PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
Rua Levindo Lopes, 258 – Funcionários
Cep: 30.140-170 – Belo Horizonte (MG) - Brazil
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F:
ý
Form 40-F:
o
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1)):
Yes: o
No:
ý
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7)):
Yes:
o No:
ý
(Indicate by check mark whether the
registrant by furnishing the information contained in this Form, the Registrant is also thereby furnishing
the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes:
o
No:
ý
| André Machado Mastrobuono |  |
| CEO, CFO and Head of Investor Relations | |
| Ricardo Antunes Agostini | |
| Finance Executive Director | |
| Renata Pantoja | |
| Investor Relations Manager | |
| Phone: +55 31 9933-3535 |
TELE NORTE CELULAR PARTICIPAÇÕES S.A. REPORTS
ITS FOURTH QUARTER 2007 AND YEAR-END 2007 RESULTS
- EBITDA of R$144.6 million or 31.3% of net service revenues in 2007, the best result since 2003
- Client Base reached 1,416,620 in 2007, 17% up from 2006
- The company posted net income for the first time since 2003
- Net debt / EBITDA ratio
significantly improved, decreasing to 1.11
Belo Horizonte, Brazil, February 26, 2008 – Tele Norte Celular Participações S.A. (BOVESPA: TNCP3 (Common)/TNCP4 (Preferred); NYSE: TCN), the holding company of the wireless telecommunications service provider in the Brazilian states of Amapá, Amazonas, Maranhão, Pará and Roraima, today announced its fourth quarter and year-end 2007 results. The Company added 104,755 and 205,840 new clients in 4Q07 and 2007, respectively, increasing its client base to 1,416,620. EBITDA reached R$61.0 million in the 4Q07, representing 48.1% of net service revenues. In the year, EBITDA was R$144.6 million, representing 31.3% of net service revenues.
Operating Highlights:
| Client base reached 1,416,620 |
The Company’s client base reached 1,416,620 in the fourth quarter of 2007, representing growth of 8.0% and 17.0% over the client base recorded in 3Q07 and 4Q06, respectively.
In the fourth quarter, the prepaid client base grew by 100,557, to 1,204,067 clients, representing 85% of the total client base. The postpaid client base increased by 4,198, reaching 212,553 by the end of the quarter, representing 15% of the total client base.
www.telenorteholding.com.br - 1/13
| Churn Rate |
During the fourth quarter, annualized churn rate for the prepaid client segment decreased to 37.7%, compared to the 52.5% recorded in the 3Q07. This reduction is related to improved client retention initiatives and better client base quality. In 2007, prepaid churn rate reached 43.6%, 18.8 p.p. lower than 2006. This decrease is associated to successful campaigns to attract and retain clients.
Annualized churn rate for the postpaid segment, which accounts for most of the revenues generated, reached 21.7% in the 4Q07, 1.4 p.p. lower than the 3Q07. This reduction is a result of improved client base quality and better retention initiatives. In 2007, postpaid churn rate reached 24.7%, below the 25.1% recorded in 2006.
As a result, blended annualized churn rate decreased to 35.2% in the 4Q07, compared to 47.7% registered in the previous quarter. In 2007, blended churn rate reached 40.4%, a 14.5 p.p. reduction when compared to the 54.9% recorded in 2006.
| Operating Revenues |
Net service revenues totaled R$126.9 million in the quarter, representing an increase of R$12.1 million, or 10.6% over the previous quarter, mainly as a result of the 10.5% increase in total traffic (5.3% in incoming and 15.1% in outgoing traffic) and the reversal of the R$5.5 million provision of ICMS tax on subscriptions.
In 2007, net service revenues reached R$462.6 million, the highest amount posted by the company ever, higher than the R$385.0 million registered in 2006, due to the increase of R$58.6 million, or 36.5%, in interconnection revenues. This increase is mainly due to (i) improvement in the client usage profile and customer base growth, both in the prepaid and postpaid segments, and (ii) the adoption of the full billing rule.
