Grupo Iusacell

                  Unaudited Consolidated Balance Sheet

 

Comparison of Fourth Quarter 2003 with Fourth Quarter 2002 (Figures in thousands of constant December 31, 2003 pesos)

 

                              4Q03                        4Q02

    ASSETS

    Current Assets

    Cash and marketable

     securities              5,814          0.0%      166,404          1.1%

    Accounts receivable,

     net                   503,691          4.3%      666,141          4.2%

    Recoverable taxes

     and other             350,628          3.0%      558,373          3.6%

    Inventories            255,995          2.2%       37,119          0.2%

    TOTAL CURRENT ASSETS 1,116,128          9.4%    1,428,037          9.1%

 

    Property and

     equipment, net      7,689,053         65.1%    9,740,145         61.9%

    Excess of cost of

     investments in

     subsidiaries over

     book value, net     1,912,089         16.2%    2,187,424         13.9%

    Other assets         1,096,089          9.3%    2,368,904         15.1%

    TOTAL ASSETS        11,813,359        100.0%   15,724,510        100.0%

 

    LIABILITIES AND

     SHAREHOLDERS'

     EQUITY

    Current Liabilities

    Accrued liabilities  1,472,224         12.5%      745,278          4.7%

    Related parties         89,739          0.8%      188,611          1.2%

    Accounts payable       449,643          3.8%      378,368          2.4%

    Short-term debt      8,897,196         75.3%      211,021          1.3%

    TOTAL CURRENT

     LIABILITIES        10,908,802         92.3%    1,523,278          9.7%

 

    Non-current

     liabilities            93,269          0.8%    8,622,599         54.8%

    TOTAL LIABILITIES   11,002,071         93.1%   10,145,877         64.5%

 

    Minority interest      -48,538         -0.4%       10,065          0.1%

    Shareholders' Equity

    Capital stock        7,424,177         62.8%    7,424,177         47.2%

    Legal reserve           20,865          0.2%       20,865          0.1%

    Capital

     contributions       1,460,937         12.4%    1,460,937          9.3%

    Net loss            -4,708,741        -39.9%   -2,166,983        -13.8%

 

    Accumulated earnings

     from prior years   -3,553,840        -30.1%   -1,386,857         -8.8%

    Excess from

     restatement of

     shareholders' equity  216,428          1.8%      216,428          1.4%

 

    TOTAL SHAREHOLDERS'

     EQUITY                859,826          7.3%    5,568,568         35.4%

 

    TOTAL LIABILITIES

     AND SHAREHOLDERS'

     EQUITY             11,813,359        100.0%   15,724,510        100.0%

 

                             Change 4Q03 /4Q02

    ASSETS

    Current Assets

    Cash and marketable

     securities                    -96.5%

    Accounts receivable,

     net                           -24.4%

    Recoverable taxes and other    -37.2%

    Inventories                    589.7%

    TOTAL CURRENT ASSETS           -21.8%

 

    Property and equipment, net    -21.1%

    Excess of cost of investments

     in subsidiaries over

     book value, net               -12.6%

    Other assets                   -53.7%

    TOTAL ASSETS                   -25.9%

 

    LIABILITIES AND

     SHAREHOLDERS' EQUITY

    Current Liabilities

    Accrued liabilities             97.5%

    Related parties                -52.4%

    Accounts payable                18.8%

    Short-term debt               4116.3%

    TOTAL CURRENT LIABILITIES      616.1%

 

    Non-current liabilities        -98.9%

    TOTAL LIABILITIES                8.4%

 

    Minority interest                  --

    Shareholders' Equity

    Capital stock                      --

    Legal reserve                      --

    Capital contributions              --

    Net loss                        97.1%

 

    Accumulated earnings from

     prior years                  -156.3%

    Excess from restatement

     of shareholders' equity           --

 

    TOTAL SHAREHOLDERS' EQUITY     -84.6%

 

    TOTAL LIABILITIES AND

    SHAREHOLDERS' EQUITY           -21.8%

 

 

    Grupo Iusacell Unaudited Consolidated Income Statement

    Comparison of Fourth Quarter 2003 with Fourth Quarter 2002

    (Figures in thousands of constant December 31, 2003 pesos)

 

                              4Q03                        4Q02

    REVENUE

    Service                977,409         76.6%    1,231,517         93.0%

    Equipment sales

     and other             299,266         23.4%       93,247          7.0%

    TOTAL REVENUE        1,276,675        100.0%    1,324,764        100.0%

 

