RNS Number:7097P
Grupo Clarin S.A.
10 March 2008
Grupo Clarin announces its Fourth Quarter and
Full Year Results for 2007
Buenos Aires, Argentina, March 10, 2008 - Grupo Clarin S.A. ("Grupo Clarin" or
the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina,
announced today its Fourth Quarter and full year results for 2007. Figures in
this report have been prepared in accordance with Argentine GAAP as of December
31, 2007 and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (2007 vs. 2006; 4Q07 vs. 4Q06):
• Net Sales reached Ps.4,383.7 million, an increase of 55.9% from 2006
largely due to the acquisition of a controlling (60%) ownership interest in
Cablevision S.A. and Holding Teledigital S.A. in September 2006 (the
"Cablevision Acquisition")
• Adjusted EBITDA(1) increased by 90.3% from 2006 to Ps.1,350.8 million,
driven by the Cablevision Acquisition.
• As a result, Grupo Clarin's Adjusted EBITDA Margin (3) was 30.8% for 2007,
an increase of 22.1% from 25.2% in 2006.
• Net Income totaled Ps.209.6 million. In 2006, we reported a net income of
Ps.869.7 million, which was driven primarily by the non-recurring gain
resulting from the completion of the prepackaged (APE) restructuring of the
financial debt of Multicanal S.A.
• On December 7th, 2007, regulatory authorities approved the transactions
that resulted in the Cablevision Acquisition.
Comments from the Vice Chairman of Grupo Clarin:
Mr. Jose A. Aranda, Vice Chairman of Grupo Clarin, stated, "We are pleased to
report our first annual results since becoming a publicly-traded company. In
2007 we showed strong growth in sales across our segments, increased our
subscriber base and continued improving our profitability. Among other major
milestones for the year was the approval of our acquisition of Cablevision,
which has enabled us to consolidate our position as the leading multimedia
player in Argentina, and strengthened our focus on broadband, digital cable TV
and communications as part of our convergence strategy. We have confidence in
our ability and scale to continue generating growth in our businesses and value
for our shareholders".
FINANCIAL HIGHLIGHTS
(In millions of Ps.) 2007 2006 % Var. 4Q07 4Q06 % Var.
Net Sales 4,383.7 2,811.8 55.9% 1,266.2 1,055.7 19.9%
Adjusted EBITDA (1) (2) 1,350.8 709.7 90.3% 398.7 296.9 33.3%
Adjusted EBITDA Margin % (3) 30.8 25.2 22.1% 31.3 28.1 12.0%
Net Income 209.6 869.7 -75.9% 86.7 106.5 -18.6%
(1) We define Adjusted EBITDA as net sales minus cost of sales (excluding
depreciation and amortization) and selling and administrative expenses
(excluding depreciation and amortization). We believe that Adjusted EBITDA
is a meaningful measure of our performance. It is commonly used to analyze
and compare media companies on the basis of operating performance, leverage
and liquidity. Nonetheless, Adjusted EBITDA is not a measure of net income
or cash flow from operations and should not be considered as an alternative
to net income, an indication of our financial performance, an alternative
to cash flow from operating activities or a measure of liquidity. Because
Adjusted EBITDA is not an Argentine GAAP measure, other companies may
compute Adjusted EBITDA in a different manner. Therefore, Adjusted EBITDA
as reported by other companies may not be comparable to Adjusted EBITDA as
we report it.
(2) Includes approximately Ps.13 million of expenses incurred in connection
with the integration of the companies involved in the Cablevision
Acquisition which conduct our Cable TV and Internet access business.
3) We define Adjusted EBITDA Margin as Adjusted EBITDA over Net Sales.
OPERATING RESULTS
Net sales reached Ps.4,383.7 million, an increase of 55.9% from Ps.2,811.8
million reported for 2006. This increase was mainly due to the growth in the
Cable TV and Internet access segment as a result of the Cablevision Acquisition.
Following is a breakdown of net sales by business segment:
NET SALES
(In millions of Ps.) 2007 2006 % Var. 4Q07 4Q06 % Var.
