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As Of Filer Filing For·On·As Docs:Size Issuer Agent 2/22/08 Central European Media Enter… Ltd 10-Q/A 6/30/07 4:2.9M Summit Fin’l Printing |
Document/Exhibit Description Pages Size 1: 10-Q/A Central European Media Enterprises Ltd. 10-Q/A HTML 1.60M 6-30-2007 2: EX-31.01 Certification per Sarbanes-Oxley Act (Section 302) HTML 12K 3: EX-31.02 Certification per Sarbanes-Oxley Act (Section 302) HTML 12K 4: EX-32.01 Certification per Sarbanes-Oxley Act (Section 906) HTML 9K
BERMUDA
|
98-0438382
|
(State
or other jurisdiction of incorporation and organization)
|
(IRS
Employer Identification No.)
|
Clarendon House, Church Street,
Hamilton
|
HM 11
Bermuda
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
accelerated filer x
|
Accelerated
filer ¨
|
Non-accelerated
filer ¨
|
Class
|
|
Class
A Common Stock, par value $0.08
|
34,639,921
|
Class
B Common Stock, par value $0.08
|
6,312,839
|
Page
|
|
Part I. Financial
information
|
|
2
|
|
4
|
|
6
|
|
7
|
|
8
|
|
41
|
|
Part II. Other
Information
|
|
83
|
|
84
|
|
85
|
ASSETS
|
||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ |
116,662
|
$ |
145,904
|
||||
Restricted
cash (Note 6)
|
1,174
|
4,954
|
||||||
Accounts
receivable (net of allowance) (Note 7)
|
180,059
|
152,505
|
||||||
Income
taxes receivable
|
4,766
|
3,053
|
||||||
Program
rights, net
|
62,182
|
59,645
|
||||||
Other
current assets (Note 8)
|
61,755
|
47,555
|
||||||
Total current
assets
|
426,598
|
413,616
|
||||||
Non-current
assets
|
||||||||
Investments
|
16,563
|
19,214
|
||||||
Property,
plant and equipment, net (Note 9)
|
130,181
|
115,805
|
||||||
Program
rights, net
|
85,715
|
76,638
|
||||||
Goodwill
(Note 4)
|
922,739
|
905,580
|
||||||
Broadcast
licenses, net (Note 4)
|
210,881
|
198,730
|
||||||
Other
intangible assets, net (Note 4)
|
88,464
|
71,942
|
||||||
Other
non-current assets (Note 8)
|
19,151
|
17,475
|
||||||
Total non-current
assets
|
1,473,694
|
1,405,384
|
||||||
Total
assets
|
$ |
1,900,292
|
$ |
1,819,000
|
LIABILITIES AND SHAREHOLDERS’
EQUITY
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable and accrued liabilities (Note 10)
|
$ |
141,640
|
$ |
119,717
|
||||
Duties
and other taxes payable
|
35,845
|
31,707
|
||||||
Income
taxes payable
|
13,483
|
12,434
|
||||||
Credit
facilities and obligations under capital leases (Note 11)
|
12,433
|
13,057
|
||||||
Dividends
payable to minority shareholders in subsidiaries
|
5,513
|
-
|
||||||
Deferred
consideration – Croatia
|
-
|
4,010
|
||||||
Deferred
consideration – Ukraine
|
1,060
|
200
|
||||||
Deferred
tax
|
4,263
|
1,836
|
||||||
Total current
liabilities
|
214,237
|
182,961
|
||||||
Non-current
liabilities
|
||||||||
Credit
facilities and obligations under capital leases (Note 11)
|
5,802
|
6,359
|
||||||
Senior
Notes (Note 5)
|
533,424
|
487,291
|
||||||
Income
taxes payable
|
5,072
|
3,000
|
||||||
Deferred
tax
|
63,292
