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 February, 2004
GRUPO IUSACELL, S.A. de C.V.
-----------------------------------------------
(Translation of registrant's name into English)
Prol. Paseo de la Reforma
1236 Col. Santa Fe, Deleg.
Cuajimalpa
05438, Mexico D.F.
---------------------------------------
(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 [ ] No [X]
Documents Furnished By the Registrant
1. Press Release of the Registrant dated February 26, 2004
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: February 26, 2004 /s/ Jose Luis Riera K.
-------------------------------------
Name: Jose Luis Riera K.
Title: Attorney in fact
/s/ Fernando Cabrera G.
-------------------------------------
Name: Fernando Cabrera G.
Title: Attorney in fact
2
[LOGO] lusacell Investor Contacts
Jose Luis Riera K.
Chief Financial Officer
011-5255-5109-5927
Carlos J. Moctezuma
Head of Investor Relations
011-5255-5109-5759
carlos.moctezuma@iusacell.com.mx
Fourth Quarter and Year-end 2003 Results
Mexico City, February 26, 2004 - Grupo Iusacell, S.A. de C.V. (Iusacell or the
Company) [BMV: CEL, NYSE: CEL] today announced unaudited results for the fourth
quarter and year ended December 31, 2003(1).
Financial Results
Operational change: As disclosed in the previous quarter release, Iusacell
reduced the period in which a prepaid customer can receive incoming calls but
cannot make outgoing calls from 305 days to 90 days. During the fourth quarter
of 2003, approximately 135,000 prepaid lines, which have not utilized Iusacell's
network services in the above said 90-day period of time were turned-over. As of
December 31, 2003 subscribers totaled approximately 1.3 million.
Revenue in the quarter increased 18% from the previous quarter to $1,277
million, reflecting a more aggressive sales strategy and renewed product
offerings. Revenues, however, decreased 4% from the year ago period as a result
of a lower subscriber base and lower ARPUs. On a yearly basis, revenues
decreased 18% to $4,739 million from the $5,747 million registered in 2002,
primarily derived from lower subscriber base and lower ARPUs and the effect of
accounting policy changes made in the third quarter of 2003, see "Changes in
accounting policies."
Cost of sales in the fourth quarter of 2003 decreased 8% to $855 million from
the previous quarter, but increased 73% from the year ago period driven mainly
by changes in accounting policies effective in the third quarter of 2003.
Operating expenses: sales and advertising expenses in the quarter increased 28%
and 10% from the previous quarter and year ago period, respectively to $427
million, primarily derived from a more aggressive campaign in the period and the
utilization of specific advertising spaces previously contracted that otherwise
would have been lost. On a yearly basis, sales and advertising of $1,313 million
in 2003, declined 8% from the $1,419 million in 2002 due primarily to fewer
gross subscriber additions. General and administrative expenses decreased 30% in
the fourth quarter of 2003 from the previous quarter, but increased 154% from
the year ago period, mainly reflecting the reversal of certain provisions in the
fourth quarter of 2002. Other income in the fourth quarter reflects the sale and
lease back of towers to American Tower Corporation in December 2003, see "Recent
Developments-Tower sales and leaseback".
EBITDA(2) was mainly affected by lower revenues as well as increased costs
during the quarter, ending with a negative $73 million for the period, compared
to negative $401 million reported in the previous quarter and positive $381
million reported in the year ago period.
On a yearly basis, EBITDA ended with positive $372 million compared to $1,861
million in 2002.
----------
(1) Unless otherwise noted, all monetary figures are expressed in Mexican
pesos and restated as of December 31, 2003 in accordance with Mexican
GAAP. The symbols "$" and "US$" refer to Mexican pesos and U.S. dollars,
respectively.
(2) 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. As part of the exhibits filed with the
SEC and BMV included in the Quarterly Financial Statements, the Company
presented a reconciliation of EBITDA from net loss. EBITDA should be
considered in addition to, but not as a substitute for other measures of
financial performance reported in accordance with Mexican GAAP. EBITDA, as
defined above, may not be comparable to similarly titled measures reported
by other companies.