Cable TV & Internet access 2,613.0 1,274.8 105.0% 722.1 585.0 23.4%
Printing & Publishing 1,173.5 989.4 18.6% 354.4 292.1 21.4%
Broadcasting & Programming 784.4 659.5 18.9% 234.4 230.5 1.7%
Digital Content & Others 138.1 102.9 34.1% 37.9 39.5 -3.9%
Subtotal 4,709.0 3,026.6 55.6% 1,348.9 1,147.1 17.6%
Eliminations -325.3 -214.8 51.5% 82.7 -91.4 -9.5%
Total 4,383.7 2,811.8 55.9% 1,266.2 1,055.7 19.9%
Cost of sales reached Ps.2,127.2 million, an increase of 42.5% from Ps.1,491.6
million reported for 2006. This increase was mainly due to growth in the Cable
TV and Internet access segment, attributable to the Cablevision Acquisition.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
reached Ps.907.7 million, an increase of 48.7% from Ps.610.5 million in 2006.
This increase was mainly due to the growth in our Cable TV and Internet access
segment attributable to the Cablevision Acquisition.
Financial results net totaled Ps.-448.3 million, mainly generated by
liabilities, from Ps.920.0 million for 2006, which reflect the non-recurring
gains generated by the completion of Multicanal's debt restructuring.
Equity in earnings from unconsolidated affiliates in 2007 totaled Ps.7.2
million, compared to Ps.224.7 million for 2006. Gains on account of Equity in
earnings from unconsolidated affiliates for 2006 are attributable primarily to
the non-recurrent gain of Ps.246.8 million recorded as a result of the dilution
for the benefit of existing shareholders (the Company and AGEA), generated by
the capitalization of approximately USD182.0 million of outstanding debt, in
exchange for shares representing approximately 35% of Multicanal's total capital
pursuant to the terms of Multicanal's APE in July 2006
Other income (expenses), net reached Ps.-21.4 million, compared to Ps.17.5
million in 2006.
Adjusted EBITDA reached Ps.1,350.8 million, an increase of 90.3% from Ps.709.7
million reported for 2006. This increase was mainly due to the growth in our
Cable TV, an Internet access segment attributable to the Cablevision
Acquisition, an increase in our ARPU (Average Price per User) and higher
advertising revenues.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) 2007 2006 % Var. 4Q07 4Q06 % Var.
Cable TV & Internet access 889.8 333.2 167.0% 244.3 169.0 44.6%
Printing & Publishing 286.1 262.0 9.2% 100.0 85.5 16.9%
Broadcasting & Programming 140.4 83.7 67.2% 46.8 30.4 53.7%
Digital Content & Others 34.4 35.9 -4.0% 7.6 17.0 -55.3%
Subtotal 1,350.8 714.8 89.0% 398.7 301.9 32.1%
Eliminations -5.1 -100.0% -5.0 -100.0%
Total 1,350.8 709.7 90.3% 398.7 296.9 34.6%
Net income totaled Ps.209.6 million, a decrease of 75.9% from Ps.869.7 million
reported for 2006. While our Adjusted EBITDA in the Cable TV and Internet access
segment grew due to the Cablevision Acquisition, our Net Income for 2006 was
driven by the non-recurrent gains resulting from the completion of Multicanal's
debt restructuring in July 2006.
Income tax as of December 2007, reached Ps.200.7 million, from Ps.490.7 million
in 2006. This decrease was mainly due to the non-recurrent gains in 2006
generated by the completion of Multicanal's debt restructuring.
Cash disbursements for Investment (CAPEX) totaled Ps.175.5 million in the fourth
quarter and Ps.575.9 million in the full year, an increase of 127.1% from
Ps.253.6 million reported for 2006. Of the total CAPEX in 2007, 88.7% was
allocated to the Cable TV and Internet access segment, 7.2% to the Printing and
Publishing segment and the remaining 4.1% to other activities. Our Capex in the
Cable TV and Internet access segment contemplates network upgrades,
digitalization and further development of the triple play strategy.
