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.
TIM PARTICIPAÇÕES S.A. Announces its Consolidated
Results for the Fourth Quarter 2010
Rio de Janeiro, February 21st, 2011 TIM Participações S.A. (BOVESPA: TCSL3 and TCSL4; and NYSE: TSU), the company which controls directly TIM Celular S.A. and Intelig Telecomunicações Ltda., announces its results for the fourth quarter of 2010 and FY2010. TIM Participações S.A. ( TIM Participações or TIM ) provides telecommunication services with a nationwide presence in Brazil.
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BOVESPA1 | ||
(lot = 1 share) | ||
TCSL3: R$7.35 | ||
TCSL4: R$6.09 | ||
NYSE1 | ||
(1 ADR = 10 PN shares) | ||
TSU: US$37.14 | ||
(1) closing prices of Feb 21th, 2011 | ||
4Q10 Highlights | ||
4Q10 Conference Call | ||
Combining Growth and Profitability: subscriber base grew 24.1% YoY, with net addition of 9.9 million lines. This performance was accompanied by top line growth of 9.9% YoY in 4Q10 and EBITDA margin reaching 30.6%; Infinity and Liberty represent more than 80% of customer base. Post paid segment reached net additions of over 1 million users; Infinity Web achieved more than 1 million daily unique users after 4 months of its launch and helping data revenues to increase 31% in 4Q10 vs. 4Q09; MOU reached 129 minutes this quarter (+30.0% YoY). In a strong evidence of community based success; Bad debt reached new low at 1.0% of total gross revenues; CAPEX reached R$2,836 million in 2010, with focus on 3G roll-out and 2G expansion and capacity; Operating FCF in 2010 totaled R$ 1.4 billion, with a growth of 110% vs. 2009. | ||
Conference Call in Portuguese: | ||
February 22th, 2011, at: | ||
10:00 AM Brasília time | ||
08:00 AM US ET | ||
Conference Call in English: | ||
February 22th, 2011, at: | ||
12:30 PM Brasília time | ||
10:30 AM US ET | ||
For further information, please | ||
access the Company's website: | ||
www.tim.com.br/ir | ||
Investor Relations Contacts | ||
ri@timbrasil.com.br | ||
(+55 21) 4009-3360 / 4009-3446 / | ||
4009-3751 | ||
Avenida das Américas, 3434 | ||
Bloco 01 6° andar Barra da Tijuca | ||
Rio de Janeiro, RJ - Brazil | ||
Zip Code 22640-102 | ||
Fax: +55 21 4009-3990 |
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Message from Administration |
We ended 2010 with great satisfaction that the turnaround started two years ago is well accomplished. A good balance of Growth and Profitability Our Brand Drivers of Growth Improving Financial Results Strengthening Data Offers | |
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Perspectives I conclude my message by thanking all of TIM's employees, a fundamental piece for make such great change happens. Luca Luciani | |
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Operational Performance |
Brazilian Market Overview | ||
Mobile penetration rate surpassed 100% |
Brazilian mobile market reached 202.9 million lines by the end of 2010, a yearly growth of 16.7% (vs. 15.5% in 2009). Penetration rate in Brazil reachead 104.7% in the 4Q10, from 90.6% in the same period last year. The mobile market growth has been supported by: i) stronger and stable economy with a solid expansion and better distribution of family's income and consumption ii) the continuos stimulation of Multiple SIM-Card sales (mostly in the pre-paid segment), and iii) on-net offering. |
29 Mln of net additions in 2010 |
Total net additions in 2010 reached 29.0 million, representing the second best year ever and posting a growth of 24.3% YoY. Looking only to the fourth quarter, net adds totalled 11.5 million, the best quarterly performance in historical series, resulting in an outstanding increase of 46.4% versus 7.8 million on the same period last year and +81.0% QoQ. |
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TIM's Performance | ||
Leading Gross adds Churn rate |
Total subscriber base ended 2010 with 51.0 million lines, 24.1% up from 2009 and representing a market share of 25.1%. Total net additions in the 4Q10 came in at 4.1 million lines, reaching 36% market share of net additions (vs. 19% in 4Q09). As for the full year, 2010 net adds totaled 9.9 million lines, more than the double of net adds reported in 2009, resulting in a net share of 34.2% (+14.0 p.p. YoY) - being market leader in terms of growth in 2010. Additionally, TIM was the only player to gain market share in the period. This performance confirms the market acceptance of Infinity and Liberty plans. In addition, TIM maintained the second position in total pre-paid subscriber base. |
38 million users in Infinity plan |
Post-paid customer base reached 7.5 million users, a 15.7% YoY growth vs. -1.8% in 4Q09. In 2010, TIM added 1.0 million post-paid clients (vs. a net loss of 117k in 2009), thanks to the Infinity and Liberty plans which ended the quarter with more than 3 million users. |
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Network &and lower |
Network & Quality: Our GSM coverage reached ~94% of the urban population, serving 3,203 cities. Despite a continuous steep traffic increase in the past quarters, TIM consolidated the leadership on Anatel's network quality indicator, being the only player to score 100% of the goals in the last 10 consecutive months and also in 11 out of 12 months of 2010. In addition, in the 4Q10, TIM maintained the lowest Call Drop level in Brazil, with an average of 0.60% (vs. 1.06% in 4Q09). Such result reinforces TIM's commitment to provide top notch service quality, while pushing MOU intensive strategy. As for data coverage, TIM provides GPRS technology to 100% of its footprint, and ~80% is covered by EDGE technology. The Third Generation Technology (3G) had its roll-out speeded-up and now it is present in 210 cities reaching 54% of urban population in Brazil. We expect to continue accelerating the 3G roll-out in 2011. |
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Marketing Performance |
AppShop: apps store to boost internet usage via smartphones |