|
58,092
|
||||||
Other
non-current liabilities
|
3,885
|
19,342
|
||||||
Total non-current
liabilities
|
611,475
|
574,084
|
||||||
Commitments
and contingencies (Note 18)
|
||||||||
Minority interests in
consolidated subsidiaries
|
21,556
|
26,189
|
||||||
SHAREHOLDERS'
EQUITY:
|
||||||||
Nil
shares of Preferred Stock of $0.08 each (December 31, 2006 –
nil)
|
-
|
-
|
||||||
34,639,921
shares of Class A Common Stock of $0.08 each (December 31, 2006 –
34,412,138)
|
2,771
|
2,753
|
||||||
6,312,839
shares of Class B Common Stock of $0.08 each (December 31, 2006 –
6,312,839)
|
505
|
505
|
||||||
Additional
paid-in capital
|
936,730
|
931,108
|
||||||
Accumulated
deficit
|
(609 | ) | (31,730 | ) | ||||
Accumulated
other comprehensive income / (loss)
|
113,627
|
133,130
|
||||||
Total shareholders’
equity
|
1,053,024
|
1,035,766
|
||||||
Total liabilities and
shareholders’ equity
|
$ |
1,900,292
|
$ |
1,819,000
|
For the Three Months
Ended
June 30,
|
For the Six Months
Ended
|
|||||||||||||||
2006
|
2007
(as
restated,
see Note
2)
|
2006
|
||||||||||||||
Net
revenues
|
$ |
216,284
|
$ |
156,589
|
$ |
364,196
|
$ |
276,343
|
||||||||
Operating
costs
|
30,944
|
26,042
|
56,601
|
49,014
|
||||||||||||
Cost
of programming
|
82,773
|
52,850
|
149,126
|
101,268
|
||||||||||||
Depreciation
of station property, plant and equipment
|
7,680
|
6,059
|
14,579
|
11,761
|
||||||||||||
Amortization
of broadcast licenses and other intangibles (Note 4)
|
5,165
|
4,620
|
10,327
|
8,952
|
||||||||||||
Cost of
revenues
|
126,562
|
89,571
|
230,633
|
170,995
|
||||||||||||
Station
selling, general and administrative expenses
|
15,699
|
14,541
|
31,480
|
28,707
|
||||||||||||
Corporate
operating costs
|
7,444
|
7,696
|
22,217
|
15,677
|
||||||||||||
Impairment
charge
|
-
|
748
|
-
|
748
|
||||||||||||
Operating
income
|
66,579
|
44,033
|
79,866
|
60,216
|
||||||||||||
Interest
income
|
1,732
|
1,741
|
3,146
|
3,194
|
||||||||||||
Interest
expense
|
(19,438 | ) | (11,337 | ) | (30,834 | ) | (21,855 | ) | ||||||||
Foreign
currency exchange loss, net
|
(2,116 | ) | (20,625 | ) | (5,252 | ) | (31,487 | ) | ||||||||
Change
in fair value of derivatives (Note 12)
|
7,528
|
(1,876 | ) |
12,052
|
(1,876 | ) | ||||||||||
Other
(expense) / income
|
(546 | ) |
167
|
(790 | ) | (381 | ) | |||||||||
Income before provision for
income taxes, minority interest, equity in loss of unconsolidated
affiliates and discontinued operations
|
53,739
|
12,103
|
58,188
|
7,811
|
||||||||||||
Provision
for income taxes
|
(13,419 | ) | (3,582 | ) | (18,478 | ) | (7,576 | ) | ||||||||
Income before minority
interest, equity in loss of unconsolidated affiliates and discontinued
operations
|
40,320
|
8,521
|
39,710
|
235
|
||||||||||||
Minority
interest in income of consolidated subsidiaries
|
(5,730 | ) | (1,276 | ) | (5,370 | ) | (6,717 | ) | ||||||||
Equity
in loss of unconsolidated affiliates
|
-
|
-
|
-
|
(730 | ) | |||||||||||
