==============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20459
---------------
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of November, 1998
---------------
Tele Norte Cellular Holding Company
(Translation of registrant's name into English)
SCN-Quadra CN2, Lote F, 2 Andar, Sala 210,
Brasilia-DF, 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
------- -------
[If "Yes" is marked, indicate below
the file number assigned to the registrant in
connection with Rule 12g3-2(b):] N/A
==============================================================================
TELE NORTE CELLULAR HOLDING COMPANY
TABLE OF CONTENTS
Sequential Page
Item Number
- ---------- ---------------
1. Interim Financial Information, dated
November 13, 1998, announcing net operating
revenues and net income for the three-months
ended September 30, 1998.............................. 3
Free Translation into English of Quarterly Information (ITR)
Originally Issued in Portuguese
Tele Norte Celular Participacoes S.A.
Interim Financial Information for the
Three-Months ended September 30, 1998
Free Translation into English of Independent Auditors' Special Review Report
Originally Issued in Portuguese
The Board of Directors and Shareholders
Tele Norte Celular Participacoes S.A.
Brasilia - DF
1. We have carried out a special review of the accompanying quarterly
information (ITR) of Tele Norte Celular Participacoes S.A. as of and for
the three-months ended June 30, 1998, which comprises the balance sheet and
the statement of income of the parent company and consolidated, notes to
quarterly information and management's discussion and analysis, prepared in
accordance with accounting principles established by Brazilian Corporate
Law.
2. We conducted our review in accordance with specific standards established
by the Brazilian Accountants' Institute - IBRACON and the Federal
Accounting Council, which consisted principally of (a) inquiries and
discussion with the persons responsible for the accounting, financial and
operating areas about the criteria adopted in preparing the quarterly
information; and (b) review of the information and subsequent events that
have or could have material effects on the financial position and
operations of the Company.
3. Based on our special review, we are not aware of any material modifications
that should be made to the quarterly information referred to in the first
paragraph in order for it to be in accordance with accounting principles
established by Brazilian Corporate Law and standards issued by the
Brazilian Securities and Exchange Commission (CVM), specifically applicable
to the preparation of the required quarterly information.
4. The quarterly information for the three-months ended March 31, and June 30,
1998 were reviewed by other independent auditors, who issued non qualified
special review reports dated July 24, 1998.
Brasilia - DF, November 13, 1998
ERNST & YOUNG
Auditores Independentes S/C
CRC2SP015199/S-6 MG
Paulo Jose Machado
Accountant CRC1RJ61469/T-2 MG "S" DF
Free Translation into English of Quarterly Information (ITR)
Originally Issued in Portuguese
Tele Norte Celular Participacoes S.A.
<TABLE>
<CAPTION>
BALANCE SHEET AS OF SEPTEMBER 30, 1998
(In thousands of reais)
- -------------------------------------------------------------------------------------------------
September 30, 1998 June 30, 1998
------------------ -------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents................................. 1,938 --
Recoverable taxes......................................... 136 131
Other receivables......................................... 34 2,002
--------- ---------
Total current assets....................................... 2,108 2,133
--------- ---------
Permanent assets:
Investments............................................... 175,107 169,332
--------- ---------
Total Assets............................................... 177,215 171,465
--------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Taxes and contributions................................... 58 137
Suppliers................................................. 63 --
Accruals.................................................. 500 --
Others.................................................... 664 --
--------- ---------
Total current liabilities.................................. 1,285 137
--------- ---------
Long-term liabilities:
Others.................................................... 25 25
--------- ---------
Shareholders' equity:
Capital stock............................................. 57,749 57,749
Legal reserve............................................. 3,481 3,481
Realizable profit reserve................................. 59,264 59,264
Retained earnings......................................... 55,411 50,809
========= =========
Total shareholders' equity................................. 175,905 171,303
========= =========
Total liabilities and shareholders' equity................. 177,215 171,465
========= =========
</TABLE>
TELE NORTE PARTICIPACOES S.A.