This quarter TIM kept on strengthening even more the commercial activities with new data offers and continuing to push the well-known unique voice offers. As a consequence of the innovative and segmented offers and also due to the maintenance of media presence, the Company achieved in the quarter the record of gross additions. |
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the amount sold in November. The performance was boosted by the return of Intelig to the media over the past year, with campaigns highlighting the simplicity, affordability and convenience of the new offers. The fourth quarter came in as a consolidation of our unique positioning on Brazilian telecom market with a voice strategy stimulating on-net traffic and generating the largest community base in Brazil, based on a per-call-tariff, and on the data market with new Infinity and Liberty Web plans. In summary, the great achievements in 2010 (following the Infinity and Liberty plans) indicate that the same approach will be in place for 2011: innovation, unlimited usage per call (including LD), strong infrastructure and an outstanding quality. | |
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Financial Performance |
Selected financial data Revenues
4Q09 | 2009 | |||||||||||||||
DESCRIPTION | 4Q10 | Pro-forma | % YoY | 3Q10 | % QoQ | 2010 | Pro-forma | % YoY | ||||||||
R$ thousands | ||||||||||||||||
Gross Revenues | 5,565,433 | 4,956,503 | 12.3% | 5,172,709 | 7.6% | 20,319,295 | 19,013,345 | 6.9% | ||||||||
Telecommunications Services |
5,097,335 | 4,653,192 | 9.5% | 4,748,624 | 7.3% | 18,761,385 | 17,295,682 | 8.5% | ||||||||
Telecommunications Services & Others - Mobile |
4,739,065 | 4,377,901 | 8.2% | 4,409,695 | 7.5% | 17,480,139 | 16,221,451 | 7.8% | ||||||||
Usage and Monthly fee |
2,478,825 | 2,228,489 | 11.2% | 2,250,890 | 10.1% | 8,911,976 | 8,068,181 | 10.5% | ||||||||
Value added services - VAS |
642,263 | 488,641 | 31.4% | 564,886 | 13.7% | 2,241,530 | 1,897,188 | 18.2% | ||||||||
Long distance |
626,101 | 567,544 | 10.3% | 586,281 | 6.8% | 2,374,341 | 1,943,121 | 22.2% | ||||||||
Interconnection |
935,665 | 997,974 | -6.2% | 922,687 | 1.4% | 3,679,365 | 4,006,950 | -8.2% | ||||||||
Others |
56,211 | 95,253 | -41.0% | 84,951 | -33.8% | 272,927 | 306,011 | -10.8% | ||||||||
Telecommunications Services & Others - Fixed |
358,270 | 275,287 | 30.1% | 338,929 | 5.7% | 1,281,246 | 1,074,229 | 19.3% | ||||||||
Handset sales |
468,098 | 303,311 | 54.3% | 424,086 | 10.4% | 1,557,910 | 1,717,663 | -9.3% | ||||||||
Discounts and deductions |
(1,639,784) | (1,385,053) | 18.4% | (1,495,929) | 9.6% | (5,861,846) | (5,266,317) | 11.3% | ||||||||
Taxes and discounts on services |
(1,470,347) | (1,231,344) | 19.4% | (1,330,371) | 10.5% | (5,189,759) | (4,507,816) | 15.1% | ||||||||
Taxes and discounts on handset sales |
(169,437) | (153,709) | 10.2% | (165,558) | 2.3% | (672,087) | (758,501) | -11.4% | ||||||||
Net Revenues | 3,925,648 | 3,571,450 | 9.9% | 3,676,781 | 6.8% | 14,457,450 | 13,747,028 | 5.2% | ||||||||
Services |
3,626,988 | 3,421,848 | 6.0% | 3,418,253 | 6.1% | 13,571,626 | 12,787,866 | 6.1% | ||||||||
Products |
298,661 | 149,602 | 99.6% | 258,528 | 15.5% | 885,824 | 959,162 | -7.6% |
Operating Revenues | ||
Gross service
Positive Voice outgoing |
Total gross revenues reached R$5,565 million in the quarter, an increase of 12.3% YoY (or 7.6% QoQ). Gross service revenues grew by 9.5% when compared to same period last year, reaching R$5,097 million in 4Q10. As for gross product revenues, the amount reached R$468 million, a sound increase of 54.3% YoY (or +10.4% QoQ). Voice outgoing gross revenues (usage+LD) continued to register a significant improvement YoY, growing by 11.0% in the 4Q10. The performance was backed by local and LD services, as a result of the positive traffic growth elasticity seen in our innovative plans ('Infinity' and 'Liberty'). Voice strategy continues to enlarge usage within TIM community (both for local and LD calls). In 2010, outgoing traffic went up 88% when compared to the previous year (53,661 Bln minutes), being approximately 90% on-net. |
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#1 LD traffic
|
Long distance gross revenues reached R$626 million in the quarter, a growth of 10.3% when compared to 4Q09. TIM continues to leverage its long distance service and providing a distinctive and unique value proposition for users. Fixed to mobile substitution continues to unlock hidden value from LD pre-paid traffic. Following this approach, the company was able to reach a remarkable #1 position in the LD traffic volume (estimated over than 40% of total LD traffic). | |
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Lower ARPU
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ARPU (average revenue per user) was R$23.3 in the quarter posting a yearly reduction of 13.9% due to the subscriber base mix, where prepaid net addition grew 16x faster than the postpaid in 4Q10 and incoming revenues decreasing contribution turning the ARPU dilution an unavoidable trend. Outgoing MOU reached 113min, representing a growth of 44% versus 4Q09. This substantial increase comes from our voice plans, which based on community concept (local=LD) continue to stimulate the outgoing traffic growth. | |
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Selected financial data Operating Costs and Expenses
4T09 | 2009 pro- | |||||||||||||||
DESCRIPTION | 4T10 | pro-forma | YoY% | 3T10 | QoQ% | 2010 | forma | YoY% | ||||||||
R$ Thousand | ||||||||||||||||
Operating Expenses | (2,724,309) | (2,485,881) | 9.6% | (2,641,686) | 3.13% | (10,263,855) | (10,206,072) | 0.6% | ||||||||
Personnel expenses |
(146,204) | (154,546) | -5.4% | (139,798) | 4.58% | (586,722) | (634,047) | -7.5% | ||||||||
Selling & marketing expenses |
(903,187) | (919,214) | -1.7% | (935,325) | -3.44% | (3,483,165) | (3,367,892) | 3.4% | ||||||||
Network & interconnection |
(1,084,544) | (1,083,522) | 0.1% | (1,075,302) | 0.86% | (4,227,042) | (4,215,385) | 0.3% | ||||||||
General & administrative |
(123,797) | (123,980) | -0.1% | (122,652) | 0.93% | (484,609) | (489,028) | -0.9% | ||||||||
Cost Of Goods Sold |
(383,985) | (99,409) | 286.3% | (274,594) | 39.84% | (1,026,091) | (925,184) | 10.9% | ||||||||
