12th Nov 2007 12:30
Grupo Clarin S.A.12 November 2007 GRUPO CLARIN ANNOUNCES ITS RESULTS FOR THE FIRST NINE MONTHS OF 2007 Buenos Aires, Argentina, November 12, 2007 - Grupo Clarin S.A. ("Grupo Clarin"or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company inArgentina, announced today its results for the first nine months of 2007 ("9M07"). Figures in this report have been prepared in accordance withArgentine GAAP and are stated in Argentine Pesos as of September 30, 2007,unless otherwise indicated. Highlights (9M07 vs. 9M06): • Net Sales reached Ps. 3117.5 million, an increase of 77.5% from 9M06 largely due to the increase in our ownership interest in Cablevision S.A. and the acquisition of Holding Teledigital S.A. in September 2006 ("The Cablevision Acquisition") • Adjusted EBITDA(1) increased by 130.7% from 9M06 to Ps. 952.1 million, driven by the Cablevision Acquisition. • As a result, Adjusted EBITDA Margin(3) was 30.5%, up from the 23.5% reported in 9M06. • Net Income reached Ps. 122.8 million. • On October 18, 2007, Grupo Clarin conducted a US$463 million Initial Public Offering in the local and international markets. Its shares and GDSs are now trading on the Buenos Aires Stock Exchange (ticker: GCLA) and on the London Stock Exchange (ticker: GCLA), respectively. Comments from the Vice Chairman of Grupo Clarin: Mr. Jose A. Aranda, Vice Chairman of Grupo Clarin, stated, "We are pleased toreport our first results of operation as a publicly traded company. Thesuccessful completion of our IPO last month provides evidence of the strength ofour business and the confidence the market places on our management and staff todeliver returns for shareholders. Our results for the first nine months reaffirmmy confidence in our quality, scale and our ability to continue consolidatingour leadership in our core businesses." Investor Relations Contacts In Buenos Aires:Alfredo Marin/M. Julia Diaz ArdayaGrupo ClarinEmail: [email protected] In London:Tom Allison/Alex Money/Caroline MerrellTemple Bar AdvisoryTel: +44 20 7002 1080Email: [email protected] In New York:Melanie Carpenter/Peter MajeskiI-advize Corporate CommunicationsTel: +1 212 406 3692Email: [email protected] FINANCIAL HIGHLIGHTS (In millions of Ar. Ps.) 9M07 9M06 % Var. 3Q07 3Q06 % Var. Net Sales 3,117.5 1,756.1 77.5 1,124.2 614.6 82.9Adjusted EBITDA (1) (2) 952.1 412.8 130.7 335.5 143.8 133.3Adjusted EBITDA Margin %(3) 30.5 23.5 29.9 29.8 23.4 27.5Net Income 122.8 763.2 -83.9 19.3 781.2 -97.5 (1) We define Adjusted EBITDA as net sales minus cost of sales (excludingdepreciation and amortization) and selling and administrative expenses(excluding depreciation and amortization). We believe that Adjusted EBITDA is ameaningful measure of our performance because it is commonly used in theindustry to analyze and compare media companies on the basis of operatingperformance, leverage and liquidity. Nonetheless, Adjusted EBITDA is not ameasure of net income or cash flow from operations and should not be consideredas an alternative to net income, an indication of our financial performance, analternative to cash flow from operating activities or a measure of liquidity.Because Adjusted EBITDA is not an Argentine GAAP measure, other companies maycompute Adjusted EBITDA in a different manner. Therefore, Adjusted EBITDA asreported by other companies may not be comparable to Adjusted EBITDA as wereport it. (2) Includes approximately Ps.12 million of expenses related to the companiesintegration process in the Cable TV and Internet access segment. (3) We define Adjusted EBITDA Margin as Adjusted EBITDA over Net Sales. OPERATING RESULTS Net sales reached Ps. 3,117.5 million, an increase of 77.5% from Ps. 1,756.1million reported for 9M06. This increase was mainly due to the growth in ourCable TV and Internet access segment as a result of the Cablevision Acquisition. Following is a breakdown of net sales by business segment: Net Sales (In millions of Ps.) 9M07 9M06 % Var. 3Q07 3Q06 % Var. Cable TV & Internet access 1,890.9 689.8 174.1 671.9 251.7 167.0Printing & Publishing 819.1 697.3 17.5 294.7 233.9 26.0Broadcasting & Programming 550.0 