Debt profile (1): Debt coverage ratio for the period ended December 31, 2007,
was 1.8x, while Net Debt at the end of this period totaled Ps.2452.9 million.
(1) Debt Coverage Ratio is defined as Total Financial Debt minus Cash and
Equivalents divided by Adjusted EBITDA (last 12 months)
RESULTS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
Net Sales
Net sales increased by 105.0% to Ps.2,613.0 million for the twelve-month period
ended 31 December 2007 compared to Ps.1,274.8 million for the same period of
2006. The increase in net sales was principally attributable to the
consolidation of Cablevision in our Cable TV and Internet access segment
following the Cablevision Acquisition. To a lesser extent, it reflects an
increase in the number of subscribers through internal growth, including
additional Internet subscribers, and in average subscription charges for cable
television registered in 2006 and in 2007. Total Cable TV basic subscribers
amounted to 3,022,337 as of December 2007 compared to 2,837,448 as of December
2006, and Internet subscribers amounted to 758,168 in 2007, compared to 587,704
in 2006.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 90.8% to
Ps.1,123.2 million for 2007, compared to Ps.588.7 million for the same period in
2006. This increase was mainly due to the Cablevision Acquisition, and to a
lesser extent, to the increase in our programming costs attributable to internal
growth in our subscriber base and pricing adjustments linked to basic monthly
fee increases, contemplated in certain programming contracts, and also to the
effect of salary increases.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization)
increased by 70.0% to Ps. 599,9 million for 2007, compared to Ps.352.8 million
reported for the same period in 2006. This increase was mainly due to the
Cablevision Acquisition. The increase in expenses for salaries, wages, social
security charges and other personnel expenses reflects primarily the Cablevision
Acquisition and the effect of other salary increases. It also includes
approximately Ps.13 million of expenses related to the integration of our cable
TV and Internet access operations following the Cablevision Acquisition.
Depreciation and Amortization
Depreciation expenses of property, plant and equipment increased by 102.3% to
Ps.234.1 million for 2007 from Ps.115.7 million reported for the same period in
2006. The increase reflects the Cablevision Acquisition, and additions of cable
and network equipment during 2006 and 2007. Also, the Company recorded Ps.119.8
million in amortization expenses for 2007 compared to Ps.34.8 million in 2006.
The increase is mainly attributable to the intangible assets related to the
purchase of Cablevision's and Teledigital's subscriber portfolios in September
2006.
PRINTING AND PUBLISHING
Net Sales
Net sales increased by 18.6% to Ps.1,173.5 million in 2007, compared to Ps.989.4
million in 2006. The increase was the result of growth in advertising yield, the
increase in sales of optional products, the increase in cover price of
newspapers, and the proportional consolidation of CIMECO in the last quarter.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 14.8% to
Ps.589.5 million in 2007, compared to Ps.513.3 million in 2006. The increase was
primarily the result of higher wages and salaries, of an increase of the energy
costs of paper production, due to the substitution of gas for fuel oil required
by the constraints imposed on the supply of energy in Argentina, of an increase
in the costs of raw materials, and of the proportional consolidation of CIMECO
in the last quarter.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization)
increased by 39.2% to Ps.297.9 million in 2007, compared to the Ps.214.0 million
reported for 2006. The increase was primarily the result of an increase in
advertising expenses and in wages and salaries, and, to a lesser extent, it is
related to the proportional consolidation of CIMECO in the last quarter.
Depreciation and Amortization
Depreciation and amortization expenses increased by 9.7% to Ps.42.1 million in
2007 compared to Ps.38.4 million in 2006. The increase reflects capital
expenditures made during 2006 and 2007.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 18.9% to Ps.784.4 million (including Ps.154.9 million to
other segments) in 2007, compared to Ps.659.5 million (including Ps.100.1
million to other segments) in 2006. The increase was primarily the result of a
higher level of advertising sales and the increases in the pricing of cable
signal and sports programming, attributable to contract formulas that link
pricing to increases in the monthly fees and a larger subscriber base.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 10.8% to
Ps.504.2 million in 2007, compared to Ps.455.0 million in 2006. The increase was
primarily the result of higher programming costs and salaries and, to a lesser
extent, of a larger payroll.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization)
increased by 15.7% to Ps.139.8 million in 2007, compared to Ps.120.8 million in
2006. The increase was primarily the result of higher salaries and wages.
Depreciation and Amortization
Depreciation and amortization expenses increased by 11.4% to Ps.19.3 million in
2007 compared to Ps.17.3 million reported for 2006.