    Cost of services       402,664         31.5%      402,594         30.4%

    Other costs            452,197         35.4%       90,975          6.9%

    TOTAL COSTS            854,861         67.0%      493,569         37.3%

 

    GROSS MARGIN           421,814         33.0%      831,195         62.7%

 

    Sales & Advertising

     expenses              426,993         33.4%      388,380         29.3%

    General and

     Administrative

     expenses              156,121         12.2%       61,408          4.6%

    Other income           -88,556         -6.9%            0          0.0%

    TOTAL OPERATING

     EXPENSES              494,558         38.7%      449,788         34.0%

 

    EBITDA                 -72,744         -5.7%      381,407         28.8%

 

    Depreciation and

     amortization          494,229         38.7%      497,287         37.5%

    OPERATING LOSS        -566,973        -44.4%     -115,880         -8.7%

 

    Interest expense, net  245,682         19.2%      252,596         19.1%

    Foreign exchange

     loss (gain)           185,797         14.6%      338,896         25.6%

    Monetary gain         -159,810        -12.5%     -181,424        -13.7%

    INTEGRAL FINANCING

     COST                  271,669         21.3%      410,069         31.0%

    LOSS BEFORE TAXES

     AND STATUTORY PROFIT

     SHARING COST         -838,642        -65.7%     -525,948        -39.7%

 

    Equity in income

     (losses) of

     subsidiaries              -81          0.0%          282          0.0%

    Taxes                   40,517          3.2%       27,029          2.0%

    Intangible asset

     valuation             439,880         34.5%           --            --

 

    NET LOSS BEFORE

    MINORITY INTEREST   -1,318,958       -103.3%     -553,259        -41.8%

    Minority interest       -1,236         -0.1%       -7,600         -0.6%

    NET LOSS            -1,317,722       -103.2%     -545,659        -41.2%

 

                             Change 4Q03 /4Q02

    REVENUE

    Service                        -20.6%

    Equipment sales and other      220.9%

    TOTAL REVENUE                   -3.6%

 

    Cost of services                -0.0%

    Other costs                    397.1%

    TOTAL COSTS                     73.2%

 

    GROSS MARGIN                   -49.3%

 

    Sales & Advertising expenses     9.9%

    General and administrative

     expenses                      154.2%

    Other income                       --

    TOTAL OPERATING EXPENSES        10.0%

 

    EBITDA                             --

 

    Depreciation and amortization   -0.6%

    OPERATING LOSS                 389.3%

 

    Interest expense, net           -2.7%

    Foreign exchange loss (gain)   -45.2%

    Monetary gain                  -11.9%

    INTEGRAL FINANCING COST        -33.8%

    LOSS BEFORE TAXES AND

    STATUTORY PROFIT SHARING COST   59.5%

 

    Equity in income (losses)

     of subsidiaries                   --

    Taxes                           49.9%

    Intangible asset valuation         --

 

    NET LOSS BEFORE

    MINORITY INTEREST              138.4%

    Minority interest              -83.7%

    NET LOSS                       141.5%

 

 

    Grupo Iusacell Unaudited Consolidated Income Statement

    Comparison of Twelve Months 2003 with Twelve Months 2002

    (Figures in thousands of constant December 31, 2003 pesos)

 

                           12M 2003                   12M 2002

    REVENUE

    Service              4,189,420         88.4%    5,129,960         89.3%

    Equipment sales

     and other             549,106         11.6%      616,968         10.7%

    TOTAL REVENUE        4,738,526        100.0%    5,746,928        100.0%

 

    Cost of services     1,498,646         31.6%    1,594,040         27.7%

    Other costs          1,058,631         22.3%      507,519          8.8%

    TOTAL COSTS          2,557,277         54.0%    2,101,559         36.6%

 

    GROSS MARGIN         2,181,249         46.0%    3,645,369         63.4%

 

    Sales & Advertising

     expenses            1,312,537         27.7%    1,419,300         24.7%

    General and

     Administrative

     expenses              585,629         12.4%      470,085          8.2%

    Other income           -88,556         -1.9%     -105,001         -1.8%

    TOTAL OPERATING

     EXPENSES            1,809,610         38.2%    1,784,384         31.0%

 

    EBITDA                 371,639          7.8%    1,860,985         32.4%

 

    Depreciation and

     amortization        2,057,775         43.4%    2,336,498         40.7%

    OPERATING LOSS      -1,686,136        -35.6%     -475,513         -8.3%

 

    Other (income)

     expense               -69,605         -1.5%            0          0.0%

 

