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Grupo Clarin S.A. GDR (Reg S) (GCLA)
Sector:
- Closing Price Chg: $0.00
- 52 Week High: $0.00
- 52 Week Low: $0.00
- Currency: US Dollars
- Volume: 0
- RiskGrade: 231
3rd Quarter Results
Grupo Clarin S.A.
12 November 2007
GRUPO CLARIN ANNOUNCES ITS RESULTS FOR
THE FIRST NINE MONTHS OF 2007
Buenos Aires, Argentina, November 12, 2007 - Grupo Clarin S.A. ("Grupo Clarin"
or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in
Argentina, announced today its results for the first nine months of 2007
("9M07"). Figures in this report have been prepared in accordance with
Argentine GAAP and are stated in Argentine Pesos as of September 30, 2007,
unless otherwise indicated.
Highlights (9M07 vs. 9M06):
• Net Sales reached Ps. 3117.5 million, an increase of 77.5% from 9M06
largely due to the increase in our ownership interest in Cablevision S.A.
and the acquisition of Holding Teledigital S.A. in September 2006 ("The
Cablevision Acquisition")
• Adjusted EBITDA(1) increased by 130.7% from 9M06 to Ps. 952.1 million,
driven by the Cablevision Acquisition.
• As a result, Adjusted EBITDA Margin(3) was 30.5%, up from the 23.5%
reported in 9M06.
• Net Income reached Ps. 122.8 million.
• On October 18, 2007, Grupo Clarin conducted a US$463 million Initial Public
Offering in the local and international markets. Its shares and GDSs are
now trading on the Buenos Aires Stock Exchange (ticker: GCLA) and on the
London Stock Exchange (ticker: GCLA), respectively.
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 results of operation as a publicly traded company. The
successful completion of our IPO last month provides evidence of the strength of
our business and the confidence the market places on our management and staff to
deliver returns for shareholders. Our results for the first nine months reaffirm
my confidence in our quality, scale and our ability to continue consolidating
our leadership in our core businesses."
Investor Relations Contacts
In Buenos Aires:
Alfredo Marin/M. Julia Diaz Ardaya
Grupo Clarin
Email: investors@grupoclarin.com
In London:
Tom Allison/Alex Money/Caroline Merrell
Temple Bar Advisory
Tel: +44 20 7002 1080
Email: clarin@templebaradvisory.com
In New York:
Melanie Carpenter/Peter Majeski
I-advize Corporate Communications
Tel: +1 212 406 3692
Email: clarin@i-advize.com
FINANCIAL HIGHLIGHTS
(In millions of Ar. Ps.) 9M07 9M06 % Var. 3Q07 3Q06 % Var.
Net Sales 3,117.5 1,756.1 77.5 1,124.2 614.6 82.9
Adjusted EBITDA (1) (2) 952.1 412.8 130.7 335.5 143.8 133.3
Adjusted EBITDA Margin %(3) 30.5 23.5 29.9 29.8 23.4 27.5
Net Income 122.8 763.2 -83.9 19.3 781.2 -97.5
(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 because it is commonly used in the
industry 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.12 million of expenses related to the companies
integration process in the Cable TV and Internet access segment.
(3) We define Adjusted EBITDA Margin as Adjusted EBITDA over Net Sales.
OPERATING RESULTS
Net sales reached Ps. 3,117.5 million, an increase of 77.5% from Ps. 1,756.1
million reported for 9M06. This increase was mainly due to the growth in our
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.) 9M07 9M06 % Var. 3Q07 3Q06 % Var.
Cable TV & Internet access 1,890.9 689.8 174.1 671.9 251.7 167.0
Printing & Publishing 819.1 697.3 17.5 294.7 233.9 26.0
Broadcasting & Programming 550.0 428.9 28.2 195.1 149.6 30.4
Digital Content & Others 100.2 63.5 57.8 35.2 21.9 60.8
Subtotal 3,360.1 1,879.5 78.8 1,196.9 657.1 82.1
Eliminations -242.6 -123.4 96.6 -72.7 -42.5 70.9
Total 3,117.5 1,756.1 77.5 1,124.2 614.6 82.9
Cost of sales reached Ps. 1,512.7 million, an increase of 52.9% from Ps. 989.1
in 9M06. This increase was mainly due to the growth in our Cable TV and Internet
access segment attributable to the Cablevision Acquisition.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
reached Ps. 652.6 million, an increase of 84.3% from Ps. 354.1 million reported
for 9M06. 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. -345.6 million, from Ps. 965.1 million in
9M06. Financial Results net, for 9M06 reflect the non-recurring gains generated
by the completion of Multicanal's debt restructuring.