Data revenues totaled R$8.8 million in the 4Q07, an increase of 65.6% when compared to the R$5.3 million recorded in the 3Q07. This increase is a result of the launch of new services and seasonal factors. In 2007, data revenues reached R$27.1 million, posting an increase of 3.8% when compared to the R$26.1 million recorded in 2006.
Net equipment revenues totaled R$4.6 million, a decrease of 13.4% when compared to the R$5.3 million recorded in the 3Q07. This reduction results from lower average price of handsets sold. In 2007, net equipment revenues totaled R$24.1 million, 53.0% lower than the R$51.2 million posted in 2006, as a result of lower equipment sales for new activations.
www.telenorteholding.com.br - 2/13
Handset subsidies for client acquisitions totaled R$3.4 million in the 4Q07, or R$15.3 per gross addition, higher than the R$2.6 million, or R$14.6 per gross addition, recorded in the 3Q07. This difference is a consequence of the Christmas campaign. For 2007, handset subsidies amounted to R$8.3 million, in line with the previous year.
As a result, total net revenues reached R$131.5 million in the 4Q07, 9.5% higher than the previous quarter. In 2007, total net revenues amounted to R$486.7 million, an increase of 11.6% over the R$436.3 million recorded in 2006.
| Operating costs and expenses |
Cost of services totaled R$50.6 million in the 4Q07, almost in line with the R$49.8 million registered in the previous quarter. In 2007, cost of services reached R$194.5 million, 31.6% higher when compared to 2006. This increase is mainly due to (i) higher expenses with Fistel as a result of a higher client base growth compared to 2006, (ii) increase of outgoing traffic, and (iii) the increase of R$42.8 million in interconnection costs as a consequence of adopting the full billing rule.
Selling and marketing expenses in the 4Q07 totaled R$20.2 million, 18.3% lower than the R$24.7 million registered in the previous quarter, due to reduced expenses with client retention subsidies and personnel expenses. Selling and marketing expenses for the year totaled R$92.8 million, 9.7% less than the R$102.8 million registered in 2006. This reduction is a result of lower expenses related to (i) client retention subsidies, (ii) promotions and advertising campaigns, and (iii) transfer of the call center from the city of Belém to Belo Horizonte, which also provided a significant improvement in the quality of service.
Client acquisition cost decreased to R$130 in the 4Q07 from the R$142 recorded in the 3Q07. In 2007, client acquisition cost reached R$138, an increase of R$16 when compared to the R$122 recorded in 2006, due to the higher expenses with Fistel as a result of increased client base and higher volume of discounts offered to clients.
www.telenorteholding.com.br - 3/13
Retention costs reached R$12.3 million in the quarter, 21.6% lower than the R$15.7 million recorded in the 3Q07, due to lower subsidies expenses related to retention programs and reduced volume of promotional discounts. In 2007, retention costs totaled R$56.0 million, 12.1% lower than the R$63.7 million recorded in 2006. This reduction is a consequence of more efficient expenses related to personnel and relationship campaigns without affecting the downward trend of churn rate.
General and administrative expenses totaled R$9.0 million in the 4Q07, representing a decrease of 21.7% when compared to the R$11.5 million posted in the previous quarter. This reduction is mainly due to lower expenses with administrative consulting services and contingencies. In 2007, general and administrative expenses totaled R$38.9 million, lower than the R$39.5 million recorded in the previous year.
Bad debt provisions totaled R$4.2 million in the 4Q07, R$1.4 million above the R$2.8 million recorded in the last quarter. As a percentage of net service revenues, bad debt provisions reached 3.3%, against the 2.4% recorded in the 3Q07. In 2007, bad debt provision was reduced by 20.3%, from R$16.3 million in 2006 to R$13.0 million in 2007, reflecting higher sales with quality. This reduction is due to the establishment of rules for client acquisition focused on credit analysis, appropriate incentives for the distribution channels and new collection initiatives. As a percentage of net service revenues, bad debt provisions dropped to 2.8% in 2007, compared to the 4.2% recorded in 2006. When calculated against total net revenues, bad debt provision totaled 2.7% in 2007.
www.telenorteholding.com.br - 4/13
| Average Revenue Per User (ARPU) |
Postpaid MOU (minutes of use) totaled 253 in the 4Q07, an increase of 2.6% over the 246 recorded in the previous quarter. This increase is due to higher offer of promotional minutes and seasonal factors. In 2007 postpaid MOU reached 243 minutes, higher than the 221 minutes registered in the 2006, due to the effectiveness of campaigns to stimulate the use of cellular phones and to improvements in the client acquisition process.