    Interest expense,

     net                   968,116         20.4%      935,898         16.3%

    Foreign exchange

     loss (gain)           744,512         15.7%    1,069,640         18.6%

    Monetary gain         -350,861         -7.4%     -432,167         -7.5%

    INTEGRAL FINANCING

     COST                1,361,767         28.7%    1,573,372         27.4%

    LOSS BEFORE TAXES

     AND STATUTORY

     PROFIT SHARING

     COST               -2,978,298        -62.9%   -2,048,885        -35.7%

 

    Equity in income

     (losses) of

     subsidiaries           17,544          0.4%       10,129          0.2%

    Taxes                  115,232          2.4%      125,265          2.2%

    Extraordinary items    361,624          7.6%           --          0.0%

    Intangible assets

     valuation           1,269,180         26.8%           --            --

    NET LOSS BEFORE

    MINORITY INTEREST   -4,741,878       -100.1%   -2,184,279        -38.0%

    Minority interest      -33,137         -0.7%      -17,296         -0.3%

    NET LOSS            -4,708,741        -99.4%   -2,166,983        -37.7%

 

                              Change 2003 /2002

    REVENUE

    Service                        -18.3%

    Equipment sales and other      -11.0%

    TOTAL REVENUE                  -17.5%

 

    Cost of services                -6.0%

    Other costs                    108.6%

    TOTAL COSTS                     21.7%

 

    GROSS MARGIN                   -40.2%

 

    Sales & Advertising expenses    -7.5%

    General and administrative

     expenses                       24.6%

    Other income                       --

    TOTAL OPERATING EXPENSES         1.4%

 

    EBITDA                          -80.0

 

    Depreciation and amortization  -11.9%

    OPERATING LOSS                 254.6%

 

    Other (income) expense             --

 

    Interest expense, net            3.4%

    Foreign exchange loss (gain)   -30.4%

    Monetary gain                  -18.8%

    INTEGRAL FINANCING COST        -13.4%

    LOSS BEFORE TAXES AND

    STATUTORY PROFIT SHARING COST   45.4%

 

    Equity in income (losses)

     of subsidiaries                   --

    Taxes                           -8.0%

    Extraordinary items                --

    Intangible assets valuation        --

 

    NET LOSS BEFORE

    MINORITY INTEREST              117.1%

    Minority interest               91.6%

    NET LOSS                       117.3%

 

 

    Grupo Iusacell Celular Unaudited Consolidated Balance Sheet

    Comparison of Fourth Quarter 2003 with Fourth Quarter 2002

    (Figures in thousands of constant December 31, 2003 pesos)

 

                              4Q03                        4Q02

    ASSETS

    Current Assets

    Cash and marketable

     securities              4,157          0.0%      154,397          1.1%

    Accounts receivable,

     net                   498,790          4.8%      663,533          4.8%

    Related parties              -          0.0%       63,291          0.5%

    Recoverable taxes

     and other             353,542          3.4%      463,747          3.4%

    Inventories            255,995          2.5%       37,119          0.3%

    TOTAL CURRENT ASSETS 1,112,484         10.7%    1,382,087         10.0%

 

    Property and

     equipment, net      6,906,450         66.4%    8,893,303         64.5%

    Excess of cost of

     investments in

     subsidiaries over

     book value, net     1,726,208         16.6%    1,989,364         14.4%

    Other assets           656,794          6.3%    1,520,200         11.0%

    TOTAL ASSETS        10,401,936        100.0%   13,784,954        100.0%

 

    LIABILITIES AND

     SHAREHOLDERS' EQUITY

    Current Liabilities

    Accrued liabilities    640,129          6.2%      742,134          5.4%

    Related parties         22,645          0.2%           --          0.0%

    Accounts payable       360,935          3.5%      282,578          2.0%

    Short-term debt      4,667,429         44.9%      130,258          0.9%

    TOTAL CURRENT

     LIABILITIES         5,691,138         54.7%    1,154,970          8.4%

 

    Non-current

     liabilities               654          0.0%    4,514,619         32.8%

    TOTAL LIABILITIES    5,691,792         54.7%    5,669,589         41.1%

 

    Minority interest      -77,921         -0.7%           --          0.0%

 

    Shareholders' Equity

    Capital stock       16,558,729        159.2%   16,558,729        120.1%

    Legal reserve           29,485          0.3%       29,485          0.2%

    Capital

     contributions         102,027          1.0%      102,027          0.7%

    Net loss            -3,327,300        -32.0%   -1,103,171         -8.0%

 

    Accumulated earnings

     from prior years   -7,844,274        -75.4%   -6,741,103        -48.9%

    Excess from

     restatement of

     shareholders' equity -730,602         -7.0%     -730,602         -5.3%

 