Equity in earnings from unconsolidated affiliates totaled Ps. 7.8 million,
compared to Ps. 239.5 million for 9M06. Equity in earnings from unconsolidated
affiliates for 9M06 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 US$ 182.0 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.-16.5 million, compared to Ps. 0.1
million in 9M06.
Adjusted EBITDA reached Ps. 952.1 million, an increase of 130.7% from Ps. 412.8
million in 9M06. This increase was mainly due to the growth in our Cable TV and
Internet access segment attributable to the Cablevision Acquisition.
Following is a breakdown of adjusted EBITDA by business segment:
Adjusted EBITDA
(In millions of Ps.) 9M07 9M06 % Var. 3Q07 3Q06 % Var.
Cable TV & Internet access 645.1 164.3 293.0 226.5 58.6 286.3
Printing & Publishing 186.2 176.5 5.5 60.6 55.2 9.7
Broadcasting & Programming 93.7 53.2 76.0 38.7 23.4 65.2
Digital Content & Others 26.8 18.9 42.1 9.8 6.7 47.2
Subtotal 952.1 412.9 130.6 335.5 143.9 133.2
Eliminations - -0.1 - - -0.1 -
Total 952.1 412.8 130.7 335.5 143.8 133.3
Net income totaled Ps. 122.8 million, a decrease of 83.9% from Ps. 763.2 million
in 9M06. While our adjusted EBITDA in the Cable TV and Internet access segment
grew due to the Cablevision Acquisition as described herein, our net income for
9M06 included the non-recurrent gains resulting from the completion of
Multicanal's debt restructuring in July 2006.
Income tax reached Ps. 126.0 million, from Ps. 451.1 million in 9M06. This
decrease was mainly due to the non-recurrent gains in 2006 generated by the
completion of Multicanal's debt restructuring.
Capital expenditures reached Ps. 400.4 million, an increase of 186.6% from Ps.
139.7 million in 9M06. This increase was mainly due to investments made in the
network by our Cable TV and Internet access segment.
Debt profile (1): Debt coverage ratio for the period ended September 30, 2007,
was 2.4x, while Net Debt at the end of this period totaled Ps. 3,037.2 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 174.1% to Ps 1,890.9 million for the nine-month period
ended 30 September 2007 compared to Ps. 689.8 million for the nine-month period
ended 30 September 2006. The increase in net sales was principally attributable
to the consolidation of Cablevision in our Cable TV and Internet access segment
as a consequence of the Cablevision Acquisition, and, to a lesser extent, 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 the first nine months of 2007. Total cable
TV basic subscribers amounted to 2,969,790 as of 30 September 2007 compared to
2,834,940 as of 30 September 2006, and Internet subscribers amounted to 716,142
as of September 30 2007, compared to 560,827 as of September 30, 2006.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 129.8% to
Ps. 799.7 million for the first nine months of 2007, compared to Ps. 348.0
million for the same period in 2006. This increase was mainly due to the
Cablevision Acquisition, and to a lesser extent, 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 the effect of salary increases.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization)
increased by 151.1% to Ps. 445.7 million for the first nine months of 2007,
compared to Ps. 177.5 million 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 salary increases. This
increase also includes approximately Ps.12 million of expenses related to the
integration of our cable TV and Internet access operations.
