================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of _October, 2005
GRUPO IUSACELL, S.A. de C.V.
(Translation of registrant's name into English)
Montes Urales 460
Col. Lomas de Chapultepec, Deleg. Miguel Hidalgo
11000, Mexico D.F.
(Address of principal executive office)
Indicate by check mark whether the registrant files or will fill 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 12g-3-2(b) under the Securities and Exchange Act of
1934. Yes [ ] No [X]
================================================================================
Documents Furnished By the Registrant
-------------------------------------
1. Press Release of the Registrant dated October 18, 2005
2
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GRUPO IUSACELL, S.A. DE C.V.
Date: October 19, 2005 /s/ Fernando Cabrera
---------------------------
Name: Fernando Cabrera
Title: Attorney in fact
/s/ Jose Luis Riera
---------------------------
Name: Jose Luis Riera
Title: Attorney in fact
3
IUSACELL REPORTS THIRD QUARTER 2005 RESULTS
- Revenue increases 27% to Ps $1,545 Million in el 3Q05 -
- EBITDA increases 39% a Ps $189 Million -
THIRD QUARTER RESULTS
Mexico City, October 18, 2005 - Grupo Iusacell, S.A. de C.V. (BMV:CEL)
presented its financial results for the third quarter of 2005, which show an
increase of 27% in net revenues for the quarter, and a 25% increase for the
first nine months of 2005.
In the third quarter of 2005, operating income before depreciation and
amortization increased 39% compared to third quarter of 2004, resulting in a 59%
increase for the first nine months of 2005 as compared to the same period in
2004.
FINANCIAL HIGHLIGHTS:
---------------------
Million in Constant Pesos as of September 30, 2005.
Change Change
3Q04 3Q05 % 9M 04 9M 05 %
-------- -------- -------- -------- -------- --------
Total Revenue 1,219 1,545 27% 3,457 4,313 25%
Total Cost 718 889 24% 2,076 2,297 11%
Operating Expenses 365 467 28% 904 1,257 39%
EBITDA 136 189 39% 476 759 59%
Net Loss (294) (435) (48)% (1,648) (835) 49%
4
REVENUES
--------
Revenues in the quarter grew 27% to Ps. $1,545 million, compared to Ps.
$1,219 million in the same period of 2004. For the first nine months of 2005,
revenues increased 25% to Ps. $4,313 million compared to Ps. $3,457 million
recorded in the same period last year. The increase is primarily due to growth
in revenues from service revenue generated mainly by an increase in the
subscriber base, as well as higher revenues from value added services. Grupo
Iusacell closed the third quarter of 2005 with 1.72 million subscribers.
COSTS AND EXPENSES
------------------
During the quarter, total costs increased 24% to Ps. $889 million, compared
with Ps. $718 million recorded in the third quarter of 2004. Operating expenses
increased by 28% to Ps. $467 million, in comparison with Ps. $365 million in the
third quarter the prior year. When comparing cumulative figures for the first
nine months of 2005 with the same period the prior year, the company showed an
11% increase in total costs to Ps. $2,297 million from Ps. $2,076 million, as
well as a 39% increase in operating expenses to Ps. $1,257 million from Ps. $904
million.
The increase in total costs is primarily due to the fees for PCS
concessions awarded to us in 2005, interconnection expenses, value added
services costs, and technical expenses.
The increase in operating expenses during the quarter mainly reflects
increases in advertising expenses related to the launch of new products, such
as: Movil Office (Mobile Office) and BAM (broadband mobile), as well as an
increase in administrative expenses owing to the creation of regional sales and
customer care structures in line with company strategy to provide the best
service to our clients.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
-----------------------------------------------------
Iusacell recorded a 39% increase in operating income before depreciation
and amortization for the quarter, to Ps. $189 million compared to Ps. $136
million in the same period the preceding year. For the first nine months of
2005, Iusacell recorded a 59% increase, to Ps. $759 million compared to Ps. $476
million in the same period the prior year. This is due to the increase in
revenues.