428.9 28.2 195.1 149.6 30.4Digital Content & Others 100.2 63.5 57.8 35.2 21.9 60.8Subtotal 3,360.1 1,879.5 78.8 1,196.9 657.1 82.1Eliminations -242.6 -123.4 96.6 -72.7 -42.5 70.9Total 3,117.5 1,756.1 77.5 1,124.2 614.6 82.9 Cost of sales reached Ps. 1,512.7 million, an increase of 52.9% from Ps. 989.1in 9M06. This increase was mainly due to the growth in our Cable TV and Internetaccess segment attributable to the Cablevision Acquisition. Selling and Administrative Expenses (Excluding Depreciation and Amortization)reached Ps. 652.6 million, an increase of 84.3% from Ps. 354.1 million reportedfor 9M06. This increase was mainly due to the growth in our Cable TV andInternet access segment attributable to the Cablevision Acquisition. Financial results, net totaled Ps. -345.6 million, from Ps. 965.1 million in9M06. Financial Results net, for 9M06 reflect the non-recurring gains generatedby the completion of Multicanal's debt restructuring. Equity in earnings from unconsolidated affiliates totaled Ps. 7.8 million,compared to Ps. 239.5 million for 9M06. Equity in earnings from unconsolidatedaffiliates for 9M06 are attributable primarily to the non-recurrent gain of Ps.246.8 million recorded as a result of the dilution for the benefit of existingshareholders (the Company and AGEA) generated by the capitalization ofapproximately US$ 182.0 million of outstanding debt in exchange for sharesrepresenting approximately 35% of Multicanal's total capital pursuant to theterms of Multicanal's APE in July 2006. Other income (expenses), net reached Ps.-16.5 million, compared to Ps. 0.1million in 9M06. Adjusted EBITDA reached Ps. 952.1 million, an increase of 130.7% from Ps. 412.8million in 9M06. This increase was mainly due to the growth in our Cable TV andInternet access segment attributable to the Cablevision Acquisition. Following is a breakdown of adjusted EBITDA by business segment: Adjusted EBITDA (In millions of Ps.) 9M07 9M06 % Var. 3Q07 3Q06 % Var. Cable TV & Internet access 645.1 164.3 293.0 226.5 58.6 286.3Printing & Publishing 186.2 176.5 5.5 60.6 55.2 9.7Broadcasting & Programming 93.7 53.2 76.0 38.7 23.4 65.2Digital Content & Others 26.8 18.9 42.1 9.8 6.7 47.2Subtotal 952.1 412.9 130.6 335.5 143.9 133.2Eliminations - -0.1 - - -0.1 -Total 952.1 412.8 130.7 335.5 143.8 133.3 Net income totaled Ps. 122.8 million, a decrease of 83.9% from Ps. 763.2 millionin 9M06. While our adjusted EBITDA in the Cable TV and Internet access segmentgrew due to the Cablevision Acquisition as described herein, our net income for9M06 included the non-recurrent gains resulting from the completion ofMulticanal's debt restructuring in July 2006. Income tax reached Ps. 126.0 million, from Ps. 451.1 million in 9M06. Thisdecrease was mainly due to the non-recurrent gains in 2006 generated by thecompletion of Multicanal's debt restructuring. Capital expenditures reached Ps. 400.4 million, an increase of 186.6% from Ps.139.7 million in 9M06. This increase was mainly due to investments made in thenetwork by our Cable TV and Internet access segment. Debt profile (1): Debt coverage ratio for the period ended September 30, 2007,was 2.4x, while Net Debt at the end of this period totaled Ps. 3,037.2 million. (1) Debt Coverage Ratio is defined as Total Financial Debt minus Cash andEquivalents divided by Adjusted EBITDA (last 12 months) RESULTS BY BUSINESS SEGMENT CABLE TV AND INTERNET ACCESS Net Sales Net sales increased by 174.1% to Ps 1,890.9 million for the nine-month periodended 30 September 2007 compared to Ps. 689.8 million for the nine-month periodended 30 September 2006. The increase in net sales was principally attributableto the consolidation of Cablevision in our Cable TV and Internet access segmentas a consequence of the Cablevision Acquisition, and, to a lesser extent, anincrease in the number of subscribers through internal growth, includingadditional Internet subscribers, and in average subscription charges for cabletelevision registered in 2006 and in the first nine months of 2007. Total cableTV basic subscribers amounted to 2,969,790 as of 30 September 2007 compared to2,834,940 as of 30 September 