<TABLE>
<CAPTION>
STATEMENT OF INCOME FOR THE THREE-MONTHS AND NINE-MONTHS ENDED SEPTEMBER 30, 1998
(In thousands of reais, except per share data)
- --------------------------------------------------------------------------------------------------
3 months ended 9 months ended
September 30, 1998 September 30, 1998
------------------ ------------------
<S> <C> <C>
Operating expenses/income
General and administrative expenses....................... (1,336) (1,336)
Financial income.......................................... 91 230
Other operating expenses.................................. (8) (8)
Income from investments in subsidiaries................... 5,774 29,188
------------ ------------
4,521 28,074
Non operating revenue..................................... 1 --
------------ ------------
Income before income taxes ............................... 4,522 28,074
Provision for income tax and social contribution.......... 80 (58)
------------ ------------
Net income for the period................................. 4,602 28,016
============ ============
Number of shares (in thousand)............................ 334,399,028 334,399,028
------------ ------------
Net income per share...................................... 0.00001 0.00008
============ ============
</TABLE>
Free Translation into English of Quarterly Information (ITR)
Originally Issued in Portuguese
Tele Norte Celular Participacoes S.A.
Notes to Consolidated Financial Statements
Interim Financial Information for the three-months ended September 30, 1998
1. OPERATING CONTEXT
Tele Norte Celular Participacoes S. A. was constituted according to item
189 of Law # 9,472/97 - Telecommunications General Law, and based on Decree
# 2,546 of April 14, 1998, as a result of Telebras' spin off, approved by
the general stockholders' meeting held on May 22, 1998, and which Appraisal
Report as of February 28, 1998 issued on April 23, 1998 was issued by
independent auditors. The net assets spun-off are as follows:
ASSETS
Cash and cash equivalent...................... 2,000
Investments................................... 145,913
---------
Net Assets Spun-Off........................... 147,913
=========
The Company is the holding company of Telepara Celular S.A., Telamazon
Celular S.A, Telma Celular S.A., Teleamapa Celular S.A. and Telaima
Celular S.A., which are "A" Band cellular phone concessionaires in the
states of Para, Amazonas, Maranhao, Amapa and Roraima.
Telpart Participacoes S.A. is the Company's controlling shareholder. In
the public tender process of Telebras Group held on July 29, 1998,
Telpart acquired 51.79% of Tele Norte Celular Participacoes S.A.'s
common stock. Telpart's capital is held by: TIW do Brasil Ltda.;
Opportunity and by private Brazilian pension funds.
Free Translation into English of Quarterly Information (ITR)
Originally Issued in Portuguese
Tele Norte Celular Participacoes S.A.
Notes to Consolidated Financial Statements
Interim Financial Information for the three-months ended September 30, 1998
2. FINANCIAL STATEMENTS PREPARATION BASIS
The financial statements were prepared based upon the Brazilian
Corporate Law, applied in accordance with the regulations issued by the
Brazilian Securities Commission - CVM, and regulations applicable to
concessionaires of telecommunications public services, and in accordance
with the accounting practices described in Note 3.
The consolidated financial statements were prepared in accordance with
the standards and procedures determined by the Brazilian Securities
Commission - CVM, and includes the financial statements of the holding:
Tele Norte Celular Participacoes S.A. (holding company) and of the
subsidiaries: Telepara Celular S.A., Telamazon Celular S.A, Telma
Celular S.A., Teleamapa Celular S.A. and Telaima Celular S.A. (see
other information on the subsidiaries in Note 4).
The consolidation process of balance sheet and operations accounts
corresponds to the sum of the balances of assets, liabilities, revenues
and expenses of the consolidated Companies, according to the nature of
each account, complemented by the following eliminations: (i) capital
participation, accumulated reserves and results incurred between the
Companies; and (ii) intercompany balances.
3. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES
(a) Allowance for doubtful accounts
Constituted until the limit estimated by management to be sufficient to
cover possible losses with the realization of accounts receivable.
