PrimaCom AG

euro adhoc: PrimaCom AG
Annual Reports
PRIMACOM REPORTS 2002 RESULTS (E)

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PrimaCom AG (OTC BB "PCAGY" and Neuer Markt Frankfurt: "PRC" or ID No. "625910", www.primacom.de) today reported its consolidated results for the year ended December 31, 2002.

In the year ended December 31st, 2002, revenues increased 10.0 percent or 16.5 million Euro to 182.0 million Euro versus 165.5 million Euro in the same period for 2001. The primary factor for this growth was a 15.3 million Euro revenue increase in the Company’s Netherlands subsidiary Multikabel, of which 12.0 million Euro was derived from Multikabel’s high speed Internet service.

Operating loss decreased by 32.7 million Euro  2001 to 16.9 million Euro in the year ended December 31st, 2002. Interest expense increased by 46.6 million Euro or 74.2 percent from 62.8 million Euro in 2001 to 109.4 million Euro in 2002. The primary factors responsible for the increase were the write-off of approximately 12.3 million Euro of capitalized finance fees associated with the reduction of 375.0  million Euro of the 1 billion Euro revolving credit facility commitment and the increased interest expense associated with the 375.0 million Euro convertible second secured credit facility.

Net loss for the year 2002 was 138.3 million Euro, or 6.99 Euro per basic and diluted share, versus a net loss of 104.1 million Euro, or 5.26 Euro per basic and diluted share for the year 2001. In particular depreciation and amortization expense and interest expenses were the main contributors to the Company’s net loss.

EBITDA increased by 10,4 Mio. Euro or 15.1 percent from 68.7 million Euro for 2001 to 79.1 million  Euro for 2002, primarily as a result of the positive contribution of high-speed Internet access services. It is calculated as follows: 16.9 million Euro operating loss of plus 95.9 million Euro depreciation and amortization. Adjusted EBITDA increased by 10,3 Mio. Euro or 14.2 percent from 72.6 million Euro in 2001 to 82.9 million Euro in 2002. It is calculated as follows: EBITDA of 79.1 million Euro plus 1.4 million Euro non-cash compensation expense plus 2.4 million Euro debt refinancing expense. As a percent of revenue, EBITDA and adjusted EBITDA improved from 41.6 percent and 43.9 percent in 2001 to 43.4 percent and 45.5 percent in 2002, respectively. It is the Company’s goal to continue to grow its EBITDA and adjusted.

At December 31, 2002, PrimaCom’s aggregate consolidated indebtedness was approximately 909.3 million Euro and was comprised of approximately 497.1 million Euro of senior bank debt, 406.1 million Euro of convertible second secured debt, 5.6 million Euro of capital leases obligations, and 0.5 million Euro of deferred purchase obligations.

PrimaCom expects, that gains in Internet subscribers and rate increases, especially in The Netherlands as well as cost cutting measures in Germany and a stronger focus on the Company’s sales activities will have a positive impact on revenue and EBITDA.

PrimaCom’s capital expenditures will remain below previous years’ levels as the Company reconsiders its upgrade strategy in Germany. In The Netherlands, PrimaCom intends to move forward with telephony services starting in April 2003. While the Company’s EBITDA is sufficient to finance its operative expenses and capital expenditures, PrimaCom expects to increase its borrowings in the next years in order to meet its interest obligations from its credit facilities.

In conjunction with this release, PrimaCom will host a conference call, which will be simultaneously broadcast live over the Internet. Management will host the call, which is scheduled for April 1, 2003, at:4:00 PM Frankfurt; 3:00 PM London; 9:00 AM New York.

end of announcement            euro adhoc 01.04.2003
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Further inquiry note: Alexander M. Hoffmann Tel.: +49 (0) 6131 944 520

Branche: Telecommunications Equipment
ISIN:      DE0006259104
WKN:        625910
Börsen:  Frankfurter Wertpapierbörse / Neuer Markt
              Baden-Württembergische Wertpapierbörse / free trade
              Bayerische Börse / free trade
              Berliner Wertpapierbörse / free trade
              Bremer Wertpapierbörse (BWB) / free trade
              Börse Düsseldorf / free trade
              Hamburger Wertpapierbörse / free trade
              Niedersächsische Börse zu Hannover / free trade



Weitere Meldungen: PrimaCom AG

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