Bad Debt |
(58,016) | (82,353) | -29.6% | (69,397) | -16.40% | (310,498) | (419,146) | -25.9% | ||||||||
Other operational revenues (expenses) |
(24,576) | (22,857) | 7.5% | (24,618) | -0.17% | (145,728) | (155,390) | -6.2% |
Operating Costs and Expenses | ||
OPEX variation
Decrease
|
Total Operating costs and expenses increased 9.6% YoY to R$2,724 million in the 4Q10, mainly due the subsidy capitalization. Costs and expenses breakdowns are presented as follows: | |
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Bad debt at the lowest level of 1.0% of gross revenues SAC/ARPU sharp drop even after record in sale |
Bad Debt expenses continued to register a significant downward trend, coming at R$58 million and down 29.6% YoY, amid a post-paid base increased of 15.7%. This is a consistent quarterly reduction and an evidence of rational go-to-market approach based on naked SIM-Card sales and better customer credit scoring. As a result, in this quarter bad debt as a percentage of gross revenues reached lowest level in TIM's history at 1.0%, down from 1.7% registered in 4Q09. | |
EBITDA | ||
EBITDA growth of 11% YoY |
EBITDA (earnings before interests, taxes, depreciation and amortization) reached R$1,201 million, representing an expansion of R$115.8 million over 4Q09 (or 10.7%). This expansion is explained by the performance of voice outgoing service contribution (voice revenues interconnection costs), which registered a growth rate of 13.9% YoY, and also due to VAS and LD revenues performance. | |
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Depreciation and Amortization | ||
Depreciation and amortization accounted for R$687 million in the fourth quarter, representing a 9.1% drop when compared to the past quarter and a 6.4% decrease versus 4Q09. As for the total year, D&A accounted for R$2,993 million in 2010, fairly stable versus the R$3,033 million reported in 2009. | ||
EBIT | ||
EBIT growth more than 2x YoY |
EBIT (earnings before interest and taxes) totaled R$515 million in the 4Q10. In a yearly comparison, EBIT presented a strong expansion of R$163 million following a greater EBITDA result. As for the full year, EBIT registered R$1,200 million, a sound increase of 136% when compared to 2009, and again chiefly by the EBITDA performance. | |
Net Financial Result | ||
Net financial expenses totaled R$57 million in the quarter versus R$30 million registered in 4Q09, which was impacted by FX variation gain of R$35 million from a non-hedged debt of Intelig. It is important to highlight that 4Q10 figures were in-line with 3Q10. As for the FY2010, net financial expenses came at R$245 million (vs. a net financial gain of R$261 million), again following the FX result from a non-hedged debt of Intelig of R$564 million. | ||
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Income and Social Contribution Taxes | |
Income and Social Contribution taxes came at a positive R$1,427 million in the 4Q10 (vs. another positive R$94 million in 4Q09). The positive impact is largely due to deferred tax asset (from loss carryfoward), representing a credit of R$1,435 million in 4Q10 and R$108 million R$108 million in 4Q09. As for the FY2010, Income Tax and Social Contribution also came at positive R$1,257 million (vs. a positive R$33 million in FY2009), due to the above mentioned positive impacts from deferred tax asset. | |
Net Profit | |
Consolidated Net Profit reached R$1,885 million in 4Q10, against a profit of R$416 million in 4Q09, influenced by a better operational results (+R$116 million in EBITDA line), but largely impacted by the tax credit effect explained above (for 4Q10 and 4Q09 analysis) and also by the FX gain with unhedged debt in Intelig (for 4Q09 analysis). As for the FY2010, net profit reached R$2,212 million (vs. R$801 million profit in the FY2009), and the variation is explained again by EBITDA line improvement (+R$653 million) and the tax credit effect aforementioned. | |
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CAPEX | |
Investments totaled R$2,836 million in 2010, which represented the same level of 2009 in terms of % of net revenues (19.6% vs. 19.7%). When considered only network, investments increased by 28.9% YoY, mainly 2G capacity/expansion and 3G deployment. | |
Net financial position and free cash flow | |
|
Gross Debt amounted to R$ 3,378 million, a significant drop if compared to the R$4.243 million in 4Q09. The reduction is explained by some loan expiration that were not renewed. Company's debt is concentrated in long-term contracts (72% of the total) composed by financing from BNDES (Brazilian Economic and Social Development Bank), BNB (Banco do Nordeste do Brasil) and EIB (European Investment Bank), as well as borrowings from other local and international financial institutions. Approximately 22% of total debt is denominated in foreign currency (USD), and it is 100% hedged in local currency. Average cost of debt totaled 10.06% in the 4Q10 compared to 9.67% in the 4Q09. In the year, the average cost was 10.0% versus 10.7% in 2009. Cash and Cash equivalents reached R$ 2,394 million, resulting in a net debt position of R$ 984 million, 41.6% lower than the 4Q09. Operating Free Cash Flow in 4Q10 totaled R$1,252 million, a growth of 9.2% when compared to the 4Q09 (TIM + Dec/09 of Intelig). The result is due to EBITDA expansion and a positive impact from change in working capital. Hence, net cash flow reached R$1,095 million vs. R$860 million registered in the same period last year (+27% YoY). |
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BRGAAP Guidance for 2010 |
Description | Guidance | Actual | ||
Net service revenues (YoY) | >5% | +6.1% þ | ||
EBITDA margin | >25% | 26.2%þ | ||
CAPEX (R$ Bln) | ~2.5 | 2.55 þ |
Dividends |
Management is proposing the distribution of R$496.6 million, versus a distribution of R$204.1 million in 2009. The amount to be distributed is equivalent to R$0.2006 per share (ON and PN) and R$2.006 per ADR (10 preferred shares). The proposal will be analyzed at the Company's annual shareholders´ meeting to be held in April of 2011.