Depreciation and Amortization
Depreciation expenses of property, plant and equipment increased by 186.6% to
Ps. 175.3 million for the nine months ended 30 September 2007 from Ps. 61.2
million for the same period in 2006. The increase reflects the Cablevision
Acquisition, and additions of cable and network equipment during 2006 and the
first nine months of 2007. We also recorded Ps. 86.8 million in amortization
expenses for the nine months ended 30 September 2007 compared to Ps. 4.5 million
for the same period 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 17.5% to Ps. 819.1 million in the first nine months of
2007, compared to Ps. 697.3 million in the first nine months of 2006. The
increase was the result of an increase in advertising yield, the increase in
sales of optional products and in the cover price of newspapers.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 15.0% to
Ps. 420.6 million in the first nine months of 2007, compared to Ps. 365.8
million in the first nine months of 2006. The increase was primarily the result
of an increase of the costs of raw materials (mainly paper and ink) and energy
cost of paper production due to the substitution of gas for fuel oil required by
the constrains imposed on the supply of energy in Argentina, as well as a result
of higher wages and salaries and a larger payroll.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization)
increased by 36.9% to Ps. 212.3 million in the first nine months of 2007,
compared to Ps. 155.1 million in the first nine months of 2006. The increase was
primarily the result of an increase in wages and salaries, and advertising
expenses.
Depreciation and Amortization
Depreciation and amortization expenses increased by 2.5% to Ps. 26.3 million in
the first nine months of 2007, compared to Ps. 25.6 million in the first nine
months of 2006. The increase reflects capital expenditures made during 2006 and
the first nine months of 2007.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by ----8.2% to Ps. 550.0 million (including Ps. 108.2
million to our other segments) in the first nine months of 2007, compared to Ps.
428.9 million (including Ps. 39.5 million to our other segments) in the first
nine months of 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 19.6% to
Ps. 355.1 million in the first nine months of 2007, compared to Ps. 296.8
million in the first nine months of 2006. The increase was primarily the result
of higher programming costs and salaries and, to a lesser extent, a larger
payroll.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization)
increased by 28.4% to Ps. 101.3 million in the first nine months of 2007,
compared to Ps. 78.9 million in the first nine months of 2006. The increase was
primarily the result of higher salaries and the acquisition of Ideas del Sur.
Depreciation and Amortization
Depreciation and amortization expenses increased by 11.7% to Ps. 12.7 million in
the first nine months of 2007, compared to Ps. 11.4 million in the first nine
months of 2006. The increase is attributable to the amortization of intangible
assets resulting from the acquisition of Ideas del Sur in 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
CABLE TV AND INTERNET ACCESS
9M07 9M06 % Var. 3Q07 2Q07 % Var.
Homes Passed (1) 6,753.6 n/a 6,753.6 6,753.6 0
Bidirectional Homes Passed 42% n/a 42% 42% 0
Cable TV
Subscribers (1) 2,969.8 2,834.9 4.8 2,969.8 2,903.8 2.3
% over Homes Passed 44% n/a 44% 43% 2.3
Churn Rate % 12.7% n/a 12.7% 10.5% 1.9
Digital Video
Digital ready Pay TV Subs (1) 1,354.3 n/a 1,354.3 1,322.8 2.4
Subscribers (1) 165.0 n/a 165.0 117.1 40.9
Penetration over Digital Ready TV
Subs 12% n/a 12% 9% 37.6
Internet Subscribers
Total Internet Subscribers (1) 716.1 560.8 27.7 716.1 657.2 9.0
Broadband Subscribers (1) 679.0 506.7 34.0 679.0 614.7 10.5
% over Bidirectional Homes Passed 24% n/a 24% 22% 10.5
Total ARPU(2) 72.4 n/a 76.3 71.2 7.0
(1) Figures in thousands
(2) Average Net Sales/average Pay TV Subscribers
PRINTING AND PUBLISHING
9M07 9M06 % Var. 3Q07 3Q06 % Var.
Circulation (1) 446.9 468.5 -4.6 438.4 455.3 -3.7
Circulation share (%) (2) 50.2 50.4 -0.3 50.1 50.5 -0.8
Advertising pages share %(2) 60.0 60.8 -1.4 59.1 60.5 -2.4
(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
9M07 9M06 % Var. 3Q07 3Q06 % Var.
Advertising Share % (1) 46.2 42.6 8.5 47.0 41.8 12.6
Audience Share % (2)
Prime Time 41.5 38.2 8.5 45.9 39.8 15.5
Total Time 33.7 29.3 14.8 36.1 29.7 21.6
(1) Company estimate, over adspend 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
Sep-07 Sep-06 % Var.
