EX-99.1 2 v342769_ex99-1.htm EXHIBIT 99.1

 

 

First Quarter 2013 Results 

 

 

 

MAXCOM REPORTS RESULTS FOR THE FIRST QUARTER OF 2013

 

 

Mexico City, April 26, 2013. – 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 March 31, 2013.

 

NOTE: The monetary amounts presented in this report have been presented in accordance to International Financial Reporting Standards (IFRS). Figures are expressed in millions of current Mexican Pesos.

 

Results | First Quarter 2013

 

Financial Summary:

 

    1Q13   1Q12   Δ% 
Million Pesos               
Revenues   582    547    6%
EBITDA   173    166    4%
EBITDA Margin   30%   30%   0%
                
Net Income (Loss)   52    77    (32%)
                

 

Operating Highlights:

 

·Total company Revenue Generating Units or RGUs, increased 11% to 624,522 in 1Q13 compared to the same period last year. The Company recorded RGU net additions of 62,465 during the period.
·Total company customer base increased by 9% to reach 282,089 customers.
·When compared to the same period last year, voice RGUs increased by 3% to reach 369,831.
·Data residential RGUs increased by 26% to 138,610 in comparison to 109,857 in 1Q12.
·The number of coin operated public phones totaled 36,286 decreased by 3% when compared to 1Q12.
·The total mobile RGU base totaled 41,987units which is 46% higher than the number registered in 1Q12.
·Pay TV number of RGUs reached 70,962 units which is 19% higher than the figure registered in 1Q12.
·Residential RGU per customer increased to 1.8 from 1.7 in 1Q13 when compared with 1Q12.
·Commercial RGU per customer increased from 20.0 in 1Q12 to 22.7 in 1Q13.

 

 

 

 

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First Quarter 2013 Results 

 

 

 

Operating Results

 

      1Q13       1Q12       D%  
Residential Customers     278,865       254,454       10 %
    Voice     238,988       228,891       4 %
    Data     136,776       107,666       27 %
    Mobile     29,923       24,083       24 %
    TV     65,457       59,623       10 %
                         
Residential RGUs     498,152       434,163       15 %
    Voice     246,677       235,897       5 %
    Data     138,610       109,857       26 %
    Mobile     41,903       28,697       46 %
    TV     70,692       59,712       19 %
RGU per Residential Customer     1.8       1.7          
                         
Commercial Customers     3,178       3,450       (8 %)
    Voice     2,854       3,162       (10 %)
    Data     1,412       1,393       1 %
    Mobile     21       23       (9 %)
    Other     184       165       12 %
                         
Commercial RGUs     72,287       68,848       5 %
    Voice     69,071       65,740       5 %
    Data     2,857       2,699       6 %
    Mobile     84       116       (28 %)
    Other     275       293       (6 %)
RGU per Commercial Customer     22.7       20.0          
                         
Public Telephony RGUs     36,286       37,419       (3 %)
                         
Wholesale RGUs     17,797       21,627       (18 %)
                         
Total RGUs     624,522       562,057       11 %
                         
Voice RGUs (voice lines in service)     369,831       360,683       3 %
Total Number of Customers     282,089       258,480       9 %

 

Revenues

 

Maxcom total revenues for the first quarter of 2013 were Ps.582 million, increased 6% comparing to the Ps.547 million recorded in the first quarter of 2012. The following table is a breakdown of the sources of revenue for the Company.

  

    1Q13   Weight %    1Q12   Weight %    D% 
Residential  Ps. 252    43%  Ps.238    43%   6%
Commercial   160    27%   154    28%   4%
Public Telephony   34    6%   49    9%   (31%)
Wholesale   133    23%   103    19%   29%
Other Revenue   4    1%   4    1%   0%
Total  Ps.582    100%  Ps.547    100%   6%

 

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First Quarter 2013 Results 

 

 

  

Residential

Residential revenues represented 43% of the total during 1Q13, having the same weight as of 1Q12. Revenues in the residential business segment reached Ps.252 million, an increase of 6% or Ps.14 million in comparison to Ps.238 million recorded in 1Q12.