Ownership Breakdown |
NUMBER OF SHARES | ||||||||||
Common | % | Preferred | % | Total | % | |||||
843,281,477 | 34.06 | 1,632,453,583 | 65.94 | 2,475,735,060 | 100.00 |
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About TIM Participações S.A. |
TIM Participações S.A. is a holding company that provides telecommunication services all across Brazil through its subsidiaries, TIM Celular S.A. and Intelig Telecomunicações LTDA. TIM Participações is a subsidiary of TIM Brasil Serviços e Participações S.A., a Telecom Italia group company. TIM launched its operations in Brazil in 1998 and consolidated its nationwide footprint in 2002, thus becoming the first wireless operator to be present in all of Brazilians states.
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» Integrated company with a nationwide footprint since 2002 |
The TIM brand is strongly associated with innovation and quality. During its presence in the country, it has become the pioneer in a diversity of products and services, such as MMS and Blackberry in Brazil. Continuing this trend, it renewed its portfolio in 2009 to position itself as the operator that devises Plans and Promotions that Revolutionize . It launched two families of plans 'Infinity' and 'Liberty', in addition to the sophisticated 'Da Vinci'. The new portfolio is based on an innovative concept, with a great deal of incentive to use (billing by call, unlimited use) and constantly explores the concept of TIM community, the largest in the country, with 51 million lines in Brazil.
In December 2009, the company concluded the merger of 100% of Intelig, which provides fixed, long distance telephony and data transmission services in Brazil. The merger, announced in April last year, is supporting the expansion of TIM´s infrastructure, a combination that allows to speed up the development of the 3G network, to optimize the cost of renting facilities, and also to improve our competitive positioning in the telecom market.
TIM Participações is a publicly-held company, whose shares are listed on the São Paulo Stock Exchange (BM&FBOVESPA) and ADRs (American Depositary Receipts) are listed on the New York Stock Exchange (NYSE). TIM is also included in a select group of companies of the Corporate Sustainability Index(ISE) of BM&FBOVESPA.
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Disclaimer |
This document may contain forward-looking statements. Such statements are not statements of historical fact and reflect the beliefs and expectations of the Company's management. The words "anticipates , "believes , "estimates , "expects , "forecasts , "plans , "predicts , "projects , "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties foreseen, or not, by the Company. Therefore, the Company's future operating results may differ from current expectations and readers of this release should not base their assumptions exclusively on the information given herein. Forward-looking statements only reflect opinions on the date on which they are made and the Company is not obliged to update them in light of new information or future developments.
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Attachments |
Attachment 1: | Balance Sheet | ||
Attachment 2: | 4Q10 Income Statements | ||
Attachment 3: | 2010 Income Statements | ||
Attachment 4: | 2009 Income Statements (Pro-forma TIM + Intelig) | ||
Attachment 5: | 2010 Cash Flow Statements | ||
Attachment 6: | 2010 EBITDA | ||
Attachment 7: | Consolidated Operational Indicators | ||
Attachment 8: | Glossary | ||
The Complete Financial Statements, including Explanatory Notes, are available at the Company's Investor Relations Website: www.tim.com.br/ir | |||
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Attachment 1
TIM PARTICIPAÇÕES S.A.
Balance Sheet (IFRS)
(R$ Thousand)
DESCRIPTION | 4Q10 | 4Q09 | % | 3Q10 | % | |||||
ASSETS | 19,370,852 | 17,922,455 | 8.1% | 16,363,065 | 18.4% | |||||
CURRENT ASSETS | 6,425,920 | 6,482,652 | -0.9% | 5,407,291 | 18.8% | |||||
Cash and cash equivalents | 2,376,232 | 2,413,024 | -1.5% | 1,353,828 | 75.5% | |||||
Short-term investments | 18,177 | 146,145 | -87.6% | 15,289 | 18.9% | |||||
Accounts receivable | 2,748,411 | 2,443,424 | 12.5% | 2,653,589 | 3.6% | |||||
Inventories | 228,654 | 406,434 | -43.7% | 222,709 | 2.7% | |||||
Indirect recoverable Taxes | 494,036 | 464,615 | 6.3% | 473,701 | 4.3% | |||||
Direct recoverable Taxes | 361,929 | 440,693 | -17.9% | 419,659 | -13.8% | |||||
Prepaid expenses | 93,768 | 24,690 | 279.8% | 177,735 | -47.2% | |||||
Derivative contracts | 6,122 | 49,237 | -87.6% | 6,967 | -12.1% | |||||
Other assets | 98,591 | 94,390 | 4.5% | 83,814 | 17.6% | |||||
NONCURRENT | 12,944,932 | 11,439,803 | 13.2% | 10,955,774 | 18.2% | |||||
Noncurrent assets | ||||||||||
Long-term investments | 13,692 | 16,567 | -17.4% | 17,442 | -21.5% | |||||
Accounts receivable | 36,812 | 41,269 | -10.8% | 28,863 | 27.5% | |||||
Indirect recoverable Taxes | 188,111 | 180,032 | 4.5% | 192,996 | -2.5% | |||||
Direct recoverable Taxes | 139,366 | 41,706 | 234.2% | 102,221 | 36.3% | |||||
Deferred income and social contribution taxes | 1,732,732 | 297,487 | 482.5% | 221,348 | 682.8% | |||||
Judicial deposits | 385,519 | 227,521 | 69.4% | 347,873 | 10.8% | |||||