Page Views (1) 345.5 194.1 82.5
Unique Visitors (1) 9.3 6.9 34.3
(1) In millions, source IAB
DEBT AND LIQUIDITY
(In millions of Ps.) 9M07
Short Term and Long Term Debt
Current Financial Debt 517.1
Financial loans 334.6
Negotiable obligations 99.6
Accrued interest 44.0
Acquisition of equipment 3.8
Sellers Financing Capital 11.9
Sellers Financing accrued interest 23.3
Non- Current Financial Debt 2,947.5
Financial loans 82.2
Negotiable obligations 1,998.4
Accrued interest 0.9
Acquisition of equipment 0.9
Sellers Financing 865.2
Total Financial Debt (A) 3,464.6
Bank overdraft 6.3
Measurement at fair Value -85.3
Total Short Term and Long Term Debt 3,385.7
Cash and Cash Equivalents (B) 427.5
Net Debt (A) - (B) 3,037.2
Net Debt/Adjusted Ebitda (Last 12 Months) 2.4x
% US$ Debt 81%
% Ar. Ps Debt 19%
RECENT EVENTS
IPO Completed - On October 18, 2007, Grupo Clarin's shares were priced at Ps.
29.14 per share and the GDSs were priced at US$ 18.50 per GDS (1 GDS = 2
shares). The total proceeds of the IPO were US$463 million, of which 30 percent
was for the primary offering and seventy percent for the secondary offering.
Twenty percent of the shares sold were placed in the Argentine market and eighty
percent in the international markets. The Company and certain selling
shareholders granted an overallotment option which has not been exercised to
this date. The shares and GDSs began trading in the Buenos Aires and London
Stock Exchanges, respectively, on October 24, 2007. The Company intends to use
the net proceeds of the offering to cancel up to US$80 million of Vistone LLC
indebtedness and the balance to develop its businesses and for general corporate
purposes.
Long-Term Savings Plan - Subsequent to year-end, the Company, together with its
subsidiaries, started an implementation process of a contribution plan (a
Long-Term Savings Plan) for certain executives. Through this plan, participating
executives will undertake to regularly contribute a portion of their salary
(variable within a certain range, at the employee's option) to a fund that will
allow them to increase their income at the retirement age. Furthermore, each
company of the Group where such executives render services will contribute to
the fund a sum equal to that contributed by such executives. This contribution
will be added to the fund raised by the employees. The final expense in which
the Company, together with its subsidiaries, will incur depends on the number of
executives that elect to participate in the contribution plan, the portion of
the salary each participating executive decides to contribute (within the
defined range) and on the years of service of each participating executive.
CONFERENCE CALL INFORMATION
ERENCE CALL INFORMATION
There will be two conference calls, in English and in Spanish, to discuss Grupo
Clarin's Third Quarter 2007 Results on Monday, November 12, 2007
Presentations by: Alejandro Urricelqui, Chief Financial Officer /Alfredo Marin,
Investor Relations Officer
English Call
Time: 12 pm (noon) Buenos Aires Time / 3 pm London Time / 10 am New York Time.
To access the call, please dial: UK Participants: +44 (800) 032 3836 - U.S.
Participants: +1 (888) 868 9079 - Argentina and all other countries: +1 (973)
935 8510 - Access code: 9425380
Spanish Call
Time: 2 pm Buenos Aires / 5 pm London Time / 12 pm (noon) New York Time
To access the call, please dial: From Argentina: 0800 666 1537 - From all other
countries: +1 (706) 643 9176 - Access code: 24214565
Replays of the calls will be available one hour after their conclusion, and will
remain available for 48 hours. For the English call, please dial from within
the U.K. +44 (800) 169 3875, from within the U.S. +1 (877) 519-4471, or from
outside the U.S. +1 (973) 341-3080, and enter Conference ID# 9425380. For the
Spanish call, please dial from within Argentina 0 800 666 1537, and from other
countries +1 (706) 645 9291, and enter Conference ID# 24214565.
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.
9
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Nine-Month Periods Ended September 30, 2007 and 2006
In Argentine Pesos (Ps.)