Postpaid ARPU (average revenue per user) amounted to R$98.7 in the 4Q07, an increase of R$12.0 over the R$86.7 recorded in the 3Q07. This increase is a consequence of the improvement in the client base quality and the ICMS tax provision reversal in the amount of R$5.5 million. In 2007, postpaid ARPU reached R$89.3, higher than the R$76.9 registered in 2006, due to improvements in the profile of the client base, the reversal of the ICMS provision and the adoption of the full billing rule in July 2006.
Prepaid MOU was 48 minutes in the 4Q07, an increase of 12.3% over the 43 minutes recorded in the previous quarter, due to the success of the Christmas campaign and “15 times the amount activated” campaign launched in November. In 2007 prepaid MOU reached 44 minutes, higher than the 36 minutes in 2006, due to the effectiveness of incentive campaigns designed to stimulate usage.
Average revenue per user (ARPU) in the prepaid segment was R$17.4 in the 4Q07, a reduction of R$0.2 when compared to the R$17.6 in the previous quarter. In 2007, prepaid ARPU reached R$17.1, higher than the R$12.3 registered in 2006. This increase reflects the success of incentive campaigns promoting greater usage, which produced higher volume of outgoing and incoming traffic, as well as the adoption of the full billing rule.
As a result, total blended MOU in the 4Q07 totaled 80 minutes and blended ARPU reached R$30.4, a 5.8% increase over the R$28.7 recorded in the 3Q07. In the year, blended MOU reached 77 minutes and blended ARPU totaled to R$29.1, higher than R$25.2 ARPU recorded in 2006.
www.telenorteholding.com.br - 5/13
| Estimated market share of 20.3% in the 4Q07 |
Estimated market share was 20.3% in the 4Q07, compared to 21.1% registered in the previous quarter. Therefore, the reduction in market share, which in 2006 reached 3.5 p.p., was reduced to 1.9 p.p..
Estimated gross sales share in 4Q07 was 22.7%, in line with the previous quarter. In 2007, estimated gross sales share reached 24.0%, below the 27.3% registered in 2006. The commercial performance reached 799 thousand sales, an increase of 20% over the previous year.
| EBITDA of R$144.6 million in 2007 |
EBITDA and EBITDA margin (excluding handset revenues) in the 4Q07 totaled R$61.0 million and 48.1%, respectively. In 2007, EBITDA and EBITDA margin reached R$144.6 million and 31.3%, respectively. EBITDA was positively impacted by the R$26.6 million reversal of ICMS provision in the state of Pará (net of lawyer’s expenses provisions).
| Depreciation and amortization |
Depreciation and amortization expenses totaled R$27.6 million in the 4Q07, in line with the R$27.0 million recorded in the 3Q07. Depreciation and amortization expenses for the year were R$109.9 million, down 0.9% from R$111.0 million registered in 2006. This reduction is explained by the lower investments made in 2007.
www.telenorteholding.com.br - 6/13
| Net financial expense of R$2.9 million in the quarter |
| R$ million | ||||||||||||||
| 4Q06 | 1Q07 | 2Q07 | 3Q07 | 4Q07 | 2006 | 2007 | ||||||||
| Interest Expenses (a) | (31.3) | (18.9) | (24.3) | (19.1) | (12.2) | (88.6) | (74.5) | |||||||
| Interest Revenue (b) | 3.2 | 2.8 | 2.2 | 1.5 | 3.5 | 12.0 | 10.0 | |||||||
| Foreign Exchange Gain (Loss) (c) | 4.2 | 8.5 | 13.6 | 8.1 | 5.8 | 21.3 | 36.1 | |||||||
| Net Financial Income (Expense) | (23.9) | (7.6) | (8.5) | (9.5) | (2.9) | (55.3) | (28.4) | |||||||
Note: a) Interest expenses: include financial expenses related to debt, losses on hedge operations (if any), taxes on gains with hedge operations and revenues from interest on own capital (if any); b) Interest income: includes results of cash investing activities, clients’ interest and gains on hedging operations (if any); and, c) Foreign exchange gain (loss): almost exclusively reflects currency devaluation changes on debt principal and interest payable.