(b) Investments
The investments in subsidiaries are accounted for by the equity method.
The equity pick-up adjustment includes subsidiary's operations from
January to September, 1998, including the period prior to the spin-off.
Free Translation into English of Quarterly Information (ITR)
Originally Issued in Portuguese
Tele Norte Celular Participacoes S.A.
Notes to Consolidated Financial Statements
Interim Financial Information for the three-months ended September 30, 1998
3. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES -- Continuation
(c) Property, Plant and Equipment (Consolidated)
The subsidiaries' Property, Plant and Equipment are recorded at
acquisition cost and construction cost less accumulated depreciation.
The depreciation is calculated on the straight-line method, according to
the following annual rates:
Percentage (%)
---------------------
Infrastructure.................................. 4% to 10%
Switches, Transmission and Terminals............ 7.69% to 12.50%
General Use Assets.............................. 10% to 20%
(c.1) Interest on work in progress
The operating companies computes monthly interest on work in progress at
the annual rate of 12% on the total capital invested in work in progress,
which is included in the cost of construction, against non-operating
income, up to the limit of the non-operating financial expenses generated
by loans obtained to finance the work. The amount exceeding non-operating
financial expenses is recorded on the capital reserve. The holding company
recognizes such interest through the equity method, being the amount
charged to operations.
(d) Income Tax and Social Contribution
Income tax and social contribution expenses are recorded on the accrual
basis. Deferred income tax and social contribution are recorded on
temporary differences.
(e) Provision for contingencies
It's computed based up on the legal counsel's opinion on loss expectations.
Free Translation into English of Quarterly Information (ITR)
Originally Issued in Portuguese
Tele Norte Celular Participacoes S.A.
Notes to Consolidated Financial Statements
Interim Financial Information for the three-months ended September 30, 1998
4. INVESTMENTS
<TABLE>
<CAPTION>
Subsidiaries' Data
Telepara Telamazon Telma Teleamapa Telaima
On September 30, 1998 ------------ ------------ ------------ ------------ ------------
- --------------------
<S> <C> <C> <C> <C> <C>
Number of Subscribers.............. 79,523 84,940 40,022 11,584 6,973
Shareholders' Equity............... 110,136 63,127 45,964 11,606 8,263
Net Revenues....................... 64,328 62,420 32,839 6,980 4,938
Income for the nine-months......... 12,559 12,204 8,179 2,390 829
Participation in total capital..... 69.04% 80.26% 66.78% 90.64% 86.91%
Participation in voting capital.... 96.58% 84.13% 82.80% 94.45% 95.08%
</TABLE>
On September 30, 1998 the reconciliation between the holding company's net
income and the consolidated net income is as follows:
R$ thousands
Holding Company's net income..................... 28,016
Equity pick up adjustment on Reserve - interest
on P, P&E - work in progress................... (2,373)
----------
Consolidated Net Income.......................... 25,643
==========
Free Translation into English of Quarterly Information (ITR) Originally Issued
in Portuguese
Tele Norte Celular Participacoes S.A.
Notes to Consolidated Financial Statements
5. LOANS AND FINANCING (Consolidated)
<TABLE>
<CAPTION>
R$ thousands
<S> <C>
Loans and financing in foreign currency - the outstanding balances of the loans are updated
by the exchange variation plus interest based on the London Interbank Offered Rate -
LIBOR, plus interest of 0.40% a year. The installments are due every six months with final
due date up to September, 2003................................................................... 29,661
Loans and financing in national currency - the outstanding balances of the loans are updated
by the quota variation of fundo extra mercado calculated by Banco Central. The installments
are due every six months with final due date up to September, 2000............................... 12,752
---------
42,413
Less: Short term installments.................................................................... (15,314)
---------
Long term installments........................................................................... 27,099
=========
</TABLE>
6. FINANCIAL INSTRUMENTS (Consolidated)
The book value of the Company's financial instruments and its
subsidiaries, comprise short-term investments and loans and financing,
which are equivalent, approximately, to its market value. Further, on
September 30, 1998, the Company and its subsidiaries, do not have
operations involving derivatives.