As of
September 30, 2007 September 30, 2006
Net sales 3.117.495.091 1.756.078.055
Cost of sales (excluding depreciation and amortization) (1.512.734.017) (989.149.307)
Subtotal 1.604.761.074 766.928.748
Expenses (excluding depreciation and amortization)
Selling expenses (322.775.934) (176.364.934)
Administrative expenses (329.856.149) (177.774.185)
xpses
Subtotal expenses (652.632.083) (354.139.119)
Depreciation of property, plant and equipment(1) (213.658.278) (99.161.093)
Amortization of intangible assets (90.946.916) (7.304.238)
Depreciation of other investments (107.294) (289.040)
Depreciation and amortization subtotal (304.712.488) (106.754.371)
Financing and holding results
Generated by assets
Interest 18.642.224 20.194.655
Other taxes and expenses (43.940.521) (24.171.260)
Impairment of inventories, plant and equipment and investments (2.610.890) (281.000)
Exchange differences 6.820.232 21.515.782
Holding gains (losses) on inventories 3.447.180 3.771.370
Holding gains (losses) on financial instruments (4.264.403) -
Effect of financial discounts on assets 36.756 47.709
Other 303.970 55.100
Generates by liabilities
Interest (198.990.265) (203.359.721)
Other taxes and expenses - (2.328.314)
Exchange differences (79.031.992) (60.240.518)
Result of financial restructuring - 1.246.496.775
Effect of financial discounts on liabilities (32.785.367) (2.308.292)
Fees and other financial expenses (146.048) (12.276.480)
CER restatement (1.247.862) (7.031.361)
Holding gains (losses) on financial instruments (9.325.746) (15.265.113)
Other (2.517.359) 330.385
Equity in earnings from unconsolidated affiliates 7.819.626 239.495.392
Other expense, net (16.538.434) 53.127
Income/(loss) before income tax, tax on assets and minority interest 293.087.604 1.510.733.494
Income tax and tax on assets (125.959.132) (451.124.588)
Minority interest (44.280.352) (296.428.549)
Net income 122.848.120 763.180.357
(1) Chargeable to:
Cost of sales (193.850.500) (87.255.133)
Selling expenses (12.460.208) (4.791.876)
Administrative expenses (7.347.570) (7.114.084)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine-Month Periods Ended September 30, 2007 and 2006 in Argentine Pesos
(Ps.)
September 30, 2007 September 30, 2006
CASH PROVIDED BY OPERATING ACTIVITIES
Net income for the period 122.848.120 763.180.357
Income tax and tax on assets 125.959.132 451.124.588
Accrued interest 180.348.041 183.165.066
Adjustments to reconcile net income for the period to cash
provided by operating activities
Depreciation of property, plant and equipment 213.658.278 99.161.093
Amortization of intangible assets 90.946.916 7.304.238
Depreciation of other investments 107.294 289.040
Setting up / (Reversal) of allowances for doubtful accounts 16.069.271 (5.801.707)
Setting up of provisions for contingencies 9.022.314 2.049.643
Exchange difference and other financial results 116.969.691 66.176.751
Equity in earnings from unconsolidated affiliates (7.819.626) (239.495.392)
Minority interest 44.280.352 296.428.549
Holding (gains) / losses on financial instruments 13.590.149 15.265.113
Holding (gains) / losses on inventories (3.447.180) (3.771.370)
Gains on sale of property, plant and equipment 1.747.141 (41.457)
Result of financial restructuring - (1.246.496.775)
Allowance for impairment of plant and equipment, inventories 2.610.890 281.000
and investments
Changes in assets and liabilities:
Trade receivables, net (16.302.145) (64.798.712)
Other receivables, net (18.007.401) (27.913.959)
Inventories (39.999.613) (38.619.855)
Other assets (3.023.281) 15.929.150
Accounts payable 51.636.994 52.400.856
Salaries and Social Security payable 19.135.130 20.928.399
Taxes payable (11.483.859) (12.924.081)
Other liabilities (39.504.293) 9.162.543
Provisions (8.905.674) (2.222.495)