Prepaid expenses | 14,620 | 9,847 | 48.5% | 15,268 | -4.2% | |||||
Derivative contracts | 16,746 | 29,027 | -42.3% | 22,815 | -26.6% | |||||
Other assets | 17,763 | 11,863 | 49.7% | 17,751 | 0.1% | |||||
Permanent Assets | ||||||||||
Property, plant and equipment | 5,863,723 | 5,593,772 | 4.8% | 5,351,457 | 9.6% | |||||
Intangibles | 4,535,848 | 4,990,712 | -9.1% | 4,637,740 | -2.2% | |||||
LIABILITIES | 19,370,852 | 17,922,455 | 8.1% | 16,363,065 | 18.4% | |||||
CURRENT LIABILITIES | 5,691,089 | 5,739,929 | -0.9% | 4,002,764 | 42.2% | |||||
Suppliers | 3,103,469 | 3,099,982 | 0.1% | 2,107,669 | 47.2% | |||||
Loans and financing | 957,549 | 1,417,363 | -32.4% | 926,216 | 3.4% | |||||
Derivative contracts | 2,071 | 48,122 | -95.7% | 1,872 | 10.6% | |||||
Salaries and related charges | 125,292 | 107,863 | 16.2% | 133,449 | -6.1% | |||||
Indirect taxes, charges and contributions | 544,375 | 563,852 | -3.5% | 508,979 | 7.0% | |||||
Direct taxes, charges and contributions | 265,328 | 162,645 | 63.1% | 164,516 | 61.3% | |||||
Dividends payable | 511,737 | 224,652 | 127.8% | 15,159 | 3275.8% | |||||
Other liabilities | 181,268 | 115,450 | 57.0% | 144,904 | 25.1% | |||||
NONCURRENT LIABILITIES | 3,378,954 | 3,605,166 | -6.3% | 3,447,528 | -2.0% | |||||
Loans and financing | 2,277,121 | 2,742,595 | -17.0% | 2,414,644 | -5.7% | |||||
Derivative contracts | 164,482 | 113,200 | 45.3% | 135,459 | 21.4% | |||||
Provision for contingencies | 57,720 | 5,157 | 1019.3% | 58,782 | -1.8% | |||||
Pension plan | 138,981 | 23,984 | 479.5% | 138,981 | 0.0% | |||||
Indirect taxes, charges and contributions | 83,708 | 96,154 | -12.9% | 87,282 | -4.1% | |||||
Direct taxes, charges and contributions | 249,057 | 324,508 | -23.3% | 285,365 | -12.7% | |||||
Deferred income and social contribution taxes | 9,166 | 7,527 | 21.8% | 7,338 | 24.9% | |||||
Asset retirement obligations | 255,737 | 239,635 | 6.7% | 248,455 | 2.9% | |||||
Other liabilities | 142,982 | 52,406 | 172.8% | 71,222 | 100.8% | |||||
SHAREHOLDERS' EQUITY | 10,300,809 | 8,577,360 | 20.1% | 8,912,773 | 15.6% | |||||
Capital | 8,149,096 | 8,149,096 | 0.0% | 8,149,096 | 0.0% | |||||
Capital reserves | 396,128 | 396,128 | 0.0% | 396,129 | 0.0% | |||||
Income reserves | 1,755,585 | 158,050 | 1010.8% | 166,394 | 955.1% | |||||
Accumulated losses | - | (125,914) | -100.0% | (125,914) | -100.0% | |||||
Net Income for the period | - | - | - | 327,068 | -100.0% |
21
Attachment 2
TIM PARTICIPAÇÕES S.A.
Income Statements (IFRS)
(R$ Thousand)
DESCRIPTION | 4Q10 | 4Q09 pro-forma |
% YoY | 3Q10 | % QoQ | 2010 | 2009 pro-forma |
% YoY | ||||||||
Gross Revenues | 5,565,433 | 4,956,499 | 12.3% | 5,172,709 | 7.59% | 20,319,295 | 19,013,343 | 6.9% | ||||||||
Gross Revenues Telecommunications Services | 5,097,335 | 4,653,188 | 9.5% | 4,748,624 | 7.34% | 18,761,385 | 17,295,680 | 8.5% | ||||||||
Telecommunications Services - Mobile | 4,739,065 | 4,377,901 | 8.2% | 4,409,695 | 7.47% | 17,480,139 | 16,221,451 | 7.8% | ||||||||
Usage and Monthly fee | 2,478,825 | 2,228,489 | 11.2% | 2,250,890 | 10.13% | 8,911,976 | 8,068,181 | 10.5% | ||||||||
Value added services - VAS | 642,263 | 488,641 | 31.4% | 564,886 | 13.70% | 2,241,530 | 1,897,188 | 18.2% | ||||||||
Long distance | 626,101 | 567,544 | 10.3% | 586,281 | 6.79% | 2,374,341 | 1,943,121 | 22.2% | ||||||||
Interconnection | 935,665 | 997,974 | -6.2% | 922,687 | 1.41% | 3,679,365 | 4,006,950 | -8.2% | ||||||||
Others | 56,211 | 95,253 | -41.0% | 84,951 | -33.83% | 272,927 | 306,011 | -10.8% | ||||||||
Telecommunications Services - Fixed | 358,270 | 275,287 | 30.1% | 338,929 | 5.71% | 1,281,246 | 1,074,229 | 19.3% | ||||||||
Gross Revenues Handset sales | 468,098 | 303,311 | 54.3% | 424,085 | 10.38% | 1,557,910 | 1,717,663 | -9.3% | ||||||||
Discounts and deductions on Gross Revenues | (1,639,784) | (1,385,050) | 18.4% | (1,495,928) | 9.62% | (5,861,845) | (5,266,315) | 11.3% | ||||||||
Taxes and discounts on services | (1,470,347) | (1,231,341) | 19.4% | (1,330,370) | 10.52% | (5,189,759) | (4,507,815) | 15.1% | ||||||||
Taxes and discounts on handset sales | (169,437) | (153,709) | 10.2% | (165,558) | 2.34% | (672,086) | (758,500) | -11.4% | ||||||||
Net Revenues | 3,925,649 | 3,571,449 | 9.9% | 3,676,781 | 6.77% | 14,457,450 | 13,747,028 | 5.2% | ||||||||
Net Revenues on services | 3,626,988 | 3,421,847 | 6.0% | 3,418,254 | 6.11% | 13,571,626 | 12,787,865 | 6.1% | ||||||||
Net Revenues on Products | 298,661 | 149,602 | 99.6% | 258,527 | 15.52% | 885,824 | 959,163 | -7.6% | ||||||||
Operating Expenses | (2,724,309) | (2,485,881) | 9.6% | (2,641,686) | 3.13% | (10,263,855) | (10,206,072) | 0.6% | ||||||||
Personnel expenses | (146,204) | (154,546) | -5.4% | (139,798) | 4.58% | (586,722) | (634,047) | -7.5% | ||||||||
Selling & marketing expenses | (903,187) | (919,214) | -1.7% | (935,325) | -3.44% | (3,483,165) | (3,367,892) | 3.4% | ||||||||
Network & interconnection | (1,084,544) | (1,083,522) | 0.1% | (1,075,302) | 0.86% | (4,227,042) | (4,215,385) | 0.3% | ||||||||
General & administrative | (123,797) | (123,980) | -0.1% | (122,652) | 0.93% | (484,609) | (489,028) | -0.9% | ||||||||
Cost Of Goods Sold | (383,985) | (99,409) | 286.3% | (274,594) | 39.84% | (1,026,091) | (925,184) | 10.9% | ||||||||