2006, and Internet subscribers amounted to 716,142as of September 30 2007, compared to 560,827 as of September 30, 2006. Cost of Sales (Excluding Depreciation and Amortization) Cost of sales (excluding depreciation and amortization) increased by 129.8% toPs. 799.7 million for the first nine months of 2007, compared to Ps. 348.0million for the same period in 2006. This increase was mainly due to theCablevision Acquisition, and to a lesser extent, the increase in our programmingcosts attributable to internal growth in our subscriber base and pricingadjustments linked to basic monthly fee increases contemplated in certainprogramming contracts, and the effect of salary increases. Selling and Administrative Expenses (Excluding Depreciation and Amortization) Selling and administrative expenses (excluding depreciation and amortization)increased by 151.1% to Ps. 445.7 million for the first nine months of 2007,compared to Ps. 177.5 million for the same period in 2006. This increase wasmainly due to the Cablevision Acquisition. The increase in expenses forsalaries, wages, social security charges and other personnel expenses reflectsprimarily the Cablevision acquisition and the effect of salary increases. Thisincrease also includes approximately Ps.12 million of expenses related to theintegration of our cable TV and Internet access operations. Depreciation and Amortization Depreciation expenses of property, plant and equipment increased by 186.6% toPs. 175.3 million for the nine months ended 30 September 2007 from Ps. 61.2million for the same period in 2006. The increase reflects the CablevisionAcquisition, and additions of cable and network equipment during 2006 and thefirst nine months of 2007. We also recorded Ps. 86.8 million in amortizationexpenses for the nine months ended 30 September 2007 compared to Ps. 4.5 millionfor the same period in 2006. The increase is mainly attributable to theintangible assets related to the purchase of Cablevision's and Teledigital'ssubscriber portfolios in September 2006. PRINTING AND PUBLISHING Net Sales Net sales increased by 17.5% to Ps. 819.1 million in the first nine months of2007, compared to Ps. 697.3 million in the first nine months of 2006. Theincrease was the result of an increase in advertising yield, the increase insales of optional products and in the cover price of newspapers. Cost of Sales (Excluding Depreciation and Amortization) Cost of sales (excluding depreciation and amortization) increased by 15.0% toPs. 420.6 million in the first nine months of 2007, compared to Ps. 365.8million in the first nine months of 2006. The increase was primarily the resultof an increase of the costs of raw materials (mainly paper and ink) and energycost of paper production due to the substitution of gas for fuel oil required bythe constrains imposed on the supply of energy in Argentina, as well as a resultof higher wages and salaries and a larger payroll. Selling and Administrative Expenses (Excluding Depreciation and Amortization) Selling and administrative expenses (excluding depreciation and amortization)increased by 36.9% to Ps. 212.3 million in the first nine months of 2007,compared to Ps. 155.1 million in the first nine months of 2006. The increase wasprimarily the result of an increase in wages and salaries, and advertisingexpenses. Depreciation and Amortization Depreciation and amortization expenses increased by 2.5% to Ps. 26.3 million inthe first nine months of 2007, compared to Ps. 25.6 million in the first ninemonths of 2006. The increase reflects capital expenditures made during 2006 andthe first nine months of 2007. BROADCASTING AND PROGRAMMING Net Sales Net sales increased by ----8.2% to Ps. 550.0 million (including Ps. 108.2million to our other segments) in the first nine months of 2007, compared to Ps.428.9 million (including Ps. 39.5 million to our other segments) in the firstnine months of 2006. The increase was primarily the result of a higher level ofadvertising sales and the increases in the pricing of cable signal and sportsprogramming, attributable to contract formulas that link pricing to increases inthe monthly fees and