DIGITAL CONTENT AND OTHERS
Net sales in this segment are derived from administrative and corporate services
rendered by the Company and by our subsidiary GC Gestion Compartida S.A. to
third parties as well as to other subsidiaries of the Company (which are
eliminated in the consolidation). Additionally, this segment includes the
production of digital content. Net sales to third parties are largely derived
from advertising in our web pages and portals. Cost of sales (excluding
depreciation and amortization) is driven by salaries and professional fees paid
to advisers.
OPERATING STATISTICS BY BUSINESS SEGMENT
ERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
2007 2006 % Var. 4Q07 3Q07 % Var.
Homes Passed (1) 6,753.3 6,753.6 -0.0 6,753.6 6,753.6 0.0
Bidirectional Homes Passed 47% 42% 11.9 47% 42% 11.9
Cable TV
Total Subscribers (1) 3,022.3 2,837.4 6.5 3,022.3 2,969.8 1.8
Subscribers - Argentina 2,859.9 2,686.1 6.5 2,859.9 2,808.8 1.8
Subscribers - International 162.4 151.3 7.3 162.4 161.0 0.9
Uruguay 80.5 79.2 1.6 80.5 80.3 0.2
Paraguay 81.9 72.1 13.6 81.9 80.7 1.5
% over Homes Passed 44.8% 42.0% 6.5 44.8% 44% 1.8
Churn Rate % 13.2% 13.3% -0.5 14.1% 12.7% 10.9
Digital Video
Digital ready Pay TV Subs (1) 1,381.9 0 NA 1,381.9 1,354.3 2.0
Subscribers (1) 221.4 0 NA 221.4 165.0 34.2
Penetration over Digital Ready TV Subs 16.0% NA NA 16.0% 12.2% 31.5
Internet Subscribers
Total Internet Subscribers (1) 758.2 587.7 29.0 758.2 716.1 5.9
Broadband Subscribers (1) 725.5 536.4 35.3 725.5 679.0 6.9
% over Bidirectional Homes Passed 22.9 18.9 20.9 22.9 23.9 -4.5
Total ARPU(2) 75.3 65.0 15.8 79.8 76.3 4.5
(1) Figures in thousands
(2) Average Net Sales/average Pay TV Subscribers
PRINTING AND PUBLISHING
2007 2006 % Var. 4Q07 4Q06 % Var.
Circulation (1) 442.9 464.2 -4.6 435.6 456.3 -4.5
Circulation share (%) (2) 49.6 50.5 -1.8 50.2 50.7 -0.9
Advertising pages share %(2) 60.0 60.7 -1.2 60.0 60.5 -0.9
(1) Average number of copies according to IVC (including Diario Clarin and Ole)
(2) Share in Buenos Aires and greater Buenos Aires Area (AMBA) Diario Clarin.
Company estimates.
BROADCASTING AND PROGRAMMING
2007 2006 % Var. 4Q07 4Q06 % Var.
Advertising Share % (1) 45.4 42.5 6.8 43.3 44.9 -3.6
Audience Share % (2)
Prime Time 42.4 39.4 7.6 44.5 42.5 4.7
Total Time 34.5 30.4 13.5 35.6 32.9 8.1
(1) Company estimate, over ad spend in Ps. in free TV for AMBA region excluding
non-traditional advertising.
(2) Share of free TV audience according to IBOPE for AMBA. Prime time is
defined as Monday through Friday from 8pm to 12am. Total time is defined as
Monday through Sunday from 12 pm to 12 am.
DIGITAL CONTENT AND OTHERS
Dec-07 Dec-06 % Var.