| Net income of R$21.6 million in the quarter |
Net income in the 4Q07 reached R$21.6 million or R$3.225 per share or ADS. In 2007, net income totaled R$3.2 million.
| Total debt of R$151.8 million |
At the end of 2007, total debt was R$151.8 million, 100% was denominated in US dollars. As of December 31, 2007, 100% of this debt was hedged.
| Net debt of R$160.2 million |
As of December 31, 2007, the Company’s debt was offset by cash (cash equivalents and short-term cash investments) in the amount of R$44.8 million, but was affected by accounts payable from hedging operations in the amount of R$53.3 million, resulting in a negative net debt (net cash) of R$160.2 million.
www.telenorteholding.com.br - 7/13
| Debt Payment Schedule |
| Year | R$ million | % denominated in US$ |
||
| 2008 | 80.9 | 100.0% | ||
| 2009 | 70.9 | 100.0% |
| Financial Ratios |
Ratios |
4Q06 | 1Q07 | 2Q07 | 3Q07 | 4Q07 | |||||
| Net Debt/EBITDA (1) | 6.25 | 4.31 | 3.50 | 2.89 | 1.11 | |||||
| Net Debt/Total Assets | 36% | 32% | 35% | 33% | 30% | |||||
| Interest Coverage Ratio (1) | 1.6 | 1.8 | 2.4 | 2.6 | 7.7 | |||||
| Current Liquidity Ratio | 0.5 | 0.6 | 0.7 | 0.7 | 0.7 | |||||
| (1) Last twelve months |
The improvement of the Company’s performance can be evaluated through the net debt / EBITDA ratio which was reduced to 1.11 in 2007 and through the interest coverage ratio (EBITDA/ interest paid) which improved to 7.7 in 2007.
| Investments totaled R$21.9 million in the quarter |
During the fourth quarter of 2007, Amazônia Celular’s capital expenditures reached R$21.9 million and, in 2007, totaled R$28.0 million. The breakdown of such investments is as follows:
CAPEX BREAKDOWN
CAPEX (R$ million) |
4Q06 | 1Q07 | 2Q07 | 3Q07 | 4Q07 | 2007 | ||||||
| Network | 19.5 | 2.5 | (3.2) | 4.3 | 19.6 | 23.2 | ||||||
| IT | 4.9 | 0.1 | 0.1 | 0.0 | 0.5 | 0.7 | ||||||
| Others | 3.4 | 0.7 | 0.6 | 1.0 | 1.8 | 4.1 | ||||||
| TOTAL | 27.8 | 3.3 | (2.5) | 5.3 | 21.9 | 28.0 |
| Free cash flow |
In the 4Q07, free cash flow totaled R$30.5 million, higher than the R$13.0 million recorded in the previous quarter. This difference is mainly related to EBITDA increase.
In 2007, free cash flow reached R$56.7 million, higher than the negative R$2.4 million recorded in the previous year. This difference is mainly due to the higher EBITDA.
www.telenorteholding.com.br - 8/13
For further information please contact
Tele Norte Celular Participações S.A.