a larger subscriber base. Cost of Sales (Excluding Depreciation and Amortization) Cost of sales (excluding depreciation and amortization) increased by 19.6% toPs. 355.1 million in the first nine months of 2007, compared to Ps. 296.8million in the first nine months of 2006. The increase was primarily the resultof higher programming costs and salaries and, to a lesser extent, a largerpayroll. Selling and Administrative Expenses (Excluding Depreciation and Amortization) Selling and administrative expenses (excluding depreciation and amortization)increased by 28.4% to Ps. 101.3 million in the first nine months of 2007,compared to Ps. 78.9 million in the first nine months of 2006. The increase wasprimarily the result of higher salaries and the acquisition of Ideas del Sur. Depreciation and Amortization Depreciation and amortization expenses increased by 11.7% to Ps. 12.7 million inthe first nine months of 2007, compared to Ps. 11.4 million in the first ninemonths of 2006. The increase is attributable to the amortization of intangibleassets resulting from the acquisition of Ideas del Sur in 2006. DIGITAL CONTENT AND OTHERS Net sales in this segment are derived from administrative and corporate servicesrendered by the Company and by our subsidiary GC Gestion Compartida S.A. tothird parties as well as to other subsidiaries of the Company (which areeliminated in the consolidation). Additionally, this segment includes theproduction of digital content. Net sales to third parties are largely derivedfrom advertising in our web pages and portals. Cost of sales (excludingdepreciation and amortization) is driven by salaries and professional fees paidto advisers. OPERATING STATISTICS BY BUSINESS SEGMENT CABLE TV AND INTERNET ACCESS 9M07 9M06 % Var. 3Q07 2Q07 % Var. Homes Passed (1) 6,753.6 n/a 6,753.6 6,753.6 0Bidirectional Homes Passed 42% n/a 42% 42% 0Cable TVSubscribers (1) 2,969.8 2,834.9 4.8 2,969.8 2,903.8 2.3% over Homes Passed 44% n/a 44% 43% 2.3Churn Rate % 12.7% n/a 12.7% 10.5% 1.9Digital VideoDigital ready Pay TV Subs (1) 1,354.3 n/a 1,354.3 1,322.8 2.4Subscribers (1) 165.0 n/a 165.0 117.1 40.9Penetration over Digital Ready TVSubs 12% n/a 12% 9% 37.6Internet SubscribersTotal Internet Subscribers (1) 716.1 560.8 27.7 716.1 657.2 9.0Broadband Subscribers (1) 679.0 506.7 34.0 679.0 614.7 10.5% over Bidirectional Homes Passed 24% n/a 24% 22% 10.5Total ARPU(2) 72.4 n/a 76.3 71.2 7.0 (1) Figures in thousands (2) Average Net Sales/average Pay TV Subscribers PRINTING AND PUBLISHING 9M07 9M06 % Var. 3Q07 3Q06 % Var.Circulation (1) 446.9 468.5 -4.6 438.4 455.3 -3.7Circulation share (%) (2) 50.2 50.4 -0.3 50.1 50.5 -0.8Advertising pages share %(2) 60.0 60.8 -1.4 59.1 60.5 -2.4 (1) Average number of copies according to IVC (including Diario Clarin and Ole) (2) Share in Buenos Aires and greater Buenos Aires Area (AMBA) Diario Clarin.Company estimates. BROADCASTING AND PROGRAMMING 9M07 9M06 % Var. 3Q07 3Q06 % Var.Advertising Share % (1) 46.2 42.6 8.5 47.0 41.8 12.6Audience Share % (2)Prime Time 41.5 38.2 8.5 45.9 39.8 15.5Total Time 33.7 29.3 14.8 36.1 29.7 21.6 (1) Company estimate, over adspend in Ps. in free TV for AMBA region excludingnon-traditional advertising. (2) Share of free TV audience according to IBOPE for AMBA. Prime time isdefined as Monday through Friday from 8pm to 12am. Total time is defined asMonday through Sunday from 12 pm to 12 am. DIGITAL CONTENT AND OTHERS Sep-07 Sep-06 % Var.Page Views (1) 345.5 194.1 82.5Unique Visitors (1) 9.3 6.9 34.3 (1) In millions, source IAB DEBT AND LIQUIDITY (In millions of Ps.) 9M07Short Term and Long Term DebtCurrent Financial Debt 517.1Financial loans 334.6Negotiable obligations 99.6Accrued interest 44.0Acquisition of equipment 3.8Sellers Financing Capital 11.9Sellers Financing accrued interest 23.3Non- Current Financial Debt 2,947.5Financial loans 82.2Negotiable obligations 1,998.4Accrued interest 0.9Acquisition of equipment 0.9Sellers Financing 865.2Total Financial Debt (A) 3,464.6Bank overdraft 6.3Measurement at fair Value -85.3Total Short Term and Long Term Debt 3,385.7 Cash and Cash Equivalents (B) 427.5Net Debt (A) - (B) 3,037.2Net