Free Translation into English of Quarterly Information (ITR)
Originally Issued in Portuguese
Tele Norte Celular Participacoes S.A.
Notes to Consolidated Financial Statements
Interim Financial Information for the three-months ended September 30, 1998
7. TELECOMMUNICATION SERVICES CONSOLIDATED NET OPERATING INCOME (Consolidated)
<TABLE>
<CAPTION>
R$ thousands
-----------------------------------------
07/01 - 09/30/1998 01/01 - 09/30/1998
------------------ ------------------
<S> <C> <C>
Subscription........................................ 22,189 65,003
Utilization......................................... 39,391 105,504
Use of the network by third parties................. 13,433 34,635
Activation.......................................... 4,367 9,685
Additional services................................. 526 1,362
Others.............................................. 724 2,089
--------- ---------
Gross operating revenues............................ 80,630 218,278
Taxes on gross revenues............................. (15,627) (46,904)
--------- ---------
Net operating revenues.............................. 65,003 171,374
========= =========
</TABLE>
8. PENSION PLAN (Consolidated)
The Company and its subsidiaries sponsor a defined benefit private
pension plan, managed by Fundacao SISTEL de Seguridade Social. The
contributions for the plan are determined based on actuarial studies
prepared by independent actuaries according to the current standards in
Brazil. The actuarial studies are revised periodically in order to
modify the necessity of adjustments in the contributions. SISTEL does
not show any deficit in the most recent actuarial evaluation carried out
in December, 1997. Due to the sponsor and benefits model, the spin-off
did not cause any alteration to the pension plans.
Free Translation into English of Quarterly Information (ITR)
Originally Issued in Portuguese
Tele Norte Celular Participacoes S.A.
Management's Discussion and Analysis of Financial Condition and
Results of Operations
Review of Operations
Revenues for the first nine-months of 1998 totaled R$171.5 million, including
R$65.1 million for the third quarter, or a 28% increase over R$50.9 million in
the second quarter of 1998. The increase in revenues, as compared to the
average of the first two quarters, reflects a steady increase in total
subscribers, closing at 223,000, an increase of 10,000 or 5%.
Selling, general and administrative expenses for the nine months ended
September 30, 1998 were R$62.2 million, including R$33.8 million for the third
quarter. During the quarter, the Company implemented a new method to estimate
probable future losses on accounts receivable, based on recent bad debt
experience, which resulted in bad debt expense of R$12.8 million for the
quarter, bringing total bad debt expense for the year to R$28.8 million. Had
such new method been adopted as of June 30, the selling, general and
administrative expenses for the first six months would have been increased by
R$9.5 million to reach R$37.9 million. The Company expects bad debt level to
remain significant for the last quarter as it is improving its subscriber base
by churning non-performing accounts receivable.
Operating income before depreciation and amortization expenses was R$74.5
million for the first nine months of 1998, compared to R$57.4 million after
the first six months. Had the new method to account for bad debt provisions
been recorded in the first half of the year, the operating income before
depreciation and amortization expenses would have been R$47.9 million for the
first six months and R$26.6 million for the third quarter, respectively.
The Company posted net income for the nine-month period ended September 30,
1998 of R$25.6 million or R$0.00008 per share and net income for the third
quarter of R$4.3 million or R$0.00001 per share, as a result of the new policy
for bad debts.
Free Translation into English of Quarterly Information (ITR)
Originally Issued in Portuguese
Tele Norte Celular Participacoes S.A.
Management's Discussion and Analysis of Financial Condition and
Results of Operations
Outlook
A B-Band cellular license was recently awarded to operate in competition with
Tele Norte Celular, although the commencement date of operations has not been
announced, the upcoming competition may have a negative impact on the
Company's future growth in subscribers and could potentially result in
increased marketing expenses. Additionally the Company initiated a
comprehensive review of the management structure, financials and operations,
including the re-evaluation of its analog assets.
