FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a or 15d - 16 of
the Securities Exchange Act of 1934
For the month of May 1999
Tevecap S.A.
(Exact Name as Specified in its Charter)
Tevecap Inc.
(Translation of Name into English)
SEC FILE NUMBER: 0-22267
Rua do Rocio, 313
Sao Paulo, SP Brazil
04552-904
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with rule 12g3-2(b):82 N/A
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TEVECAP S.A.
By: /s/ Jose Augusto P. Moreira
---------------------------
Jose Augusto P. Moreira
Officer
By: /s/ Claudio Cesar D'Emilio
---------------------------
Claudio Cesar D'Emilio
Officer
Date: June 1, 1999
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EXHIBIT LIST
1. One copy of the press release, dated June 1, 1999 containing relevant
information on Tevecap S.A. for the three-month period ended March 31, 1999
with financial information prepared in accordance with U.S. GAAP.
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FOR IMMEDIATE RELEASE
Contacts: Douglas Duran Alexander Fudukidis
Tevecap S.A. Ludgate Communications
(5511) 821-8554 (212) 688-5144
[email protected] [email protected]
TEVECAP ANNOUNCES FIRST-QUARTER RESULTS
Sao Paulo, June 1, 1999 -- Tevecap S.A. (TVA), one of Brazil's pay
television operators and programming distributors, today announced results for
the first quarter of 1999.
Net Revenue for the first quarter 1999 was U.S.$27.0 million, a
decrease of 37% compared with U.S.$42.8 million for the same period in 1998. The
change was caused principally by the Brazilian currency devaluation.
EBITDA for the quarter was U.S.$11.4 million, compared to U.S.$4.2
million in the same quarter of 1998 and includes a U.S.$6.7 million gain caused
by the impact of the Real devaluation on TVA's Reais-denominated balance sheet
accounts. This non-recurring impact can change with the foreign currency
devaluation. Excluding this impact, EBITDA would amount U.S.$4.7 million.
Net income for the quarter was U.S.$2.6 million compared with a loss of
U.S.$31.2 million during the same period of 1998. These results were due to the
three one-time unrealized gains described below:
a) U.S.$6.7 million gain from the Real devaluation on operating
accounts;
b) U.S.$19.5 million gain due to the effect on Reais-denominated
debt with the Company's major shareholder, Abril S.A.;
c) U.S.$14.9 million gain of GLB due to the effect of
Reais-denominated debt with Abril S.A. and U.S.$1.2 million loss
of DTH business from the Real devaluation on operating account.
Note: Values expressed in item "c" above are included in the
Income Statement line "Loss from discontinued operations (GLB and
TVA Banda C)"
Without considering these changes the Net Loss for the period would
have been U.S.$37.4 million representing an increase of 21.4% versus U.S.$31.2
million for the same period in 1998.
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TEVECAP S.A
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
as of March 31, 1999 and December 31, 1998
(in thousands of U.S.dollars)
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ASSETS Mar-99 Dec-98
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Cash and cash equivalents 1,100 1,397
Accounts receivable, net 9,610 20,679
Inventories, net 12,632 14,900
Film exhibition rigths 1,446 1,568
Prepaid and other assets 4,276 5,176
Accounts receivable from related parties 694 1,052
Other accounts receivable 2,782 4,232
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Total current assets 32,540 49,004
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Property plant and equipment, net 291,571 298,004
Investments
Equity basis 3,737 1,944
Cost basis investees 49,096 49,096
Concessions, net 11,705 12,070
Loans to related companies 28,938 29,416
Debt issuance costs, net 5,945 6,263
Other 1,525 2,130
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TOTAL ASSETS 425,057 447,927
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LIABILITIES AND SHAREHOLDERS' DEFICIT
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Loans 33,190 41,028
Film suppliers 12,211 17,568
Other suppliers 17,626 25,715
Deficit in discontinued operations
(Galaxy Brasil and TVA Banda c) 28,292 21,858
Taxes payable other than income taxes 11,433 13,229
Accrued payroll and related liabilities 2,944 3,957
Advance payments received from subscribers 1,197 2,002
Other accounts payable 2,485 5,818
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Total current liabilities 109,378 131,175
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Loans 262,067 262,352
Loans from shareholders 88,558 88,740
Provision from claims 5,318 7,426
Liability to fund equity investee - 1,025
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Total long-term liabilities 355,943 359,543
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Minority interest 3,583 3,464
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Shareholders' deficit (43,646) (46,255)
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Paid-in capital 387,803 387,803
Accumulated deficit (434,058) (285,991)
Net Income (Loss) 2,609 (148,067)
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TOTAL LIABILITIES AND
SHAREHODERS' DEFICIT 425,257 447,927
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TEVECAP S.A
AND SUBSIDIARIES
Consolidated
Statements of Operations For
the three months ended March 31, 1999, 1998
and December 31, 1998
(in thousands of U.S. dollars)
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DESCRIPTION 1Q99 4Q98 1Q98
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Gross revenues
Monthly subscription 24,130 34,094 33,782
Installation 389 (1,534) 2,097
Advertising 306 302 1,203
Indirect programming 1,854 5,125 5,729
Other 2,572 6,808 2,927
Taxes on revenues (2,237) (3,152) (2,965)
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Net revenue 27,014 41,643 42,773
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Direct operating expenses
Payroll and benefits (2,312) (2,621) (4,626)
Programming (8,601) (12,955) (14,142)
Transponder lease cost (212) (610) (530)
Technical assistance (256) (194) (696)
Vehicle rentals (15) (36) (62)
TVA magazine (718) (2,232) (1,288)
Pole rental (1,117) (1,106) (678)
Other costs (1,252) (4,505) (1,724)
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(14,483) (24,259) (23,745)
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Selling, general and
administrative expenses
Payroll and benefits (2,830) (6,354) (6,601)
Advertising and promotion (556) (1,799) (3,009)
Rent (702) (976) (911)
Other administrative expenses (2,423) (2,140) (1,264)
Other general expenses (1,294) (3,904) (3,045)
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(7,805) (15,173) (14,830)
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EBITDA 4,726 2,211 4,198
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Real devalution impact
of balance sheet 6,723
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EBITDA with Real devalution
effects 11,449 2,211 4,198
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Provision for equipment and
Inventory obsolescence - (1,860) -
Depreciation (13,357) (12,816) (10,513)
Amortization (426) (426) (426)
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Operating loss from continuing
operations (2,334) (12,891) (6,741)
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Interest income 22,044 4,343 2,155
Interest expenses (11,088) (17,675) (9,947)
Translation gain (loss) (833) 720 (81)
Equity in losses of affiliates (504) (2,152) (4,761)
Other nonoperating
(expenses) income, net 1,876 (947) (446)
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Income (loss) from continuing
operations before income
taxes and minority interest 9,161 (28,602) (19,821)
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Income taxes (24)
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Income (loss) from continuing
operations before minority interest 9,161 (28,626) (19,821)
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Minority Interest (118) 301 222
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Net income (loss) from continuing
operations 9,043 (28,325) (19,599)
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Loss from discontinued operations
(GLB and TVA Banda C) (6,434) (18,777) (11,636)
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Net income (loss) 2,609 (47,102) (31,235)
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