Net income / (loss) from
continuing operations
|
34,590
|
7,245
|
34,340
|
(7,212 | ) | |||||||||||
Discontinued operations (Note
17):
|
||||||||||||||||
Tax
on disposal of discontinued operations (Czech Republic)
|
-
|
1,277
|
-
|
(2,530 | ) | |||||||||||
Net income / (loss) from
discontinued operations
|
-
|
1,277
|
-
|
(2,530 | ) | |||||||||||
Net income /
(loss)
|
$ |
34,590
|
$ |
8,522
|
$ |
34,340
|
$ | (9,742 | ) | |||||||
Currency
translation adjustment, net
|
(13,868 | ) |
44,706
|
(19,503 | ) |
77,165
|
||||||||||
Total comprehensive
income
|
$ |
20,722
|
$ |
53,228
|
$ |
14,837
|
$ |
67,423
|
For the Three Months
Ended
June 30,
|
For the Six Months
Ended
|
|||||||||||||||
2006
|
2007
|
2006
|
||||||||||||||
PER SHARE DATA (Note
15):
|
||||||||||||||||
Net income / (loss) per
share:
|
||||||||||||||||
Continuing
operations – Basic
|
$ |
0.84
|
$ |
0.18
|
$ |
0.84
|
$ | (0.18 | ) | |||||||
Continuing
operations – Diluted
|
0.83
|
0.18
|
0.83
|
(0.18 | ) | |||||||||||
Discontinued
operations – Basic
|
0.00
|
0.03
|
0.00
|
(0.07 | ) | |||||||||||
Discontinued
operations – Diluted
|
0.00
|
0.03
|
0.00
|
(0.07 | ) | |||||||||||
Net
income / (loss) – Basic
|
0.84
|
0.21
|
0.84
|
(0.25 | ) | |||||||||||
Net
income / (loss) – Diluted
|
$ |
0.83
|
$ |
0.21
|
$ |
0.83
|
$ | (0.25 | ) | |||||||
Weighted average common shares
used in computing per share amounts (000’s):
|
||||||||||||||||
Basic
|
40,941
|
40,597
|
40,867
|
39,355
|
||||||||||||
Diluted
|
41,407
|
41,186
|
41,390
|
39,355
|
|
|
Class A Common
Stock
|
|
|
Class B Common
Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Number of
shares
|
|
|
Par
value
|
|
|
Number of
shares
|
|
|
Par
value
|
|
|
Additional Paid-In
Capital
|
|
|
Accumulated
Deficit
|
|
|
Accumulated Other Comprehensive
Income / (Loss)
|
|
|
Total Shareholders'
Equity
|
|
||||||||
BALANCE,
|
|
|
34,412,138
|
|
|
$
|
2,753
|
|
|
|
6,312,839
|
|
|
$
|
505
|
|
|
$
|
931,108
|
|
|
$
|
(31,730
|
)
|
|
$
|
133,130
|
|
|
$
|
1,035,766
|
|
Impact
of adoption of FIN 48
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,219
|
)
|
|
|
-
|
|
|
|
(3,219
|
)
|
BALANCE,
upon the
adoption
of FIN 48
|
|
|
34,412,138
|
|
|
$
|
2,753
|
|
|
|
6,312,839
|
|
|
$
|
505
|
|
|
$
|
931,108
|
|
|
$
|
(34,949
|
)
|
|
$
|
133,130
|
|
|
$
|
1,032,547
|
|
Stock-based
compensation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,910
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,910
|
|
Stock
options exercised
|
|
|
227,783
|
|
|
|
18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,712
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,730
|
|
Net
income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
34,340
|
|
|
|
-
|
|
|
|
34,340
|
|
Currency
translation adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(19,503
|
)
|
|
|
(19,503
|
)
|
BALANCE,
|
|
|
34,639,921
|
|
|
$
|
2,771
|
|
|
|
6,312,839
|
|
|
$
|
505
|
|
|
$
|
936,730