Page Views (1) 569.1 200.1 184.3
Unique Visitors (1) 10.5 7.0 50.0
(1) In millions, source IAB
DEBT AND LIQUIDITY
(In millions of Ps.) 2007 2006 % Change
Short Term and Long Term Debt
Current Financial Debt 252.0 453.5 -44.4
Financial loans 84.2 300.3 -72.0
Negotiable obligations 112.8 59.3 90.2
Accrued interest 19.9 52.6 -62.2
Acquisition of equipment 3.8 0 NA
Sellers Financing Capital 8.0 15.5 -48.0
Sellers Financing accrued interest 23.2 25.7 -9.9
Non- Current Financial Debt 2,766.4 3024.1 -8.5
Financial loans 79.2 175.0 -54.8
Negotiable obligations 1,983.3 1998.6 -0.8
Accrued interest 0.7 0 NA
Acquisition of equipment 0.0 0 NA
Sellers Financing 703.3 850.6 -17.3
Total Financial Debt (A) 3,018.4 3477.6 -13.2
Bank overdraft 7.2 5.7 26.8
Measurement at fair Value -76.2 -115.7 -34.1
Total Short Term and Long Term Debt 2,949.4 3367.6 -12.4
Cash and Cash Equivalents (B) 565.5 381.2 48.3
Net Debt (A) - (B) 2,452.9 3096.4 -20.8
Net Debt/Adjusted Ebitda (Last 12 Months) 1.8x 4.4x -58.7
% USD Debt 80.4% 80.0 0.5
% Ar. Ps Debt 19.6% 20.0 -2.0
Negotiable obligations include Cablevision USD114.4 MM notes due October 2012;
Cablevision USD235.1 MM notes due October 2015, Multicanal USD105.7 MM notes due
July 2013 and Multicanal USD80.3 MM notes due July 2016, and AGEA Ps.300 MM
notes due 2011.
Total Financial Debt and Net Debt, were cut from Ps.3,477.6 to Ps.3,018.4
million and from Ps.3,096.4 to Ps.2,452.9, respectively, since December 2006.
This represents a reduction of 13.2% in the Total Debt and of 20.8% in the Net
Debt. Comparing quarters, net debt of Ps.3037.2 reported in last September was
reduced to Ps. 2,452.9 in the last quarter.
Debt coverage ratio as of December 31, 2007 was 1.8x in the case of Net Debt and
of 2.2x in terms of Total Financial Debt. This reduction reflects the
cancellation of debt incurred by our subsidiary Vistone to acquire cable TV
systems, of some seller notes in Cablevision, and also to more cash and
equivalents as a consequence of the proceeds from the IPO.
RECENT EVENTS
Antitrust Commission Approved Cable Television Acquisitions - On December 7,
2007, the Secretary of Commerce confirmed a decision rendered by the Argentine
Antitrust Commission and granted administrative approval to a series of
transactions that had taken place on September 26th, 2006, as a result of which
Grupo Clarin holds approximately 60% of the capital stock of Cablevision, and
Cablevision owns 98.5% of the capital stock of Multicanal and Prima, and 100% of
the capital stock of Teledigital. The approval was granted without restrictive
conditions and will not demand higher expenditures further the non-recurring
expenses already considered in the Company's business plan.
CIMECO - On August 28, 2007, Grupo Clarin increased its 33% stake in Compania
Inversora en Medios de Comunicacion S.A. (CIMECO) to 50%, by acquiring,
alongside with S.A. La Nacion, the equity interest held by Vocento. As a result
of such acquisition, Grupo Clarin and La Nacion became the only shareholders of
CIMECO, which currently owns 81.3% of Diario La Voz del Interior (Cordoba) and
80% of Diario Los Andes (Mendoza). These are the largest and the fifth regional
newspapers, respectively, in terms of circulation in Argentina. On the same
date, CIMECO acquired a 12% interest in Papel Prensa from S.A. La Nacion. Grupo
Clarin holds an option to acquire the remaining 50% interest in CIMECO from La
Nacion.