Investor Relations Department
André Mastrobuono / Ricardo Agostini / Renata Pantoja
Phone: (+55 31) 9933-3535
E-mail: ri@telepart.com.br
This press release contains forward-looking statements. Such statements are not statements of historical fact, and reflect the beliefs and expectations of the Company's management. The words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects" and "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Accordingly, the future results of the Company’s operations may be different from the Company's current expectations, and the reader should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments.
www.telenorteholding.com.br - 9/13
OPERATIONAL DATA
| 2006 | 2007 | Var. % | ||||||||||||||
| 4th Quarter | YTD | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | YTD | (4Q07/3Q07) | |||||||||
| Licensed Pops (in millions) | 17.6 | 17.6 | 17.6 | 17.6 | 17.6 | 17.6 | 17.6 | 0.0% | ||||||||
| Clients | 1,210,780 | 1,210,780 | 1,256,134 | 1,291,482 | 1,311,865 | 1,416,620 | 1,416,620 | 8.0% | ||||||||
| Postpaid | 232,271 | 232,271 | 219,614 | 211,077 | 208,355 | 212,553 | 212,553 | 2.0% | ||||||||
| Prepaid | 978,509 | 978,509 | 1,036,520 | 1,080,405 | 1,103,510 | 1,204,067 | 1,204,067 | 9.1% | ||||||||
| MOU Incoming | 0.0% | |||||||||||||||
| Postpaid | 84 | 85 | 80 | 83 | 83 | 85 | 83 | 2.0% | ||||||||
| Prepaid | 28 | 24 | 26 | 27 | 27 | 27 | 27 | 1.3% | ||||||||
| MOU Outgoing | 0.0% | |||||||||||||||
| Postpaid | 155 | 136 | 152 | 161 | 163 | 167 | 161 | 2.9% | ||||||||
| Prepaid | 17 | 12 | 18 | 16 | 16 | 21 | 18 | 30.5% | ||||||||
| Total Outgoing Traffic (Million of Minutes) | 158.9 | 544.0 | 156.5 | 153.3 | 155.0 | 178.4 | 643.2 | 15.1% | ||||||||
| Total Incoming Traffic (Million of Minutes) | 142.9 | 534.3 | 133.1 | 139.7 | 140.3 | 147.7 | 560.8 | 5.3% | ||||||||
| Average Revenue per User - ARPU (R$) | 28.6 | 25.2 | 28.4 | 28.9 | 28.7 | 30.4 | 29.1 | 5.8% | ||||||||
| Postpaid | 75.2 | 76.9 | 85.4 | 86.9 | 86.7 | 98.7 | 89.3 | 13.9% | ||||||||
| Prepaid | 17.3 | 12.3 | 15.8 | 17.1 | 17.6 | 17.4 | 17.1 | -1.1% | ||||||||
| Service Revenues (R$ millions) | 0.0% | |||||||||||||||
| Monthly Fee | 11,219 | 70,446 | 19,926 | 19,126 | 17,741 | 21,635 | 78,428 | 22.0% | ||||||||
| Outgoing Traffic | 38,079 | 142,585 | 33,794 | 36,974 | 39,226 | 45,161 | 155,155 | 15.1% | ||||||||
| Incoming Traffic | 55,043 | 160,457 | 52,130 | 54,091 | 55,291 | 57,576 | 219,088 | 4.1% | ||||||||
| Other | 2,297 | 11,551 | 2,598 | 2,378 | 2,484 | 2,485 | 9,944 | 0.0% | ||||||||
| TOTAL | 106,638 | 385,040 | 108,447 | 112,570 | 114,742 | 126,857 | 462,616 | 10.6% | ||||||||
| Data Revenues (% of net serv. revenues) | 5.8% | 6.8% | 6.4% | 5.3% | 4.6% | 6.9% | 5.9% | 2.6 p.p. | ||||||||
| Cost of Services (R$ millions) | ||||||||||||||||
| Leased lines | 8,900 | 37,270 | 8,548 | 8,742 | 9,794 | 6,926 | 34,010 | -29.3% | ||||||||
| Interconnection | 27,920 | 63,239 | 24,655 | 25,894 | 27,522 | 27,926 | 105,997 | 1.5% | ||||||||
| Rent and network maintenance | 5,767 | 21,734 | 6,152 | 5,471 | 6,354 | 7,027 | 25,004 | 10.6% | ||||||||
