Filed by UnitedGlobalCom, Inc. pursuant to
Rule 425 under the Securities Act of 1933
Subject Company: UnitedGlobalCom, Inc.
Commission File No. 000-49658
Subject Company: Liberty Media International, Inc.
Commission File No. 000-50671
Searchable text section of graphics shown above
UnitedGlobalCom, Inc.
[PHOTO]
Allen & Company
Scottsdale, Arizona
March 8, 2005
[LOGO]
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:
Forward Looking Statements: Except for historical information contained herein, this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including guidance given for 2004 and completion of the proposed merger with Liberty Media International (LMI). These forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include our ability to complete the proposed merger by obtaining the approval of holders of a majority of the aggregate voting power of our shares not beneficially owned by LMI, Liberty Media Corporation (“Liberty”) or any of their respective subsidiaries or any of the executive officers or directors of LMI, Liberty or the Company and satisfaction of other conditions necessary to close the merger, our ability to successfully integrate our recently acquired French and Irish systems and fully recognize the anticipated synergies, continued use by subscribers and potential subscribers of the Company’s services, changes in the technology and competition, our ability to achieve expected operational efficiencies and economies of scale, our ability to generate expected revenue and achieve assumed margins, as well as other factors detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any guidance and other forward-looking statement contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Please refer to the Appendix at the end of this presentation, as well as the Company’s Press Release dated November 9, 2004 and SEC filings, for definitions of the following terms which are used herein including: Operating Cash Flow (OCF), Free Cash Flow, Revenue Generating Units (RGUs), and Average Revenue per Unit (ARPU), as well as a GAAP reconciliation of non-GAAP financial measures.
Page 2
UnitedGlobalCom, Inc. (“UGC”) and Liberty Media International, Inc. (“LMI”) have filed a preliminary Joint Proxy Statement relating to their proposed merger as well as a related Schedule 13E-3. Liberty Global, Inc. (“Liberty Global”) plans to shortly file a Registration Statement on Form S-4 which will contain a Prospectus/Joint Proxy Statement with respect to the proposed merger. UGC AND LMI STOCKHOLDERS AND OTHER INVESTORS ARE URGED TO READ THESE DOCUMENTS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS WHEN AVAILABLE) BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION. Investors may obtain these documents free of charge at the SEC’s website at www.sec.gov. In addition, copies of the Prospectus/Joint Proxy Statement and other related documents filed by the parties to the merger may be obtained free of charge by directing a request to UnitedGlobalCom, Inc., 4643 South Ulster Street, Suite 1300, Denver, Colorado 80237, Attention: Investor Relations Department, telephone: 303-770-4001.
Participants in Solicitation
UGC and its directors and executive officers may be deemed to be participants in the solicitation of proxies from UGC’s stockholders in connection with the special meeting of stockholders to be held to approve the merger with LMI through the formation of a new holding company to be named Liberty Global. Information concerning UGC’s directors and executive officers and their direct and indirect interests in UGC and LMI is set forth in UGC’s and LMI’s preliminary Joint Proxy Statement filed with the SEC on February 14, 2005. A definitive proxy statement will be mailed to UGC stockholders when available. Stockholders may obtain these documents (when available) free of charge at the SEC’s website at www.sec.gov. In addition, copies of the definitive Prospectus/Joint Proxy Statement (when available) may be obtained free of charge by directing a request to UnitedGlobalCom, Inc., 4643 South Ulster Street, Suite 1300, Denver, Colorado 80237, Attention: Investor Relations Department, telephone: 303-770-4001. UGC STOCKHOLDERS SHOULD READ THE PROSPECTUS/JOINT PROXY STATEMENT AND OTHER RELEVANT DOCUMENTS CAREFULLY BEFORE MAKING ANY VOTING DECISION BECAUSE IT CONTAINS IMPORTANT INFORMATION.
Page 3
UGC Overview
|
|
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• Leading international MSO |
|
[LOGO] |
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- 16m homes serviceable |
|
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- 11.6m total RGUs |
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• Integrated broadband model |
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[LOGO] |
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- State-of-the-art networks |
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- Over 2.2m voice & data subs |
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[LOGO] |
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- New products & services |
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• Best in class performance |
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[LOGO] |
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- Strong balance sheet |
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- Organic & strategic growth |
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“RGUs” — Please see Appendix for definition.
Page 5
2004 Results
|
2004 Guidance |
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Target (1) |
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Net Adds (RGUs) |
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500,000 |
|
ý |
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Revenue (organic) |
|
/|\ 10% |
|
ý |
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RevOCF (organic) |
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/|\ 20%+ |
|
ý |
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OCF Result |
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$ |
850 mill. |
|
ý |
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Capex % of Rev |
|
20 |
% |
ý |
|
(1) All guidance is “organic” and excludes acquisitions and the impact of FX rates, with the exception of the OCF Result.
Page 6
Track Record of Growth(1)
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Revenue |
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[GRAPH] |
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Operating |
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[GRAPH] |
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Cash Flow |
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(1) For all periods, excludes the impact of acquisitions, deconsolidations, and/or dispositions, etc. (e.g., Noos acquisition in ’04, deconsolidation of Austar in ’01). Please see appendix for detailed reconciliations.
(2) Represents UGC’s results as of September 30, 2004 annualized
Page 7
Current Ownership Structure
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53% <– – – – – – – – – – – – – – – – – – Today |
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[LOGO] |
[LOGO] |
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[LOGO] |
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[LOGO] |
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[LOGO] |
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[LOGO] |
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[LOGO] |
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Cash & Other Assets |
Page 9
What’s Happening in the U.S.?