3
Depreciation and amortization expenses of $494 million in the fourth quarter of
2003 reflected the Company's decision adopted in the third quarter of 2003 of
expensing the postpaid handsets related costs rather than amortizing them within
the average life of the postpaid contracts. Fourth quarter 2002 depreciation and
amortization expense is also affected by a benefit related to the extension of
useful life of certain fixed assets incurred in that period.
Operating loss in the quarter increased from the $116 million recorded last year
to $567 million in the current quarter driven primarily by the changes in
accounting policies made in the third quarter 2003 and lower revenues, see
"Changes in accounting policies".
Integral financing cost in the quarter ended with $272 million, compared to $410
million in the same quarter of 2002. The result was mainly driven by a lower
foreign exchange loss resulting from the 2% depreciation of the peso against the
U.S. dollar in the quarter. On a yearly basis, the integral financing cost ended
with $1,362 million, 13% lower than the 1,573 million reported in 2002,
resulting mainly from a lower foreign exchange loss in the period.
Net loss in the quarter of $1,318 million was the result of higher operating
losses and lower revenues. This compares to a net loss of $546 million in the
year ago period. On a yearly basis, net loss of $4,709 million compares to a net
loss of $2,167 million affected by accounting changes during the year and higher
operating losses.
Changes in accounting policies: Please refer to the Company's Third Quarter 2003
Earnings Release -"Changes in accounting policies" for a detailed disclosure of
the Company's main changes in accounting policies adopted during 2003.
Capital expenditures: Iusacell invested approximately US$7.3 million in its
regions during the fourth quarter of 2003 to expand coverage. During the year,
the Company invested approximately US$18.2 million. Despite these investments,
Iusacell is still behind its investment program, which is crucial in order to
face competition, ensuring capacity and coverage and offering a quality service.
Debt: As of December 31, 2003, including trade notes payable, debt totaled
US$810 million. All of the Company's debt is U.S. dollar-denominated.
As previously communicated, the majority of the Company's financial debt is
classified as current in the Balance Sheet presented herein, in accordance with
Mexican GAAP.
Recent Developments
Tower sales and lease back: In December 2003, Iusacell's main operating
subsidiary Grupo Iusacell Celular, S.A. de C.V. and certain of its subsidiaries
(Iusacell Celular), entered a series of agreements with the Mexican subsidiary
of American Tower Corporation (MATC) that, among other things, gives MATC the
right to acquire up to 143 existing Iusacell Celular towers over the course of
this year. Iusacell Celular will then lease the transferred towers back from
MATC.
During the fourth quarter of 2003, Iusacell Celular sold and leased back 34
towers to MATC for approximately $89 million in net income.
Exchange of New Common Shares at a Ratio of 20 to 1: On December, 2003, Iusacell
effected the exchange of its Series A and Series V shares for new common,
ordinary, registered shares with no par value at a ratio of 20 Series A and/or
Series V shares to 1 new share. The Company did not issue fractional shares.
Accordingly, fractions of new shares were paid at a price equal to the opening
market price quoted on the Mexican Stock Exchange on October 17, 2003, of
Ps.0.88 for each of the Series A or Series V shares, as determined on the
October 17, 2003 shareholders' meeting.
The number of new shares issued and outstanding is 93,101,240 with a public
float of approximately 25.4%. The Company's ticker on the Mexican Stock Exchange
and the New York Stock Exchange remained unchanged.
Agreement with Mr. Elizondo: In 1998 Grupo Iusacell and Iusacell Celular entered
into an agreement with Mr. Jose Ramon Elizondo Anaya in connection with Mr.
Elizondo's participation in certain Iusacell's subsidiaries. The Agreement
provided that Mr. Elizondo had the right to sell, and Grupo Iusacell had the
obligation to purchase the shares of Mr. Elizondo, previous written notice from
Mr. Elizondo. Such written notice was delivered by Mr. Elizondo to Grupo
Iusacell on October 3, 2003.
On November 3, 2003, Mr. Elizondo, Grupo Iusacell and Iusacell Celular agreed to
pay Mr. Elizondo a total
4
amount of US$ 11 million for his participation in certain Iusacell's
subsidiaries. Total amount to be paid in several installments within a two year
period.