Debt/Adjusted Ebitda (Last 12 Months) 2.4x% US$ Debt 81%% Ar. Ps Debt 19% RECENT EVENTS IPO Completed - On October 18, 2007, Grupo Clarin's shares were priced at Ps.29.14 per share and the GDSs were priced at US$ 18.50 per GDS (1 GDS = 2shares). The total proceeds of the IPO were US$463 million, of which 30 percentwas for the primary offering and seventy percent for the secondary offering.Twenty percent of the shares sold were placed in the Argentine market and eightypercent in the international markets. The Company and certain sellingshareholders granted an overallotment option which has not been exercised tothis date. The shares and GDSs began trading in the Buenos Aires and LondonStock Exchanges, respectively, on October 24, 2007. The Company intends to usethe net proceeds of the offering to cancel up to US$80 million of Vistone LLCindebtedness and the balance to develop its businesses and for general corporatepurposes. Long-Term Savings Plan - Subsequent to year-end, the Company, together with itssubsidiaries, started an implementation process of a contribution plan (aLong-Term Savings Plan) for certain executives. Through this plan, participatingexecutives will undertake to regularly contribute a portion of their salary(variable within a certain range, at the employee's option) to a fund that willallow them to increase their income at the retirement age. Furthermore, eachcompany of the Group where such executives render services will contribute tothe fund a sum equal to that contributed by such executives. This contributionwill be added to the fund raised by the employees. The final expense in whichthe Company, together with its subsidiaries, will incur depends on the number ofexecutives that elect to participate in the contribution plan, the portion ofthe salary each participating executive decides to contribute (within thedefined range) and on the years of service of each participating executive. CONFERENCE CALL INFORMATION ERENCE CALL INFORMATION There will be two conference calls, in English and in Spanish, to discuss GrupoClarin's Third Quarter 2007 Results on Monday, November 12, 2007 Presentations by: Alejandro Urricelqui, Chief Financial Officer /Alfredo Marin,Investor Relations Officer English Call Time: 12 pm (noon) Buenos Aires Time / 3 pm London Time / 10 am New York Time. To access the call, please dial: UK Participants: +44 (800) 032 3836 - U.S.Participants: +1 (888) 868 9079 - Argentina and all other countries: +1 (973)935 8510 - Access code: 9425380 Spanish Call Time: 2 pm Buenos Aires / 5 pm London Time / 12 pm (noon) New York Time To access the call, please dial: From Argentina: 0800 666 1537 - From all othercountries: +1 (706) 643 9176 - Access code: 24214565 Replays of the calls will be available one hour after their conclusion, and willremain available for 48 hours. For the English call, please dial from withinthe U.K. +44 (800) 169 3875, from within the U.S. +1 (877) 519-4471, or fromoutside the U.S. +1 (973) 341-3080, and enter Conference ID# 9425380. For theSpanish call, please dial from within Argentina 0 800 666 1537, and from othercountries +1 (706) 645 9291, and enter Conference ID# 24214565. ABOUT THE COMPANY Grupo Clarin is the largest media company in Argentina and the market leader inthe cable television and Internet access, printing and publishing, andbroadcasting and programming segments. Its cable television network is thelargest in Latin America, with the largest broadband subscriber base inArgentina. Its flagship newspaper -Diario Clarin- is the highest circulationnewspaper in Latin America and the second-highest circulation Spanish-languagenewspaper in the world. Grupo Clarin is the largest producer of media contentin Argentina, including news, sports and entertainment and reaches substantiallyall segments of the Argentine population in terms of wealth, geography and age. Disclaimer Some of the information in this press release may contain projections or otherforward-looking statements regarding future events or the future financialperformance of Grupo Clarin. You can identify forward-looking statements