Liquidity and Capital Resources
At September 30, 1998, the Company held cash and cash equivalents of R$53.4
million. Total assets amounted to R$337.6 million, while total indebtedness
stood at R$42.4 million, of which R$29.7 million is denominated in U.S.
dollars.
Forward-Looking Statement
Except for the historical information contained herein, this analysis may be
deemed to include forward-looking statements within the meaning of the
Securities Exchange Acts that involve risk and uncertainty, including
financial and trend projections. Although the Company believes that its
expectations are based on reasonable assumptions, it can give no assurance
that its expectations will be achieved. The important factors that could
cause actual results to differ materially from those in the forward-looking
statements herein include, without limitation, the risks associated with
interest rate fluctuations and currency devaluation, dependence on
availability of interconnection facilities, regulation risks and the impact of
competitive services and pricing, as well as other risks referenced from time
to time in the Company's filings with the CVM and SEC. The Company does not
undertake any obligation to release publicly any revisions to its
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
TELE NORTE PARTICIPACOES S.A.
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 1998
(In thousands of reais)
- --------------------------------------------------------------------------------------------------
September 30, 1998 June 30, 1998
ASSETS ------------------ -------------
Current assets:
<S> <C> <C>
Cash and cash equivalents............................... 53,386 32,188
Trade accounts receivable............................... 35,716 44,632
Receivable from wire line companies..................... 13,286 42,591
Recoverable taxes....................................... 8,718 7,592
Inventories............................................. 98 111
Other receivables....................................... 2,824 2,911
--------- ---------
Total current assets..................................... 114,028 130,025
--------- ---------
Long-term assets:
Recoverable taxes....................................... 11,488 --
Others.................................................. 362 487
--------- ---------
Total long-term assets................................... 11,850 487
--------- ---------
Permanent assets:
Property, plant and equipment........................... 211,704 219,013
--------- ---------
Total Assets............................................. 337,582 349,525
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Loans and financing..................................... 15,314 14,161
Taxes and contributions................................. 33,846 24,315
Suppliers............................................... 7,356 13,950
Accruals................................................ 3,153 967
Others.................................................. 5,962 33,231
--------- ---------
Total current liabilities................................ 65,631 86,624
--------- ---------
Long-term liabilities:
Loans and financing..................................... 27,099 30,379
Accruals................................................ 4,933 13
Others.................................................. 25 25
--------- ---------
Total long-term liabilities.............................. 32,057 30,417
--------- ---------
Minority interest....................................... 63,990 61,181
Shareholders' equity:
Capital Stock........................................... 57,749 57,749
Capital reserve......................................... 2,372 2,070
Legal reserve........................................... 3,481 3,481
Realizable profit reserve............................... 59,264 59,264
Retained earnings....................................... 53,038 48,739
--------- ---------
Total shareholders' equity............................... 175,904 171,303
--------- ---------
Total liabilities and shareholders' equity............... 337,582 349,525
========= =========
</TABLE>
TELE NORTE PARTICIPACOES S.A.