Business strategies are colliding
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Telcos |
—> |
Video |
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Satellite |
—> |
2-way |
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Cable |
—> |
Voice |
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Mobile |
—> |
Content |
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Other |
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• Everyone’s obsessed with wireless |
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• Content wins either way |
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• Technology
providers are hedging |
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• Consumers will call the shots! |
Page 13
Impact on Our Business
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Competition drives our product and network decisions in Europe |
||
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What it Means |
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Our Response |
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• Incumbent telcos & DSL attackers exploiting double and triple play • Emerging DTT and IPTV video competition • Commoditization of data • Pricing pressure in voice • Potential loss of digital “high ground” |
|
• Expand product portfolio • Expand footprint and reach
• Bundle the triple play • Exploit scale & network advantages • Invest in content as differentiator |
Page 14
|
RGU Breakdown(1) |
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European Stats(2) |
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[GRAPH] |
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Pen % |
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ARPU |
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GM% |
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Video |
56 |
% |
$ |
12 |
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85 |
% |
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Voice |
13 |
% |
$ |
39 |
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69 |
% |
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Data |
13 |
% |
$ |
43 |
|
98 |
% |
|
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11.1m Total RGUs |
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|||||||
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(1) RGUs at September 30, 2004 (2) Based on UGC Europe’s YTD results as of September 30, 2004. |
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Page 15
European Product Strategy
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Digital Home – Anything, Anytime, Anywhere
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|||||
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Video Content Leadership “Best Content – |
Voice Price Leadership “Beat on Price – |
Data Product Leadership “Meet on Price – |
|||
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Mobile 4 – Play Positioning “Take your home with you” |
Off Footprint National Coverage “Compete head-to-head with the Telcos” |
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Page 16
Video Strategy
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Digital Home – Anything, Anytime, Anywhere
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||||
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Video Content Leadership “Best Content – |
Voice Price Leadership “Beat on Price – |
Data Product Leadership “Meet on Price – |
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||
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• Maintain basic share • Customer service and value • Evaluate “Digital conversions” • Up sell |
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Page 17
Data Strategy
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Digital Home – Anything, Anytime, Anywhere
|
||||
|
Video Content Leadership “Best Content – |
Voice Price Leadership “Beat on Price – |
Data Product Leadership “Meet on Price – |
||
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|
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|
||
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• Broad portfolio of data tiers • Exploit network superiorty • “Ultra Speed” leader (20 MB) • Value added services |
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Page 18
Data Tiering
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Digital Home – Anything, Anytime, Anywhere
|
||
|
Video Content Leadership “Best Content – |
Voice Price Leadership “Beat on Price – |
Data Product Leadership “Meet on Price – |
The Netherlands
|
TIER |
|
RATE |
|
SEPT ‘04 |
|
OCT ‘04 |
|
Q1 ‘05 |
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Q3/Q4 ‘05 |
|
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Starter |
|
$18.25 |
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128 / 64 |
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|
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256 / 64 |
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|
|
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Entry |
|
$28.00 |
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400 / 128 |
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|
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512 / 128 |
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Light |
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$40.00 |
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1024 / 256 |
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2048 / 512 |
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Classic |
|
$61.00 |
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2560 / 384 |
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4096 / 1000 |
|
|
|
8000 / 1000 |
|
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Plus |
|
$97.50 |
|
4608 / 512 |
|
8000 / 1000 |
|
|
|
16000 / 1000 |
|
Page 19
Data Economics(1)
|
US$ Millions |
|
9 Mos Sep ’04 |
|
Per Sub |
|
||
|
Revenue |
|
$ |
358.1 |
|
$ |
43 |
|
|
Gross Margin |
|
349.5 |
|
42 |
|
||
|
GM % |
|
98 |
% |
98 |
% |
||
|
OCF |
|
$ |
198.7 |
|
$ |
24 |
|
|
OCF % |
|
|
55 |
% |
|
55 |
% |
|
Annualized OCF |
|
$ |
264.9 |
|
$ |
285 |
|
|
|
|
|
|
|
|
|
|
|
1) End-to-end analysis for European business, including the 20% revenue split to chellomedia division. Derived from Q3 ’04 figures using internal cost allocation methodology, and converted at YTD average of 1.23 $ / Euro. |
|
||||||
Page 20
Voice Strategy
|
Digital Home – Anything, Anytime, Anywhere
|
||||
|
Video Content Leadership “Best Content – |
Voice Price Leadership “Beat on Price – |
Data Product Leadership “Meet on Price – |
||
|
|
|
|
||
|
|
• Roll-out VoIP (“Digital Phone”) • NL and HU launched Q4’04 • 5.5m homes RFS by mid-year • Push the voice/data bundle |
|
||
Page 21
VoIP Marketing
• Primary line for 25-50% less than incumbent
• Lower usage rates & unlimited domestic packages
• Ease of use - number portability - feature rich
|
[PHOTO] |
|
[PHOTO] |
Page 22
VoIP Results
• 50,000 sales in first 10-12 weeks
• 50% - 75% of sales bundled with Internet
• 25,000 net adds at YE’04; growing backlog
[GRAPH]
Page 23
VoIP Economics
|
(€’s per Sub/Month) |
|
TDM |
|
VoIP |
|
||
|
Revenue |
|
€ |
35.50 |
|
€ |
31.40 |
|
|
Direct Cost |
|
-12.80 |
|
-12.80 |
|
||
|
Gross Margin |
|
22.70 |
|
18.60 |
|
||
|
|
|
|
|
|
|
||
|
Opex |
|
-4.80 |
|
-3.80 |
|
||
|
Operating CF |
|
17.90 |
|
14.80 |
|
||
|
|
|
|
|
|
|
||
|
Cost of Acquisition |
|
|
|
|
|
||
|
Marketing |
|
€ |
110 |
|
€ |
90 |
|
|
CPE |
|
265 |
|
63 |
|
||
|
Install/Other |
|
115 |
|
65 |
|
||
|
Total |
|
490 |
|
218 |
|
||
|
|
|
|
|
|
|
||
|
Payback (1) |
|
34 mos |
|
17 mos |
|
||
|
(1) Cash on cash payback, including a 15% WACC. |
|
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Page 24
Bundling
Current Status
• Now launched in 7 markets
• Total ARPU per customer up 8% year-over year
• Austria proves the model – 42% customers bundled
|
|
|
[PHOTO] |
|
|
|
|
|
[GRAPH] |
|
[PHOTO] |
1) Converted from euros to dollars at nine month 2004 average of 1.22
Page 25
European Consolidation
|
General |
|
Acquisition |
|
Characteristics |
|
Criteria |
|
• Highly fragmented • Financial investors • Favorable regulatory frameworks • Three types of markets • Valuation gaps in WE • Significant growth in CEE • Pan-European scale benefits |
|
• Consolidate or enter new markets • Value, value, value • Triple play potential • Realizable synergies • Appropriate free cash flow profile • Maintain reasonable leverage |
|
|
|
|
Page 26
Selected 2004 Deals
|
Deal |
|
Country |
|
RGU's |
|
Indicative Multiple (1) |
|
Rationale |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noos |
|
France |
|
1.7m |
|
7.3x |
|
Consolidation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Telemach |
|
Slovenia |
|
110k |
|
8.2x |
|
New market |
|
|
|
|
|
|
|
|
|
|
|
|
|
Chorus |
|
Ireland |
|
200k |
|
6.9x |
|
New market |
|
|
|
|
|
|
|
|
|
|
|
|
|
Telenet |
|
Belgium |
|
2.5m |
|
7.8x |
|
Strategic |
|
(1) Please refer to our prior releases for further details on the valuations of these transactions.
Page 27
Conclusions
• Premier international MSO
• Best in class organic cash flow growth
• Outstanding internal and external strategic growth opportunities
• Creation of Liberty Global will significantly enhance platform scale and balance sheet
Page 28
Appendix
Operating Cash Flow Definition
• Operating Cash Flow is the primary measure used by our chief operating decision makers to evaluate segment-operating performance and to decide how to allocate resources to segments. As we use the term, Operating Cash Flow is defined as revenue less operating, selling, general and administrative expenses (excluding depreciation and amortization, impairment of long-lived assets, restructuring charges and other and stock-based compensation). We believe Operating Cash Flow is meaningful because it provides investors a means to evaluate the operating performance of our segments and our company on an ongoing basis using criteria that is used by our internal decision makers. Our internal decision makers believe Operating Cash Flow is a meaningful measure and is superior to other available GAAP measures because it represents a transparent view of our recurring operating performance and allows management to readily view operating trends, perform analytical comparisons and benchmarking between segments in the different countries in which we operate and identify strategies to improve operating performance. For example, our internal decision makers believe that the inclusion of impairment and restructuring charges within Operating Cash Flow distorts their ability to efficiently assess and view the core operating trends in our segments. In addition, our internal decision makers believe our measure of Operating Cash Flow is important because analysts and investors use it to compare our performance to other companies in our industry. We reconcile the total of the reportable segments’ Operating Cash Flow to our consolidated net income as presented in the accompanying condensed consolidated statements of operations, because we believe consolidated net income is the most directly comparable financial measure to total segment operating performance. Investors should view Operating Cash Flow as a supplement to, and not a substitute for, operating income, net income, cash flow from operating activities and other GAAP measures of income as a measure of operating performance.