| FISTEL and other taxes | 3,554 | 20,400 | 6,448 | 6,095 | 5,721 | 8,045 | 26,309 | 40.6% | ||||||||
| Other | 227 | 5,150 | 1,128 | 882 | 444 | 716 | 3,169 | 61.4% | ||||||||
| TOTAL | 46,369 | 147,792 | 46,931 | 47,083 | 49,835 | 50,640 | 194,489 | 1.6% | ||||||||
| Churn - Annualized Rate | 86.4% | 54.9% | 35.9% | 42.7% | 47.7% | 35.2% | 40.4% | -12,5 p.p. | ||||||||
| Postpaid | 27.4% | 25.1% | 27.0% | 26.7% | 23.1% | 21.7% | 24.7% | -1,4 p.p. | ||||||||
| Prepaid | 100.5% | 62.3% | 37.9% | 46.0% | 52.5% | 37.7% | 43.6% | -14,7 p.p | ||||||||
| Cost of Acquisition (R$) | 96 | 122 | 139 | 141 | 142 | 130 | 138 | -8.5% | ||||||||
| Retention Costs (% of net serv. revenues) | 13.3% | 16.5% | 13.8% | 11.6% | 13.7% | 10.1% | 12.2% | -3,5 p.p | ||||||||
| CAPEX (R$ millions) | 27.8 | 51.3 | 3.3 | (2.5) | 5.3 | 21.9 | 28.0 | 316.4% | ||||||||
| Number of locations served | 212 | 212 | 212 | 213 | 213 | 213 | 213 | 0.0% | ||||||||
| Number of cell sites | 690 | 690 | 693 | 692 | 697 | 706 | 706 | 1.3% | ||||||||
| Number of switches | 14 | 14 | 14 | 14 | 14 | 18 | 18 | 28.6% | ||||||||
| Headcount | 814 | 814 | 374 | 359 | 391 | 419 | 419 | 7.2% | ||||||||
| Market Share | 22.2% | 22.2% | 22.3% | 21.9% | 21.1% | 20.3% | 20.3% | 0,8 p.p. | ||||||||
www.telenorteholding.com.br - 10/13
INCOME STATEMENT (BR GAAP)
| (in R$ 000) | ||||||||||||||||
| 2006 | 2007 | Var. % | ||||||||||||||
| 4th Quarter | YTD | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | YTD | 4Q07/3Q07) | |||||||||
| Service Revenues - GROSS | 192,202 | 630,259 | 191,604 | 185,995 | 189,513 | 218,204 | 785,316 | 15.1% | ||||||||
| Equipment Revenues - GROSS | 16,559 | 74,006 | 9,970 | 10,729 | 7,663 | 6,035 | 34,397 | -21.2% | ||||||||
| Total Revenues - GROSS | 208,761 | 704,265 | 201,574 | 196,724 | 197,176 | 224,239 | 819,713 | 13.7% | ||||||||
| Taxes | (91,138) | (267,987) | (86,135) | (76,969) | (77,121) | (92,780) | (333,005) | 20.3% | ||||||||
| Service Revenues - NET | 106,638 | 385,040 | 108,447 | 112,570 | 114,742 | 126,857 | 462,616 | 10.6% | ||||||||
| Equipment Revenues - NET | 10,985 | 51,238 | 6,992 | 7,185 | 5,313 | 4,602 | 24,092 | -13.4% | ||||||||
| Total Revenues - NET | 117,623 | 436,278 | 115,439 | 119,755 | 120,055 | 131,459 | 486,708 | 9.5% | ||||||||
| Cost of Services | 46,369 | 147,792 | 46,931 | 47,083 | 49,835 | 50,640 | 194,489 | 1.6% | ||||||||
| Cost of Equipment | 13,526 | 59,515 | 7,758 | 8,737 | 7,873 | 8,015 | 32,383 | 1.8% | ||||||||
| Selling & Marketing Expenses | 23,473 | 102,827 | 23,318 | 24,535 | 24,749 | 20,222 | 92,824 | -18.3% | ||||||||
| Bad Debt Expense | 5,465 | 16,325 | 3,330 | 2,637 | 2,800 | 4,247 | 13,014 | 51.7% | ||||||||
| General & Administrative Expenses | 15,930 | 39,465 | 8,718 | 9,655 | 11,530 | 9,029 | 38,932 | -21.7% | ||||||||
| Other operating expense (income) | 33,605 | (3,012) | (1,765) | - | (29,565) | 608.5% | ||||||||||
| EBITDA | (23,371) | 36,749 | 28,396 | 28,873 | 26,334 | 61,028 | 144,631 | 131.7% | ||||||||