Further information about the relationship between Iusacell and Mr. Elizondo can
be found at the Company's 2002 Annual Report on form 20-F, filed with the
Securities and Exchange Commission (www.sec.gov) and the Mexican Stock Exchange
(www.bmv.com.mx).
Iusacell signed Operating and Distribution Agreements: Iusacell signed
distribution agreements with Elektra, Coppel and other distributors to sell and
promote Iusacell's wireless services and products under a commission frame. All
operating agreements reached by the Company during the quarter are part of the
normal course of business.
Under the distribution agreement, Elektra is positioning as the largest
distributor of wireless services for Iusacell.
As part of the agreement with Elektra, Iusacell transferred the operation of its
approximately 135 company-owned stores (CSI's) to Elektra, in an
outsourcing-type of transaction in an effort to create an innovative concept of
high-tech telecom and consumer products for the high-value segments.
The Coppel agreement was perfected under the same terms and conditions of the
Elektra agreement.
Iusacell and Movilaccess reached an agreement by which, Movilaccess will
maintain and manage the Company's call center operations. The agreement will
reduce lease, rental and other costs in Iusacell associated with the call center
operation. Iusacell's customer service will continue to have full empowerment
over the call center under the new agreement.
Iusacell reached an agreement with Telcel on SMS: On October 9, 2003, the
Federal Telecommunications Commission in Mexico (Cofetel) issued a resolution
ordering Mexican mobile phone firms Iusacell and Telcel (a subsidiary of America
Movil, S.A. de C.V.) to connect their short text messaging (SMS) networks.
On December 11, 2003, Iusacell announced an agreement under which all Iusacell's
customers are able to send "ReK2" (the commercial brand name of its SMS
services) to users of Telcel. With this practical and inexpensive service
customers would be able to maintain communication in every Iusacell-covered city
paying always the same for a text message sent to any of the referred destinies.
What makes ReK2 so popular is that there is no roaming or long distance cost
associated, making it very accessible.
Iusacell reached an agreement with Telefonica on SMS: On February 12, 2004,
Iusacell and Telefonica Moviles Mexico (Telefonica) announced an agreement by
which all customers of these companies will be able to send and received SMS
among them.
The service became operative on February 15, 2004, and every customer is able to
send or receive SMS without an activation procedure, forms to fill or any
activation charge; customers can visit any Iusacell store, or CSI, to learn more
details about this service and its use.
Legal suit from the 2004 Note holders: In January, 2004, Iusacell announced that
its U.S. legal advisors have been advised by the legal counsels of some members
of the informal committee of 2004 note holders, representing 31.8% of the total,
that notice of a complaint with respect to a lawsuit filed by the latter against
its subsidiary. The Company is currently in the process of responding the
lawsuit.
Shareholders Meeting and Resolution: On October 17, 2003, the Company held a
general ordinary and extraordinary shareholder's meeting by which its
shareholders accepted a management proposal to exchange its Series "A" and
Series "V" shares for a new common share class. See: Recent Developments
"Exchange of New Common Shares at a Ratio of 20 to 1".
Shareholders also approved an amendment to the Company's by-laws, mainly to
reflect the capital restructure. Shareholders also elected a new Board of
Directors, which is now comprised of nine members instead of twelve.
Additionally, Mr. Fernando Cabrera G. was appointed Secretary, non-member, of
the Board of Directors.
The Board of Directors will perfect changes, most likely in the coming
Shareholders' Meeting, to reflect the loss of Mr. Jose Ignacio Morales Elcoro,
deceased on February 15, 2004.
5
The following table presents the members of the Board of Directors as of October
17, 2003:
--------------------------------------------------------------------------------
Board of Directors
--------------------------------------------------------------------------------
Ricardo B. Salinas Pliego Chairman of the Board of Directors
Pedro Padilla Longoria Vice Chairman of the Board of Directors
Gustavo Guzman Sepulveda Director
o Jose Ignacio Morales Elcoro Director
Luis J. Echarte Fernandez Director
Joaquin Arrangoiz Director
Hector Rojas Villanueva Director
Marcelino Gomez Velasco Director
Manuel Rodriguez de Castro Director
--------------------------------------------------------------------------------
o Mr. Morales passed away on February 15, 2004
* * * * * * * * * *
Legal Disclaimer
Grupo Iusacell, S.A. de C.V. quarterly reports and all other written materials
may from time to time contain 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. Discussion of factors that may affect future
results is contained in our filings with the Securities and Exchange Commission.