NET INCOME
----------
Iusacell recorded a 48% increase in net loss, from Ps. $294 million for the
third quarter of 2004 ti Ps. $435 million for the third quarter of 2005. This
increase is due mainly to a decrease in foreign exchange and monetary position
gains. However, for the first nine months of the year, the company had a 49%
reduction in net loss, with Ps. $835 million in the first nine months of 2005 as
compared to Ps. $1,648 million in the same period in 2004.
5
CAPEX
-----
In the third quarter of 2005, the Company invested approximately US$17
million, primarily for expansion of coverage and capacity of Iusacell's 3-G
network and EV-DO (Evolution Data Only) services.
RECENT EVENTS
-------------
ADRs TERMINATION PROGRAM
On September 19, 2005, the Company announced that The Bank of New York
(BONY), as instructed by the Company, terminated the American Depositary
Receipts (ADRs) program of the company and, as a result, the New York Stock
Exchange (NYSE) suspended trading of its ADRs as of September 20. 2005.
As previously explained, holders of ADRs have 60 days from September 20,
2005, to exchange their ADRs for shares traded on the Mexican Stock Exchange
(Bolsa Mexicana de Valores - BMV). After this 60-day period, BONY will be
authorized to sell the shares corresponding to the ADRs that have not been
exchanged and to make the funds received available to holders.
DEBT RESTRUCTURING
The Company continues negotiations with several creditors, seeking to reach
an overall restructuring agreement as soon as possible.
6
ABOUT IUSACELL
Grupo Iusacell, S.A. de C.V. (Iusacell, BMV: CEL) is a wireless cellular
and PCS service provider in Mexico with a national footprint. Independent of the
negotiations towards the restructuring of its debt, Iusacell reinforces its
commitment with customers, employees and suppliers and guarantees the highest
quality standards in its daily operations offering more and better voice
communication and data services through state-of-the-art technology, such as its
new 3G network, throughout all of the regions in which it operate.
LEGAL DISCLAIMER
Grupo Iusacell, S.A. de C.V. quarterly reports and all other written
materials may from time to time contain statements about expected future events
and financial results that are forward-looking and subject to risks and
uncertainties. For those statements, the Company claims the protection of the
safe harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. A discussion of factors that may affect future
results is contained in our filings with the Securities and Exchange Commission.
Attached are the Consolidated Income Statements of each of Grupo Iusacell,
S.A. de C.V. and Grupo Iusacell Celular, S.A. de C.V. for the three-month and
nine-month periods ended September 30, 2005, and the Consolidated Balance Sheet
of Grupo Iusacell, S.A. de C.V. and Grupo Iusacell Celular, S.A. de C.V. at
September 30, 2005.
CONTACTS:
---------
Jose Luis Riera K. J. Victor Ferrer V.
Chief Financial Officer Finance Manager
Grupo Iusacell S.A. de C.V. Grupo Iusacell S.A. de C.V.
Tel. +52 (55) 5109-5927 Tel. +52 (55) 5109-5273
vferrer@iusacell.com.mx
7
GRUPO IUSACELL, S.A. DE C.V. CONSOLIDATED
FIGURES IN MILLION OF CONSTANT SEPTEMBER 30, 2005 PESOS
3Q04 3Q05 CHANGE
--------------------- --------------------- --------------------
INCOME STATEMENT
Revenue 106% 1,295 106% 1,633 337 26%
Commissions (6)% (77) (6)% (88) (11) (15)%
-------- -------- -------- --------
Net Revenue 100% 1,219 100% 1,545 326 27%
-------- -------- -------- --------
Cost of services 46% 556 46% 713 157 28%
Handsets subsidy 13% 162 11% 175 14 8%
-------- -------- -------- --------
Total Cost 59% 718 58% 889 171 24%
-------- -------- -------- --------
Gross Profit 41% 500 42% 656 156 31%
-------- -------- -------- --------
Operating expenses 30% 365 30% 467 102 28%
Depreciation and amortization 41% 501 24% 372 (129) (26)%
-------- -------- -------- --------
Total Expenses 71% 866 54% 839 (27) (3)%
-------- -------- -------- --------
Operating Loss (30)% (365) (12)% (183) 182 50%
-------- -------- -------- --------
EBITDA 11% 136 12% 189 53 39%
-------- -------- -------- --------
(Profit) loss from fixed assets sales 4% 46 (1)% (19) (64) (141)%
Integral Financing Cost
Interest expense, net (23)% (285) (18)% (276) 9 3%
Foreign exchange loss (gain) 13% 157 (1)% (17) (174) (111)%
Gain from monetary position 14% 165 5% 76 (89) (54)%
-------- -------- -------- --------
3% 36 (14)% (217) (253) n.m.