Income tax and tax on assets payments (82.885.129) (78.178.838)
Cash generated by operating activities 777.551.512 262.581.745
CASH USED IN INVESTING ACTIVITIES
Payment for the acquisition of property, plant and equipment (400.433.687) (139.725.453)
Payments for acquisitions of intangible assets (9.112.633) (1.540.819)
Loans granted (8.525.000) -
Payments for the acquisition of subsidiaries net of the cash (62.616.333) 5.419.307
acquired
Payments for the acquisition of other investments - (14.719.018)
Collection for proceeds from sale of property, plant and 5.126.118 100.195
equipment
Restricted cash - 45.750.000
Collection of interest 5.275.241 645.951
Collection of dividends - 548.800
Cash used in investing activities (470.286.294) (103.521.037)
CASH USED IN FINANCING ACTIVITIES
Loans obtained 5.885.965 346.329.528
Repayment of loans - principal (93.627.203) (528.122.481)
Payment of interest (141.540.201) (157.887.303)
Net Collections (payments) of financial instruments 145.482 (12.199.335)
Payment of fees on bank and financial debt restructuring - (32.181.608)
Sellers financing (8.247.431) -
Reserve account (14.931.104) -
Payment of dividends (18.000.000) -
Payment to minority shareholders (3.301.578) -
Change in minority interest - 8.313.465
Cash used in financing activities (273.616.070) (375.747.734)
FINANCING AND HOLDING RESULTS GENERATED BY CASH AND CASH 20.121.559 10.744.707
EQUIVALENTS
Net increase in cash flow 38.707.295 (205.942.319)
Cash and equivalents at the beginning of the year 381.242.555 487.052.926
Cash and equivalents at period end (1) 427.481.556 281.110.607
(1) It includes:
Cash and banks 252.356.485 187.437.997
Investments with maturities of less than three months 175.125.071 93.672.610
CONSOLIDATED BALANCE SHEETS
As of September 30, 2007 and December 31, 2006
In Argentine Pesos (Ps.)
As of
September 30, 2007 December 31, 2006
ASSETS
CURRENT ASSETS
Cash and Banks 252.356.485 299.100.551
Short-term investments 175.125.071 82.142.004
Trade receivables, net 483.327.998 460.608.164
Other receivables, net 138.704.735 148.251.933
Inventories 190.186.225 152.704.766
Other assets 79.640.230 65.235.709
Total current assets 1.319.340.744 1.208.043.127
NON-CURRENT ASSETS
Trade receivables, net 10.309.018 9.741.215
Other receivables, net 187.973.631 151.084.555
Inventories 42.265.265 32.850.180
Investment in unconsolidated affiliates 26.412.156 72.521.864
Other long-term investments 7.036.006 7.031.748
Property, plant and equipment, net 1.557.373.286 1.342.725.846
Intangible assets, net 1.005.417.615 1.086.559.244
Other assets 205.455 -
Subtotal 2.836.992.432 2.702.514.652
Goodwill 2.572.427.412 2.476.156.285
Total non-current assets 5.409.419.844 5.178.670.937
Total assets 6.728.760.588 6.386.714.064
LIABILITIES
CURRENT LIABILITIES
Accounts payable 494.128.304 437.439.485
Short-term debt and current portion of long-term debt 488.301.022 420.508.325
Salaries and Social Security payable 140.898.959 118.426.541
Taxes payable 199.627.087 177.406.201
Other liabilities 114.677.762 136.463.000
Total current liabilities 1.437.633.134 1.290.243.552
NON-CURRENT LIABILITIES
Accounts payable 13.990.329 10.640.522
Long-term debt 1.997.041.111 2.057.858.346
Salaries and Social Security payable 127.464 309.668
Taxes payable 18.685.618 14.759.728
Other liabilities 1.056.341.424 1.010.446.297
Provisions 123.138.638 112.879.172
Total non-current liabilities 3.209.324.584 3.206.893.733
Total liabilities 4.646.957.718 4.497.137.285
MINORITY INTEREST 411.839.547 354.381.111
SHAREHOLDERS' EQUITY 1.669.963.323 1.535.195.668
Total liabilities, minority interest and shareholders' equity 6.728.760.588 6.386.714.064
This information is provided by RNS
The company news service from the London Stock Exchange
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