| % | -21.9% | 9.5% | 26.2% | 25.6% | 23.0% | 48.1% | 31.3% | 25,2 p.p. | ||||||||
| Depreciation & Amortization | 31,316 | 110,970 | 28,176 | 27,074 | 27,046 | 27,647 | 109,943 | 2.2% | ||||||||
| Interest Expense | 31,306 | 88,587 | 18,929 | 24,297 | 19,056 | 12,196 | 74,478 | -36.0% | ||||||||
| Interest Income | (3,177) | (11,965) | (2,808) | (2,192) | (1,528) | (3,461) | (9,989) | 126.5% | ||||||||
| Foreign Exchange Loss (Gain) | (4,257) | (21,341) | (8,559) | (13,616) | (8,067) | (5,839) | (36,081) | -27.6% | ||||||||
| Others | 326 | 793 | 14 | (627) | 504 | 1,622 | 1,513 | 221.8% | ||||||||
| Income Taxes | (12,426) | (28,603) | - | - | - | - | - - | |||||||||
| Minority Interests | (17,263) | (25,611) | (1,763) | (1,388) | (2,527) | 7,251 | 1,573 | -386.9% | ||||||||
| Net Income (loss) | (49,196) | (76,081) | (5,593) | (4,675) | (8,150) | 21,612 | 3,194 | -365.2% | ||||||||
| Number of shares (thousand)* | 335,084,155 | 335,084,155 | 335,084,155 | 335,084,155 | 6,701,682 | 6,701,682 | 6,701,682 | 0.0% | ||||||||
| Earnings per thousands shares (R$)** | (0.147) | (0.227) | (0.017) | (0.014) | (1.216) | 3.225 | 0.477 | -365.2% | ||||||||
| Earnings per ADS (R$) | (7.341) | (11.353) | (0.835) | (0.698) | (60.806) | 161.243 | 23.830 | -365.2% | ||||||||
| (1) Interest paid: 4Q06 - R$4,806 thousand; 1Q07 - R$7,820 thousand; 2Q07 - R$3,904 thousand; 3Q07 - R$6,961 thousand; and, 4Q07 - R$0. | ||||||||||||||||
| * 3Q07, 4Q07 and YTD 2007: number of shares. | ||||||||||||||||
| ** 3Q07, 4Q07 and YTD 2007: earnings per share (R$). | ||||||||||||||||
www.telenorteholding.com.br - 11/13
BALANCE SHEET (BR GAAP)
| (in R$ 000) | ||||||||||
| 4Q07 | 3Q07 | 4Q07 | 3Q07 | |||||||
| Current Assets | Current Liabilities | |||||||||
| Cash & cash equivalents | 9,884 | 4,499 | Loans & Financing | 80,936 | 84,025 | |||||
| Tempory Cash Investments | 34,953 | 23,381 | Loan Interest | 4,656 | 1,323 | |||||
| Accounts Receivable | 81,296 | 82,215 | Suppliers | 83,694 | 97,834 | |||||
| Taxes Receivable | 18,153 | 16,899 | Taxes Payable | 8,228 | 4,315 | |||||
| Other Assets | 14,102 | 18,417 | Dividends | 3,297 | 100 | |||||
| 158,388 | 145,411 | Other Current Liabilities | 37,272 | 17,316 | ||||||
| 218,083 | 204,913 | |||||||||
| Long-term Assets | 94,252 | 94,239 | Loans & Financing | 70,852 | 73,556 | |||||
| Deferred Assets | 2,442 | - | Other Long-term Liabilities | 120,379 | 146,696 | |||||
| Plant & Equipment | Minority Interest | 31,768 | 24,517 | |||||||
| Cost | 1,024,131 | 1,002,537 | ||||||||
| Accum Depreciation | (750,002) | (722,791) | Shareholders' Equity | 88,129 | 69,714 | |||||
| 274,129 | 279,746 | |||||||||
| 529,211 | 519,396 | 529,211 | 519,396 | |||||||
CASH FLOW (BR GAAP)
| (in R$ 000) | ||||
| 4Q07 | YTD 2007 | |||
| Operating activities | ||||
| Net income | 21,612 | 3,194 | ||
| Adjustments to reconcile net income to net cash from | ||||
| operating activities | ||||
| Depreciation and amortization | 27,647 | 109,943 | ||
| Foreign exchange gains and indexation (principal) | 1,546 | (28,226) | ||