-------- -------- -------- --------
Loss Before Taxes (23)% (284) (27)% (419) (135) (48)%
-------- -------- -------- --------
Taxes (5)% (57) (1)% (14) 43 76%
Equity participation in net loss
(income) of subsidiaries (0)% (0) 0% - 0 n.a.
Extraordinary item 4% 47 0% - (47) n.a.
Minority interest 0% 0 (0)% (3) (3) n.m.
-------- -------- -------- -------- -------- --------
Net Loss (24)% (294) (28)% (435) (141) (48)%
======== ======== ======== ======== ======== ========
8
GRUPO IUSACELL, S.A. DE C.V. CONSOLIDATED
FIGURES IN MILLION OF CONSTANT SEPTEMBER 30, 2005 PESOS
9M04 9M05 CHANGE
--------------------- --------------------- --------------------
INCOME STATEMENT
Revenue 107% 3,695 107% 4,601 906 25%
Commissions (7)% (238) (7)% (288) (49) (21)%
-------- -------- -------- --------
Net Revenue 100% 3,457 100% 4,313 857 25%
-------- -------- -------- --------
Cost of services 43% 1,483 44% 1,906 423 29%
Handsets subsidy 17% 593 9% 392 (202) (34)%
-------- -------- -------- --------
Total Cost 60% 2,076 53% 2,297 221 11%
-------- -------- -------- --------
Gross Profit 40% 1,380 47% 2,016 635 46%
-------- -------- -------- --------
Operating expenses 26% 904 29% 1,257 353 39%
Depreciation and amortization 44% 1,528 27% 1,148 (380) (25)%
-------- -------- -------- --------
Total Expenses 70% 2,432 56% 2,405 (27) (1)%
-------- -------- -------- --------
Operating Loss (30)% (1,051) (9)% (389) 663 63%
-------- -------- -------- --------
EBITDA 14% 476 18% 759 283 59%
-------- -------- -------- --------
(Profit) loss from fixed assets sales 4% 149 (1)% (42) (191) (128)%
Integral Financing Cost
Interest expense, net (23)% (804) (19)% (820) (15) (2)%
Foreign exchange loss (gain) (5)% (163) 9% 379 542 n.m.
Gain from monetary position 10% 346 3% 111 (234) (68)%
-------- -------- -------- --------
(18)% (621) (8)% (330) 292 47%
-------- -------- -------- --------
Loss Before Taxes (44)% (1,524) (18)% (760) 764 50%
-------- -------- -------- --------
Taxes (5)% (173) (2)% (71) 102 51%
Equity participation in net loss
(income) of subsidiaries (0)% (0) 0% - 0 n.a.
Extraordinary item 1% 47 0% - (47) n.a.
Minority interest 0% 2 (0)% (4) (6) n.m.
-------- -------- -------- -------- -------- --------
Net Loss (48)% (1,648) (19)% (835) 813 49%
======== ======== ======== ======== ======== ========
9
GRUPO IUSACELL, S.A. DE C.V. CONSOLIDATED
FIGURES IN MILLION OF CONSTANT SEPTEMBER 30, 2005 PESOS
9M04 9M05 CHANGE
--------------------- --------------------- --------------------
Cash and marketable securities 2 0% 13 0% 11 n.m.
