended March 31,
2003 and peso-dollar exchange rates of $10.81 and $9.11 at the close
of business of March 31, 2003 and 2002, respectively.
Attached are the Consolidated Income Statements of each of Grupo
Iusacell, S.A. de C.V. and Grupo Iusacell Celular, S.A. de C.V. for
the three-month periods ended March 31, 2003 and 2002, and the
Consolidated Balance Sheet of Grupo Iusacell, S.A. de C.V. and Grupo
Iusacell Celular, S.A. de C.V. at March 31, 2003 and 2002. The
financial statements of Grupo Iusacell Celular, S.A. de C.V. exclude
the impact on results and financial position of the US$350 million in
14.25% Senior Notes due 2006, certain microwave equipment and related
purchase money indebtedness and the PCS business.
GRUPO IUSACELL CONSOLIDATED BALANCE SHEET
COMPARISON OF FIRST QUARTER 2003 WITH FIRST QUARTER 2002
(Figures in thousands of constant March 31, 2003 pesos)
------------------------------- Change
1Q03 1Q02 1Q03 /
1Q02
--------------------------------------
ASSETS
Current Assets
Cash and marketable securities 50,035 0% 557,741 3% -91.0%
Accounts receivable, net 569,020 4% 701,456 4% -18.9%
Related parties - 0% 1,808 0% -
Recoverable taxes and other 626,183 4% 513,078 3% 22.0%
Inventories 28,627 0% 189,011 1% -84.9%
TOTAL CURRENT ASSETS 1,273,865 9% 1,963,094 12% -35.1%
Property and equipment, net 8,994,014 62% 9,798,868 58% -8.2%
Excess of cost of investments in
subsidiaries over book value,
net 2,054,166 14% 2,567,601 15% -20.0%
Other assets 2,199,929 15% 2,447,397 15% -10.1%
TOTAL ASSETS 14,521,974 100% 16,776,960 100% -13.4%
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Accrued liabilities 802,347 6% 864,077 5% -7.1%
Related parties 183,147 1% 170,976 1% 7.1%
Accounts payable 152,704 1% 589,985 4% -74.1%
Short-term debt 122,893 1% 195,632 1% -37.2%
TOTAL CURRENT LIABILITIES 1,261,091 9% 1,820,670 11% -30.7%
Non-current liabilities 8,540,560 59% 7,770,425 46% 9.9%
TOTAL LIABILITIES 9,801,651 67% 9,591,095 57% 2.2%
Minority interest 6,214 0% 25,594 0% -75.7%
Shareholders' Equity
Capital stock 7,210,691 50% 7,210,691 43% -
Legal reserve 20,265 0% 20,265 0% -
Capital contributions 1,418,927 10% 1,418,927 8% -
Net income (loss) -694,333 -5% -352,839 -2% -96.8%
Accumulated earnings from prior
years -3,451,645 -24% -1,346,977 -8% -156.3%
Excess from restatement of
shareholders' equity 210,204 1% 210,204 1% -
TOTAL SHAREHOLDERS' EQUITY 4,714,109 32% 7,160,270 43% -34.2%
TOTAL LIABILITIES AND
SHAREHOLDERS'S EQUITY 14,521,974 100% 16,776,960 100% -13.4%
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GRUPO IUSACELL CONSOLIDATED INCOME STATEMENT
COMPARISON OF FIRST QUARTER 2003 WITH FIRST QUARTER 2002
(Figures in thousands of constant March 31, 2003 pesos)
--------------------------------- Change
1Q03 1Q02 1Q03 /
1Q02
----------------------------------------
REVENUE
Service 1,107,325 94.2% 1,322,038 91.9% -16.2%
Equipment sales and other 68,235 5.8% 116,068 8.1% -41.2%
TOTAL REVENUE 1,175,560 100.0% 1,438,106 100.0% -18.3%
Cost of services 369,202 31.4% 411,795 28.6% -10.3%
Other costs 50,949 4.3% 97,324 6.8% -47.7%
TOTAL COSTS 420,151 35.7% 509,119 35.4% -17.5%
GROSS MARGIN 755,409 64.3% 928,987 64.6% -18.7%
Sales & Advertising expenses 271,054 23.1% 336,795 23.4% -19.5%
General and administrative
expenses 85,705 7.3% 130,592 9.1% -34.4%
TOTAL OPERATING EXPENSES 356,759 30.3% 467,387 32.5% -23.7%
EBITDA 398,650 33.9% 461,600 32.1% -13.6%
Depreciation and amortization 624,933 53.2% 615,901 42.8% 1.5%
OPERATING LOSS -226,283 -19.2% -154,301 -10.7% -46.7%
Interest expense, net 229,387 19.5% 220,050 15.3% 4.2%
Foreign exchange loss (gain) 280,391 23.9% 33,399 2.3% 739.5%
Monetary correction -80,889 -6.9% -93,871 -6.5% 13.8%
INTEGRAL FINANCING COST 428,889 36.5% 159,578 11.1% 168.8%
INCOME (LOSS) BEFORE TAXES AND
STATUTORY PROFIT SHARING COST -655,172 -55.7% -313,879 -21.8% 108.7%
Part (Income) loss of
Subsidiaries 17,069 1.5% -417 0.0% -
Taxes 25,370 2.2% 41,022 2.9% -38.2%