Other Acquisitions - As part of a series of strategic acquisitions oriented to
increase our offer in the pay TV signals, in December 2007 Grupo Clarin acquired
an interest in Automoviles Deportivos 2000 S.A. and also, in January 2008, an
interest of Carburando, Mundo Show S.A. and Mundo Show TV S.A. The main
activities of these companies are the organization, marketing and production of
media content related with automobile competition and races.
Long-Term Savings Plan - The Company, together with its subsidiaries, started
the implementation process of a Long-Term Savings Plan (PALP) for certain
executives initiating in January 2008. Through this plan, participating
executive officers commit to contribute regularly a portion of their salary to a
fund that will allow them to increase their income at the retirement age.
Furthermore, each company of the Group where such executive officers render
services will match such officers' contributions to the fund. The total expense
that the Company will incur in 2008, amounts to Ps.20 million, out of which
approximately Ps.9 million is related to the initial implementation and the
remaining Ps.11 million to the cost of the PALP for 2008.
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarin will host a conference call and webcast to discuss its fourth
quarter and year-end results for 2007, on Monday, March 10, 2008.
Presentations by: Alejandro Urricelqui, Chief Financial Officer; Alfredo Marin,
Investor Relations Officer.
Time: 3:30 pm Buenos Aires Time/ 5:30 pm London Time/ 1:30 pm New York Time
To access the conference call, please dial: form within Argentina +0 800 333
0050; from within the United Kingdom +44 (800) 092 3582; from within the United
States +1 (800) 351 6807; and from all other countries +1 (334) 323 7224. The
pass code is: 43445.
To access the simultaneous webcast presentation, please go to: http://
www.grupoclarin.com.ar/ir/
A replay of the conference call will be available one hour after its conclusion,
and will remain available for 48 hours. To access the replay, please dial: from
the within the U.S. + 1-877-919-4059 or from anywhere outside the U.S.
+1-334-323-7226. The pass code is: 91814872.
The webcast presentation will be archived at http://www.grupoclarin.com.ar/ir/
ABOUT THE COMPANY
Grupo Clarin is the largest media company in Argentina and the market leader in
the cable television and Internet access, printing and publishing, and
broadcasting and programming segments. Its cable television network is the
largest in Latin America, with the largest broadband subscriber base in
Argentina. Its flagship newspaper -Diario Clarin- is the highest circulation
newspaper in Latin America and the second-highest circulation Spanish-language
newspaper in the world. Grupo Clarin is the largest producer of media content in
Argentina, including news, sports and entertainment and reaches substantially
all segments of the Argentine population in terms of wealth, geography and age.
Disclaimer
Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Grupo Clarin. You can identify forward-looking statements by
terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "
could," "may" or "might" the negative of such terms or other similar
expressions. These statements are only predictions and actual events or results
may differ materially. Grupo Clarin does not intend to or undertake any
obligation to update these statements to reflect events and circumstances
occurring after the date hereof or to reflect the occurrence of unanticipated
events. Many factors could cause the actual results to differ materially from
those contained in Grupo Clarin's projections or forward-looking statements,
including, among others, general economic conditions, Grupo Clarin's competitive
environment, risks associated with operating in Argentina a, rapid technological
and market change, and other factors specifically related to Grupo Clarin and
its operations.
CONSOLIDATED BALANCE SHEETS
As of December 31, 2007 and 2006
In Argentine Pesos (Ps.)