    TOTAL SHAREHOLDERS'

     EQUITY              4,788,065         46.0%    8,115,365         58.9%

 

    TOTAL LIABILITIES

     AND SHAREHOLDERS'

     EQUITY             10,401,936        100.0%   13,784,954        100.0%

 

    ASSETS

    Current Assets

                             Change 4Q03 /4Q02

    Cash and marketable

     securities                    -97.3%

    Accounts receivable, net       -24.8%

    Related parties                    --

    Recoverable taxes and other    -23.8%

    Inventories                    589.7%

    TOTAL CURRENT ASSETS           -19.5%

 

    Property and equipment, net    -22.3%

    Excess of cost of investments

     in subsidiaries over

     book value, net               -13.2%

    Other assets                   -56.8%

    TOTAL ASSETS                   -24.5%

 

    LIABILITIES AND

     SHAREHOLDERS' EQUITY

    Current Liabilities

    Accrued liabilities            -13.7%

    Related parties                    --

    Accounts payable                27.7%

    Short-term debt               3483.2%

    TOTAL CURRENT LIABILITIES      392.8%

 

    Non-current liabilities       -100.0%

    TOTAL LIABILITIES                0.4%

 

    Minority interest                  --

 

    Shareholders' Equity

    Capital stock                      --

    Legal reserve                      --

    Capital contributions              --

    Net loss                       201.6%

 

    Accumulated earnings

     from prior years               16.4%

    Excess from restatement

     of shareholders' equity           --

 

    TOTAL SHAREHOLDERS' EQUITY     -41.0%

 

    TOTAL LIABILITIES AND

    SHAREHOLDERS' EQUITY           -24.5%

 

 

    Grupo Iusacell Celular Unaudited Consolidated Income Statement

    Comparison of Fourth Quarter 2003 with Fourth Quarter 2002

    (Figures in thousands of constant December 31, 2003 pesos)

 

                              4Q03                        4Q02

    REVENUE

    Service                986,332         76.8%    1,245,147         93.1%

    Equipment sales

     and other             289,746         23.2%       92,327          6.9%

    TOTAL REVENUE        1,285,078        100.0%    1,337,474        100.0%

 

    Cost of services       427,991         33.3%      452,527         33.8%

    Other costs            452,197         35.2%       91,210          6.8%

    TOTAL COSTS            880,188         68.5%      543,737         40.7%

 

    GROSS MARGIN           404,890         31.5%      793,737         59.3%

 

    Sales & Advertising

     expenses              418,676         32.6%      388,513         29.0%

    General and

     Administrative

     expenses              160,345         12.5%       35,344          2.6%

    Other income           -85,984         -6.7%           --          0.0%

    TOTAL OPERATING

     EXPENSES              493,037         38.6%      423,857         31.7%

 

    EBITDA                 -88,147         -6.9%      369,880         27.7%

 

    Depreciation and

     amortization          457,308         35.6%      466,424         34.9%

    OPERATING LOSS        -545,455        -42.4%      -96,544         -7.2%

 

    Interest expense, net   89,703          7.0%      108,841          8.1%

    Foreign exchange

     loss (gain)            93,997          7.3%      134,685         10.1%

    Monetary gain          -75,009         -5.8%      -91,757         -6.9%

    INTEGRAL FINANCING

     COST                  108,691          8.5%      151,769         11.3%

    INCOME (LOSS) BEFORE

     TAXES AND STATUTORY

     PROFIT SHARING COST  -654,146        -50.9%     -248,313        -18.6%

 

    Equity in losses

     of subsidiaries           581          0.0%          282          0.0%

    Taxes                   35,574          2.8%       27,029          2.0%

    Intangible assets

     valuation             439,880         34.2%           --            --

    NET LOSS BEFORE

    MINORITY INTEREST   -1,130,181        -87.9%     -275,624        -20.6%

    Minority interest         -541          0.0%       -5,459         -0.4%

    NET LOSS            -1,129,640        -87.9%     -270,165        -20.2%

 

    REVENUE

                             Change 4Q03 /4Q02

    Service                        -20.8%

    Equipment sales and other      223.6%

    TOTAL REVENUE                   -3.9%

 

    Cost of services                -5.4%

    Other costs                    395.8%

    TOTAL COSTS                     61.9%

 

    GROSS MARGIN                   -49.0%

 

    Sales & Advertising expenses     7.8%

    General and administrative

     expenses                      353.7%

    Other income

    TOTAL OPERATING EXPENSES        16.3%

 