Page 30
Operating Cash Flow Definition
• Free Cash Flow is not a GAAP measure of liquidity. We define Free Cash Flow as net cash flows from operating activities less capital expenditures. We believe our presentation of free cash flow provides useful information to our investors because it can be used to gauge our ability to service debt and fund new investment opportunities. Investors should view free cash flow as a supplement to, and not a substitute for, GAAP cash flows from operating, investing and financing activities as a measure of liquidity.
• Revenue Generating Unit (“RGU”) is separately an Analog Cable Subscriber, DTH Subscriber, Digital Cable Subscriber, Broadband Internet Subscriber or Telephone Subscriber. A home may contain one or more RGUs. For example, if a residential customer in our Austrian system subscribed to our analog cable service, digital cable service, telephone service and high-speed Internet access service, the customer would constitute four RGUs. “Total RGUs” is the sum of Analog, DTH, Digital Cable, Broadband Internet and Telephone Subscribers.
• Average Revenue Per Unit (“ARPU”) is calculated as follows: average monthly broadband revenue for the period as indicated, divided by the average of the opening and closing RGUs for the period as indicated.
Page 31
Non-GAAP Reconcilliations
Reconcilliation of Operating Cash flow to Net Income (loss) (1)
|
(thousands) |
|
3 months |
|
3 months |
|
9 months |
|
9 months |
|
|||||
|
Total segment Operating Cash Flow |
|
$ |
241,703 |
|
$ |
171,366 |
|
$ |
640,515 |
|
$ |
442,868 |
|
|
|
Depreciation and amortization |
|
(235,186 |
) |
(192,002 |
) |
(667,298 |
) |
(598,207 |
) |
|||||
|
Impairment of longlived assets |
|
25 |
|
441 |
|
(16,598 |
) |
441 |
|
|||||
|
Restructuring charges |
|
(1,824 |
) |
18 |
|
(10,749 |
) |
(6,886 |
) |
|||||
|
Stock-based compensation |
|
(12,178 |
) |
(14,261 |
) |
(63,894 |
) |
(28,647 |
) |
|||||
|
Operating income (loss) |
|
(7,460 |
) |
(34,438 |
) |
(118,024 |
) |
(190,431 |
) |
|||||
|
Interest expense, net |
|
(53,616 |
) |
(71,247 |
) |
(187,806 |
) |
(253,210 |
) |
|||||
|
Foreign currency exchange gain (loss), net |
|
21,771 |
|
(269,598 |
) |
(7,061 |
) |
175,890 |
|
|||||
|
Loss on derivative instruments |
|
(16,838 |
) |
(103 |
) |
(14,512 |
) |
(11,497 |
) |
|||||
|
Gain (loss) on sale of investments in affiliates |
|
|
|
|
|
|
|
|
|
|||||
|
and other assets, net |
|
(1,174 |
) |
(283 |
) |
(1,574 |
) |
281,321 |
|
|||||
|
Gain on extinguishment of debt |
|
— |
|
2,109,596 |
|
35,787 |
|
2,183,997 |
|
|||||
|
Other income (expense), net |
|
302 |
|
(7,935 |
) |
830 |
|
(41,658 |
) |
|||||
|
Income (loss) before income taxes and other items |
|
(57,015 |
) |
1,725,992 |
|
(292,360 |
) |
2,144,412 |
|
|||||
|
Other, net |
|
(13,195 |
) |
11,117 |
|
(22,386 |
) |
231,650 |
|
|||||
|
Net income (loss) |
|
($70,210 |
) |
$ |
1,737,109 |
|
($314,746 |
) |
$ |
2,376,062 |
|
|||
Reconcilliation of Free Cash flow
|
|
|
3 months |
|
3 months |
|
9 months |
|
9 months |
|
||||||
|
(thousands) |
|
Sep-04 |
|
Sep-03 |
|
Sep-04 |
|
Sep-03 |
|
||||||
|
Net cash flows from operating activities |
|
$ |
175,064 |
|
$ |
98,701 |
|
$ |
473,347 |
|
$ |
273,441 |
|
||
|
Capital expenditures |
|
(116,696 |
) |
(94,755 |
) |
(292,557 |
) |
(227,698 |
) |
||||||
|
Free cash flow |
|
$ |
58,368 |
|
$ |
3,946 |
|
$ |
180,790 |
|
$ |
45,743 |
|
||
1. We are unable to provide a reconciation of forecasted Operating Cash Fow to the most drectly comparable GAAP measure, net income, because certan items are out of our control and/or cannot be reasonably predicted. For exampe, it is impractcal to: (1estmate future fluctuations in interest rates on our varable-rate debt facies; 2) estmate the fuctuations in exchange rates relatve to the U.S. dollar and its impact on our results of operatons; (3mate the fnancial results of our non-consolidated affates; and (4estmate changes in circumstances that lead to gains and/or losses such as sales of nvestments in affiliates and other assets. Any and/or all of these items coud be significant to our financia results.“and calculation.
