SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE MONTH OF NOVEMBER 2000
(Commission File No. 001-14489)
TELE CENTRO OESTE CELULAR PARTICIPACOES S.A.
--------------------------------------------
(Exact name of registrant as specified in its charter)
TELE CENTRO OESTE CELLULAR HOLDING COMPANY
------------------------------------------
(Translation of registrant's name in English)
SCS-QUADRA 2, BLOCO C, EDIFICIO ANEXO-TELEBRASILIA CELULAR
7 ANDAR, BRASILIA, D.F.
FEDERATIVE REPUBLIC OF BRAZIL
-----------------------------
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will
file annual reports under cover of 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 the
Securities Exchange Act of 1934.)
Yes No X
--- ---
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<PAGE>
TCOC3: R$7,80/1,000 shares
TCOC4: R$6,14/1,000 shares
TRO: US$ 9,7/ADR (1 ADR = 3,000 shares)
INVESTOR RELATIONS:
ARTHUR FONSECA - [email protected] WEB SITE
+55 61 313 7765 HTTP://WWW.TCO.NET.BR
ANNOUNCES RESULTS FOR THE
THIRD QUARTER OF 2000
THIRD QUARTER BRASILIA, OCTOBER 31, 2000 - Tele Centro Oeste Celular
HIGHLIGHTS Participacoes S.A. (NYSE: TRO; IBOVESPA: TCOC3/TCOC4) today
announces its consolidated results relative to the third quarter
of 2000. The consolidated results include the results of its
subsidiaries Telebrasilia Celular S.A., Telegoias Celular S.A.,
Telemat Celular S.A., Telems Celular S.A., Teleron Celular S.A.,
Teleacre Celular S.A. and Norte Brasil Telecom S.A. - NBT. The
Company obtained an accumulated net profit of R$77.6 million, and
earnings before interest, taxes, depreciation and amortization
(EBITDA) of R$274 million. The increase of nearly 100 percent in
the company's client base compared to the same period of the
previous year accounted for an accumulated gross operating
revenue of R$802.1 million and an accumulated net operating
revenue of R$640.1 million, representing an increase of 52.4
percent over the results of the third quarter of 1999.
WEB SITE Beginning today, TCO's Investor Relations department is making
available to the market one more instrument to guarantee the
transparency and the agility of all company-related
information. The new Website dedicated to Investor Relations
was especially designed to provide updated information on the
Company's profile, as well as on its agenda of events, stock
market performance, corporate news, institutional
presentations and financial results. Moreover, anyone
interested in joining a direct mailing list or obtaining
updated information can register online to receive regular
corporate and financial information on TCO.
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<PAGE>
OPERATING PERFORMANCE
CLIENT BASE At the end of the third quarter of 2000, TCO has 1,392,729
subscribers, as a consolidated number. This significant client
base increased 14 percent in this period compared to last year,
mainly as a consequence of the continuous growth observed in
NBT's client base.
<TABLE>
<CAPTION>
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SUBSCRIBERS 3T00 2Q00 1Q00
-------------------------------------------------
<S> <C> <C> <C>
TOTAL 1,392,729 1,224,707 1,021,369
AREA 7 1,212,137 1,094,766 939,176
AREA 8 180,592 129,941 82,193
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</TABLE>
DIGITIZATION The company operating Area 8 uses TDMA, 100% digital technology.
The companies operating Area 7 use digital TDMA technology and
AMPS analog technology, and closed the third quarter of 2000 with
a digitization rate of 87 %, one of the highest digitization
rates among Band A companies in Brazil.
SALES TCO closed the third quarter of 2000 with 31 stores in Area 7.
Also, additional 788 accredited retailers, 8,484 points of
sale of prepaid cards and all the points of sale of
traditional cards, lottery houses and BRADESCO automatic
dispensers together assure the capillarity required to provide
the best service. In Area 8, the sales structure organized by
TCO using NBT has 11 stores, 204 accredited retailers and 2946
points of sale of prepaid cards.
HUMAN At the end of the third quarter of 2000, TCO had 1701
RESOURCES collaborators, over which 1506 were employed directly and 645
were outsourced workers and trainees. In Area 8, the human
resources structure of NBT has a total of 519 collaborators, of
which 229 are employed directly and 290 are outsourced or
trainees.
COVERAGE AND TCO has obtained the concession to provide cellular
PENETRATION telecommunications services in 68 percent of the Brazilian
territory, with an estimated population of nearly 29 million
people. Using its Operating Companies in Area 7, TCO services 83%
of the population, and in Area 8 this rate reaches 43%. Until the
third quarter of 2000, TCO has reached 1.2 million accesses in
Area 7 alone, which represents a penetration of 8.5 accesses per
100 residents. In Area 8, whose number of subscribers reaches
nearly 200,000, the penetration rate for 100 residents is 1.2. At
the end of the third quarter of 2000, TCO serves 285
municipalities, of which 250 are in Area 7 and 35 in Area 8.