Bad Debt | (58,016) | (82,353) | -29.6% | (69,397) | -16.40% | (310,498) | (419,146) | -25.9% | ||||||||
Other operational revenues (expenses) | (24,576) | (22,857) | 7.5% | (24,618) | -0.17% | (145,728) | (155,390) | -6.2% | ||||||||
EBITDA | 1,201,340 | 1,085,568 | 10.66% | 1,035,095 | 16.06% | 4,193,595 | 3,540,956 | 18.43% | ||||||||
EBITDA Margin | 30.6% | 30.4% | 0.0 p.p | 28.2% | 8.70% | 29.0% | 25.8% | 0.1 p.p | ||||||||
Depreciation & amortization | (686,801) | (734,139) | -6.45% | (755,545) | -9.10% | (2,993,461) | (3,033,360) | -1.32% | ||||||||
Depreciation | (344,370) | (374,333) | -8% | (367,651) | -6.33% | (1,448,654) | (1,502,539) | -4% | ||||||||
Amortization | (342,431) | (359,806) | -5% | (387,894) | -11.72% | (1,544,807) | (1,530,821) | 1% | ||||||||
EBIT | 514,539 | 351,429 | 46.41% | 279,550 | 84.06% | 1,200,134 | 507,596 | 136.43% | ||||||||
EBIT Margin | 13.1% | 9.8% | 0.3 p.p | 7.6% | 72.39% | 8.3% | 3.7% | 1.2 p.p | ||||||||
Net Financial Results | (56,791) | (29,653) | 91.52% | (58,839) | -3.48% | (245,457) | 260,601 | -194.19% | ||||||||
Financial expenses | (96,137) | (115,617) | -17% | (86,579) | 11.04% | (380,501) | (394,905) | -4% | ||||||||
Financial income | 69,471 | 50,527 | 37% | 52,656 | 31.93% | 231,671 | 144,876 | 60% | ||||||||
Net exchange variance | (30,125) | 35,437 | -185% | (24,916) | 20.91% | (96,627) | 510,630 | -119% | ||||||||
Income before taxes | 457,748 | 321,776 | 42.26% | 220,711 | 107.40% | 954,677 | 768,197 | 24.28% | ||||||||
Income tax and social contribution | 1,426,899 | 93,750 | 1422% | (74,188) - | 2023.36% | 1,257,038 | 33,026 | 3706% | ||||||||
Net Income | 1,884,647 | 415,526 | 353.56% | 146,523 | 1186.25% | 2,211,715 | 801,223 | 176.04% |
22
Attachment 3
TIM PARTICIPAÇÕES S.A.
2010 Income Statements (IFRS)
(R$ Thousand)
DESCRIPTION | 1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010 | |||||
Gross Revenues | 4,638,451 | 4,942,702 | 5,172,709 | 5,565,433 | 20,319,295 | |||||
Gross Revenues Telecommunications Services | 4,352,230 | 4,563,196 | 4,748,624 | 5,097,335 | 18,761,385 | |||||
Telecommunications Services - Mobile | 4,083,120 | 4,248,259 | 4,409,695 | 4,739,065 | 17,480,139 | |||||
Usage and Monthly fee | 2,038,988 | 2,143,273 | 2,250,890 | 2,478,825 | 8,911,976 | |||||
Value added services - VAS | 484,153 | 550,228 | 564,886 | 642,263 | 2,241,530 | |||||
Long distance | 570,508 | 591,451 | 586,281 | 626,101 | 2,374,341 | |||||
Interconnection | 918,789 | 902,224 | 922,687 | 935,665 | 3,679,365 | |||||
Others | 70,682 | 61,083 | 84,951 | 56,211 | 272,927 | |||||
Telecommunications Services - Fixed | 269,110 | 314,937 | 338,929 | 358,270 | 1,281,246 | |||||
Gross Revenues Handset sales | 286,221 | 379,506 | 424,085 | 468,098 | 1,557,910 | |||||
Discounts and deductions on Gross Revenues | (1,342,412) | (1,383,721) | (1,495,928) | (1,639,784) | (5,861,845) | |||||
Taxes and discounts on services | (1,175,830) | (1,213,212) | (1,330,370) | (1,470,347) | (5,189,759) | |||||
Taxes and discounts on handset sales | (166,582) | (170,509) | (165,558) | (169,437) | (672,086) | |||||
Net Revenues | 3,296,039 | 3,558,981 | 3,676,781 | 3,925,649 | 14,457,450 | |||||
Net Revenues on Services | 3,176,400 | 3,349,984 | 3,418,254 | 3,626,988 | 13,571,626 | |||||
Net Revenues on Products | 119,639 | 208,997 | 258,527 | 298,661 | 885,824 | |||||
Operating Expenses | (2,348,956) | (2,548,904) | (2,641,686) | (2,724,309) | (10,263,855) | |||||
Personnel expenses | (153,200) | (147,520) | (139,798) | (146,204) | (586,722) | |||||
Selling & marketing expenses | (790,155) | (854,498) | (935,325) | (903,187) | (3,483,165) | |||||
Network & interconnection | (1,022,261) | (1,044,935) | (1,075,302) | (1,084,544) | (4,227,042) | |||||
General & administrative | (112,179) | (125,981) | (122,652) | (123,797) | (484,609) | |||||
Cost Of Goods Sold | (135,645) | (231,867) | (274,594) | (383,985) | (1,026,091) | |||||
Bad Debt | (92,627) | (90,458) | (69,397) | (58,016) | (310,498) | |||||
Other operational revenues (expenses) | (42,889) | (53,645) | (24,618) | (24,576) | (145,728) | |||||
EBITDA | 947,083 | 1,010,077 | 1,035,095 | 1,201,340 | 4,193,595 | |||||
EBITDA Margin | 28.7% | 28.4% | 28.2% | 30.6% | 29.0% | |||||
Depreciation & amortization | (779,670) | (771,445) | (755,545) | (686,801) | (2,993,461) | |||||
Depreciation | (366,623) | (370,010) | (367,651) | (344,370) | (1,448,654) | |||||
Amortization | (413,047) | (401,435) | (387,894) | (342,431) | (1,544,807) | |||||
EBIT | 167,413 | 238,632 | 279,550 | 514,539 | 1,200,134 | |||||
EBIT Margin | 5.1% | 6.7% | 7.6% | 13.1% | 8.3% | |||||
Net Financial Results | (70,916) | (58,911) | (58,839) | (56,791) | (245,457) | |||||
Financial expenses | (98,957) | (98,828) | (86,579) | (96,137) | (380,501) | |||||
Financial income | 55,944 | 53,600 | 52,656 | 69,471 | 231,671 | |||||
Net exchange variance | (27,903) | (13,683) | (24,916) | (30,125) | (96,627) | |||||
Income before taxes | 96,497 | 179,721 | 220,711 | 457,748 | 954,677 | |||||
Income tax and social contribution | (41,916) | (53,757) | (74,188) | 1,426,899 | 1,257,038 | |||||
Net Income | 54,581 | 125,964 | 146,523 | 1,884,647 | 2,211,715 |
23
Attachment 4
TIM PARTICIPAÇÕES S.A.