December 31, 2007 December 31, 2006
ASSETS
CURRENT ASSETS
Cash and banks 219,760,595 299,100,551
Short-term investments 345,699,907 82,142,004
Trade receivables, net 569,117,703 460,608,164
Other receivables, net 142,290,047 149,659,483
Inventories 168,195,918 151,297,216
Other assets 48,419,337 65,235,709
Total current assets 1,493,483,507 1,208,043,127
NON-CURRENT ASSETS
Trade receivables, net 10,839,314 9,741,215
Other receivables, net 203,134,042 151,084,555
Inventories 41,078,789 32,850,180
Investment in unconsolidated affiliates 31,132,115 72,521,864
Other investments 8,394,731 7,031,748
Property, plant and equipment, net 1,665,732,947 1,342,725,846
Intangible assets, net 983,230,664 1,086,559,244
Other assets 120,007 -
Subtotal 2,943,662,609 2,702,514,652
Goodwill 2,575,035,311 2,476,156,285
Total non-current assets 5,518,697,920 5,178,670,937
Total assets 7,012,181,427 6,386,714,064
LIABILITIES
CURRENT LIABILITIES
Accounts payable 516,401,732 437,439,485
Long-term debt 228,733,303 431,123,109
Salaries and Social Security payable 163,434,344 118,426,541
Taxes payable 242,901,986 177,406,201
Other liabilities 123,847,203 136,463,000
Total current liabilities 1,275,318,568 1,300,858,336
NON-CURRENT LIABILITIES
Accounts payable 9,876,692 10,640,522
Long-term debt 1,986,879,514 2,047,243,562
Salaries and Social Security payable 163,998 309,668
Taxes payable 18,133,529 14,759,728
Other liabilities 923,416,255 1,010,446,297
Provisions 131,235,431 112,879,172
Total non-current liabilities 3,069,705,419 3,196,278,949
Total liabilities 4,345,023,987 4,497,137,285
MINORITY INTEREST 430,176,380 354,381,111
SHAREHOLDERS' EQUITY 2,236,981,060 1,535,195,668
Total liabilities, minority interest and shareholders' equity 7,012,181,427 6,386,714,064
CONSOLIDATED STATEMENTS OF OPERATIONS
For the years ended December 31, 2007 and 2006
In Argentine Pesos (Ps.)
December 31, 2007 December 31, 2006
Net sales 4,383,674,687 2,811,793,032
Cost of sales (excluding depreciation and amortization) - Exhibit F (2,125,151,223) (1,491,628,105)
Consolidated
Subtotal 2,258,523,464 1,320,164,927
Expenses (excluding depreciation and amortization)
Selling expenses - Exhibit H Consolidated (448,326,882) (289,985,969)
Administrative expenses - Exhibit H Consolidated (459,389,151) (320,526,202)
Expenses subtotal (907,716,033) (610,512,171)
Depreciation of property, plant and equipment (1) (286,314,883) (169,318,902)
Amortization of intangible and other assets (127,186,833) (38,882,648)
Goodwill amortization (3,982,608) -
Depreciation of other investments (144,594) (328,050)
Depreciation and amortization subtotal (417,628,918) (208,529,600)
Financing and holding results
Generated by assets
Interest 26,488,537 28,063,611
Other taxes and expenses (62,044,360) (41,541,812)
Impairment of inventories and materials (2,663,158) (281,000)
Exchange differences 5,430,109 8,174,091
Holding gains on inventories 13,161,074 2,014,852
Holding (losses) on financial instruments (3,936,105) 366,519
Effect of financial discounts on assets 16,735 (1,414,102)
Other 651,371 (117,046)
Generated by liabilities
Interest (282,432,748) (276,480,371)
Exchange differences (82,613,175) (16,805,486)
Income from repurchase and debt restructuring - 1,249,944,385
Effect of financial discounts on liabilities (44,536,919) (708,718)
Fees and other financial expenses (694,729) (14,598,181)
CER restatement (2,384,288) (13,590,505)
Holding (losses) on financial instruments (9,761,301) (2,957,037)
Other (3,017,444) (74,217)
Equity in (earnings) from unconsolidated affiliates and gain on sale of 7,217,775 224,673,371
subsidiaries, net
Other (expense) income, net (21,421,239) 17,486,169
Income before income tax, tax on assets and minority interest 470,638,648 1,663,277,679
Income tax and tax on assets (200,749,110) (490,694,643)
Minority interest (60,320,897) (302,912,073)
Net income for the year 209,568,641 869,670,963
(1) Chargeable to:
Cost of sales (259,166,889) (150,223,445)
Selling expenses (18,100,281) (9,317,275)
Administrative expenses as of (9,047,713) (9,778,182)
CONSOLIDATED STATEMENTS OF CASH FLOWs
For the years ended December 31, 2007 and 2006
In Argentine Pesos (Ps.)