Page 32
Pro-Forma Leverage
|
|
|
FYE '03 |
|
Q4 '03 |
|
Q1 '04 |
|
Q2 '04 |
|
Q3 '04 |
|
||||||
|
Debt Summary: |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
UPC Distribution Bank Facility |
|
$ |
3,698,586 |
|
$ |
3,698,586 |
|
$ |
3,584,272 |
|
$ |
3,224,816 |
|
$ |
3,495,406 |
|
|
|
UGC Convertible Notes |
|
— |
|
— |
|
609,830 |
|
621,813 |
|
|
|
||||||
|
UPC Polska Notes |
|
317,372 |
|
317,372 |
|
— |
|
— |
— |
— |
|
||||||
|
UPC Polska 2007 Notes |
|
— |
|
101,701 |
|
101,701 |
|
|
|
|
|
||||||
|
VTR Bank Facility |
|
123,000 |
|
123,000 |
|
93,198 |
|
88,586 |
|
83,972 |
|
||||||
|
Old UGC Senior Notes |
|
24,627 |
|
24,627 |
|
24,627 |
|
24,627 |
|
24,627 |
|
||||||
|
Notes payable, related party |
|
102,728 |
|
102,728 |
|
— |
|
— |
|
— |
|
||||||
|
Subject to compromise: short term debt |
|
5,099 |
|
5,099 |
|
|
|
|
|
|
|
||||||
|
Other |
|
80,493 |
|
80,493 |
|
74,198 |
|
55,980 |
|
60,653 |
|
||||||
|
Total Debt |
|
$ |
4,351,905 |
|
$ |
4,351,905 |
|
$ |
3,877,996 |
|
$ |
4,105,540 |
|
$ |
4,286,471 |
|
|
|
Less: UPC Polska notes (1) |
|
(322,471 |
) |
(322,471 |
) |
|
|
— |
|
— |
|
||||||
|
Add: UPC Polska note (2) |
|
101,701 |
|
101,701 |
|
— |
|
— |
|
— |
|
||||||
|
Less: Notes Payable, related party (3) |
|
(102,728 |
) |
(102,728 |
) |
— |
|
— |
|
— |
|
||||||
|
4 Less: VTR GlobalCom |
|
(25,233 |
) |
(25,233 |
) |
— |
|
— |
|
— |
|
||||||
|
5 Add: Euro Convertible |
|
630,279 |
|
630,279 |
|
605,400 |
|
|
|
|
|
||||||
|
Add: Noos Acquisition 6 |
|
127,042 |
|
|
|
|
|
|
|
|
|
||||||
|
Pro-Forma Debt |
|
$ |
4,633,453 |
|
$ |
4,633,453 |
|
$ |
4,483,396 |
|
$ |
4,232,582 |
|
$ |
4,286,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cash Summary |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cash & cash equivalents |
|
$ |
310,361 |
|
$ |
310,361 |
|
$ |
1,275,785 |
|
$ |
1,368,677 |
|
$ |
981,638 |
|
|
|
Restricted cash |
|
25,052 |
|
25,052 |
|
18,169 |
|
20,237 |
|
23,367 |
|
||||||
|
Short-term liquid investments |
|
2,134 |
|
2,134 |
|
19,621 |
|
207,194 |
|
111,536 |
|
||||||
|
Total Cash |
|
337,547 |
|
337,547 |
|
1,313,575 |
|
1,596,108 |
|
1,116,541 |
|
||||||
|
Rights Offering and Liberty Preemptive Rights 3 |
|
1,075,385 |
|
1,075,385 |
|
— |
|
— |
|
— |
|
||||||
|
Less: VTR GlobalCom |
|
(25,233 |
) |
(25,233 |
) |
— |
|
— |
|
|
|
||||||
|
Less: UPC Polska payment (2) |
|
(81,361 |
) |
(81,361 |
) |
— |
|
— |
|
— |
|
||||||
|
Add: Euro Convertible (5) |
|
617,673 |
|
617,673 |
|
593,292 |
|
— |
|
— |
|
||||||
|
Less: Noos Acquisition (6) |
|
(514,130 |
) |
|
|
|
|
|
|
|
|
||||||
|
Pro-Forma Cash |
|
$ |
1,924,011 |
|
$ |
1,924,011 |
|
$ |
1,906,867 |
|
$ |
1,081,978 |
|
$ |
1,116,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net Debt |
|
$ |
4,014,358 |
|
$ |
4,014,358 |
|
$ |
2,564,421 |
|
$ |
2,509,432 |
|
$ |
3,169,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Pro-Forma Net Debt |
|
$ |
2,709,442 |
|
$ |
2,709,442 |
|
$ |
2,576,529 |
|
$ |
3,150,603 |
|
$ |
3,169,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Operating Cash Flow ("OCF") |
|
$ |
628,882 |
|
$ |
186,014 |
|
$ |
204,284 |
|
$ |
194,528 |
|
$ |
241,703 |
|
|
|
Add: Noos Operating Cash Flow (6) |
|
— |
|
— |
|
— |
|
26,129 |
|
— |
|
||||||
|
Pro-Forma Operating Cash Flow ("OCF") |
|
$ |
628,882 |
|
$ |
186,014 |
|
$ |
204,284 |
|
$ |
220,657 |
|
$ |
241,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net Debt / Annualized OCF (OCF * (4)) |
|
6.4x |
|
5.4x |
|
3.1x |
|
3.2x |
|
3.3x |
|
||||||
|
Pro Forma Net Debt / Pro-Forma Annualized OCF |
|
4.3x |
|
3.6x |
|
3.2x |
|
3.6x |
|
3.3x |
|
||||||
1. Represents the sum of all of the notes outstanding of UPC and UPC Polska (UPC Polska restructuring completed in February 2004) per UGC’s filings.
2. Per the final terms and conditions of the UPC Polska restructuring, completed in February 2004, virtually all existing debt was cancelled and in exchange UPC Polska issued to the third party bondholders $101.7 million in new 9.0% senior notes, and paid $81.4 million in cash.
3. Includes proceeds of approximately $1.02 billion from the rights offering completed in February 2004, as well as the net proceeds from Liberty of $157 million when Liberty exercised its preemptive right for certain transactions (e.g., UGC Europe exchange offer) less cancellation of the Notes Payable to Liberty for $103 million.
4. VTR was required to make a loan repayment of over $25 million as per the loan agreement.
5. UGC received net proceeds of Euro 490mm (Euro 500mm par value) from its recent convertible offering (US$ equivalent based on F/X spot rates as of the reporting dates as indicated).
6. Noos was acquired in July 2004, as discussed previously in the presentation.
Page 33
Supplemental Information
|
|
|
For the 3 months ended |
|
For the 9 months ended |
|
||||||||||||
|
(amounts in thousands) |
|
Sep-04 |
|
Sep-03 |
|
Sep-04 |
|
Sep-03 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest Expense Breakdown: |
|
|
|
|
|
|
|
|
|
||||||||
|
Cash Pay: |
|
|
|
|
|
|
|
|
|
||||||||
|
UPC Distribution Bank Facility |
|
$ |
(49,588 |
) |
$ |
(64,172 |
) |
$ |
(167,727 |
) |
$ |
(199,432 |
) |
||||
|
UGC Convertible Notes |
|
(2,675 |
) |
— |
|
(5,135 |
) |
— |
|
||||||||
|
VTR Bank Facility |
|
(1,582 |
) |
(2,073 |
) |
(5,207 |
) |
(7,286 |
) |
||||||||
|
UPC Polska 2007 Notes |
|
— |
|
— |
|
(3,392 |
) |
— |
|
||||||||
|
Old UGC senior notes |
|
— |
|
(691 |
) |
(86 |
) |
(1,655 |
) |
||||||||
|
Other |
|
(1,976 |
) |
(2,826 |
) |
(9,601 |
) |
(7,833 |
) |
||||||||
|
Total |
|
(55,821 |
) |
(69,762 |
) |
(191,148 |
) |
(216,206 |
) |
||||||||
|
Non-Cash: |
|
|
|
|
|
|
|
|
|
||||||||
|
UPC Polska senior discount notes accretion 1 |
|
— |
|
(1,323 |
) |
— |
|
(29,151 |
) |
||||||||
|
Old UGC senior notes accretion |
|
— |
|
— |
|
— |
|
(313 |
) |
||||||||
|
Amortization of deferred financing costs |
|
(3,175 |
) |
(2,860 |
) |
(13,561 |
) |
(18,143 |
) |
||||||||
|
Total |
|
(3,175 |
) |
(4,183 |
) |
(13,561 |
) |
(47,607 |
) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Interest Expense |
|
$ |
(58,996 |
) |
$ |
(73,945 |
) |
$ |
(204,709 |
) |
$ |
(263,813 |
) |
||||
|
Summary of Working Capital Changes: 2 |
|
|
|
|
|
|
|
|
|
||||||||
|
Change in receivables and other assets |
|
$ |
33,537 |
|
$ |
12,910 |
|
($14,830 |
) |
$ |
69,461 |
|
|||||
|
Change in accounts payable, acc. liabilities & other |
|
(29,858 |
) |
(19,572 |
) |
70,953 |
|
(32,360 |
) |
||||||||
|
Total |
|
$ |
3,679 |
|
($6,662 |
) |
$ |
56,123 |
|
$ |
37,101 |
|
|||||
1. Per the final terms and conditions of the UPC Polska restructuring, completed in February 2004, virtually all existing debt was cancelled and in exchange UPC Polska issued to the third party bondholders $101.7 million in new 9.0% senior notes, and paid $81.1 million in cash. In addition, the $101.7 million notes were repaid in full in July 2004 with proceeds from the UPC Distribution Co. Bank Facility.