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF INCOME FOR THE THREE-MONTHS AND NINE-MONTHS ENDED SEPTEMBER 30, 1998
(In thousands of reais, except per share data )
- ---------------------------------------------------------------------------------------------------------------
3 months ended 9 months ended
September 30, 1998 September 30, 1998
------------------ ------------------
<S> <C> <C>
Gross revenues.................................................... 80,627 218,280
Sales taxes....................................................... (15,497) (46,775)
------------ ------------
Net revenues...................................................... 65,130 171,505
Cost of sales..................................................... (18,703) (48,179)
------------ ------------
Gross profit...................................................... 46,427 123,326
------------ ------------
Operating expenses/income
Selling expenses.................................................. (17,487) (38,652)
General and administrative expenses............................... (16,331) (23,528)
Financial income.................................................. 4,411 6,764
Financial expenses................................................ (2,206) (6,606)
Other operating expenses.......................................... (2,238) (1,644)
------------ ------------
(33,851) (63,666)
------------ ------------
Operating income.................................................. 12,576 59,660
Non operating expenses/income..................................... (3) 122
------------ ------------
Income before income taxes, profit sharing and minority interest.. 12,573 59,782
Provision for income taxes and social contribution................ (5,375) (24,481)
Profit sharing.................................................... (126) (312)
Minority interests................................................ (2,772) (9,346)
------------ ------------
Net income for the period......................................... 4,300 25,643
============ ============
Number of shares (in thousand).................................... 334,399,028 334,399,028
------------ ------------
Net income per shares............................................. 0 0
============ ============
</TABLE>
TELE NORTE PARTICIPACOES S.A.
<TABLE>
<CAPTION>
STATEMENT OF INCOME FOR THE THREE-MONTHS AND NINE-MONTHS ENDED SEPTEMBER 30, 1998
(In thousands of reais)
- ----------------------------------------------------------------------------------------------------
3 months ended 9 months ended
September 30, 1998 September 30, 1998
------------------ ------------------
<S> <C> <C>
Gross revenues.......................................... 30,623 80,280
Sales taxes............................................. (4,318) (15,952)
--------- ---------
Net revenues............................................ 26,305 64,328
Cost of sales........................................... (7,818) (20,898)
--------- ---------
Gross profit............................................ 18,487 43,430
--------- ---------
Operating expenses/income
Selling expenses........................................ (3,099) (12,921)
General and administrative expenses..................... (5,491) (9,431)
Financial income........................................ 1,458 2,244
Financial expenses...................................... (106) (2,069)
Other operating revenues................................ 151 (118)
--------- ---------
(7,087) (22,295)
--------- ---------
Operating income........................................ 11,400 21,135
Non operating income ................................... 16 29
Income before income taxes and profit sharing........... 11,416 21,164
Provision for income taxes and social contribution...... (3,709) (8,411)
Profit sharing.......................................... (87) (194)
--------- ---------
Net income for the period............................... 7,620 12,559
========= =========
</TABLE>
TELE NORTE PARTICIPACOES S.A.
<TABLE>
<CAPTION>
TELAMAZON CELULAR S.A. STATEMENT OF OPERATIONS FOR THE THREE-MONTHS AND NINE-MONTHS ENDED
SEPTEMBER 30, 1998
(In thousands of reais)
- ----------------------------------------------------------------------------------------------------
3 months ended 9 months ended
September 30, 1998 September 30, 1998
------------------ ------------------
<S> <C> <C>
Gross revenues......................................... 31,185 80,379
Sales taxes............................................ (6,834) (17,959)
--------- ---------
Net revenues........................................... 24,351 62,420
Cost of sales.......................................... (6,926) (15,286)
--------- ---------
Gross profit........................................... 17,425 47,134
--------- ---------
Operating expenses/income..............................
Selling expenses....................................... (9,129) (15,992)
General and administrative expenses.................... (7,190) (8,213)
Financial income....................................... 2,011 3,035
Financial expenses..................................... (1,872) (4,290)
Other operating expenses............................... (2,072) (1,271)
--------- ---------
(18,252) (26,731)
--------- ---------
Operating income/loss.................................. (827) 20,403
Non operating expenses/income ......................... (1) 104
--------- ---------
Income/loss before income taxes and profit sharing..... (828) 20,507
Provision for income taxes and social contribution..... 735 (8,235)
Profit sharing......................................... (24) (68)
--------- ---------
Net income (loss) for the period....................... (117) 12,204
========= =========
</TABLE>
TELE NORTE PARTICIPACOES S.A.