|
|
|
$
|
(609
|
)
|
|
$
|
113,627
|
|
|
$
|
1,053,024
|
|
Class A Common
Stock
|
Class B Common
Stock
|
|||||||||||||||||||||||||||||||
Number of
Shares
|
Par
Value
|
Number of
Shares
|
Par
Value
|
Additional Paid-In
Capital
|
Accumulated
Deficit
|
Accumulated Other Comprehensive
Income / (Loss)
|
Total Shareholders'
Equity
|
|||||||||||||||||||||||||
BALANCE,
|
31,032,994
|
$ |
2,482
|
6,966,533
|
$ |
558
|
$ |
754,061
|
$ | (52,154 | ) | $ | (24,394 | ) | $ |
680,553
|
||||||||||||||||
Stock-based
compensation
|
-
|
-
|
-
|
-
|
1,418
|
-
|
-
|
1,418
|
||||||||||||||||||||||||
Stock
options exercised
|
77,250
|
7
|
-
|
-
|
1,060
|
-
|
-
|
1,067
|
||||||||||||||||||||||||
Shares
issued, net of fees
|
2,530,000
|
202
|
-
|
-
|
168,397
|
-
|
-
|
168,599
|
||||||||||||||||||||||||
Conversion
of Class B to Class A Common Shares
|
753,694
|
61
|
(753,694 | ) | (61 | ) |
-
|
-
|
-
|
-
|
||||||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
(9,742 | ) |
-
|
(9,742 | ) | ||||||||||||||||||||||
Currency
translation adjustment
|
-
|
-
|
-
|
-
|
-
|
-
|
77,165
|
77,165
|
||||||||||||||||||||||||
BALANCE,
as restated (see
Note 2)
|
34,393,938
|
$ |
2,752
|
6,212,839
|
$ |
497
|
$ |
924,936
|
$ | (61,896 | ) | $ |
52,771
|
$ |
919,060
|
2006
|
||||||||
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
||||||||
Net
income/(loss)
|
$ |
34,340
|
$ | (9,742 | ) | |||
Adjustments
to reconcile net income / (loss) to net cash generated from operating
activities:
|
||||||||
Loss
from discontinued operations (Note 17)
|
-
|
2,530
|
||||||
Equity
in loss of unconsolidated affiliates, net of dividends
received
|
-
|
730
|
||||||
Depreciation
and amortization
|
110,945
|
74,429
|
||||||
Impairment
charge
|
-
|
748
|
||||||
Loss
on disposal of fixed asset
|
-
|
1,171
|
||||||
Stock-based
compensation (Note 14)
|
2,605
|
1,418
|
||||||
Minority
interest in income of consolidated subsidiaries
|
5,370
|
6,717
|
||||||
Change
in fair value of derivative instruments
|
(12,052 | ) |
1,876
|
|||||
Foreign
currency exchange loss, net
|
5,252
|
31,487
|
||||||
Net
change in (net of effects of acquisitions and disposals of
businesses):
|
||||||||
Accounts
receivable
|
(25,572 | ) | (7,970 | ) | ||||
Program
rights
|
(100,593 | ) | (69,836 | ) | ||||
Other
assets
|
(8,018 | ) |
1,963
|
|||||
Accounts
payable and accrued liabilities
|
5,723
|
(7,893 | ) | |||||
Income
taxes payable
|
(274 | ) | (6,922 | ) | ||||
Deferred
taxes
|
(458 | ) |
5,352
|
|||||
VAT
and other taxes payable
|
4,333
|
11,217
|
||||||
Net cash generated from
continuing operating activities
|
21,601
|
37,275
|
||||||
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
||||||||
Net
change in restricted cash
|
-
|
(4,068 | ) | |||||
Purchase
of property, plant and equipment
|
(25,469 | ) | (18,461 | ) | ||||
Proceeds
from disposal of property, plant and equipment
|
123
|
19
|
||||||
Investments
in subsidiaries and unconsolidated affiliates