    EBITDA                             --

 

    Depreciation and amortization   -2.0%

    OPERATING LOSS                 465.0%

 

    Interest expense, net          -17.6%

    Foreign exchange loss (gain)   -30.2%

    Monetary gain                  -18.3%

    INTEGRAL FINANCING COST        -28.4%

    INCOME (LOSS) BEFORE TAXES

     AND STATUTORY PROFIT

     SHARING COST                  163.4%

 

    Equity in losses of

     subsidiaries                  106.0%

    Taxes                           31.6%

    Intangible assets valuation        --

    NET LOSS BEFORE

    MINORITY INTEREST              310.0%

    Minority interest                  --

    NET LOSS                       318.1%

 

 

    Grupo Iusacell Celular Unaudited Consolidated Income Statement

    Comparison of Twelve Months 2003 with Twelve Months 2002

    (Figures in thousands of constant December 31, 2003 pesos)

 

                           12M 2003                   12M 2002

    REVENUE

    Service              4,217,280         88.5%    5,188,345         89.4%

    Equipment sales

     and other             545,897         11.5%      615,439         10.6%

    TOTAL REVENUE        4,763,177        100.0%    5,803,784        100.0%

 

    Cost of services     1,530,784         32.1%    1,611,219         27.8%

    Other costs          1,058,631         22.2%      507,241          8.7%

    TOTAL COSTS          2,589,415         54.4%    2,118,460         36.5%

 

    GROSS MARGIN         2,173,762         45.6%    3,685,324         63.5%

 

    Sales & Advertising

     expenses            1,304,375         27.4%    1,418,905         24.4%

    General and

     Administrative

     expenses              568,399         11.9%      435,669          7.5%

    Other income           -85,984         -1.8%      -95,257         -1.6%

    TOTAL OPERATING

     EXPENSES            1,786,790         37.5%    1,759,317         30.3%

 

    EBITDA                 386,972          8.1%    1,926,007         33.2%

 

    Depreciation and

     amortization        1,953,687         41.0%    2,206,050         38.0%

    OPERATING LOSS      -1,566,715        -32.9%     -280,043         -4.8%

 

    Other (income)

     expense               -87,176         -1.8%           --          0.0%

 

    Interest expense, net  359,615          7.5%      399,966          6.9%

    Foreign exchange

     loss (gain)           386,835          8.1%      527,331          9.1%

    Monetary gain         -165,633         -3.5%     -229,414         -4.0%

    INTEGRAL FINANCING

     COST                  580,817         12.2%      697,883         12.0%

    INCOME (LOSS) BEFORE

     TAXES AND STATUTORY

     PROFIT SHARING

     COST               -2,060,356        -43.4%     -977,926        -16.8%

 

    Equity in losses

     of subsidiaries        17,544          0.4%       10,129          0.2%

    Taxes                  103,854          2.2%      125,265          2.2%

    Extraordinary items    116,663          2.4%           --          0.0%

    Intangible assets

     valuation           1,046,847         22.0%           --          0.0%

 

    NET LOSS BEFORE

    MINORITY INTEREST   -3,345,264        -70.2%   -1,113,320        -19.2%

    Minority interest      -17,964         -0.4%      -10,149         -0.2%

    NET LOSS            -3,327,300        -69.9%   -1,103,171        -19.0%

 

                              Change 2003 /2002

    REVENUE

    Service                        -18.7%

    Equipment sales and other      -11.3%

    TOTAL REVENUE                  -17.9%

 

    Cost of services                -5.0%

    Other costs                    108.7%

    TOTAL COSTS                     22.2%

 

    GROSS MARGIN                   -41.0%

 

    Sales & Advertising expenses    -8.1%

    General and administrative

     expenses                       30.5%

    Other income

    TOTAL OPERATING EXPENSES         1.6%

 

    EBITDA                             --

 

    Depreciation and amortization  -11.4%

    OPERATING LOSS                 459.5%

 

    Other (income) expense             --

 

    Interest expense, net          -10.1%

    Foreign exchange loss (gain)   -26.6%

    Monetary gain                  -27.8%

    INTEGRAL FINANCING COST        -16.8%

    INCOME (LOSS) BEFORE TAXES

     AND STATUTORY PROFIT

     SHARING COST                  110.7%

 

    Equity in losses

     of subsidiaries                73.2%

    Taxes                          -17.1%

    Extraordinary items                --

    Intangible assets valuation        --

 

    NET LOSS BEFORE

    MINORITY INTEREST              200.5%

    Minority interest                  --

    NET LOSS                       201.6%