 

The Ps.14 million increase in revenues was mainly related with higher charges from data, pay TV and mobiles, by Ps.10 million, Ps.9 million and Ps.10 million respectively, when compared to the same quarter last year.

 

Partially offsetting the aforementioned increase, voices charges went down by Ps.15 million, stemming the most from recurrent charges.

 

ARPU (average revenue per unit) for the residential business for 1Q13 was Ps.164 which is 6% less than the Ps.174 recorded in 1Q12.

 

Residential RGU per customer increased to 1.8 in 1Q13 comparing with the 1.7 penetration registered at 1Q12.

 

Commercial

Commercial revenues represented 27% of the total revenue during 1Q13, compared to 28% registered in 1Q12. Revenues in the Commercial Business reached Ps.160 million, 4% higher than the contribution recorded same quarter last year.

 

ARPU of the commercial business for 1Q13 reached Ps.774, which is 2% higher than the Ps.761 recorded in 1Q12.

 

In addition, RGUs per commercial customer increased to 22.7 in 1Q13 from 20.0 in 1Q12.

 

Public Telephony

Public Telephony represented 6% of total revenues during 1Q13. Revenues in this business unit totaled Ps.34 million, a decrease of 31% when compared to Ps.49 million in 1Q12. The decrease in revenues is attributed to a reduction in network usage, as a consequence of higher competition and increasing penetration of wireless telephony.

 

Wholesale

In 1Q13, Wholesale revenues increased by 23% to reach Ps.133 million, in comparison to the Ps.103 million registered during the same period in the previous year. The increase in Wholesale revenues was driven by higher traffic through our network.

 

Other Revenue

Other revenues contributed with Ps.4 million, being a no core contribution, and standing flat when compared to the same period last year.

 

Network Operation Cost

 

Network Operation Costs in 1Q13 increased by 16% or Ps.33 million to reach Ps.234 million in comparison to Ps.201 million in the previous year. This increase was mainly due to a Ps.34 million or 21% increase in network operating services, partially offset by Ps.23 million reduction in technical expenses.

 

The Ps.34 million increase in network operating services was mostly due to higher costs for Long Distance and CPPN (Calling Party Pays National).

 

SG&A

 

SG&A expenses were Ps.175 million in 1Q13, 3% or Ps.5 million below the Ps.180 million registered in the same period of 2012. The savings stems the most from a lower bad debt.

 

EBITDA

 

EBITDA for 1Q13 was Ps.173 million, a 4% increase when compared to the Ps.166 million in the same period last year. EBITDA Margin was 30% during the period, remaining flat when compared to the 1Q12.

 

Operating Income

 

The Company recorded an operating income for the 1Q13 of Ps.28 million, Ps.22 million above than the Ps.6 million registered for the same period of 2012.

 

Depreciation charges were Ps.117 million, decreasing 17% when compared to the Ps.141 million of the same period last year.

 

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First Quarter 2013 Results 

 

 

 

Net Financing Cost

 

During the quarter, the Company registered a Net Financing Cost (NFC) of Ps.23 million (gain), 68% or Ps.48 million decrease when compared to Ps.71 million (gain) in the same period of 2012.

 

    1Q13   1Q12   DPs.    D% 
Interest Expense   63    76    (13)   (17%)
Interest (Income)   0    (4)   (4)   (100%)
Exchange Rate (Gain) Loss – Net   (87)   (143)   56    39%
Total   (23)   (71)   48    (68%)

 

 

The Net Financing Cost (NFC) was result of:

 

1.A Ps.63 million interest expense (loss).
2.An exchange rate gain of Ps.87 million.

 

The decrease in exchange rate allowed obtaining a gain in the 1Q13, mostly due to a downward adjustment of the Peso exchange rate along the reporting quarter.

 

Taxes

  

The Company did not record any deferred income tax provisions during the quarter.

 

Net Income

 

The Company posted a net income during 1Q13 of Ps.52 million, lesser than the Ps.77 million reported in the same period of 2012.