Accounts receivable, net 475 4% 375 4% (100) (21)%
Related parties 101 1% - 0% (101) (100)%
Recoverable taxes and other 184 2% 775 7% 591 321%
Inventories 291 3% 14 0% (277) (95)%
-------- -------- -------- --------
TOTAL CURRENT ASSETS 1,054 9% 1,177 11% 123 12%
Property and equipment, net 7,253 64% 6,395 61% (858) (12)%
Excess of cost of investments in 1,880 17% 1,820 17% (60) (3)%
Other assets 1,109 10% 1,049 10% (60) (5)%
-------- -------- -------- --------
TOTAL ASSETS 11,296 100% 10,441 100% (855) (8)%
-------- -------- -------- --------
Accrued liabilities 2,282 20% 3,258 31% 977 43%
Related parties 53 0% 207 2% 154 289%
Accounts payable 409 4% 439 4% 29 7%
Short-term debt 9,298 82% 8,541 82% (757) (8)%
-------- -------- -------- --------
Total Current Liabilities 12,042 107% 12,445 119% 403 3%
Noncurrent liabilities 51 0% 1 0% (50) (98)%
-------- -------- -------- --------
TOTAL LIABILITIES 12,093 107% 12,446 119% 353 3%
-------- -------- -------- --------
Minority interest (65) (1)% (77) (1)% (11) 17%
TOTAL SHAREHOLDERS' EQUITY (732) (6)% (1,929) (18)% (1,196) n.m.
-------- -------- -------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS'S EQUITY 11,296 100% 10,441 100% (855) (8)%
-------- -------- -------- --------
10
GRUPO IUSACELL CELULAR CONSOLIDATED
FIGURES IN MILLION OF CONSTANT SEPTEMBER 30, 2005 PESOS
3Q04 3Q05 CHANGE
--------------------- --------------------- --------------------
INCOME STATEMENT
Revenue 106% 1,334 106% 1,668 333 25%
Commissions (6)% (77) (6)% (88) (11) (15)%
-------- -------- -------- --------
Net Revenue 100% 1,258 100% 1,580 322 26%
-------- -------- -------- --------
Cost of services 46% 576 46% 729 153 27%
Handsets subsidy 13% 162 11% 175 14 8%
-------- -------- -------- --------
Total Cost 59% 738 57% 905 166 23%
-------- -------- -------- --------
Gross Profit 41% 519 43% 675 156 30%
-------- -------- -------- --------
Operating expenses 28% 358 29% 457 99 28%
Depreciation and amortization 37% 460 21% 335 (125) (27)%
-------- -------- -------- --------
Total Expenses 65% 818 50% 792 (26) (3)%
-------- -------- -------- --------
Operating Loss (24)% (299) (7)% (117) 182 61%
-------- -------- -------- --------
EBITDA 13% 162 14% 218 57 35%
-------- -------- -------- --------
(Profit) loss from fixed assets sales 3% 41 (1)% (11) (52) (126)%
Integral Financing Cost
Interest expense, net (10)% (126) (8)% (132) (6) (5)%
Foreign exchange loss (gain) 6% 79 (1)% (11) (90) (114)%
Gain from monetary position 6% 78 1% 13 (65) (83)%
-------- -------- -------- --------
2% 31 (8)% (130) (161) n.m.
-------- -------- -------- --------
Loss Before Taxes (18)% (226) (16)% (258) (32) (14)%
-------- -------- -------- --------
Taxes (4)% (51) (1)% (14) 38 73%
Equity participation in net loss
(income) of subsidiaries (0)% (0) 0% - 0 n.a.
Extraordinary item 0% - 0% - - n.a.
Minority interest 0% 0 (0)% (3) (3) n.m.
