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 September 30, 2003
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 (state or other jurisdiction incorporation or organization) |
52-1910372 (IRS employer identification number) |
Elvira Rawson de Dellepiane 150
Indicate by check mark whether the registrant (1) has 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 registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES x NO o
Indicate by check mark whether the registrant is
an accelerated filer (as defined in Securities Exchange Act
Rule 12b-2). YES o NO x
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
Indicate by check mark whether the registrant
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 x
NO o
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 September 30, 2003, the registrant had outstanding 10,100,000 shares of common stock, $0.01 par value.
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| PART I FINANCIAL INFORMATION | F-1 | ||||||
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Item 1.
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Financial Statements
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F-1 | |||||
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Item 2.
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Management’s Discussion and Analysis of
Financial Condition and Results of Operations
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1 | |||||
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Item 3.
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Quantitative and Qualitative Disclosures About
Market Risk
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13 | |||||
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Item 4.
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Controls and Procedures
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15 | |||||
| PART II OTHER INFORMATION | 16 | ||||||
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Item 1.
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Legal Proceedings
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16 | |||||
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Item 2.
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Changes in Securities and Use of Proceeds
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16 | |||||
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Item 3.
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Defaults Upon Senior Securities
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16 | |||||
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Item 4.
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Submission of Matters to a Vote of
Security-Holders
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16 | |||||
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Item 5.
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Other Information
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16 | |||||
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Item 6.
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Exhibits and Reports on Form 8-K
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17 | |||||
| SIGNATURES | 19 | ||||||
PART I
| Item 1. | Financial Statements |
IMPSAT FIBER NETWORKS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| Predecessor | Successor | |||||||||
| Company | Company | |||||||||
| December 31, | September 30, | |||||||||
| 2002 | 2003 | |||||||||
| ASSETS | ||||||||||
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CURRENT ASSETS:
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||||||||||
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Cash and cash equivalents
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$ | 32,563 | $ | 62,645 | ||||||
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Trading investments
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23,021 | 1,932 | ||||||||
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Trade accounts receivable, net
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31,012 | 34,223 | ||||||||
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Other receivables
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16,674 | 10,048 | ||||||||
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Prepaid expenses
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2,746 | 3,299 | ||||||||
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Assets held for disposal
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2,808 | |||||||||
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Total current assets
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106,016 | 114,955 | ||||||||
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PROPERTY, PLANT AND EQUIPMENT, Net
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403,948 | 318,970 | ||||||||
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NON-CURRENT ASSETS:
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||||||||||
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Investments in common stock
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86 | 387 | ||||||||
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Other non-current assets
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10,633 | 12,127 | ||||||||
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Total non-current assets
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10,719 | 12,514 | ||||||||
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TOTAL
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$ | 520,683 | $ | 446,439 | ||||||
| LIABILITIES AND STOCKHOLDERS’ (DEFICIENCY) EQUITY | ||||||||||
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LIABILITIES NOT SUBJECT TO COMPROMISE:
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||||||||||
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CURRENT LIABILITIES:
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||||||||||
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Accounts payable — trade
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$ | 72,860 | $ | 44,612 | ||||||
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Current portion of long-term debt
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281,680 | 13,153 | ||||||||
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Accrued and other liabilities
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48,446 | 27,800 | ||||||||
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Total current liabilities
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402,986 | 85,565 | ||||||||
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LONG-TERM DEBT, Net
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27,592 | 244,340 | ||||||||
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OTHER LONG-TERM LIABILITIES
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15,280 | 13,555 | ||||||||
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DEFERRED REVENUES
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69,918 | |||||||||
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Total liabilities not subject to compromise
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515,776 | 343,460 | ||||||||
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LIABILITIES SUBJECT TO COMPROMISE
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727,522 | |||||||||
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Total liabilities
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1,243,298 | 343,460 | ||||||||
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COMMITMENTS AND CONTINGENCIES (NOTE 13) STOCKHOLDERS’ (DEFICIENCY) EQUITY: |
||||||||||
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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 | |||||||||
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Common Stock, $0.01 par value; 300,000,000 shares
authorized, 91,428,570 shares issued and outstanding in 2002
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914 | |||||||||
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Additional paid in capital
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537,583 | 96,331 | ||||||||
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Common stock reserve pool (Note 2)
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— | (6,037 | ) | |||||||
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(Accumulated deficit) retained earnings
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(1,276,845 | ) | 19,205 | |||||||
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Deferred stock-based compensation
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(4,530 | ) | (1,320 | ) | ||||||
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Accumulated other comprehensive income (loss)
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20,263 | (5,301 | ) | |||||||
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Total stockholders’ (deficiency) equity
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(722,615 | ) | 102,979 | |||||||
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TOTAL
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$ | 520,683 | $ | 446,439 | ||||||
See notes to condensed consolidated financial statements.