2. Please refer to management’s discussion and analysis of financial condition and results of operations for interest expense and Statement of Cash Flows for working capital changes per UGC’s 10Q as of September 30, 2004 and June 30, 2004.
Page 34
|
|
|
Revenue for the Nine Months Ended September 30 |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
Increase (Decrease) |
|
||||||||
|
|
|
|
|
|
|
Increase (Decrease) |
|
Excluding F/X Effects |
|
||||||||
|
|
|
2004 |
|
2003 |
|
$ |
|
% |
|
$ |
|
% |
|
||||
|
Europe (UGC Europe): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
UPC Broadband |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
The Netherlands |
|
$ |
178,996 |
|
$ |
150,838 |
|
$ |
28,158 |
|
18.7 |
% |
$ |
14,028 |
|
9.3 |
% |
|
Austria |
|
72,482 |
|
65,085 |
|
7,397 |
|
11.4 |
% |
1,692 |
|
2.6 |
% |
||||
|
France (other than Noos) |
|
31,905 |
|
29,744 |
|
2,161 |
|
7.3 |
% |
(357 |
) |
(1.2 |
)% |
||||
|
France (Noos) |
|
88,686 |
|
— |
|
88,686 |
|
— |
|
88,686 |
|
— |
|
||||
|
Norway |
|
27,140 |
|
22,912 |
|
4,228 |
|
18.5 |
% |
2,520 |
|
11.0 |
% |
||||
|
Sweden |
|
21,141 |
|
18,710 |
|
2,431 |
|
13.0 |
% |
692 |
|
3.7 |
% |
||||
|
Belgium |
|
9,195 |
|
7,785 |
|
1,410 |
|
18.1 |
% |
685 |
|
8.8 |
% |
||||
|
Total Western Europe |
|
429,545 |
|
295,074 |
|
134,471 |
|
45.6 |
% |
107,946 |
|
36.6 |
% |
||||
|
Hungary |
|
53,194 |
|
40,358 |
|
12,836 |
|
31.8 |
% |
6,699 |
|
16.6 |
% |
||||
|
Poland |
|
28,464 |
|
21,391 |
|
7,073 |
|
33.1 |
% |
4,770 |
|
22.3 |
% |
||||
|
Czech Republic |
|
19,644 |
|
15,422 |
|
4,222 |
|
27.4 |
% |
2,375 |
|
15.4 |
% |
||||
|
Slovak Republic |
|
7,967 |
|
6,164 |
|
1,803 |
|
29.3 |
% |
869 |
|
14.1 |
% |
||||
|
Romania |
|
6,842 |
|
4,543 |
|
2,299 |
|
50.6 |
% |
2,431 |
|
53.5 |
% |
||||
|
Total Central and Eastern Europe |
|
116,111 |
|
87,878 |
|
28,233 |
|
32.1 |
% |
17,144 |
|
19.5 |
% |
||||
|
Corporate and other |
|
6,668 |
|
8,607 |
|
(1,939 |
) |
(22.5 |
)% |
(2,462 |
) |
(28.6 |
)% |
||||
|
Total UPC Broadband |
|
552,324 |
|
391,559 |
|
160,765 |
|
41.1 |
% |
122,628 |
|
31.3 |
% |
||||
|
chellomedia |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Priority Telecom |
|
29,308 |
|
29,972 |
|
(664 |
) |
(2.2 |
)% |
(2,967 |
) |
(9.9 |
)% |
||||
|
Media |
|
32,218 |
|
25,508 |
|
6,710 |
|
26.3 |
% |
4,183 |
|
16.4 |
% |
||||
|
Investments |
|
187 |
|
60 |
|
127 |
|
211.7 |
% |
113 |
|
188.3 |
% |
||||
|
Total chellomedia |
|
61,713 |
|
55,540 |
|
6,173 |
|
11.1 |
% |
1,329 |
|
2.4 |
% |
||||
|
Intercompany eliminations |
|
(35,286 |
) |
(33,261 |
) |
(2,025 |
) |
6.1 |
% |
765 |
|
(2.3 |
)% |
||||
|
Total Europe |
|
578,751 |
|
413,838 |
|
164,913 |
|
39.8 |
% |
124,722 |
|
30.1 |
% |
||||
|
Latin America: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Broadband |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Chile (VTR) |
|
75,096 |
|
58,608 |
|
16,488 |
|
28.1 |
% |
9,436 |
|
16.1 |
% |
||||
|
Brazil, Peru and other |
|
1,909 |
|
2,069 |
|
(160 |
) |
(7.7 |
)% |
(160 |
) |
(7.7 |
)% |
||||
|
Total Latin America |
|
77,005 |
|
60,677 |
|
16,328 |
|
26.9 |
% |
9,276 |
|
15.3 |
% |
||||
|
Corporate and other |
|
2,707 |
|
— |
|
2,707 |
|
100.0 |
% |
2,707 |
|
100.0 |
% |
||||
|
Total UGC |
|
$ |
658,463 |
|
$ |
474,515 |
|
$ |
183,948 |
|
38.8 |
% |
$ |
136,705 |
|
28.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Less Noos |
|
|
|
|
|
$ |
(88,686 |
) |
— |
|
$ |
(88,686 |
) |
— |
|
||
|
Total UGC, excluding Noos |
|
|
|
|
|
$ |
95,262 |
|
20.1 |
% |
$ |
48,019 |
|
10.1 |
% |
||
Page 35
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) |
|
||||||
|
|
|
|
|
|
|
Increase (Decrease) |
|
Excluding F/X Effects |
|
||||||||
|
|
|
2004 |
|
2003 |
|
$ |
|
% |
|
$ |
|
% |
|
||||
|
Europe (UGC Europe): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
UPC Broadband |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
The Netherlands |
|
$ |
519,948 |
|
$ |
430,620 |
|
$ |
89,328 |
|
20.7 |
% |
$ |
41,340 |
|
9.6 |
% |
|
Austria |
|
221,780 |
|
189,880 |
|
31,900 |
|
16.8 |
% |
11,393 |
|
6.0 |
% |
||||
|
France (other than Noos) |
|
94,164 |
|
84,435 |
|
9,729 |
|
11.5 |
% |
1,013 |
|
1.2 |
% |
||||
|
France (Noos) |
|
88,686 |
|
— |
|
88,686 |
|
— |
|
88,686 |
|
— |
|
||||
|
Norway |
|
81,134 |
|
69,978 |
|
11,156 |
|
15.9 |
% |
8,397 |
|
12.0 |
% |
||||
|
Sweden |
|
64,315 |
|
54,867 |
|
9,448 |
|
17.2 |
% |
3,402 |
|
6.2 |
% |
||||
|
Belgium |
|
27,243 |
|
23,071 |
|
4,172 |
|
18.1 |
% |
1,661 |
|
7.2 |
% |
||||
|
Total Western Europe |
|
1,097,270 |
|
852,851 |
