IMPSAT FIBER NETWORKS
AS OF DECEMBER 31, 2002 (PREDECESSOR COMPANY) AND SPETEMBER 30, 2003
(SUCCESSOR COMPANY)
(In thousands of U.S. Dollars, except share amounts)
(Unaudited)
Predecessor Successor
Company Company
December 31, September 30,
2002 2003
---------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 32,563 $ 62,645
Trading investments 23,021 1,932
Trade accounts receivable, net 31,012 34,223
Other receivables 16,674 10,048
Prepaid expenses 2,746 3,299
Assets held for disposal 2,808
---------------------------
Total current assets 106,016 114,955
---------------------------
PROPERTY, PLANT AND EQUIPMENT, Net 403,948 318,970
---------------------------
NON-CURRENT ASSETS:
Investments in common stock 86 387
Other non-current assets 10,633 12,127
---------------------------
Total non-current assets 10,719 12,514
---------------------------
TOTAL $ 520,683 $ 446,439
===========================
LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY
LIABILITIES NOT SUBJECT TO COMPROMISE:
CURRENT LIABILITIES:
Accounts payable -- trade $ 72,860 $ 44,612
Current portion of long-term debt 281,680 13,153
Accrued and other liabilities 48,446 27,800
---------------------------
Total current liabilities 402,986 85,565
LONG-TERM DEBT, Net 27,592 244,340
OTHER LONG-TERM LIABILITIES 15,280 13,555
DEFERRED REVENUES 69,918
---------------------------
Total liabilities not subject to
compromise 515,776 343,460
LIABILITIES SUBJECT TO COMPROMISE 727,522
---------------------------
Total liabilities 1,243,298 343,460
---------------------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' (DEFICIENCY) EQUITY:
Common Stock, $0.01 par value; 50,000,000
shares authorized, 10,100,000 shares
issued and outstanding in 2003 (including
686,000 shares held in the Common Stock
Reserve Pool and 150,000 shares held in
the 2003 Stock Incentive Plan) 101
Common Stock, $0.01 par value; 300,000,000
shares authorized, 91,428,570 shares
issued and outstanding in 2002 914
Additional paid in capital 537,583 96,331
Common stock reserve pool - (6,037)
(Accumulated deficit) retained earnings (1,276,845) 19,205
Deferred stock-based compensation (4,530) (1,320)
Accumulated other comprehensive income
(loss) 20,263 (5,301)
---------------------------
Total stockholders' (deficiency)
equity (722,615) 102,979
---------------------------
TOTAL $ 520,683 $ 446,439
===========================
IMPSAT FIBER NETWORKS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 (PREDECESSOR COMPANY),
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2003
(SUCCESSOR COMPANY),
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 (PREDECESSOR COMPANY) AND
THE THREE MONTHS ENDED MARCH 31, 2003 (PREDECESSOR COMPANY)
(In thousands of U.S. Dollars, except per share amounts)
(Unaudited)
Predecessor Successor
Company Company
------------- -------------
Three Months Ended
September 30,
---------------------------
2002 2003
---------------------------
NET REVENUES:
Broadband and satellite $ 42,318 $ 40,754
Internet 6,332 6,199
Value added services 3,408 4,031
Telephony 2,915 4,844
Sales of equipment 335 611
---------------------------
Total net revenues 55,308 56,439
---------------------------
COSTS AND EXPENSES:
Direct costs:
Contracted services 3,491 4,218
Other direct costs 5,378 5,902
Leased capacity 17,417 16,757
Cost of equipment sold 67 245
---------------------------
Total direct costs 26,353 27,122
Salaries and wages 10,852 11,983
Selling, general and administrative 6,669 6,249
Gain on extinguishment of debt (5,460)
Depreciation and amortization 16,706 10,312
---------------------------
Total costs and expenses 60,580 50,206
---------------------------
Operating (loss) income (5,272) 6,233
---------------------------
OTHER INCOME (EXPENSES):
Interest income 436 328
Interest expense (contractual interest of