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 and
twelve-month periods ended December 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 December 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.
6
GRUPO IUSACELL UNAUDITED CONSOLIDATED BALANCE SHEET
COMPARISON OF FOURTH QUARTER 2003 WITH FOURTH QUARTER 2002
(Figures in thousands of constant December 31, 2003 pesos)
----------------------------------------------------------------------------------------------------------
Change 4Q03
4Q03 4Q02 /4Q02
----------------------------------------------------------------------------------------------------------
ASSETS
Current Assets
Cash and marketable securities 5,814 0.0% 166,404 1.1% -96.5%
Accounts receivable, net 503,691 4.3% 666,141 4.2% -24.4%
Recoverable taxes and other 350,628 3.0% 558,373 3.6% -37.2%
Inventories 255,995 2.2% 37,119 0.2% 589.7%
TOTAL CURRENT ASSETS 1,116,128 9.4% 1,428,037 9.1% -21.8%
Property and equipment, net 7,689,053 65.1% 9,740,145 61.9% -21.1%
Excess of cost of investments in
subsidiaries over book value, net 1,912,089 16.2% 2,187,424 13.9% -12.6%
Other assets 1,096,089 9.3% 2,368,904 15.1% -53.7%
TOTAL ASSETS 11,813,359 100.0% 15,724,510 100.0% -25.9%
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accrued liabilities 1,472,224 12.5% 745,278 4.7% 97.5%
Related parties 89,739 0.8% 188,611 1.2% -52.4%
Accounts payable 449,643 3.8% 378,368 2.4% 18.8%
Short-term debt 8,897,196 75.3% 211,021 1.3% 4116.3%
TOTAL CURRENT LIABILITIES 10,908,802 92.3% 1,523,278 9.7% 616.1%
Non-current liabilities 93,269 0.8% 8,622,599 54.8% -98.9%
TOTAL LIABILITIES 11,002,071 93.1% 10,145,877 64.5% 8.4%
Minority interest -48,538 -0.4% 10,065 0.1% -
Shareholders' Equity
Capital stock 7,424,177 62.8% 7,424,177 47.2% -
Legal reserve 20,865 0.2% 20,865 0.1% -
Capital contributions 1,460,937 12.4% 1,460,937 9.3% -
Net loss -4,708,741 -39.9% -2,166,983 -13.8% 97.1%
Accumulated earnings from prior years -3,553,840 -30.1% -1,386,857 -8.8% -156.3%
Excess from restatement of
shareholders' equity 216,428 1.8% 216,428 1.4% -
TOTAL SHAREHOLDERS' EQUITY 859,826 7.3% 5,568,568 35.4% -84.6%
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 11,813,359 100.0% 15,724,510 100.0% -21.8%
----------------------------------------------------------------------------------------------------------
7
GRUPO IUSACELL UNAUDITED CONSOLIDATED INCOME STATEMENT
COMPARISON OF FOURTH QUARTER 2003 WITH FOURTH QUARTER 2002
(Figures in thousands of constant December 31, 2003 pesos)
----------------------------------------------------------------------------------------------------------
Change
4Q03 4Q02 4Q03/4Q02
----------------------------------------------------------------------------------------------------------
REVENUE
Service 977,409 76.6% 1,231,517 93.0% -20.6%
Equipment sales and other 299,266 23.4% 93,247 7.0% 220.9%
TOTAL REVENUE 1,276,675 100.0% 1,324,764 100.0% -3.6%
Cost of services 402,664 31.5% 402,594 30.4% -0.0%
Other costs 452,197 35.4% 90,975 6.9% 397.1%
TOTAL COSTS 854,861 67.0% 493,569 37.3% 73.2%
GROSS MARGIN 421,814 33.0% 831,195 62.7% -49.3%