<TABLE>
<CAPTION>
STATEMENT OF INCOME FOR THE THREE-MONTHS AND NINE-MONTHS ENDED SEPTEMBER 30, 1998
(In thousands of reais)
- ----------------------------------------------------------------------------------------------------
3 months ended 9 months ended
September 30, 1998 September 30, 1998
------------------ ------------------
<S> <C> <C>
Gross revenues.......................................... 13,401 41,733
Sales taxes............................................. (2,516) (8,894)
--------- ---------
Net revenues............................................ 10,885 32,839
Cost of sales........................................... (3,264) (10,180)
--------- ---------
Gross profit............................................ 7,621 22,655
--------- ---------
Operating expenses/income...............................
Selling expenses........................................ (3,100) (7,279)
General and administrative expenses..................... (1,519) (3,132)
Financial income........................................ 697 1,003
Financial expenses...................................... (194) (204)
Other operating expenses/revenues....................... (6) 217
--------- ---------
(4,122) (9,395)
--------- ---------
Operating income........................................ 3,499 13,260
--------- ---------
Income before income taxes and profit sharing........... 3,499 13,260
Provision for income taxes and social contribution...... (1,815) (5,056)
--------- ---------
Profit sharing.......................................... (9) (25)
--------- ---------
Net income for the period............................... 1,675 8,179
========= =========
</TABLE>
TELE NORTE PARTICIPACOES S.A.
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS FOR THE THREE-MONTHS AND NINE-MONTHS ENDED SEPTEMBER 30, 1998
(In thousands of reais)
- ----------------------------------------------------------------------------------------------------
3 months ended 9 months ended
September 30, 1998 September 30, 1998
------------------ ------------------
<S> <C> <C>
Gross revenues......................................... 3,510 9,207
Sales taxes............................................ (1,084) (2,227)
--------- ---------
Net revenues........................................... 2,426 6,980
Cost of sales.......................................... (369) (881)
--------- ---------
Gross profit........................................... 2,057 6,099
--------- ---------
Operating expenses/income
Selling expenses....................................... (1,079) (1,242)
General and administrative expenses.................... (476) (727)
Financial income....................................... 23 23
Financial expenses..................................... (11) (19)
Other operating revenues............................... 92 130
--------- ---------
1,451 1,835
--------- ---------
Operating income....................................... 606 4,264
Non operating expenses ................................ (19) (19)
--------- ---------
Income before income taxes and profit sharing.......... 587 4,245
Provision for income taxes and social contribution..... (622) (1,846)
Profit sharing......................................... (4) (9)
--------- ---------
Net income (loss) for the period....................... (39) 2,390
========= =========
</TABLE>
TELE NORTE PARTICIPACOES S.A.
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS FOR THE THREE-MONTHS AND NINE-MONTHS ENDED SEPTEMBER 30, 1998
(In thousands of reais)
- ----------------------------------------------------------------------------------------------------
3 months ended 9 months ended
September 30, 1998 September 30, 1998
------------------ ------------------
<S> <C> <C>
Gross revenues......................................... 1,910 6,682
Sales taxes............................................ (747) (1,744)
--------- ---------
Net revenues........................................... 1,163 4,938
Cost of sales.......................................... (326) (930)
--------- ---------
Gross profit........................................... 837 4,008
--------- ---------
Operating expenses/income
Selling expenses....................................... (1,080) (1,218)
General and administrative expenses.................... (318) (688)
Financial income....................................... 130 228
Financial expenses..................................... (15) (16)
Other operating expenses............................... (402) (601)
--------- ---------
(1,685) (2,295)
--------- ---------
Operating income/loss.................................. (848) 1,713
Non operating income .................................. -- 8
--------- ---------
Loss/income before income taxes and profit sharing..... (848) 1,721
Provision for income tax and social contribution (43) (875)
Profit sharing......................................... (4) (17)
========= =========
Net income (loss) for the period....................... (895) 829
========= =========
</TABLE>
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 Norte Cellular Holding Company
Date: November 16, 1998 By: /s/ Gerard Manuel Vazquez
------------------------------------
Name: Gerard Manuel Vazquez
Title: President and Chief
Executive Officer