-------- -------- -------- -------- -------- --------
Net Loss (22)% (277) (17)% (274) 3 1%
======== ======== ======== ======== ======== ========
11
GRUPO IUSACELL CELULAR CONSOLIDATED
FIGURES IN MILLION OF CONSTANT SEPTEMBER 30, 2005 PESOS
9M04 9M05 CHANGE
--------------------- --------------------- --------------------
ACUMULATED INCOME STATEMENT
Revenue 107% 3,793 106% 4,719 926 24%
Commissions (7)% (238) (6)% (288) (49) (21)%
-------- -------- -------- --------
Net Revenue 100% 3,555 100% 4,432 877 25%
-------- -------- -------- --------
Cost of services 44% 1,547 47% 2,071 524 34%
Handsets subsidy 17% 593 9% 392 (202) (34)%
-------- -------- -------- --------
Total Cost 60% 2,140 56% 2,463 323 15%
-------- -------- -------- --------
Gross Profit 40% 1,415 44% 1,969 555 39%
-------- -------- -------- --------
Operating expenses 25% 885 28% 1,234 349 39%
Depreciation and amortization 40% 1,406 23% 1,037 (369) (26)%
-------- -------- -------- --------
Total Expenses 64% 2,292 51% 2,271 (20) (1)%
-------- -------- -------- --------
Operating Loss (25)% (877) (7)% (302) 575 66%
-------- -------- -------- --------
EBITDA 15% 529 17% 735 206 39%
-------- -------- -------- --------
(Profit) loss from fixed assets sales 3% 117 (1)% (34) (151) (129)%
Integral Financing Cost
Interest expense, net (9)% (318) (8)% (364) (46) (15)%
Foreign exchange loss (gain) (2)% (87) 4% 183 270 n.m.
Gain from monetary position 5% 165 1% 34 (131) (80)%
-------- -------- -------- --------
(7)% (240) (3)% (147) 93 39%
-------- -------- -------- --------
Loss Before Taxes (28)% (1,000) (11)% (483) 517 52%
-------- -------- -------- --------
Taxes (4)% (156) (2)% (70) 86 57%
Equity participation in net loss
(income) of subsidiaries (0)% (0) 0% - 0 n.a.
Extraordinary item 0% - 0% - - n.a.
Minority interest 0% 2 (0)% (4) (6) n.m.
-------- -------- -------- -------- -------- --------
Net Loss (32)% (1,154) (13)% (557) 596 52%
======== ======== ======== ======== ======== ========
12
GRUPO IUSACELL CELULAR CONSOLIDATED
FIGURES IN MILLION OF CONSTANT SEPTEMBER 30, 2005 PESOS
9M04 9M05 CHANGE
--------------------- --------------------- --------------------
Cash and marketable securities 2 0% 2 0% (0) n.m.
Accounts receivable, net 482 5% 375 4% (107) (22)%
Related parties 331 3% 267 3% (65) (19)%
Recoverable taxes and other 130 1% 726 8% 596 459%
Inventories 291 3% 14 0% (277) (95)%
-------- -------- -------- --------
TOTAL CURRENT ASSETS 1,236 12% 1,383 15% 147 12%
Property and equipment, net 6,493 64% 5,884 63% (609) (9)%
Excess of cost of investments in 1,692 17% 1,635 18% (57) (3)%
Other assets 690 7% 410 4% (280) (41)%
-------- -------- -------- --------
TOTAL ASSETS 10,111 100% 9,312 100% (799) (8)%
-------- -------- -------- --------
Accrued liabilities 912 9% 1,320 14% 408 45%
Related parties 58 1% 254 3% 195 334%
Accounts payable 378 4% 388 4% 10 3%
Short-term debt 4,878 48% 4,480 48% (397) (8)%
-------- -------- -------- --------
Total Current Liabilities 6,226 62% 6,442 69% 216 3%
Noncurrent liabilities 1 0% 0 0% (0) (7)%
-------- -------- -------- --------
TOTAL LIABILITIES 6,226 62% 6,442 69% 216 3%
-------- -------- -------- --------
Minority interest (65) (1)% (77) (1)% (11) 17%
TOTAL SHAREHOLDERS'EQUITY 3,950 39% 2,946 32% (1,004) n.m.
-------- -------- -------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS'S EQUITY 10,111 100% 9,312 100% (799) (8)%
-------- -------- -------- --------
13