|
(63,017 | ) | (59,308 | ) | ||||
Repayment
of loans and advances to related parties
|
250
|
250
|
||||||
Net cash used in continuing
investing activities
|
(88,113 | ) | (81,568 | ) | ||||
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
||||||||
Proceeds
from credit facilities
|
135,465
|
34,765
|
||||||
Payment
of credit facilities and capital leases
|
(137,289 | ) | (65,519 | ) | ||||
Net
proceeds from issuance of Senior Notes
|
199,400
|
-
|
||||||
Redemption
of Senior Notes
|
(169,010 | ) |
-
|
|||||
Proceeds
from issuance of stock options
|
2,730
|
1,067
|
||||||
Issuance
of shares of Class A Common Stock
|
-
|
168,599
|
||||||
Excess
tax benefits from share based payment arrangements
|
305
|
-
|
||||||
Dividends
paid to minority shareholders
|
(476 | ) | (679 | ) | ||||
Net cash received from
continuing financing activities
|
31,125
|
138,233
|
||||||
NET
CASH USED IN DISCONTINUED OPERATIONS – OPERATING
ACTIVITIES
|
(1,624 | ) | (1,690 | ) | ||||
Impact of exchange rate
fluctuations on cash
|
7,769
|
(4,910 | ) | |||||
Net
(decrease)/increase in cash and cash equivalents
|
(29,242 | ) |
87,340
|
|||||
CASH AND CASH EQUIVALENTS,
beginning of period
|
145,904
|
71,658
|
||||||
CASH AND CASH EQUIVALENTS, end
of period
|
$ |
116,662
|
$ |
158,998
|
Company
Name
|
Effective
Voting
Interest
|
Jurisdiction
of
Organization
|
Type of Affiliate
(1)
|
Nova
TV d.d. (“Nova TV (Croatia)”)
|
100.0%
|
Croatia
|
Subsidiary
|
Media
House d.o.o.
|
100.0%
|
Croatia
|
Subsidiary
|
Internet
Dnevnik d.o.o.
|
76.0%
|
Croatia
|
Subsidiary
|
|
|||
CME
Media Investments, s.r.o.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
VILJA,
a.s. (“Vilja”)
|
100.0%
|
Czech
Republic
|
Subsidiary
|
CET
21 spol., s r.o. (“CET 21”)
|
100.0%
|
Czech
Republic
|
Subsidiary
|
ERIKA
a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
MEDIA
CAPITOL a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
NOVA-V.I.P.
a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
(in liquidation)
|
HARTIC,
a.s.
|
100.0%
|
Czech
Republic
|
Subsidiary
|
Galaxie
sport s r.o. (“Galaxie Sport”)
|
100.0%
|
Czech
Republic
|
Subsidiary
|
|
|||
Media
Pro International S.A. (“MPI”)
|
95.0%
|
Romania
|
Subsidiary
|
Media
Vision SRL (“Media Vision”)
|
95.0%
|
Romania
|
Subsidiary
|
MPI
Romania B.V.
|
95.0%
|
Netherlands
|
Subsidiary
|
Pro
TV S.A. (“Pro TV”)
|
95.0%
|
Romania
|
Subsidiary
|
Sport
Radio TV Media SRL (“Sport.ro”)
|
95.0%
|
Romania
|
Subsidiary
|
Media
Pro B.V.
|
10.0%
|
Netherlands
|
Cost
investment
|
Media
Pro Management S.A.
|
10.0%
|
Romania
|
Cost
investment
|
|
|||
A.R.J.
a.s. (“ARJ”)
|
100.0%
|
Slovak
Republic
|
Subsidiary
|
MARKIZA-SLOVAKIA
spol. s r.o. (“Markiza”)
|
80.0%
|
Slovak
Republic
|
Subsidiary
|
GAMATEX
spol. s r.o.
|
80.0%
|
Slovak
Republic
|
Subsidiary
(in liquidation)
|
A.D.A.M.,
a.s.
|
80.0%
|
Slovak
Republic
|
Subsidiary
(in liquidation)
|
|
|||
MMTV
1 d.o.o.