 

Liquidity and Capital Sources

 

Millions of Pesos 

Quarter Ended

March 31, 2013

  

Quarter Ended

March 31, 2012

 
Resources from Operations and Working Capital   2    177 
CAPEX   90    79 
Free Cash Flow   (88)   98 
Financing Activities   47    (3)
Cash and Cash Equivalents at the Start of the Period   147    397 
Cash and Cash Equivalents at the End of the Period   105    492 

 

Capital Expenditures

 

Capital Expenditures during the period totaled Ps.90 million, higher than the Ps.79 million recorded in 1Q12. Capital Expenditures were incremental to the net additions growth.

 

Indebtedness

 

At March 31, 2013 the Company reported its Indebtedness level at Ps.2,304 million. The Company’s leverage ratio measured by Debt to EBITDA is at 3.3 times and the Net Debt to EBITDA is at 3.1 times.

 

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First Quarter 2013 Results 

 

 

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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, paid TV 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:

 

Manuel S. Pérez

Mexico City, Mexico

(52 55) 4770-1170

manuel.perez@maxcom.com 

 

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 those 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.

 

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First Quarter 2013 Results 


 

 

MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENT FINANCIAL POSITION IFRS

   Thousand of Mexican Pesos (''Ps.'')

 

   As of March 31,   As of December 31,   As of March 31, 
   2013   2012   2012 
ASSETS:            
CURRENT ASSETS:            
Cash and financial instruments  Ps.104,744   Ps.146,516   Ps.492,326 
    104,744    146,516    492,326 
Accounts receivable:               
 Customers, net of allowance   669,768    614,674    648,555 
 Value added tax refundable   48,855    49,668    177,675 
 Other sundry debtors   95,130    72,775    55,144 
    813,753    737,117    881,374 
                
Inventory   19,479    17,512    12,681 
Prepaid expenses   29,567    16,047    26,534 
 Total current assets   967,543    917,192    1,412,915 
                
                
Frequency rights, net   16,460    17,123    19,432 
Telephone network systems and equipment, net   3,866,594    3,892,246    3,898,102 
Intangible assets, net   109,196    119,203    96,026 
Financial instruments   -    32,141    26,933 
Deposits   7,794    7,769    7,718 
Deferred taxes   9,793    9,793    12,291 
Other assets   2,151    2,151    2,151 
                
 Total assets  Ps. 4,979,531   Ps.4,997,618   Ps.5,475,568 
                
 LIABILITIES               
CURRENT LIABILITIES:               
Interest payable   74,993    11,920    87,521 
Accounts payable and accrued expenses   413,016    434,284    243,410 
Notes payable   5,772    5,488    3,027 
Customers deposits   2,075    2,152    2,192 
Payroll and other taxes payable   23,224    25,999    150,044 
 Total current liabilities   519,080    479,843    486,194 
                
LONG-TERM LIABILITIES:               
Senior notes   2,168,204    2,282,774    2,540,617 
Notes payable   3,887    5,173    5,336 
Other accounts payable   28,917    30,970    37,470 
Pensions and post-retirement obligations   6,816    4,198    2,670 
Other long term liabilities   25,986    29,333    28,026 
 Long Term Liabilities   2,233,810    2,352,448    2,614,119 
 Total liabilities  Ps. 2,752,890   Ps.2,832,291   Ps.3,100,313 
                
 SHAREHOLDERS' EQUITY               
Capital stock   4,823,165    4,814,428    4,814,428 
Premium on capital stock   4,586    3,592    817,850 
Accumulated deficit   (2,652,693)   (2,516,605)   (3,333,659)
Net profit (loss) for the period   51,583    (136,088)   76,636 
 Total shareholders' equity  Ps. 2,226,641   Ps.2,165,327   Ps.2,375,255 
                
 Total liabitilies and equity  Ps.4,979,531   Ps.4,997,618   Ps.5,475,568 

 

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First Quarter 2013 Results 

 

 

 

                       

 MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES

 UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME IFRS

 Thousand of Mexican Pesos (''Ps.'')