|
244,419 |
|
28.7 |
% |
155,892 |
|
18.3 |
% |
||||
|
Hungary |
|
155,666 |
|
121,300 |
|
34,366 |
|
28.3 |
% |
21,349 |
|
17.6 |
% |
||||
|
Poland |
|
76,687 |
|
63,200 |
|
13,487 |
|
21.3 |
% |
11,250 |
|
17.8 |
% |
||||
|
Czech Republic |
|
58,438 |
|
45,775 |
|
12,663 |
|
27.7 |
% |
8,331 |
|
18.2 |
% |
||||
|
Slovak Republic |
|
23,837 |
|
18,634 |
|
5,203 |
|
27.9 |
% |
2,217 |
|
11.9 |
% |
||||
|
Romania |
|
18,775 |
|
14,441 |
|
4,334 |
|
30.0 |
% |
4,462 |
|
30.9 |
% |
||||
|
Total Central and Eastern Europe |
|
333,403 |
|
263,350 |
|
70,053 |
|
26.6 |
% |
47,609 |
|
18.1 |
% |
||||
|
Corporate and other |
|
18,722 |
|
23,043 |
|
(4,321 |
) |
(18.8 |
)% |
(6,037 |
) |
(26.2 |
)% |
||||
|
Total UPC Broadband |
|
1,449,395 |
|
1,139,244 |
|
310,151 |
|
27.2 |
% |
197,464 |
|
17.3 |
% |
||||
|
chellomedia |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Priority Telecom |
|
86,794 |
|
89,998 |
|
(3,204 |
) |
(3.6% |
) |
(11,250 |
) |
(12.5% |
) |
||||
|
Media |
|
91,140 |
|
72,251 |
|
18,889 |
|
26.1 |
% |
10,549 |
|
14.6 |
% |
||||
|
Investments |
|
640 |
|
331 |
|
309 |
|
93.4 |
% |
248 |
|
74.9 |
% |
||||
|
Total chellomedia |
|
178,574 |
|
162,580 |
|
15,994 |
|
9.8 |
% |
(453 |
) |
(0.3 |
)% |
||||
|
Intercompany eliminations |
|
(102,166 |
) |
(93,627 |
) |
(8,539 |
) |
(9.1 |
)% |
843 |
|
0.9 |
% |
||||
|
Total Europe |
|
1,525,803 |
|
1,208,197 |
|
317,606 |
|
26.3 |
% |
197,854 |
|
16.4 |
% |
||||
|
Latin America: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Broadband |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Chile (VTR) |
|
216,537 |
|
161,667 |
|
54,870 |
|
33.9 |
% |
25,382 |
|
15.7 |
% |
||||
|
Brazil, Peru and other |
|
5,830 |
|
5,794 |
|
36 |
|
0.6 |
% |
36 |
|
0.6 |
% |
||||
|
Total Latin America |
|
222,367 |
|
167,461 |
|
54,906 |
|
32.8 |
% |
25,418 |
|
15.2 |
% |
||||
|
Corporate and other |
|
2,707 |
|
8 |
|
2,699 |
|
100.0 |
% |
2,699 |
|
100.0 |
% |
||||
|
Total UGC |
|
$ |
1,750,877 |
|
$ |
1,375,666 |
|
$ |
375,211 |
|
27.3 |
% |
$ |
225,971 |
|
16.4 |
% |
|
Less Noos |
|
|
|
|
|
$ |
(88,686 |
) |
— |
|
$ |
(88,686 |
) |
— |
|
||
|
Total UGC, excluding Noos |
|
|
|
|
|
$ |
286,525 |
|
20.8 |
% |
$ |
137,285 |
|
10.0 |
% |
||
Page 36
|
|
|
Operating Cash Flow for the Three Months Ended September 30, |
|
||||||||||||||
|
|
|
|
|
|
|
Increase (Decrease) |
|
Increase (Decrease) |
|
||||||||
|
|
|
2004 |
|
2003 |
|
$ |
|
% |
|
$ |
|
% |
|
||||
|
Europe (UGC Europe): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
UPC Broadband |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
The Netherlands |
|
$ |
93,596 |
|
$ |
78,608 |
|
$ |
14,988 |
|
19.1 |
% |
$ |
7,546 |
|
9.6 |
% |
|
Austria |
|
28,221 |
|
25,830 |
|
2,391 |
|
9.3 |
% |
232 |
|
0.9 |
% |
||||
|
France (other than Noos) |
|
4,945 |
|
5,651 |
|
(706 |
) |
(12.5 |
)% |
(1,130 |
) |
(20.0 |
)% |
||||
|
France (Noos) |
|
17,777 |
|
— |
|
17,777 |
|
— |
|
17,777 |
|
— |
|
||||
|
Norway |
|
9,680 |
|
7,402 |
|
2,278 |
|
30.8 |
% |
1,665 |
|
22.5 |
% |
||||
|
Sweden |
|
8,762 |
|
8,249 |
|
513 |
|
6.2 |
% |
(198 |
) |
(2.4 |
)% |
||||
|
Belgium |
|
4,396 |
|
2,811 |
|
1,585 |
|
56.4 |
% |
1,254 |
|
44.6 |
% |
||||
|
Total Western Europe |
|
167,377 |
|
128,551 |
|
38,826 |
|
30.2 |
% |
27,146 |
|
21.1 |
% |
||||
|
Hungary |
|
20,810 |
|
14,574 |
|
6,236 |
|
42.8 |
% |
3,906 |
|
26.8 |
% |
||||
|
Poland |
|
9,987 |
|
5,645 |
|
4,342 |
|
76.9 |
% |
3,534 |
|
62.6 |
% |
||||
|
Czech Republic |
|
9,969 |
|
6,910 |
|
3,059 |
|
44.3 |
% |
2,128 |
|
30.8 |
% |
||||
|
Slovak Republic |
|
3,507 |
|
2,175 |
|
1,332 |
|
61.2 |
% |
948 |
|
43.6 |
% |
||||
|
Romania |
|
3,051 |
|
1,992 |
|
1,059 |
|
53.2 |
% |
1,121 |
|
56.3 |
% |
||||
|
Total Central and Eastern Europe |
|
47,324 |
|
31,296 |
|
16,028 |
|
51.2 |
% |
11,637 |
|
37.2 |
% |
||||
|
Corporate and other |
|
(14,950 |
) |
(16,756 |
) |
1,806 |
|
10.8 |
% |
2,765 |
|
16.5 |
% |
||||
|
Total UPC Broadband |
|
199,751 |
|
143,091 |
|
56,660 |
|
39.6 |
% |
41,548 |
|
29.0 |
% |
||||
|
chellomedia |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Priority Telecom |
|
4,011 |
|
3,780 |
|
231 |
|
6.1 |
% |
(83 |
) |
(2.2 |
)% |
||||
|
Media |
|
10,129 |
|
8,264 |
|
1,865 |
|
22.6 |
% |
1,033 |
|
12.5 |
% |
||||
|
Investments |
|
(152 |
) |
22 |
|
(174 |
) |
(790.9 |
)% |
10 |
|
(45.5 |
)% |
||||
|
Total chellomedia |
|
13,988 |
|
12,066 |
|
1,922 |
|
15.9 |
% |
960 |
|
8.0 |
% |
||||
|
Total Europe |
|
213,739 |
|
155,157 |
|
58,582 |
|
37.8 |
% |
42,508 |
|