2009 Income Statements (IFRS)
Pro-forma TIM+Intelig
(R$ Thousand)
DESCRIPTION | 1Q09 | 2Q09 | 3Q09 | 4Q09 | 2009 | |||||
Gross Revenues | 4,456,706 | 4,778,608 | 4,821,530 | 4,956,499 | 19,013,343 | |||||
Gross Revenues Telecommunications Services | 4,085,762 | 4,213,084 | 4,343,646 | 4,653,188 | 17,295,680 | |||||
Telecommunications Services - Mobile | 3,844,092 | 3,939,311 | 4,060,147 | 4,377,901 | 16,221,451 | |||||
Usage and Monthly fee | 1,869,488 | 1,950,420 | 2,019,784 | 2,228,489 | 8,068,181 | |||||
Value added services - VAS | 429,683 | 483,285 | 495,579 | 488,641 | 1,897,188 | |||||
Long distance | 454,439 | 453,087 | 468,051 | 567,544 | 1,943,121 | |||||
Interconnection | 1,036,309 | 978,828 | 993,839 | 997,974 | 4,006,950 | |||||
Others | 54,173 | 73,691 | 82,894 | 95,253 | 306,011 | |||||
Telecommunications Services - Fixed | 241,670 | 273,773 | 283,499 | 275,287 | 1,074,229 | |||||
Gross Revenues Handset sales | 370,944 | 565,524 | 477,884 | 303,311 | 1,717,663 | |||||
Discounts and deductions on Gross Revenues | (1,258,580) | (1,266,887) | (1,355,798) | (1,385,050) | (5,266,315) | |||||
Taxes and discounts on services | (1,076,692) | (1,069,226) | (1,130,556) | (1,231,341) | (4,507,815) | |||||
Taxes and discounts on handset sales | (181,888) | (197,661) | (225,242) | (153,709) | (758,500) | |||||
Net Revenues | 3,198,126 | 3,511,721 | 3,465,732 | 3,571,449 | 13,747,028 | |||||
Net Revenues on services | 3,009,070 | 3,143,858 | 3,213,090 | 3,421,847 | 12,787,865 | |||||
Net Revenues on Products | 189,056 | 367,863 | 252,642 | 149,602 | 959,163 | |||||
Operating Expenses | (2,483,111) | (2,647,989) | (2,589,091) | (2,485,881) | (10,206,072) | |||||
Personnel expenses | (176,782) | (155,613) | (147,106) | (154,546) | (634,047) | |||||
Selling & marketing expenses | (719,572) | (841,502) | (887,604) | (919,214) | (3,367,892) | |||||
Network & interconnection | (1,067,668) | (1,008,787) | (1,055,408) | (1,083,522) | (4,215,385) | |||||
General & administrative | (118,442) | (128,907) | (117,699) | (123,980) | (489,028) | |||||
Cost Of Goods Sold | (227,891) | (366,875) | (231,009) | (99,409) | (925,184) | |||||
Bad Debt | (138,235) | (95,671) | (102,887) | (82,353) | (419,146) | |||||
Other operational revenues (expenses) | (34,521) | (50,634) | (47,378) | (22,857) | (155,390) | |||||
EBITDA | 715,015 | 863,732 | 876,641 | 1,085,568 | 3,540,956 | |||||
EBITDA Margin | 22.4% | 24.6% | 25.3% | 30.4% | 25.8% | |||||
Depreciation & amortization | (760,177) | (759,678) | (779,366) | (734,139) | (3,033,360) | |||||
Depreciation | (377,153) | (372,065) | (378,988) | (374,333) | (1,502,539) | |||||
Amortization | (383,024) | (387,613) | (400,378) | (359,806) | (1,530,821) | |||||
EBIT | (45,162) | 104,054 | 97,275 | 351,429 | 507,596 | |||||
EBIT Margin | -1.4% | 3.0% | 2.8% | 9.8% | 3.7% | |||||
Net Financial Results | (69,044) | 268,194 | 91,104 | (29,653) | 260,601 | |||||
Financial expenses | (104,524) | (94,908) | (79,856) | (115,617) | (394,905) | |||||
Financial income | 36,760 | 28,491 | 29,098 | 50,527 | 144,876 | |||||
Net exchange variance | (1,280) | 334,611 | 141,862 | 35,437 | 510,630 | |||||
Income before taxes | (114,206) | 372,248 | 188,379 | 321,776 | 768,197 | |||||
Income tax and social contribution | (45,405) | (40,431) | 25,112 | 93,750 | 33,026 | |||||
Net Income | (159,611) | 331,817 | 213,491 | 415,526 | 801,223 |
24
Attachment 5
TIM PARTICIPAÇÕES S.A.