 

   3 month ended March 31, 
    2013    %    2012    % 
                     
TOTAL REVENUES  Ps. 582,355    100%  Ps.547,266    100%
                     
Network operating services   197,404    34%   163,208    30%
Technical expenses   34,706    6%   35,361    6%
Installation expenses   2,361    0%   2,591    0%
Cost of network operation   234,471    40%   201,160    37%
                     
GROSS PROFIT   347,884    60%   346,106    63%
                     
Selling, general and administrative expenses   174,830    30%   180,176    33%
                     
EBITDA   173,054    30%   165,930    30%
                     
Depreciation and amortization   116,938         141,097      
Other (Income) Expense   28,008         18,524      
Restructuring   -         -      
                     
Operating income (loss)   28,108         6,309      
                     
Comprehensive (income) cost of financing:                    
Interest expense   63,036         76,024      
Interest (income) loss, net   282         (4,146)     
Exchange (income) loss, net   (86,793)        (142,803)     
    (23,475)        (70,925)     
                     
INCOME (LOSS) BEFORE TAXES   51,583         77,234      
                     
Taxes:                    
Income tax   -         -      
Defered Income Tax   -         598      
Total tax   -         598      
                     
NET INCOME (LOSS)  Ps.51,583        Ps.76,636      
                     
Adjusted EBITDA   174,048         166,716      
% of revenue adjusted EBITDA   30%        30%     
                     
Weighted average basic shares   789,819         789,819      
Weighted average fully diluted   799,013         812,882      
                     
Earnings per share basic   0.07         0.10      
Earnings per share diluted   0.06         0.09      

 

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First Quarter 2013 Results 

 

 

 

 MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES

 UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY IFRS

 Thousand of Mexican Pesos (''Ps.'')

 

         Additional              Total 
    Capital    paid-in         Repurchase    shareholders' 
    stock    capital    Deficit    of shares    equity 
                          
Balances as of December 31, 2010  Ps. 4,814,428   Ps.817,054   Ps.(3,333,659)   Ps.-   Ps. 2,297,823 
                          
Stock option plan        796              796 
                          
Repurchase of shares                  -    - 
                          
Comprehensive net loss             76,636         76,636 
                          
Balances as of March 31, 2012  Ps. 4,814,428   Ps.817,850   Ps.(3,257,023)   Ps.-   Ps. 2,375,255 

  

 MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES

 UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY IFRS

 Thousand of Mexican Pesos (''Ps.'')

 

         Additional              Total 
    Capital    paid-in         Repurchase    shareholders' 
    stock    capital    Deficit    of shares    equity 
                          
Balances as of December 31, 2012  Ps. 4,814,428   Ps.3,592   Ps.(2,652,693)   Ps.-   Ps.2,165,327 
                          
Increased in capital Stock   8,737                   8,737 
                          
Stock option plan        994              994 
                          
Comprehensive net loss             51,583         51,583 
                          
Balances as of March 31, 2013  Ps. 4,823,165   Ps.4,586   Ps.(2,601,110)   Ps.-   Ps.2,226,641 

 

  

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First Quarter 2013 Results 

 

 

 

 MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V. AND SUBSIDIARIES

 UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOW IFRS

 Thousand of Mexican Pesos (''Ps.'')

 

   3 months ended March 31, 
   2013   2012 
         
Operating Activities:          
Income before taxes  Ps.51,583   Ps.77,234 
           
Items without cash flow   64,107    73,537 
Cash flow from income/loss before taxes   115,690    150,771 
           
Cash flow from:          
 Accounts receivables   (40,881)   6,185 
 Inventory   (1,967)   (3,786)
 Accounts payables   (38,945)   7,936 
 Other assets and liabilities   (31,783)   16,292 
Cash flow from operation activities   (113,576)   26,627 
           
Net cash flow from operating activities   2,114    177,398 
           
Cash flow from:          
 Telephone network systems and equipment, net   (90,413)   (78,990)
 Other intangible assets   -    - 
Cash flow from capital expeditures   (90,413)   (78,990)
           
Cash in excess/(required) to be used in financing activities   (88,299)   98,408 
           
Cash flow from :          
           
 Vendor financing   (1,001)   (753)
 Capital  stock   8,737      
 Additional paid in capital   9    796 
 Other financing activities   38,782    (2,703)
Cash flow from financing activities   46,527    (2,660)
           
Increase (decrease) in cash and temporary investments   (41,772)   95,748 
           
Cash and financial instruments at beginning of the period   146,516    396,578 
Cash and cash equivalents at the end of the period  Ps. 104,744   Ps.492,326 

 

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