byterms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similarexpressions. These statements are only predictions and actual events or resultsmay differ materially. Grupo Clarin does not intend to or undertake anyobligation to update these statements to reflect events and circumstancesoccurring after the date hereof or to reflect the occurrence of unanticipatedevents. Many factors could cause the actual results to differ materially fromthose contained in Grupo Clarin's projections or forward-looking statements,including, among others, general economic conditions, Grupo Clarin's competitiveenvironment, risks associated with operating in Argentina a, rapid technologicaland market change, and other factors specifically related to Grupo Clarin andits operations. 9 CONSOLIDATED STATEMENTS OF OPERATIONS For the Nine-Month Periods Ended September 30, 2007 and 2006 In Argentine Pesos (Ps.) As of September 30, 2007 September 30, 2006 Net sales 3.117.495.091 1.756.078.055Cost of sales (excluding depreciation and amortization) (1.512.734.017) (989.149.307) Subtotal 1.604.761.074 766.928.748 Expenses (excluding depreciation and amortization)Selling expenses (322.775.934) (176.364.934)Administrative expenses (329.856.149) (177.774.185)xpsesSubtotal expenses (652.632.083) (354.139.119) Depreciation of property, plant and equipment(1) (213.658.278) (99.161.093)Amortization of intangible assets (90.946.916) (7.304.238)Depreciation of other investments (107.294) (289.040) Depreciation and amortization subtotal (304.712.488) (106.754.371) Financing and holding resultsGenerated by assetsInterest 18.642.224 20.194.655Other taxes and expenses (43.940.521) (24.171.260)Impairment of inventories, plant and equipment and investments (2.610.890) (281.000)Exchange differences 6.820.232 21.515.782Holding gains (losses) on inventories 3.447.180 3.771.370Holding gains (losses) on financial instruments (4.264.403) -Effect of financial discounts on assets 36.756 47.709Other 303.970 55.100 Generates by liabilities Interest (198.990.265) (203.359.721)Other taxes and expenses - (2.328.314)Exchange differences (79.031.992) (60.240.518)Result of financial restructuring - 1.246.496.775Effect of financial discounts on liabilities (32.785.367) (2.308.292)Fees and other financial expenses (146.048) (12.276.480)CER restatement (1.247.862) (7.031.361)Holding gains (losses) on financial instruments (9.325.746) (15.265.113)Other (2.517.359) 330.385 Equity in earnings from unconsolidated affiliates 7.819.626 239.495.392Other expense, net (16.538.434) 53.127 Income/(loss) before income tax, tax on assets and minority interest 293.087.604 1.510.733.494 Income tax and tax on assets (125.959.132) (451.124.588) Minority interest (44.280.352) (296.428.549) Net income 122.848.120 763.180.357 (1) Chargeable to:Cost of sales (193.850.500) (87.255.133)Selling expenses (12.460.208) (4.791.876)Administrative expenses (7.347.570) (7.114.084) CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine-Month Periods Ended September 30, 2007 and 2006 in Argentine Pesos (Ps.) September 30, 2007 September 30, 2006CASH PROVIDED BY OPERATING ACTIVITIES Net income for the period 122.848.120 763.180.357 Income tax and tax on assets 125.959.132 451.124.588Accrued interest 180.348.041 183.165.066 Adjustments to reconcile net income for the period to cashprovided by operating activitiesDepreciation of property, plant and equipment 213.658.278 99.161.093Amortization of intangible assets 90.946.916 7.304.238Depreciation of other investments 107.294 289.040Setting up / (Reversal) of allowances for doubtful accounts 16.069.271 (5.801.707)Setting up of provisions for contingencies 9.022.314 2.049.643Exchange difference and other financial results 116.969.691 66.176.751Equity in earnings from unconsolidated affiliates (7.819.626) (239.495.392)Minority interest 44.280.352 296.428.549Holding (gains) / losses on financial instruments 13.590.149 15.265.113Holding (gains) / losses on inventories (3.447.180) (3.771.370)Gains on sale of property, plant and equipment 1.747.141 (41.457)Result of financial restructuring - (1.246.496.775)Allowance for impairment of plant and