2010 Cash Flow Statements (IFRS)
(R$ Thousand)
DESCRIPTION | 4Q10 | 4Q09* | % YoY | 3Q10 | % QoQ | 2010 | 2009* | % YoY | ||||||||
EBIT | 514,539 | 356,137 | 44.5% | 279,550 | 84.1% | 1,200,134 | 553,462 | 117% | ||||||||
Depreciation and Amortization | 686,801 | 706,331 | -2.8% | 755,545 | -9.1% | 2,993,460 | 2,913,966 | 2.7% | ||||||||
Capital Expenditure | (1,100,238) | (1,140,830) | -3.6% | (525,935) | 109% | (2,835,761) | (2,670,970) | 6.2% | ||||||||
Changes in Net Operating Working Capital | 1,150,502 | 1,224,263 | -6.0% | 94,951 | 1112% | 14,140 | (142,178) | N/A | ||||||||
FREE OPERATIONAL CASH FLOW | 1,251,604 | 1,145,901 | 9.2% | 604,111 | 107.2% | 1,371,973 | 654,280 | 109.7% | ||||||||
Income and Social Contribution Taxes | (88,059) | (56,571) | 55.7% | (45,070) | 95.4% | (190,653) | (74,898) | 155% | ||||||||
Dividends and Interest on Capital | (33) | (62) | -46.8% | (207) | -84.1% | (201,182) | (168,142) | 19.7% | ||||||||
Social Capital Increase | - | 516,725 | - | - | - | - | 516,725 | - | ||||||||
Intelig Goodwill | - | 223,004 | - | - | - | - | 223,004 | - | ||||||||
Intelig's Acquisition Effect | - | (606,912) | - | - | - | - | (606,912) | - | ||||||||
Net Financial Revenue | (56,791) | (53,088) | 7.0% | (58,839) | -3.5% | (245,457) | (245,114) | 0.1% | ||||||||
Judicial Deposits | (33,399) | (50,430) | -33.8% | (9,906) | 237% | (145,701) | (78,484) | 85.6% | ||||||||
LT Taxes, Interests and Contributions | (1,061) | (125,295) | -99.2% | (933) | 13.7% | 167,561 | (125,295) | N/A | ||||||||
Other changes | 23,085 | (133,480) | -117% | (48,099) | -148% | (56,641) | (108,698) | -48% | ||||||||
NET CASH FLOW | 1,095,346 | 859,792 | 27.4% | 441,057 | 148% | 699,900 | (13,534) | N/A | ||||||||
* TIM + Dec'09 Intelig |
Attachment 6
TIM PARTICIPAÇÕES S.A.
2010 EBITDA
(R$ Thousand)
EBITDA Reconciliation | 4Q10 | 4Q09 pro-forma |
% YoY | 3Q10 | % QoQ | 2010 | 2009 pro-forma |
% YoY | ||||||||
Net Income | 1,884,647 | 415,526 | 353.6% | 146,523 | 1186.2% | 2,211,715 | 801,223 | 176.0% | ||||||||
(+) Provision for Income Tax and | ||||||||||||||||
Service Contribution | 1,426,899 | 93,750 | 1422% | (74,188) | N/A | 1,257,038 | 33,026 | 3706% | ||||||||
(+) Net Financial Results | (56,791) | (29,653) | 91.5% | (58,839) | -3.5% | (245,457) | 260,601 | -194.2% | ||||||||
EBIT | 514,539 | 351,429 | 46.4% | 279,550 | 84.1% | 1,200,134 | 507,596 | 136.4% | ||||||||
(+) Depreciation and Amortization | (686,801) | (734,139) | -6.4% | (755,545) | -9.1% | (2,993,461) | (3,033,360) | -1.3% | ||||||||
EBITDA | 1,201,340 | 1,085,568 | 10.7% | 1,035,095 | 16.1% | 4,193,595 | 3,540,956 | 18.4% |
25
Attachment 7
TIM PARTICIPAÇÕES S.A.
Consolidated Operational Indicators
TIM Stand Alone
DESCRIPTION | 4Q10 | 4Q09 | % YoY | 3Q10 | % QoQ | 2010 | 2009 | % YoY | ||||||||
Brazilian Wireless Subscriber Base (million) | 202,944 | 173,959 | 16.7% | 191,472 | 6.0% | 202,944 | 173,959 | 16.7% | ||||||||
Estimated Total Penetration | 104.7% | 90.6% | 1413 bps | 99.0% | 570 bps | 104.7% | 90.6% | 1413 bps | ||||||||
Municipalities Served - TIM GSM | 3,203 | 2,958 | 8.3% | 3,200 | 0.1% | 3,203 | 2,958 | 8.3% | ||||||||
Market Share | 25.1% | 23.6% | 151 bps | 24.5% | 62 bps | 25.1% | 23.6% | 151 bps | ||||||||
Total Lines ('000) | 51,015 | 41,102 | 24.1% | 46,934 | 8.7% | 51,015 | 41,102 | 24.1% | ||||||||
Prepaid | 43,550 | 34,651 | 25.7% | 39,712 | 9.7% | 43,550 | 34,651 | 25.7% | ||||||||
Postpaid | 7,465 | 6,452 | 15.7% | 7,222 | 3.4% | 7,465 | 6,452 | 15.7% | ||||||||
Gross Additions ('000) | 9,317 | 6,059 | 53.8% | 7,463 | 24.8% | 28,608 | 20,681 | 38.3% | ||||||||
Net Additions ('000) | 4,081 | 1,503 | 171.6% | 2,521 | 61.9% | 9,913 | 4,700 | 110.9% | ||||||||
Churn | 11.0% | 11.5% | -3.7% | 11.1% | -0.3% | 42.4% | 42.4% | 0.1% | ||||||||
ARPU (R$) | 23.3 | 27.1 | -13.9% | 23.5 | -0.7% | 23.7 | 26.6 | -10.8% | ||||||||
MOU | 129 | 99 | 30.0% | 123 | 4.6% | 116 | 83 | 39.1% | ||||||||
SAC (R$) | 36 | 81 | -55.6% | 55 | -34.7% | 54 | 85 | -36.4% | ||||||||
Investment (R$ million) | 1,100 | 1,154 | -4.7% | 526 | 109.2% | 2,836 | 2,702 | 4.9% | ||||||||
Employees | 9,081 | 9,231 | -1.6% | 9,081 | 0.0% | 9,081 | 9,231 | -1.6% |
Attachment 8
Glossary
Financial Terms |
Operational Indicators |
26
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.
TIM PARTICIPAÇÕES S.A. | |||
Date: February 22, 2011 | By: | /s/ Claudio Zezza | |
Name: Claudio Zezza | |||
Title: CFO and Investor Relations Officer |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will a ctually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.