Sales & Advertising expenses 426,993 33.4% 388,380 29.3% 9.9%
General and administrative expenses 156,121 12.2% 61,408 4.6% 154.2%
Other income -88,556 -6.9% 0 0.0% -
TOTAL OPERATING EXPENSES 494,558 38.7% 449,788 34.0% 10.0%
EBITDA -72,744 -5.7% 381,407 28.8% -
Depreciation and amortization 494,229 38.7% 497,287 37.5% -0.6%
OPERATING LOSS -566,973 -44.4% -115,880 -8.7% 389.3%
Interest expense, net 245,682 19.2% 252,596 19.1% -2.7%
Foreign exchange loss (gain) 185,797 14.6% 338,896 25.6% -45.2%
Monetary gain -159,810 -12.5% -181,424 -13.7% -11.9%
INTEGRAL FINANCING COST 271,669 21.3% 410,069 31.0% -33.8%
LOSS BEFORE TAXES AND
STATUTORY PROFIT SHARING COST -838,642 -65.7% -525,948 -39.7% 59.5%
Equity in income (losses) of subsidiaries -81 0.0% 282 0.0% -
Taxes 40,517 3.2% 27,029 2.0% 49.9%
Intangible asset valuation 439,880 34.5% - - -
NET LOSS BEFORE
MINORITY INTEREST -1,318,958 -103.3% -553,259 -41.8% 138.4%
Minority interest -1,236 -0.1% -7,600 -0.6% -83.7%
NET LOSS -1,317,722 -103.2% -545,659 -41.2% 141.5%
----------------------------------------------------------------------------------------------------------
8
GRUPO IUSACELL UNAUDITED CONSOLIDATED INCOME STATEMENT
COMPARISON OF TWELVE MONTHS 2003 WITH TWELVE MONTHS 2002
(Figures in thousands of constant December 31, 2003 pesos)
------------------------------------------------------------------------------------------------------------
Change 2003
12M 2003 12M 2002 /2002
------------------------------------------------------------------------------------------------------------
REVENUE
Service 4,189,420 88.4% 5,129,960 89.3% -18.3%
Equipment sales and other 549,106 11.6% 616,968 10.7% -11.0%
TOTAL REVENUE 4,738,526 100.0% 5,746,928 100.0% -17.5%
Cost of services 1,498,646 31.6% 1,594,040 27.7% -6.0%
Other costs 1,058,631 22.3% 507,519 8.8% 108.6%
TOTAL COSTS 2,557,277 54.0% 2,101,559 36.6% 21.7%
GROSS MARGIN 2,181,249 46.0% 3,645,369 63.4% -40.2%
Sales & Advertising expenses 1,312,537 27.7% 1,419,300 24.7% -7.5%
General and administrative expenses 585,629 12.4% 470,085 8.2% 24.6%
Other income -88,556 -1.9% -105,001 -1.8% -
TOTAL OPERATING EXPENSES 1,809,610 38.2% 1,784,384 31.0% 1.4%
EBITDA 371,639 7.8% 1,860,985 32.4% -80.0
Depreciation and amortization 2,057,775 43.4% 2,336,498 40.7% -11.9%
OPERATING LOSS -1,686,136 -35.6% -475,513 -8.3% 254.6%
Other (income) expense -69,605 -1.5% 0 0.0% -
Interest expense, net 968,116 20.4% 935,898 16.3% 3.4%
Foreign exchange loss (gain) 744,512 15.7% 1,069,640 18.6% -30.4%
Monetary gain -350,861 -7.4% -432,167 -7.5% -18.8%
INTEGRAL FINANCING COST 1,361,767 28.7% 1,573,372 27.4% -13.4%
LOSS BEFORE TAXES AND
STATUTORY PROFIT SHARING COST -2,978,298 -62.9% -2,048,885 -35.7% 45.4%
Equity in income (losses) of subsidiaries 17,544 0.4% 10,129 0.2% -
Taxes 115,232 2.4% 125,265 2.2% -8.0%
Extraordinary items 361,624 7.6% - 0.0% -
Intangible assets valuation 1,269,180 26.8% - - -
NET LOSS BEFORE
MINORITY INTEREST -4,741,878 -100.1% -2,184,279 -38.0% 117.1%
Minority interest -33,137 -0.7% -17,296 -0.3% 91.6%
NET LOSS -4,708,741 -99.4% -2,166,983 -37.7% 117.3%