27.4 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Latin America: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Broadband |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Chile (VTR) |
|
25,925 |
|
18,929 |
|
6,996 |
|
37.0 |
% |
4,600 |
|
24.3 |
% |
||||
|
Brazil, Peru and other |
|
41 |
|
44 |
|
(3 |
) |
(6.8 |
)% |
(3 |
) |
(6.8 |
)% |
||||
|
Total Latin America |
|
25,966 |
|
18,973 |
|
6,993 |
|
36.9 |
% |
4,597 |
|
24.2 |
% |
||||
|
Corporate and other |
|
1,998 |
|
(2,764 |
) |
4,762 |
|
172.3 |
% |
4,762 |
|
172.3 |
% |
||||
|
Total UGC |
|
$ |
241,703 |
|
$ |
171,366 |
|
$ |
70,337 |
|
41.0 |
% |
$ |
51,867 |
|
30.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Less Noos |
|
|
|
|
|
$ |
(17,777 |
) |
— |
|
$ |
(17,777 |
) |
— |
|
||
|
Total UGC, excluding Noos |
|
|
|
|
|
$ |
52,560 |
|
30.7 |
% |
$ |
34,090 |
|
19.9 |
% |
||
Page 37
|
|
|
Operating Cash Flow for the Three Months Ended September 30, |
|
||||||||||||||
|
|
|
|
|
|
|
Increase (Decrease) |
|
Increase (Decrease) Excluding F/X Effects |
|
||||||||
|
|
|
2004 |
|
2003 |
|
$ |
|
% |
|
$ |
|
% |
|
||||
|
Europe (UGC Europe): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
UPC Broadband |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
The Netherlands |
|
$ |
267,097 |
|
$ |
188,528 |
|
$ |
78,569 |
|
41.7 |
% |
$ |
54,296 |
|
28.8 |
% |
|
Austria |
|
86,489 |
|
73,288 |
|
13,201 |
|
18.0 |
% |
5,350 |
|
7.3 |
% |
||||
|
France (other than Noos) |
|
10,508 |
|
8,709 |
|
1,799 |
|
20.7 |
% |
845 |
|
9.7 |
% |
||||
|
France (Noos) |
|
17,777 |
|
— |
|
17,777 |
|
— |
|
17,777 |
|
— |
|
||||
|
Norway |
|
27,338 |
|
19,345 |
|
7,993 |
|
41.3 |
% |
7,100 |
|
36.7 |
% |
||||
|
Sweden |
|
25,929 |
|
23,091 |
|
2,838 |
|
12.3 |
% |
439 |
|
1.9 |
% |
||||
|
Belgium |
|
12,475 |
|
8,596 |
|
3,879 |
|
45.1 |
% |
2,742 |
|
31.9 |
% |
||||
|
Total Western Europe |
|
447,613 |
|
321,557 |
|
126,056 |
|
39.2 |
% |
88,549 |
|
27.5 |
% |
||||
|
Hungary |
|
63,189 |
|
46,401 |
|
16,788 |
|
36.2 |
% |
11,600 |
|
25.0 |
% |
||||
|
Poland |
|
27,398 |
|
19,032 |
|
8,366 |
|
44.0 |
% |
7,556 |
|
39.7 |
% |
||||
|
Czech Republic |
|
26,325 |
|
18,473 |
|
7,852 |
|
42.5 |
% |
5,930 |
|
32.1 |
% |
||||
|
Slovak Republic |
|
10,629 |
|
8,207 |
|
2,422 |
|
29.5 |
% |
1,116 |
|
13.6 |
% |
||||
|
Romania |
|
9,204 |
|
5,442 |
|
3,762 |
|
69.1 |
% |
3,842 |
|
70.6 |
% |
||||
|
Total Central and Eastern Europe |
|
136,745 |
|
97,555 |
|
39,190 |
|
40.2 |
% |
30,044 |
|
30.8 |
% |
||||
|
Corporate and other |
|
(49,748 |
) |
(39,607 |
) |
(10,141 |
) |
(25.6 |
)% |
(5,624 |
) |
(14.2 |
)% |
||||
|
Total UPC Broadband |
|
534,610 |
|
379,505 |
|
155,105 |
|
40.9 |
% |
112,969 |
|
29.8 |
% |
||||
|
chellomedia |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Priority Telecom |
|
11,305 |
|
10,128 |
|
1,177 |
|
11.6 |
% |
152 |
|
1.5 |
% |
||||
|
Media |
|
24,412 |
|
17,151 |
|
7,261 |
|
42.3 |
% |
5,042 |
|
29.4 |
% |
||||
|
Investments |
|
(233 |
) |
(738 |
) |
505 |
|
68.4 |
% |
526 |
|
71.3 |
% |
||||
|
Total chellomedia |
|
35,484 |
|
26,541 |
|
8,943 |
|
33.7 |
% |
5,720 |
|
21.6 |
% |
||||
|
Total Europe |
|
570,094 |
|
406,046 |
|
164,048 |
|
40.4 |
% |
118,689 |
|
29.2 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Latin America: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Broadband |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Chile (VTR) |
|
74,942 |
|
47,884 |
|
27,058 |
|
56.5 |
% |
16,999 |
|
35.5 |
% |
||||
|
Brazil, Peru and other |
|
236 |
|
(44 |
) |
280 |
|
100.0 |
% |
280 |
|
100.0 |
% |
||||
|
Total Latin America |
|
75,178 |
|
47,840 |
|
27,338 |
|
57.1 |
% |
17,279 |
|
36.1 |
% |
||||
|
Corporate and other |
|
(4,757 |
) |
(11,018 |
) |
6,261 |
|
56.8 |
% |
6,261 |
|
56.8 |
% |
||||
|
Total UGC |
|
$ |
640,515 |
|
$ |
442,868 |
|
$ |
197,647 |
|
44.6 |
% |
$ |
142,229 |
|
32.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Less Noos |
|
|
|
|
|
$ |
(17,777 |
) |
— |
|
$ |
(17,777 |
) |
— |
|
||
|
Total UGC, excluding Noos |
|
|
|
|
|
$ |
179,870 |
|
40.6 |
% |
$ |
124,452 |
|
28.1 |
% |
||
Page 38
Non-GAAP Reconcilliations
Reconciliation of Operating Cash Flow with Net Income (Loss) (1)
|
|
|
For the Year Ended |
|
||||||||||
|
(thousands) |
|
Dec-00 |
|
Dec-01 |
|
Dec-02 |
|
Dec-03 |
|
||||
|
Total Segment Operating Cash Flow |
|
$ |
(368,464 |
) |
$ |
(191,243 |
) |
$ |
296,374 |
|
$ |
628,882 |
|
|
Depreciation and amortization |
|
(815,522 |
) |
(1,147,176 |
) |
(730,001 |
) |
(808,663 |
) |
||||
|
Impairment of long-lived assets |
|
0 |
|
(1,320,942 |
) |
(436,153 |
) |
(402,239 |