equipment, inventories 2.610.890 281.000and investmentsChanges in assets and liabilities:Trade receivables, net (16.302.145) (64.798.712)Other receivables, net (18.007.401) (27.913.959)Inventories (39.999.613) (38.619.855)Other assets (3.023.281) 15.929.150Accounts payable 51.636.994 52.400.856Salaries and Social Security payable 19.135.130 20.928.399Taxes payable (11.483.859) (12.924.081)Other liabilities (39.504.293) 9.162.543Provisions (8.905.674) (2.222.495)Income tax and tax on assets payments (82.885.129) (78.178.838)Cash generated by operating activities 777.551.512 262.581.745CASH USED IN INVESTING ACTIVITIES Payment for the acquisition of property, plant and equipment (400.433.687) (139.725.453)Payments for acquisitions of intangible assets (9.112.633) (1.540.819)Loans granted (8.525.000) -Payments for the acquisition of subsidiaries net of the cash (62.616.333) 5.419.307acquiredPayments for the acquisition of other investments - (14.719.018)Collection for proceeds from sale of property, plant and 5.126.118 100.195equipmentRestricted cash - 45.750.000Collection of interest 5.275.241 645.951Collection of dividends - 548.800Cash used in investing activities (470.286.294) (103.521.037)CASH USED IN FINANCING ACTIVITIES Loans obtained 5.885.965 346.329.528Repayment of loans - principal (93.627.203) (528.122.481)Payment of interest (141.540.201) (157.887.303)Net Collections (payments) of financial instruments 145.482 (12.199.335)Payment of fees on bank and financial debt restructuring - (32.181.608)Sellers financing (8.247.431) -Reserve account (14.931.104) -Payment of dividends (18.000.000) -Payment to minority shareholders (3.301.578) -Change in minority interest - 8.313.465Cash used in financing activities (273.616.070) (375.747.734) FINANCING AND HOLDING RESULTS GENERATED BY CASH AND CASH 20.121.559 10.744.707EQUIVALENTS Net increase in cash flow 38.707.295 (205.942.319)Cash and equivalents at the beginning of the year 381.242.555 487.052.926 Cash and equivalents at period end (1) 427.481.556 281.110.607 (1) It includes:Cash and banks 252.356.485 187.437.997Investments with maturities of less than three months 175.125.071 93.672.610 CONSOLIDATED BALANCE SHEETS As of September 30, 2007 and December 31, 2006 In Argentine Pesos (Ps.) As of September 30, 2007 December 31, 2006 ASSETS CURRENT ASSETS Cash and Banks 252.356.485 299.100.551Short-term investments 175.125.071 82.142.004Trade receivables, net 483.327.998 460.608.164Other receivables, net 138.704.735 148.251.933Inventories 190.186.225 152.704.766Other assets 79.640.230 65.235.709 Total current assets 1.319.340.744 1.208.043.127 NON-CURRENT ASSETS Trade receivables, net 10.309.018 9.741.215Other receivables, net 187.973.631 151.084.555Inventories 42.265.265 32.850.180Investment in unconsolidated affiliates 26.412.156 72.521.864Other long-term investments 7.036.006 7.031.748Property, plant and equipment, net 1.557.373.286 1.342.725.846Intangible assets, net 1.005.417.615 1.086.559.244Other assets 205.455 - Subtotal 2.836.992.432 2.702.514.652 Goodwill 2.572.427.412 2.476.156.285 Total non-current assets 5.409.419.844 5.178.670.937 Total assets 6.728.760.588 6.386.714.064 LIABILITIES CURRENT LIABILITIES Accounts payable 494.128.304 437.439.485Short-term debt and current portion of long-term debt 488.301.022 420.508.325Salaries and Social Security payable 140.898.959 118.426.541Taxes payable 199.627.087 177.406.201Other liabilities 114.677.762 136.463.000 Total current liabilities 1.437.633.134 1.290.243.552 NON-CURRENT LIABILITIES Accounts payable 13.990.329 10.640.522Long-term debt 1.997.041.111 2.057.858.346Salaries and Social Security payable 127.464 309.668Taxes payable 18.685.618 14.759.728Other liabilities 1.056.341.424 1.010.446.297Provisions 123.138.638 112.879.172 Total non-current liabilities 3.209.324.584 3.206.893.733 Total liabilities 4.646.957.718 4.497.137.285 MINORITY INTEREST 411.839.547 354.381.111 SHAREHOLDERS' EQUITY 1.669.963.323 1.535.195.668 Total liabilities, minority interest and shareholders' equity 6.728.760.588 6.386.714.064 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
GCLA.L