------------------------------------------------------------------------------------------------------------
9
GRUPO IUSACELL CELULAR UNAUDITED CONSOLIDATED BALANCE SHEET
COMPARISON OF FOURTH QUARTER 2003 WITH FOURTH QUARTER 2002
(Figures in thousands of constant December 31, 2003 pesos)
------------------------------------------------------------------------------------------------------
Change 4Q03
4Q03 4Q02 /4Q02
------------------------------------------------------------------------------------------------------
ASSETS
Current Assets
Cash and marketable securities 4,157 0.0% 154,397 1.1% -97.3%
Accounts receivable, net 498,790 4.8% 663,533 4.8% -24.8%
Related parties - 0.0% 63,291 0.5% -
Recoverable taxes and other 353,542 3.4% 463,747 3.4% -23.8%
Inventories 255,995 2.5% 37,119 0.3% 589.7%
TOTAL CURRENT ASSETS 1,112,484 10.7% 1,382,087 10.0% -19.5%
Property and equipment, net 6,906,450 66.4% 8,893,303 64.5% -22.3%
Excess of cost of investments in
subsidiaries over book value, net 1,726,208 16.6% 1,989,364 14.4% -13.2%
Other assets 656,794 6.3% 1,520,200 11.0% -56.8%
TOTAL ASSETS 10,401,936 100.0% 13,784,954 100.0% -24.5%
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accrued liabilities 640,129 6.2% 742,134 5.4% -13.7%
Related parties 22,645 0.2% - 0.0% -
Accounts payable 360,935 3.5% 282,578 2.0% 27.7%
Short-term debt 4,667,429 44.9% 130,258 0.9% 3483.2%
TOTAL CURRENT LIABILITIES 5,691,138 54.7% 1,154,970 8.4% 392.8%
Non-current liabilities 654 0.0% 4,514,619 32.8% -100.0%
TOTAL LIABILITIES 5,691,792 54.7% 5,669,589 41.1% 0.4%
Minority interest -77,921 -0.7% - 0.0% -
Shareholders' Equity
Capital stock 16,558,729 159.2% 16,558,729 120.1% -
Legal reserve 29,485 0.3% 29,485 0.2% -
Capital contributions 102,027 1.0% 102,027 0.7% -
Net loss -3,327,300 -32.0% -1,103,171 -8.0% 201.6%
Accumulated earnings from prior years -7,844,274 -75.4% -6,741,103 -48.9% 16.4%
Excess from restatement of
shareholders' equity -730,602 -7.0% -730,602 -5.3% -
TOTAL SHAREHOLDERS' EQUITY 4,788,065 46.0% 8,115,365 58.9% -41.0%
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 10,401,936 100.0% 13,784,954 100.0% -24.5%
------------------------------------------------------------------------------------------------------
10
GRUPO IUSACELL CELULAR UNAUDITED CONSOLIDATED INCOME STATEMENT
COMPARISON OF FOURTH QUARTER 2003 WITH FOURTH QUARTER 2002
(Figures in thousands of constant December 31, 2003 pesos)
------------------------------------------------------------------------------------------------------
Change
4Q03 4Q02 4Q03/4Q02
------------------------------------------------------------------------------------------------------
REVENUE
Service 986,332 76.8% 1,245,147 93.1% -20.8%
Equipment sales and other 289,746 23.2% 92,327 6.9% 223.6%
TOTAL REVENUE 1,285,078 100.0% 1,337,474 100.0% -3.9%
Cost of services 427,991 33.3% 452,527 33.8% -5.4%
Other costs 452,197 35.2% 91,210 6.8% 395.8%
TOTAL COSTS 880,188 68.5% 543,737 40.7% 61.9%
GROSS MARGIN 404,890 31.5% 793,737 59.3% -49.0%
Sales & Advertising expenses 418,676 32.6% 388,513 29.0% 7.8%
