IMPSAT FIBER NETWORKS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (SUCCESSOR COMPANY)
AS OF DECEMBER 31, 2003 AND JUNE 30, 2004
(In thousands of U.S. Dollars, except share amounts)
(Unaudited)
Successor Company
-------------------------
December 31, June 30,
2003 2004
-------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 61,498 $ 63,265
Trading investments 2,474 251
Trade accounts receivable, net 31,213 28,683
Other receivables 11,630 11,291
Prepaid expenses 2,249 4,062
---------- ----------
Total current assets 109,064 107,552
---------- ----------
PROPERTY, PLANT AND EQUIPMENT, Net 315,817 303,142
---------- ----------
NON-CURRENT ASSETS:
Investments in common stock 1,873
Other non-current assets 13,875 15,961
---------- ----------
Total non-current assets 15,748 15,961
---------- ----------
TOTAL $ 440,629 $ 426,655
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable -- trade $ 37,095 $ 35,179
Current portion of long-term debt 11,851 28,974
Accrued and other liabilities 33,140 29,587
---------- ----------
Total current liabilities 82,086 93,740
LONG-TERM DEBT, Net 249,394 238,039
OTHER LONG-TERM LIABILITIES 11,904 14,649
---------- ----------
Total liabilities 343,384 346,428
---------- ----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value; 5,000,000
shares authorized, no shares outstanding
as of December 31, 2003 and June 30, 2004
Common stock, $0.01 par value; 50,000,000
shares authorized, 10,100,000 shares issued
and outstanding (including 150,000 and
100,000 restricted shares held in the 2003
Stock Incentive Plan as of December 31, 2003
and June 30, 2004, respectively) 101 101
Additional paid in capital 90,294 90,294
Retained earnings (accumulated deficit) 9,477 (7,006)
Deferred stock-based compensation (1,320) (880)
Accumulated other comprehensive loss (1,307) (2,282)
---------- ----------
Total stockholders' equity 97,245 80,227
---------- ----------
TOTAL $ 440,629 $ 426,655
========== ==========
-0-
IMPSAT FIBER NETWORKS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2003 (SUCCESSOR COMPANY), FOR
THE THREE MONTHS ENDED JUNE 30, 2004 (SUCCESSOR COMPANY), FOR THE
THREE MONTHS ENDED MARCH 31, 2003 (PREDECESSOR COMPANY) AND FOR THE
SIX MONTHS ENDED JUNE 30, 2004 (SUCCESSOR COMPANY)
(In thousands of U.S. Dollars, except per share amounts)
(Unaudited)
Three Months Ended June 30,
-------------------------------
Successor Successor
Company Company
-------------- -------------
2003 2004
-------------- -------------
NET REVENUES:
Broadband and satellite $ 41,781 $ 40,005
Internet 5,761 6,716
Value added services 3,852 3,832
Telephony 4,595 4,903
Sales of equipment 385 90
----------- -----------
Total net revenues 56,374 55,546
----------- -----------
COSTS AND EXPENSES:
Direct costs:
Contracted services 4,525 5,065
Other direct costs 7,868 5,761
Leased capacity 17,559 15,945
Cost of equipment sold 108 80
----------- -----------
Total direct costs 30,060 26,851
Salaries and wages 11,842 11,773
Selling, general and administrative 7,127 5,961
Gain on extinguishment of debt (8,793)
Depreciation and amortization 8,969 10,560
----------- -----------
Total costs and expenses 49,205 55,145
----------- -----------
Operating income (loss) 7,169 401
----------- -----------
OTHER INCOME (EXPENSE):
Interest income 970 296
Interest expense (contractual interest
of $21,801 for the three months
ended March 31, 2003 (Predecessor)) (6,281) (5,272)
Net gain (loss) on foreign exchange 21,445 (5,519)
Reorganization items
Other income (loss), net (313) 1,420
----------- -----------
Total other income (expense) 15,821 (9,075)
----------- -----------
INCOME (LOSS) BEFORE INCOME TAXES 22,990 (8,674)
PROVISION FOR FOREIGN INCOME TAXES (744) (1,339)
----------- -----------
NET INCOME (LOSS) $ 22,246 $ (10,013)
=========== ===========
NET INCOME (LOSS) PER COMMON SHARE:
BASIC $ 2.26 $ (1.00)
=========== ===========
DILUTED $ 1.62 $ (1.00)
=========== ===========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES:
BASIC 9,850 10,000
=========== ===========
DILUTED 15,901 10,000
=========== ===========
Six Months Ended June 30,
--------------------------------------
Predecessor Successor Successor
Company Company Company
----------------------- -----------
Three Months Three Months
Ended March Ended to June
31, 2003 30, 2003 2004
-------------------------- ------------
NET REVENUES:
Broadband and satellite $ 41,382 $ 41,781 $ 79,579
Internet 5,733 5,761 12,700
Value added services 4,781 3,852 8,036
Telephony 4,106 4,595 10,049
Sales of equipment 74 385 242
----------------------- -------------
Total net revenues 56,076 56,374 110,606
----------------------- -------------
COSTS AND EXPENSES:
Direct costs:
Contracted services 4,125 4,525 9,392
Other direct costs 4,696 7,868 9,518
Leased capacity 17,407 17,559 31,735
Cost of equipment sold 48 108 177
----------------------- -------------
Total direct costs 26,276 30,060 50,822
Salaries and wages 10,727 11,842 23,980
Selling, general and
administrative 5,553 7,127 11,466
Gain on extinguishment
of debt (8,793)
Depreciation and
amortization 19,358 8,969 20,721
----------------------- -------------
Total costs and
expenses 61,914 49,205 106,989
----------------------- -------------
Operating income (loss) (5,838) 7,169 3,617
----------------------- -------------
OTHER INCOME (EXPENSE):
Interest income 200 970 607
Interest expense
(contractual interest of
$21,801 for the three months
ended March 31, 2003
(Predecessor)) (1,909) (6,281) (10,206)
Net gain (loss) on
foreign exchange 9,969 21,445 (9,910)
Reorganization items 726,127
Other income (loss), net 2,923 (313) 1,291
----------------------- -------------
Total other income
(expense) 737,310 15,821 (18,218)
------------------------ -------------
INCOME (LOSS) BEFORE
INCOME TAXES 731,472 22,990 (14,601)
PROVISION FOR FOREIGN
INCOME TAXES (406) (744) (1,882)
------------------------ -------------
NET INCOME (LOSS) $ 731,066 $ 22,246 $ (16,483)
======================== =============
NET INCOME (LOSS) PER
COMMON SHARE:
BASIC $ 8.00 $ 2.26 $ (1.65)
======================== =============
DILUTED $ 8.00 $ 1.62 $ (1.65)
======================== =============
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES:
BASIC 91,429 9,850 9,975
======================== =============
DILUTED 91,429 9,850 9.975
======================== =============
-0-
Appendix I
SUPPLEMENTAL FINANCIAL INFORMATION
Reconciliation of EBITDA to Operating (Loss) Income
Three months ended
----------------------------------
March 31, June 30, September 30,
2003 2003 2003
--------------------------------------------------------------------
EBITDA 13,520 7,345 11,085
--------------------------------------------------------------------
Depreciation and Amortization (19,358) (8,969) (10,312)
--------------------------------------------------------------------
Gain on early extinguishment
of debt 0 8,793 5,460
--------------------------------------------------------------------
Operating Income (Loss) (5,838) 7,169 6,233
--------------------------------------------------------------------
Three months ended
-------------------------------------
December 31, March 31, June 30,
2003 2004 2004
--------------------------------------------------------------------
EBITDA 8,273 13,376 10.961
--------------------------------------------------------------------
Depreciation and Amortization (10,396) (10,161) (10.560)
--------------------------------------------------------------------
Gain on early extinguishment
of debt 0 0 0
--------------------------------------------------------------------
Operating Income (Loss) (2,123) 3,215 401
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