$ 36,899 and $ 114,385 for the three and
nine months ended September 30, 2002,
respectively, and $21,801 for the three
months ended March 31, 2003
(Predecessor)) (13,455) (4,493)
Net (loss) gain on foreign exchange (62,621) (3,611)
Reorganization items (9,297)
Other (loss) income, net (2,103) (894)
---------------------------
Total other (expenses) income (87,040) (8,670)
---------------------------
(LOSS) INCOME BEFORE INCOME TAXES (92,312) (2,437)
PROVISION FOR FOREIGN INCOME
TAXES (407) (605)
---------------------------
NET (LOSS) INCOME $ (92,719) $ (3,042)
===========================
NET (LOSS) INCOME PER COMMON SHARE:
BASIC AND DILUTED $ (1.01) $ (0.30)
===========================
WEIGHTED AVERAGE NUMBER OF COMMON SHARES:
BASIC AND DILUTED 91,429 10,100
===========================
Predecessor Predecessor Successor
Company Company Company
-----------------------------------------
Nine Months Three Months Six Months
Ended Ended Ended
September 30, March 31, September 30,
-----------------------------------------
2002 2003 2003
-----------------------------------------
NET REVENUES:
Broadband and satellite $ 133,089 $ 41,382 $ 82,534
Internet 21,459 5,733 11,960
Value added services 10,520 4,781 7,883
Telephony 11,231 4,106 9,440
Sales of equipment 763 74 996
-----------------------------------------
Total net revenues 177,062 56,076 112,813
-----------------------------------------
COSTS AND EXPENSES:
Direct costs:
Contracted services 14,574 4,125 8,744
Other direct costs 15,932 4,696 13,770
Leased capacity 57,305 17,407 34,315
Cost of equipment sold 307 48 353
-----------------------------------------
Total direct costs 88,118 26,276 57,182
Salaries and wages 36,486 10,727 23,825
Selling, general and
administrative 22,058 5,553 13,375
Gain on extinguishment of
debt (16,367) (14,253)
Depreciation and
amortization 63,974 19,216 19,281
-----------------------------------------
Total costs and
expenses 194,269 61,772 99,410
-----------------------------------------
Operating (loss) income (17,207) (5,696) 13,403
-----------------------------------------
OTHER INCOME (EXPENSES):
Interest income 1,963 200 690
Interest expense
(contractual interest of
$36,899 and $ 114,385 for
the three and nine months
ended September 30, 2002,
respectively, and $21,801
for the three months ended
March 31, 2003
(Predecessor)) (86,176) (1,909) (10,165)
Net (loss) gain on foreign
exchange (115,052) 9,969 17,834
Reorganization items (14,989) 726,127
Other (loss) income, net (3,808) 2,781 (1,208)
-----------------------------------------
Total other
(expenses) income (218,062) 737,168 7,151
-----------------------------------------
(LOSS) INCOME BEFORE INCOME
TAXES (235,269) 731,472 20,554
PROVISION FOR FOREIGN INCOME
TAXES (1,558) (406) (1,349)
-----------------------------------------
NET (LOSS) INCOME $ (236,827) $ 731,066 $ 19,205
=========================================
NET (LOSS) INCOME PER COMMON
SHARE:
BASIC AND DILUTED $ (2.59) $ 8.00 $ 1.91
=========================================
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES:
BASIC AND DILUTED 91,429 91,429 10,050
=========================================
Appendix I
SUPPLEMENTAL FINANCIAL INFORMATION
Reconciliation of EBITDA to Operating Income (Loss)
Nine
Three Months Ended Months
Ended
-------------------------------------------------------
September March June September September
30, 31, 30, 30, 30,
2002 2003 2003 2003 2003
----------------------------------------------------------------------
EBITDA $11,434 $13,520 $7,345 $11,085 $31,951
Depreciation
and
Amortization $(16,706) $(19,216) $(8,969) $(10,312) $(38,497)
Gain on Early
Extinguishment
of Debt $0 $0 $8,793 $5,460 $14,253
Operating
(Loss) Income $(5,272) $(5,696) $7,169 $6,233 $7,707
----------------------------------------------------------------------