NET INCOME (LOSS) BEFORE
MINORITY INTEREST -697,611 -59.3% -354,484 -24.6% -96.8%
Minority interest -3,278 -0.3% -1,645 -0.1% -99.3%
NET INCOME (LOSS) -694,333 -59.1% -352,839 -24.5% 96.8%
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GRUPO IUSACELL CELULAR CONSOLIDATED BALANCE SHEET
COMPARISON OF FIRST QUARTER 2003 WITH FIRST QUARTER 2002
(Figures in thousands of constant March 31, 2003 pesos)
-------------------------------- Change
1Q03 1Q02 1Q03 /
1Q02
---------------------------------------
ASSETS
Current Assets
Cash and marketable securities 2,314 0% 74,230 1% -96.9%
Accounts receivable, net 567,619 4% 700,883 5% -19.0%
Related parties 152,985 1% 30,077 0% 408.6%
Recoverable taxes and other 484,713 4% 378,941 3% 27.9%
Inventories 28,627 0% 189,011 1% -84.9%
TOTAL CURRENT ASSETS 1,236,258 10% 1,373,142 9% -10.0%
Property and equipment, net 8,174,274 64% 9,151,835 63% -10.7%
Excess of cost of investments
in subsidiaries over book
value, net 1,865,289 15% 2,367,776 16% -21.2%
Other assets 1,438,939 11% 1,601,282 11% -10.1%
TOTAL ASSETS 12,714,760 100% 14,494,035 100% -12.3%
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Accrued liabilities 534,649 4% 667,670 5% -19.9%
Related parties 158,411 1% 317,649 2% -50.1%
Accounts payable 36,836 0% 458,412 3% -92.0%
Short-term debt 42,999 0% 163,173 1% -73.6%
TOTAL CURRENT LIABILITIES 772,895 6% 1,606,904 11% -51.9%
Non-current liabilities 4,471,565 35% 4,117,272 28% 8.6%
TOTAL LIABILITIES 5,244,460 41% 5,724,176 39% -8.4%
Minority interest - - 25,594 0% -
Shareholders' Equity
Capital stock 16,082,574 126% 16,082,574 111% -
Legal reserve 28,637 0% 28,637 0% -
Capital contributions 99,093 1% 99,093 1% -
Net income (loss) -411,704 -3% -209,186 -1% -96.8%
Accumulated earnings from prior
years -7,618,707 -60% -6,547,260 -45% -16.4%
Excess from restatement of
shareholders' equity -709,593 -6% -709,593 -5% -
TOTAL SHAREHOLDERS' EQUITY 7,470,300 59% 8,744,265 60% -14.6%
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 12,714,760 100% 14,494,035 100% -12.3%
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GRUPO IUSACELL CELULAR CONSOLIDATED INCOME STATEMENT
COMPARISON OF FIRST QUARTER 2003 WITH FIRST QUARTER 2002
(Figures in thousands of constant March 31, 2003 pesos)
--------------------------------- Change
1Q03 1Q02 1Q03 /
1Q02
----------------------------------------
REVENUE
Service 1,103,554 94.2% 1,321,745 91.9% -16.5%
Equipment sales and other 67,970 5.8% 116,038 8.1% -41.4%
TOTAL REVENUE 1,171,524 100.0% 1,437,783 100.0% -18.5%
Cost of services 369,035 31.5% 376,604 26.2% -2.0%
Other costs 50,949 4.3% 97,324 6.8% -47.7%
TOTAL COSTS 419,984 35.8% 473,928 33.0% -11.4%
GROSS MARGIN 751,540 64.2% 963,855 67.0% -22.0%
Sales & Advertising expenses 271,047 23.1% 336,716 23.4% -19.5%
General and administrative
expenses 78,749 6.7% 128,778 9.0% -38.8%
TOTAL OPERATING EXPENSES 349,796 29.9% 465,494 32.4% -24.9%
EBITDA 401,744 34.3% 498,361 34.7% -19.4%
Depreciation and amortization 582,187 49.7% 585,144 40.7% -0.5%
OPERATING LOSS -180,443 -15.4% -86,783 -6.0% -107.9%
Interest expense, net 81,785 7.0% 95,164 6.6% -14.1%
Foreign exchange loss (gain) 148,521 12.7% 47,795 3.3% 210.7%
Monetary correction -40,437 -3.5% -55,298 -3.8% -26.9%
INTEGRAL FINANCING COST 189,869 16.2% 87,661 6.1% -116.6%
INCOME (LOSS) BEFORE TAXES AND
STATUTORY PROFIT SHARING COST -370,312 -31.6% -174,444 -12.1% -112.3%
Part (Income) loss of
Subsidiaries 17,069 1.5% -4,635 -0.3% -
Taxes 25,370 2.2% 41,022 2.9% -38.2%
NET INCOME (LOSS) BEFORE
MINORITY INTEREST -412,751 -35.2% -210,831 -14.7% -95.8%
Minority interest -1,047 -0.1% -1,645 -0.1% -36.4%
NET INCOME (LOSS) -411,704 -35.1% -209,186 -14.5% 96.8%
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CONTACT: Grupo Iusacell, S.A. de C.V.
Investor Contacts:
Russell A. Olson, (5255) 5109-5751
russell.olson@iusacell.com.mx
or
Carlos J. Moctezuma, (5255) 5109-5780
carlos.moctezuma@iusacell.com.mx