) |
||||
|
Restructuring charges and other |
|
0 |
|
(204,127 |
) |
(1,274 |
) |
(35,970 |
) |
||||
|
Stock-based compensation |
|
43,183 |
|
(8,818 |
) |
(28,228 |
) |
(38,024 |
) |
||||
|
Operating income (loss) |
|
(1,140,803 |
) |
(2,872,306 |
) |
(899,282 |
) |
(656,014 |
) |
||||
|
Interest expense, net |
|
(795,486 |
) |
(966,134 |
) |
(641,786 |
) |
(314,078 |
) |
||||
|
Foreign currency exchange gain (loss), net |
|
(215,900 |
) |
(148,192 |
) |
739,794 |
|
121,612 |
|
||||
|
Gain on early extinguishment of debt |
|
0 |
|
3,447 |
|
2,208,782 |
|
2,183,997 |
|
||||
|
Gain (loss) on sale of investments in affiliates, net |
|
6,194 |
|
(416,803 |
) |
117,262 |
|
279,442 |
|
||||
|
Other income (expense), net |
|
117,574 |
|
(265,512 |
) |
(120,832 |
) |
(14,884 |
) |
||||
|
Income (loss) before income taxes and other items |
|
(2,028,421 |
) |
(4,665,500 |
) |
1,403,938 |
|
1,600,075 |
|
||||
|
Other, net |
|
807,531 |
|
150,735 |
|
(415,670 |
) |
395,293 |
|
||||
|
Income (loss) before cum. effect of change in acctg. principle |
|
(1,220,890 |
) |
(4,514,765 |
) |
988,268 |
|
1,995,368 |
|
||||
|
Cumulative effect of change in accounting principle |
|
0 |
|
20,056 |
|
(1,344,722 |
) |
0 |
|
||||
|
Net income (loss) |
|
$ |
(1,220,890 |
) |
$ |
(4,494,709 |
) |
$ |
(356,454 |
) |
$ |
1,995,368 |
|
1. We are unable to provide a reconciliation of forecasted Operating Cash Flow to the most directly comparable GAAP measure, net income, because certain items are out of our control and/or cannot be reasonably predicted. For example, it is impractical to: (1) estimate future fluctuations in interest rates on our variable-rate debt facilities; (2) estimate the fluctuations in exchange rates relative to the U.S. dollar and its impact on our results of operations; (3) estimate the financial results of our non-consolidated affiliates; and (4) estimate changes in circumstances that lead to gains and/or losses such as sales of investments in affiliates and other assets. Any and/or all of these items could be significant to our financial results.”and calculation.
Page 39
Supplemental Information
Summary of Pro Forma Revenue and Operating Cash Flow
|
|
|
For the Year Ended |
|
YTD |
|
|||||||||||
|
(thousands) |
|
Dec-00 |
|
Dec-01 |
|
Dec-02 |
|
Dec-03 |
|
Sep-04 |
|
|||||
|
UGC Consolidated Revenue |
|
$ |
1,251,034 |
|
$ |
1,561,894 |
|
$ |
1,515,021 |
|
$ |
1,891,530 |
|
$ |
1,750,877 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
UGC Europe - miscellaneous (1) |
|
(107,868 |
) |
(122,096 |
) |
— |
|
— |
|
— |
|
|||||
|
UPC Germany (2) |
|
(9,682 |
) |
(45,848 |
) |
(27,061 |
) |
|
|
|
|
|||||
|
Austar United (3) |
|
(172,425 |
) |
(155,396 |
) |
— |
|
— |
|
— |
|
|||||
|
Noos - France (4) |
|
— |
|
— |
|
— |
|
— |
|
(88,686 |
) |
|||||
|
UGC Revised Consolidated Revenues - Pro Forma |
|
$ |
961,059 |
|
$ |
1,238,554 |
|
$ |
1,487,960 |
|
$ |
1,891,530 |
|
$ |
1,662,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
UGC Consolidated Operating Cash Flow |
|
$ |
(368,464 |
) |
$ |
(191,243 |
) |
$ |
296,374 |
|
$ |
628,882 |
|
$ |
640,515 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
UGC Europe - miscellaneous (1) |
|
53,897 |
|
40,708 |
|
0 |
|
0 |
|
0 |
|
|||||
|
UPC Germany (2) |
|
(4,854 |
) |
(22,185 |
) |
(12,052 |
) |
0 |
|
|
|
|||||
|
Austar United (3) |
|
43,598 |
|
41,847 |
|
0 |
|
0 |
|
0 |
|
|||||
|
Noos - France (4) |
|
0 |
|
0 |
|
0 |
|
0 |
|
(17,777 |
) |
|||||
|
UGC Revised Consolidated Revenues - Ongoing only |
|
$ |
(275,823 |
) |
$ |
(130,873 |
) |
$ |
284,322 |
|
$ |
628,882 |
|
$ |
622,738 |
|
(1) Represents the effect of certain disposed, deconsolidated and closed operations by UGC Europe in the prior years as if they had occurred on January 1, 2000, including: Disposed operations: within the DTH business -Polish DTH; Closed operations: Programming -sports programming in Poland, Hungary and Czech Republic, closed or disposed in December 2001. Priority Telecom -primarily closure of international wholesale operations. UPC Media -UPCtv channel closure.
(2) As a result of the transfer of 22.3% of UGC Europe’s interest in UPC Germany, UPC Germany was deconsolidated effective August 1, 2002.
(3) As a result of the sale of 49.99% of our indirect interest in United Australia/Pacific, Inc., we deconsolidated the results of operations of Austar United effective November 15, 2001.
(4) On July 7, 2004, we completed the acquisition of Noos, the largest cable television operator in France.
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