F-1
IMPSAT FIBER NETWORKS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Predecessor | Successor | Predecessor | Predecessor | Successor | |||||||||||||||||||
| Company | Company | Company | Company | Company | |||||||||||||||||||
| Three Months Ended | Nine Months | Three Months | Six Months | ||||||||||||||||||||
| September 30, | Ended | Ended | Ended | ||||||||||||||||||||
| September 30, | March 31, | September 30, | |||||||||||||||||||||
| 2002 | 2003 | 2002 | 2003 | 2003 | |||||||||||||||||||
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NET REVENUES:
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|||||||||||||||||||||||
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Broadband and satellite
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$ | 42,318 | $ | 40,754 | $ | 133,089 | $ | 41,382 | $ | 82,534 | |||||||||||||
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Internet
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6,332 | 6,199 | 21,459 | 5,733 | 11,960 | ||||||||||||||||||
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Value added services
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3,408 | 4,031 | 10,520 | 4,781 | 7,883 | ||||||||||||||||||
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Telephony
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2,915 | 4,844 | 11,231 | 4,106 | 9,440 | ||||||||||||||||||
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Sales of equipment
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335 | 611 | 763 | 74 | 996 | ||||||||||||||||||
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Total net revenues
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55,308 | 56,439 | 177,062 | 56,076 | 112,813 | ||||||||||||||||||
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COSTS AND EXPENSES:
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Direct costs:
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Contracted services
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3,491 | 4,218 | 14,574 | 4,125 | 8,744 | ||||||||||||||||||
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Other direct costs
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5,378 | 5,902 | 15,932 | 4,696 | 13,770 | ||||||||||||||||||
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Leased capacity
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17,417 | 16,757 | 57,305 | 17,407 | 34,315 | ||||||||||||||||||
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Cost of equipment sold
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67 | 245 | 307 | 48 | 353 | ||||||||||||||||||
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Total direct costs
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26,353 | 27,122 | 88,118 | 26,276 | 57,182 | ||||||||||||||||||
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Salaries and wages
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10,852 | 11,983 | 36,486 | 10,727 | 23,825 | ||||||||||||||||||
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Selling, general and administrative
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6,669 | 6,249 | 22,058 | 5,553 | 13,375 | ||||||||||||||||||
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Gain on extinguishment of debt
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(5,460 | ) | (16,367 | ) | (14,253 | ) | |||||||||||||||||
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Depreciation and amortization
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16,706 | 10,312 | 63,974 | 19,216 | 19,281 | ||||||||||||||||||
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Total costs and expenses
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60,580 | 50,206 | 194,269 | 61,772 | 99,410 | ||||||||||||||||||
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Operating (loss) income
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(5,272 | ) | 6,233 | (17,207 | ) | (5,696 | ) | 13,403 | |||||||||||||||
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OTHER INCOME (EXPENSES):
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|||||||||||||||||||||||
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Interest income
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436 | 328 | 1,963 | 200 | 690 | ||||||||||||||||||
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Interest expense (contractual interest of $36,899
and $114,385 for the three and nine months ended
September 30, 2002, respectively, and $21,801 for the three
months ended March 31, 2003 (Predecessor))
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(13,455 | ) | (4,493 | ) | (86,176 | ) | (1,909 | ) | (10,165 | ) | |||||||||||||
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Net (loss) gain on foreign exchange
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(62,621 | ) | (3,611 | ) | (115,052 | ) | 9,969 | 17,834 | |||||||||||||||
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Reorganization items
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(9,297 | ) | (14,989 | ) | 726,127 | ||||||||||||||||||
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Other (loss) income, net
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(2,103 | ) | (894 | ) | (3,808 | ) | 2,781 | (1,208 | ) | ||||||||||||||
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Total other (expenses) income
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(87,040 | ) | (8,670 | ) | (218,062 | ) | 737,168 | 7,151 | |||||||||||||||
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(LOSS) INCOME BEFORE INCOME
TAXES |
(92,312 | ) | (2,437 | ) | (235,269 | ) | 731,472 | 20,554 | |||||||||||||||
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PROVISION FOR FOREIGN INCOME
TAXES |
(407 | ) | (605 | ) | (1,558 | ) | (406 | ) | (1,349 | ) | |||||||||||||
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NET (LOSS) INCOME
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$ | (92,719 | ) | $ | (3,042 | ) | $ | (236,827 | ) | $ | 731,066 | $ | 19,205 | ||||||||||
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NET (LOSS) INCOME PER COMMON SHARE:
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BASIC AND DILUTED
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$ | (1.01 | ) | $ | (0.30 | ) | $ | (2.59 | ) | $ | 8.00 | $ | 1.91 | ||||||||||
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES:
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|||||||||||||||||||||||
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BASIC AND DILUTED
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91,429 | 10,100 | 91,429 | 91,429 | 10,050 | ||||||||||||||||||
See notes to condensed consolidated financial statements.
F-2
IMPSAT FIBER NETWORKS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
| Predecessor | Successor | Predecessor | Predecessor | Successor | ||||||||||||||||||
| Company | Company | Company | Company | Company | ||||||||||||||||||
| Three Months Ended | Nine Months | Three Months | Six Months | |||||||||||||||||||
| September 30, | Ended | Ended | Ended | |||||||||||||||||||
| September 30, | March 31, | September 30, | ||||||||||||||||||||
| 2002 | 2003 | 2002 | 2003 | 2003 | ||||||||||||||||||
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NET (LOSS) INCOME
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$ | (92,719 | ) | $ | (3,042 | ) | $ | (236,827 | ) | $ | 731,066 | $ | 19,205 | |||||||||
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OTHER COMPREHENSIVE (LOSS) INCOME:
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Foreign currency translation
adjustment |
37,247 | (1,009 | ) | 44,954 | (4,097 | ) | (5,547 | ) | ||||||||||||||
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Unrealized (loss) gain on investments
available for sale
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(225 | ) | 184 | (1,454 | ) | 55 | 246 | |||||||||||||||
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Recognition of other-than-temporary decline in
value of investment
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41 | 857 | ||||||||||||||||||||
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TOTAL
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37,063 | (825 | ) | 44,357 | (4,042 | ) | (5,301 | ) | ||||||||||||||
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COMPREHENSIVE (LOSS)
INCOME |
$ | (55,656 | ) | $ | (3,867 | ) | $ | (192,470 | ) | $ | 727,024 | $ | 13,904 | |||||||||