UNITED STATES
FORM 10-Q
| x |
QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2002
OR
| o |
TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number: 000-29085
IMPSAT Fiber Networks, Inc.
|
Delaware Argentina (state or other jurisdiction of incorporation or organization) |
52-1910372 Not Applicable (IRS employer identification number) |
Alférez Pareja 256 (1107)
Indicate by check mark whether the Registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. YES x NO o
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
Indicate by check mark whether the Company has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. YES n/a NO n/a
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of June 30, 2002, the Company had outstanding 91,428,570 shares of Common Stock, $0.01 par value.
INDEX
| PART I FINANCIAL INFORMATION | F-1 | ||||||
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Item 1.
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Financial Statements
|
F-1 | |||||
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Item 2.
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Management’s Discussion and Analysis of
Financial Condition and Results of Operations
|
1 | |||||
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Item 3.
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Quantitative and Qualitative Disclosures About
Market Risk
|
17 | |||||
| PART II OTHER INFORMATION | 19 | ||||||
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Item 1.
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Legal Proceedings
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19 | |||||
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Item 2.
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Changes in Securities
|
19 | |||||
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Item 3.
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Defaults Upon Senior Securities
|
19 | |||||
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Item 4.
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Submission of Matters to a Vote of
Security-Holders
|
19 | |||||
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Item 5.
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Other Information
|
19 | |||||
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Item 6.
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Exhibits and Reports on Form 8-K
|
19 | |||||
| SIGNATURES | 22 | ||||||
PART I
Item 1. Financial Statements
IMPSAT FIBER NETWORKS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, | June 30, | |||||||||
| 2001 | 2002 | |||||||||
| ASSETS | ||||||||||
|
CURRENT ASSETS:
|
||||||||||
|
Cash and cash equivalents
|
$ | 35,606 | $ | 30,016 | ||||||
|
Trading investments
|
29,319 | 25,896 | ||||||||
|
Trade accounts receivable, net
|
58,411 | 42,840 | ||||||||
|
Other receivables
|
39,003 | 19,133 | ||||||||
|
Prepaid expenses
|
3,429 | 3,820 | ||||||||
|
Total current assets
|
165,768 | 121,705 | ||||||||
|
BROADBAND NETWORK, Net
|
310,598 | 274,639 | ||||||||
|
PROPERTY, PLANT AND EQUIPMENT, Net
|
214,459 | 177,302 | ||||||||
|
NON-CURRENT ASSETS:
|
||||||||||
|
Investments in common stock
|
3,307 | 1,784 | ||||||||
|
Deferred financing costs, net
|
10,752 | 8,609 | ||||||||
|
Other non-current assets
|
13,690 | 11,615 | ||||||||
|
Total non-current assets
|
27,749 | 22,008 | ||||||||
|
TOTAL
|
$ | 718,574 | $ | 595,654 | ||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIENCY | ||||||||||
|
LIABILITIES NOT SUBJECT TO COMPROMISE
|
||||||||||
|
CURRENT LIABILITIES:
|
||||||||||
|
Accounts payable — trade
|
$ | 86,999 | $ | 71,261 | ||||||
|
Short-term debt
|
8,323 | 7,670 | ||||||||
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Current portion of long-term debt
|
959,076 | 292,742 | ||||||||
|
Accrued and other liabilities
|
79,237 | 56,379 | ||||||||
|
Total current liabilities
|
1,133,635 | 428,052 | ||||||||
|
LONG-TERM DEBT, Net
|
23,189 | 19,231 | ||||||||
|
OTHER LONG-TERM LIABILITIES
|
14,973 | 12,599 | ||||||||
|
DEFERRED REVENUES
|
99,419 | 97,422 | ||||||||
|
LIABILITIES SUBJECT TO COMPROMISE
|
727,522 | |||||||||
|
COMMITMENTS AND CONTINGENCIES (NOTE 13)
|
||||||||||
|
STOCKHOLDERS’ DEFICIENCY:
|
||||||||||
|
Common Stock, $0.01 par value; 300,000,000 shares
authorized, 91,428,570 shares issued and outstanding at
December 31, 2001 and June 30, 2002
|
914 | 914 | ||||||||
|
Additional paid in capital
|
537,924 | 538,207 | ||||||||
|
Accumulated deficit
|
(1,072,330 | ) | (1,216,437 | ) | ||||||
|
Deferred stock-based compensation
|
(5,438 | ) | (5,438 | ) | ||||||
|
Accumulated other comprehensive loss
|
(13,712 | ) | (6,418 | ) | ||||||
|
Total stockholders’ deficiency
|
(552,642 | ) | (689,172 | ) | ||||||
|
TOTAL
|
$ | 718,574 | $ | 595,654 | ||||||
F-1
IMPSAT FIBER NETWORKS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||
| 2001 | 2002 | 2001 | 2002 | ||||||||||||||||
|
NET REVENUES:
|
|||||||||||||||||||
|