December 31, 2007 December 31, 2006
CASH PROVIDED BY OPERATING ACTIVITIES
Net income for the year 209,568,641 869,670,963
Income tax and tax on assets 200,749,110 490,694,643
Accrued interest 255,944,211 248,416,760
Adjustments to reconcile net income for the year to cash provided by
operating activities:
Depreciation of property, plant and equipment 286,314,883 169,318,902
Amortization of intangible and other assets 127,186,833 38,882,648
Goodwill amortization 3,982,608 -
Depreciation of other investments 144,594 328,050
Setting up / (Reversal) of allowances for doubtful accounts 24,341,591 (2,296,159)
Setting up of provision for contingencies 11,532,628 6,408,564
Exchange difference and other financial results 116,391,137 17,034,872
Equity in (earnings) from unconsolidated affiliates and gain on sale of (7,217,775) (224,673,371)
subsidiaries, net
Minority interest 60,320,897 302,912,073
Holding (losses) on financial instruments 13,697,406 2,590,518
Holding gains on inventories (13,161,074) (2,014,852)
(Losses) / Gains on sale of property, plant and equipment (519,461) (24,998)
Income from repurchase and debt restructuring - (1,249,944,385)
Allowance for impairment in value of inventories and materials 2,663,158 281,000
Changes in assets and liabilities:
Trade receivables (106,795,320) (125,209,755)
Other receivables (17,228,159) (125,737,911)
Inventories (7,643,891) 6,721,455
Other assets (40,992) 11,425,993
Accounts payable 63,310,794 53,086,095
Salaries and Social Security payable 41,415,652 17,746,784
Taxes payable (28,367,251) 55,947,404
Other liabilities 3,611,544 138,914,329
Provisions (13,824,286) (17,068,783)
Income tax and tax on assets payments (88,665,012) (117,987,226)
Cash provided by operating activities 1,137,712,466 565,423,613
CASH USED IN INVESTING ACTIVITIES
Acquisition of property, plant and equipment (575,901,342) (253,586,347)
Acquisition of intangible assets (20,842,530) (2,882,290)
Loans granted (8,525,000) -
Payment for the acquisition of subsidiaries, net of cash acquired (72,305,275) 15,945,485
Acquisition of other investments - (14,719,018)
Collection for proceeds from sale of property, plant and equipment 5,805,794 148,368
Restricted cash and guarantees (18,960,000) 45,750,000
Collection of interest 8,876,484 754,478
Collection of dividends - 548,800
Cash used in investing activities (681,851,869) (208,040,524)
CONSOLIDATED STATEMENTS OF CASH FLOWs
For the years ended December 31, 2007 and 2006
In Argentine Pesos (Ps.)
December 31, 2007 December 31, 2006
CASH USED IN FINANCING ACTIVITIES
Loans obtained 6,675,136 474,329,218
Repayment of loans and financial advances (349,413,684) (706,526,560)
Payment of interest (214,019,964) (196,688,824)
Net collections (payments) of financial instruments 788,984 (9,431,983)
Payment of fees on bank and financial debt restructuring - (32,670,018)
Payment of sellers financing (169,934,495) -
Reserve account (14,648,966) -
Payment of dividends and restatements (18,000,000) -
Payments to minority shareholders (3,301,578) (1,256,381)
Funds from initial public offering, net of related expenses 470,808,308 -
Cash used in financing activities (291,046,259) (472,244,548)
FINANCING AND HOLDING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS 19,403,609 9,051,088
Net Increase (decrease) in cash flow 184,217,947 (105,810,371)
Cash and cash equivalents at the beginning of the year 381,242,555 487,052,926
Cash and cash equivalents at the end of the year (1) 565,460,502 381,242,555
(1) It includes:
Cash and banks 219,760,595 299,100,551
Investments with maturities of less than three months 345,699,907 82,142,004
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFASUSSASELD