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<PAGE>
COMPETITION The strategies used by TCO to maintain its good institutional
image, as well as the quality of the services it provides and
the high level of efficiency in client service have been
successful both in Area 7 and in Area 8. Particularly in Area
7, its market share has increased from 78 % in the third
quarter of 1999 to nearly 80 % in the third quarter of 2000.
In Area 8, the Company has been gaining more and more market
share, mainly as a result of its service quality differentials
- 100% digital service and a transparent relationship with
clients. The company operating Area 8 - NBT - had reached a
nearly 24% market share in the third quarter of 2000.
FINANCIAL PERFORMANCE
<TABLE>
<CAPTION>
R$ Million
CONSOLIDATED RESULT - SET 30, SET 30, VARIATION
ACCUMULATED 2000 1999 (%)
------------------------------------------------------
<S> <C> <C> <C>
Gross operating revenue 802.072 545.042 47.2
Net operating revenue 640.080 419.895 52.4
Operating profit 169.743 130.669 29.9
Net profit 77.632 73.308 5.9
EBITDA 274.004 181.900 50.6
EBITDA margin 43% 43% 0.0
Indebtedness * 37% 25% 48.0
Leveraging ** 62% 37% 67.6
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* Indebtedness = (Outstanding liabilities + Long-term recoverable)/
Liabilities
** Leveraging = (Outstanding liabilities + Long-term recoverable)/
Net equity
</TABLE>
OPERATING The gross operating revenue accumulated until the third
REVENUE quarter of 2000 rose 47% compared to the same period of last
year. The network usage revenue increased when compared to 1999,
mainly due to the increase of the TU-M rate to R$0.2283 in
November of 1999 and to the increased number of prepaid clients.
The sale of merchandise generated a gross income of R$118.9
million, accumulated to the third quarter, over which R$39.86
million originated from sales of merchandise in the third
quarter.
AVERAGE TCO's consolidated ARPU (with no merchandise) was R$55 in the
REVENUES third PER quarter of 2000. NBT reported an ARPU of R$48 (with no
USER - ARPU merchandise).
OPERATING TCO's most expressive operating expenses are the following:
EXPENSES cost of merchandise sold, network usage, depreciation and
provisions for doubtful payers. All of these rose in the third
quarter of 2000, mainly as a result of client base expansion. The
accumulated cost of merchandise sold in the quarter was R$104
million, and R$36.6 resulted from sales of merchandise in the
third quarter.
EBITDA The EBITDA margin registered by TCO in the third quarter of 2000
was 48.4 percent, which shows the capacity of the Company to
generate cash from its operating assets. The EBITDA accumulated
in the third quarter of 2000 was
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<PAGE>
R$274 million, 50.6% higher than the same period of the previous
year. The EBITDA obtained in the third quarter was R$110.8
million.
DEPRECIATION The expenses accumulated with depreciation and amortization
AND totaled R$83.2 million, of which R$28.8 in the third quarter. The
AMORTIZATION depreciation is calculated based on the linear method and takes
into consideration the useful lives of the goods. The
pre-operating expenses incurred by NBT until December 31st 1999
were deferred for 10 years and have been amortized as of January
2000.
BAD DEBTS / The accumulated provision constituted for bad debts/write-offs
WRITE-OFFS was R$30.8 million, representing 8.4 percent of the net operating
revenue. In the third quarter, the provision for doubtful payers
/ write-offs was R$8.76 million. The provision is formed for
credits whose recovery is considered unlikely. The methodology
includes the provision for 100% of the credits delinquent for
more than 90 days. To the credits not yet invoiced, to the
credits not past-due and to the credits delinquent for over 90
days the Company applies the relationship obtained from the
historical series of the write-offs, over the respective gross
revenues of the last 12 months.
CAPEX During the third quarter of 2000, R$114.1 million were
invested in Area 7, mainly in projects to expand the wireless
cellular telephone network and to modernize telecommunications
services. In order to install technical equipment in Area 8,
NBT invested R$43.2 million during the third quarter of 2000.
The Company expects to invest a consolidated amount of up to
R$200 million by the end of the year 2000, among its own
resources and financing. These resources will be used to
expand its network and to modernize services.
PERFORMANCE BY QUARTER
<TABLE>
<CAPTION>
R$ 000
------------------------------------------------------
CONSOLIDATED 3Q00 2Q00 1Q00
------------------------------------------------------
<S> <C> <C> <C>
Gross operating revenue 283,840 274,814 243,418
Net operating revenue 228,878 217,506 193,696
Operating profit 69,170 59,022 41,551
Net profit 35,773 25,770 16,089
EBITDA 110,787 92,575 70,642
EBITDA margin 48,4% 42,6% 36,5%
Depreciation and
amortization (operating) 28,845 27,734 26,617
Premium amortization 10,756 16,134 16,134
Provision for doubtful 8,759 9,214 12,791
payers / write-offs
Financial revenues 21,320 19,668 13,654
Financial expenses (17,144) (25,489) (16,128)
-------------------------------------------------------
</TABLE>
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<PAGE>
SUBSEQUENT EVENTS
CORPORATE TCO and the operating companies are conducting a corporate
REORGANIZATION reorganization, through which TCO shall be partially spun off,
with the spun off portions being incorporated by the operating
companies. The portion of TCO's net equity to be spun off will
consist of two assets: a deferred asset (premium) with equivalent
equity value of R$274,288,422.37 and cash worth R$100,000.00.
This latter portion of the equity shall be incorporated by each
one of the operating companies, observing the following
proportion: Telebrasilia Celular S/A shall receive 28.98%;
Telegoias Celular S/A shall receive 20.14%; Telemat Celular S/A
shall receive 20.13%; Telems Celular S/A shall receive 23.08%;
Teleacre Celular S/A shall receive 2.84% and Teleron Celular S/A
shall receive 4.83%. The counterpart of the assets which are the
objects of this spin off will be the special premium reserve and
R$100,000.00 from the capital account.
NBT RATE On October 23, 2000 Anatel published the following Provisions:
INCREASE o Act 12,349, approving the readjustment of 17.99% of the
STANDARD PACKAGE OF THE BASIC SERVICES PLAN - NBT, whose
base-date is January, 2000 (see table below).
o Act 12,350, approving the TU-M readjustment, passing from
R$0.21 to R$0.2654 (representing a 26.38% increase with
base-date in August, 2000), effective as of October 25, 2000.
<TABLE>
<CAPTION>
R$
-------------------------------------------------
STANDARD TIME RATES NO TAX WITH TAX
-------------------------------------------------
<S> <C> <C>
VC 1 (Wireless - Wireless) 0.4109 0.5758
VC 1 (Wireless - Fixed Line) 0.3161 0.4430
VC2 0.5969 0.8365
VC3 0.7052 0.9883
DSL 1 0.3045 0.4267
DSL 2 0.3526 0.4941
AD 0.49 0.68
-------------------------------------------------
</TABLE>
..............................................................................
**FOLLOW THE CORRESPONDING FINANCIAL STATEMENTS**
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<PAGE>
TELE CENTRO OESTE CELULAR PARTICIPACOES S,A,
BALANCE SHEETS
September 30,2000 and June 30, 2000
(In thousands of Reais)
<TABLE>
<CAPTION>
COMPANY CONSOLIDATED
-------------------- ---------------------
30/09/200 30/06/2000 30/09/2000 30/06/2000
-------------------- ---------------------
<S> <C> <C> <C> <C>
ASSETS
-------------------- ---------------------
CURRENT ASSETS 172,353 305,508 730,557 776,147
-------------------- ---------------------
Cash and cash equivalents 80 21 17,085 8,231
Short-term investments 32,984 189,833 295,217 353,498
Marketable securities 15,989 15,429 154,467 149,233
Accounts receivable from
services - - 141,027 148,550
Inventories - - 20,320 19,221
Loans and financing - - 1,134 2,754
Deferred and recoverable
taxes 30,833 27,842 52,338 45,381
Interest on own capital
receivable 85,157 66,493 - -
Other assets 7,310 5,890 48,969 49,279
-------------------- ---------------------
NONCURRENT ASSETS 637 1,476 4,373 4,373
-------------------- ---------------------
Deferred and recoverable
taxes - - 451 451
Loans with related parties 627 1,466 - -
Other assets 10 10 3,922 3,922
PERMANENT ASSETS 1,263,461 1,195,449 1,108,492 1,078,393
-------------------- ---------------------
Investments 985,875 907,359 4,172 3,716
Property, plant and
equipment 3,298 3,045 790,434 748,934
Deferred assets 274,288 285,045 313,886 325,743
-------------------- ---------------------
TOTAL 1,436,451 1,502,433 1,843,422 1,858,913
==================== =====================
</TABLE>
Page 7 of 10
<PAGE>
TELE CENTRO OESTE CELULAR PARTICIPACOES S,A,
BALANCE SHEETS
September 30,2000 and June 30, 2000
(In thousands of Reais)
<TABLE>
<CAPTION>
COMPANY CONSOLIDATED
--------------------- ---------------------
30/09/2000 30/06/2000 30/09/2000 30/06/2000
--------------------- ---------------------
<S> <C> <C> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
--------------------- ---------------------
CURRENT LIABILITIES 259,263 389,230 578,108 660,927
--------------------- ---------------------
Personnel, social charges and benefits
payable 1,650 1,847 8,360 7,313
Suppliers 1,381 794 124,330 86,533
Indirect taxes 28 10 61,421 56,314
Income taxes 245 0 5,301 3,743
Income participation 5,744 5,651 19,971 18,211
Loans and financing 249,208 378,152 336,233 461,295
Concession area 8 - - 18,996 17,940
Other obligations 1,007 2,776 3,496 9,578
--------------------- ---------------------
NONCURRENT LIABILITIES 84,938 56,725 100,244 70,727
--------------------- ---------------------
Provision for contingencies 4,742 3,631 9,231 7,976
Suppliers - - 558 558
Income taxes - - 241 241
Loans with related parties 29,345 21,769 - -
Loans and financing 50,851 31,325 71,218 44,012
Concession area 8 - - 18,996 17,940
PARTICIPATION OF MINORITY SHAREHOLDERS - - 72,704 70,665
--------------------- ---------------------
SHAREHOLDERS' EQUITY 1,092,124 1,056,352 1,092,124 1,056,353
--------------------- ---------------------
Capital 303,100 303,100 303,100 303,100
Capital reserve 322,742 322,742 322,743 322,743
Income reserve 125,455 125,455 125,455 125,455
Accumulated earnings 340,827 305,055 340,827 305,055
CAPITALIZED FUNDS 126 126 242 241
--------------------- ---------------------
TOTAL 1,436,451 1,502,433 1,843,422 1,858,913
===================== =====================
</TABLE>
Page 8 of 10
<PAGE>
TELE CENTRO OESTE CELULAR PARTICIPACOES S,A,
Statements of Operations
For the six months ended September 30, 2000 and 1999
(In thousands of Reais)
<TABLE>
<CAPTION>
COMPANY CONSOLIDATED
----------------------- ---------------------
30/09/2000 30/06/2000 30/09/2000 30/06/2000
----------------------- ---------------------
<S> <C> <C> <C> <C>
GROSS OPERATING REVENUE - - 802,072 545,042
GROSS REVENUE DEDUCTIONS - - (161,992) (125,147)
----------------------- ---------------------
NET OPERATING REVENUE - - 640,080 419,895
COST OF SERVICES RENDERED - - (318,570) (176,438)
----------------------- ---------------------
GROSS INCOME - - 321,510 243,457
OPERATING INCOME (EXPENSES) 130,033 74,798 (147,648) (125,947)
Commercialization of services - - (89,173) (81,502)
General and administrative expenses (15,620) (11,359) (55,966) (39,981)
Equity pick-up 149,610 86,775 - -
Other operating income (expenses) net (3,957) (618) (2,509) (4,464)
----------------------- ---------------------
OPERATING INCOME BEFORE FINANCIAL
REVENUES (EXPENSES) 130,033 74,798 173,862 117,510
Financial result, net (15,398) 16,338 (4,119) 13,159
----------------------- ---------------------
OPERATING INCOME 114,635 91,136 169,743 130,669
NONOPERATING EXPENSES, NET (43,108) (1) (36,012) (5,728)
----------------------- ---------------------
INCOME BEFORE TAXATION AND PARTICIPATION 71,527 91,135 133,731 124,941
Income tax and social contribution tax on
income 6,487 (1,359) (45,910) (40,755)
Employees's participation (382) (323) (1,437) (1,342)
Participation of the minority shareholders - - (13,986) (12,569)
----------------------- ---------------------
NET INCOME BEFORE REVERSAL OF INTEREST ON
OWN CAPITAL 77,632 89,453 72,398 70,275
Reversal of interest on own capital - (16,145) 5,234 3,033
----------------------- ---------------------
NET INCOME FOR THE PERIOD 77,632 73,308 77,632 73,308
======================= =====================
SHARES IN CIRCULATION ON THE BALANCE
SHEET DATE (THOUSANDS) 364,399,028 364,399,028
NET INCOME PER LOT OF THOUSANDS SHARES
(R$) 0.2130 0.2011
</TABLE>
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SIGNATURE
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.
Tele Centro Oeste Cellular Holding Company
Date: November 1, 2000 By: /S/ MARIO CESAR PEREIRA DE ARAUJO
------------------------------------
Name: Mario Cesar Pereira de Araujo
Title: President
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