| Unrealized losses (gains) on cross-currency interest swaps | 9,097 | 30,857 | ||
| Minority interest | 7,251 | 1,573 | ||
| Reversal of provision for contingencies and other | (33,963) | (27,805) | ||
| Changes in operating assets and liabilities | (18,509) | (33,317) | ||
| Cash provided by operating activities | 14,681 | 56,219 | ||
| Investing activities | ||||
| Cash proceeds from disposals of property and equipment | 25 | 143 | ||
| Additions to property and equipment | (9,321) | (15,365) | ||
| Cash used in investing activities | (9,296) | (15,222) | ||
| Financing activities | ||||
| Proceeds from issuance of debt | - | 150,497 | ||
| Payment of debt | - | (204,281) | ||
| Dividends paid | - | (3) | ||
| Cash used in financing activities | - | (53,787) | ||
| Increase (decrease) in cash and cash equivalents | 5,385 | (12,790) | ||
| Cash and cash equivalents, beginning of the period | 4,499 | 22,674 | ||
| Cash and cash equivalents, end of the period | 9,884 | 9,884 | ||
www.telenorteholding.com.br - 12/13
GLOSSARY OF KEY INDICATORS
I) Average Clients
a) Average clients – monthly
Sum of clients at the beginning and the end of the month
2b) Average clients – quarterly and year-to-date
Sum of the average clients for each month of the period
Number of months in the period
II) Churn Rate (Annualized)
a) Churn % quarterly
Sum of deactivations / Sum of average monthly opening clients for the 3 months x 12
3b) Churn % - year to date
YTD deactivations / Sum of average monthly opening clients since the beginning of the year x 12
Number of months in the period
III) MOU – Minutes of Use (Monthly)
Number of total billable minutes for the period / Average clients for the period
Number of months in the periods
IV) ARPU – Average Revenue per User
Net service revenues for the period (excluding roaming-in revenues)
Average clients for the period
V) Client Acquisition Cost
(Sum of Marketing salaries, Selling salaries, Consulting (Sales and Marketing),
Commissions, Handsets subsidies, Advertising and promotions,
FISTEL tax (activation tax), less Activation fee for the period)
Number of gross activations in the period
VI) Free Cash Flow
Free Cash Flow = (EBITDA – CAPEX – Taxes – Net Financial Expenses*
– Minority Interests – Working Capital Variation)* Considers interest paid.
VII) Working Capital Variation
Working Capital Variation = ( Δ Current Assets – Δ Cash & Cash Equivalents) –
(Δ Current Liabilities – Δ Short Term Loans and Financing - Δ Loan Interest - Δ Dividends)
VIII) Interest Coverage Ratio
Interest Coverage Ratio = EBITDA / Interest Paid
IX) Current Liquidity Ratio
Current Liquidity Ratio = Current Assets / Current Liabilities
X) EBITDA
EBITDA = Operational Revenues - Operational Costs - Operational Expenses* - Bad Debts
* Does not include profit sharing.
www.telenorteholding.com.br - 13/13
| TELE NORTE CELULAR PARTICIPAÇÕES S.A. | ||||
| By: | /s/ André Mastrobuono | |||
| Name: | André Mastrobuono | |||
| Title: | CEO, CFO and Head of Investor Relations | |||
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.