General and administrative expenses 160,345 12.5% 35,344 2.6% 353.7%
Other income -85,984 -6.7% - 0.0%
TOTAL OPERATING EXPENSES 493,037 38.6% 423,857 31.7% 16.3%
EBITDA -88,147 -6.9% 369,880 27.7% -
Depreciation and amortization 457,308 35.6% 466,424 34.9% -2.0%
OPERATING LOSS -545,455 -42.4% -96,544 -7.2% 465.0%
Interest expense, net 89,703 7.0% 108,841 8.1% -17.6%
Foreign exchange loss (gain) 93,997 7.3% 134,685 10.1% -30.2%
Monetary gain -75,009 -5.8% -91,757 -6.9% -18.3%
INTEGRAL FINANCING COST 108,691 8.5% 151,769 11.3% -28.4%
INCOME (LOSS) BEFORE TAXES AND
STATUTORY PROFIT SHARING COST -654,146 -50.9% -248,313 -18.6% 163.4%
Equity in losses of subsidiaries 581 0.0% 282 0.0% 106.0%
Taxes 35,574 2.8% 27,029 2.0% 31.6%
Intangible assets valuation 439,880 34.2% - - -
NET LOSS BEFORE
MINORITY INTEREST -1,130,181 -87.9% -275,624 -20.6% 310.0%
Minority interest -541 0.0% -5,459 -0.4% -
NET LOSS -1,129,640 -87.9% -270,165 -20.2% 318.1%
------------------------------------------------------------------------------------------------------
11
GRUPO IUSACELL CELULAR UNAUDITED CONSOLIDATED INCOME STATEMENT
COMPARISON OF TWELVE MONTHS 2003 WITH TWELVE MONTHS 2002
(Figures in thousands of constant December 31, 2003 pesos)
------------------------------------------------------------------------------------------------------------
Change 2003
12M 2003 12M 2002 /2002
------------------------------------------------------------------------------------------------------------
REVENUE
Service 4,217,280 88.5% 5,188,345 89.4% -18.7%
Equipment sales and other 545,897 11.5% 615,439 10.6% -11.3%
TOTAL REVENUE 4,763,177 100.0% 5,803,784 100.0% -17.9%
Cost of services 1,530,784 32.1% 1,611,219 27.8% -5.0%
Other costs 1,058,631 22.2% 507,241 8.7% 108.7%
TOTAL COSTS 2,589,415 54.4% 2,118,460 36.5% 22.2%
GROSS MARGIN 2,173,762 45.6% 3,685,324 63.5% -41.0%
Sales & Advertising expenses 1,304,375 27.4% 1,418,905 24.4% -8.1%
General and administrative expenses 568,399 11.9% 435,669 7.5% 30.5%
Other income -85,984 -1.8% -95,257 -1.6%
TOTAL OPERATING EXPENSES 1,786,790 37.5% 1,759,317 30.3% 1.6%
EBITDA 386,972 8.1% 1,926,007 33.2% -
Depreciation and amortization 1,953,687 41.0% 2,206,050 38.0% -11.4%
OPERATING LOSS -1,566,715 -32.9% -280,043 -4.8% 459.5%
Other (income) expense -87,176 -1.8% - 0.0% -
Interest expense, net 359,615 7.5% 399,966 6.9% -10.1%
Foreign exchange loss (gain) 386,835 8.1% 527,331 9.1% -26.6%
Monetary gain -165,633 -3.5% -229,414 -4.0% -27.8%
INTEGRAL FINANCING COST 580,817 12.2% 697,883 12.0% -16.8%
INCOME (LOSS) BEFORE TAXES AND
STATUTORY PROFIT SHARING COST -2,060,356 -43.4% -977,926 -16.8% 110.7%
Equity in losses of subsidiaries 17,544 0.4% 10,129 0.2% 73.2%
Taxes 103,854 2.2% 125,265 2.2% -17.1%
Extraordinary items 116,663 2.4% - 0.0% -
Intangible assets valuation 1,046,847 22.0% - 0.0% -
NET LOSS BEFORE
MINORITY INTEREST -3,345,264 -70.2% -1,113,320 -19.2% 200.5%
Minority interest -17,964 -0.4% -10,149 -0.2% -
NET LOSS -3,327,300 -69.9% -1,103,171 -19.0% 201.6%
------------------------------------------------------------------------------------------------------------
12