Data and value added services
|
$ | 59,333 | $ | 46,021 | $ | 119,060 | $ | 94,384 | |||||||||||
|
Internet
|
11,679 | 7,269 | 22,840 | 15,123 | |||||||||||||||
|
Telephony
|
1,881 | 3,971 | 3,154 | 8,317 | |||||||||||||||
|
Services to carriers
|
2,167 | 1,934 | 4,096 | 3,501 | |||||||||||||||
|
Sales of equipment
|
2,842 | 146 | 10,925 | 429 | |||||||||||||||
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Total net revenues from services and equipment
|
77,902 | 59,341 | 160,075 | 121,754 | |||||||||||||||
|
Broadband network development revenues
|
625 | 7,197 | |||||||||||||||||
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Total net revenues
|
78,527 | 59,341 | 167,272 | 121,754 | |||||||||||||||
|
COSTS AND EXPENSES:
|
|||||||||||||||||||
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Direct costs:
|
|||||||||||||||||||
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Contracted services
|
8,859 | 5,104 | 19,945 | 11,337 | |||||||||||||||
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Other direct costs
|
7,371 | 5,025 | 13,163 | 11,560 | |||||||||||||||
|
Leased capacity
|
23,452 | 19,514 | 45,385 | 39,899 | |||||||||||||||
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Broadband network cost
|
3,335 | ||||||||||||||||||
|
Cost of equipment sold
|
2,105 | 123 | 7,497 | 241 | |||||||||||||||
|
Total direct costs
|
41,787 | 29,766 | 89,325 | 63,037 | |||||||||||||||
|
Salaries and wages
|
21,900 | 12,593 | 44,097 | 25,635 | |||||||||||||||
|
Selling, general and administrative
|
14,782 | 6,809 | 29,470 | 14,160 | |||||||||||||||
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Depreciation and amortization
|
30,245 | 23,359 | 59,677 | 47,268 | |||||||||||||||
|
Total costs and expenses
|
108,714 | 72,527 | 222,569 | 150,100 | |||||||||||||||
|
Operating loss
|
(30,187 | ) | (13,186 | ) | (55,297 | ) | (28,346 | ) | |||||||||||
|
OTHER INCOME (EXPENSES):
|
|||||||||||||||||||
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Interest income and investment gains
|
3,582 | 1,172 | 8,092 | 1,527 | |||||||||||||||
|
Interest expense (contractual interest of $43,686
and $77,486 in 2002)
|
(36,714 | ) | (38,879 | ) | (70,223 | ) | (72,679 | ) | |||||||||||
|
Net loss on foreign exchange
|
(10,369 | ) | (45,065 | ) | (24,150 | ) | (52,431 | ) | |||||||||||
|
Reorganization items
|
(5,574 | ) | (5,692 | ) | |||||||||||||||
|
Other income (loss), net
|
138 | 246 | 145 | (1,704 | ) | ||||||||||||||
|
Total other expenses
|
(43,363 | ) | (88,100 | ) | (86,136 | ) | (130,979 | ) | |||||||||||
|
LOSS BEFORE INCOME TAXES
|
(73,550 | ) | (101,286 | ) | (141,433 | ) | (159,325 | ) | |||||||||||
|
PROVISION FOR FOREIGN INCOME TAXES
|
(26,122 | ) | (711 | ) | (26,488 | ) | (1,149 | ) | |||||||||||
|
NET LOSS BEFORE EXTRAORDINARY GAIN ON EARLY
EXTINGUISHMENT OF DEBT
|
(99,672 | ) | (101,997 | ) | (167,921 | ) | (160,474 | ) | |||||||||||
|
GAIN ON EARLY EXTINGUISHMENT OF DEBT
|
16,367 | 16,367 | |||||||||||||||||
|
NET LOSS
|
$ | (99,672 | ) | $ | (85,630 | ) | $ | (167,921 | ) | $ | (144,107 | ) | |||||||
|
NET LOSS PER COMMON SHARE:
|
|||||||||||||||||||
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NET LOSS BEFORE EXTRAORDINARY ITEM
|
$ | (1.09 | ) | $ | (1.12 | ) | $ | (1.84 | ) | $ | (1.76 | ) | |||||||
|
EXTRAORDINARY ITEM
|
0.18 | 0.18 | |||||||||||||||||
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BASIC AND DILUTED
|
$ | (1.09 | ) | $ | (0.94 | ) | $ | (1.84 | ) | $ | (1.58 | ) | |||||||
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES:
|
|||||||||||||||||||
|
BASIC AND DILUTED
|
91,429 | 91,429 | 91,429 | 91,429 | |||||||||||||||
F-2
IMPSAT FIBER NETWORKS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| 2001 | 2002 | 2001 | 2002 | |||||||||||||||
|
NET LOSS
|
$ | (99,672 | ) | $ | (85,630 | ) | $ | (167,921 | ) | $ | (144,107 | ) | ||||||
|
OTHER COMPREHENSIVE (LOSS) INCOME:
|
||||||||||||||||||
|
Foreign currency translation adjustment
|
(1,230 | ) | 7,972 | (4,982 | ) | 7,707 | ||||||||||||
|
Change in unrealized loss on investments
available for sale
|
(10,357 | ) | (362 | ) | (8,445 | ) | (1,229 | ) | ||||||||||
|
Recognition of other-than-temporary decline in
value of investment
|
142 | 816 | ||||||||||||||||
|
TOTAL
|
(11,587 | ) | 7,752 | (13,427 | ) | 7,294 | ||||||||||||
|
COMPREHENSIVE LOSS
|
$ | (111,259 | ) | $ | (77,878 | ) | $ | (181,348 | ) | $ | (136,813 | ) | ||||||
See notes to condensed consolidated financial statements.
F-3
IMPSAT FIBER NETWORKS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIENCY
| Accumulated | |||||||||||||||||||||||||||||
| Common Stock | Additional | Deferred | Other | ||||||||||||||||||||||||||
| Paid In | Accumulated | Stock-Based | Comprehensive | ||||||||||||||||||||||||||
| Shares | Amount | Capital | Deficit | Compensation | Loss | Total | |||||||||||||||||||||||
|
BALANCE AT DECEMBER 31, 2001
|
91,428,570 | $ | 914 | $537,924 | $(1,072,330) | ||||||||||||||||||||||||