|
100.0%
|
Slovenia
|
Subsidiary
|
Produkcija
Plus d.o.o. (“Pro Plus”)
|
100.0%
|
Slovenia
|
Subsidiary
|
POP
TV d.o.o. (“Pop TV”)
|
100.0%
|
Slovenia
|
Subsidiary
|
Kanal
A d.o.o. (“Kanal A”)
|
100.0%
|
Slovenia
|
Subsidiary
|
Euro
3 TV d.o.o
|
42.0%
|
Slovenia
|
Equity-Accounted
Affiliate
|
MTC
Holding d.o.o.
|
24.0%
|
Slovenia
|
Equity-Accounted
Affiliate (in liquidation)
|
Company
Name
|
Effective Voting
Interest
|
Jurisdiction of
Organization
|
Type of Affiliate
(1)
|
International
Media Services Ltd. (“IMS”)
|
60.0%
|
Bermuda
|
Subsidiary
|
Innova
Film GmbH (“Innova”)
|
60.0%
|
Germany
|
Subsidiary
|
Foreign
Enterprise “Inter-Media” (“Inter-Media”)
|
60.0%
|
Ukraine
|
Subsidiary
|
TV
Media Planet Ltd.
|
60.0%
|
Cyprus
|
Subsidiary
|
Studio
1+1 LLC (“Studio 1+1”)
|
18.0%
|
Ukraine
|
Consolidated
Variable Interest Entity
|
|
|||
Ukrainian
Media Services LLC
|
99.0%
|
Ukraine
|
Subsidiary
|
Ukrpromtorg
-2003 LLC (“Ukrpromtorg”)
|
65.5%
|
Ukraine
|
Subsidiary
|
Gravis
LLC
|
60.4%
|
Ukraine
|
Subsidiary
|
Delta
JSC
|
60.4%
|
Ukraine
|
Subsidiary
|
Nart
LLC
|
65.5%
|
Ukraine
|
Subsidiary
|
TV
Stimul LLC
|
49.1%
|
Ukraine
|
Equity-Accounted
Affiliate
|
Tor
LLC (“Tor”)
|
60.4%
|
Ukraine
|
Subsidiary
|
Zhysa
LLC (“Zhysa”)
|
60.4%
|
Ukraine
|
Subsidiary
|
|
|||
CME
Media Enterprises B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
CME
Czech Republic II B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
CME
Romania B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
CME
Slovak Holdings B.V.
|
100.0%
|
Netherlands
|
Subsidiary
|
|
|||
Central
European Media Enterprises N.V.
|
100.0%
|
Netherlands
Antilles
|
Subsidiary
|
Central
European Media Enterprises II B.V.
|
100.0%
|
Netherlands
Antilles
|
Subsidiary
|
|
|||
CME
SR d.o.o.
|
100.0%
|
Serbia
|
Subsidiary
(in liquidation)
|
CME
Ukraine Holding GmbH
|
100.0%
|
Austria
|
Subsidiary
|
CME
Cyprus Holding Ltd.
|
100.0%
|
Cyprus
|
Subsidiary
|
CME
Development Corporation
|
100.0%
|
Delaware
|
Subsidiary
|
(1)
|
all
subsidiaries have been consolidated in our Consolidated Financial
Statements. All equity-accounted affiliates have been accounted for using
the equity method. All cost investments have been accounted for using the
cost method.
|
Jurisdiction
|
Year
|
Croatia
|
2003
|
Czech
Republic
|
2003
|
Germany
|
2000
|
Netherlands
|
2004
|
Romania
|
2002
|
Slovak
Republic
|
2001
|
Slovenia
|
2001
|
Ukraine
|
2003
|
United
States
|
2001
|
As
reported previously
|
Adjustment
|
As
restated
|
||||||||||
Net
revenues
|
364,196 | - | 364,196 | |||||||||
Corporate
operating costs
|
16,248 | 5,969 | 22,217 | |||||||||
Operating
income
|
85,835 | (5,969 | ) | 79,866 | ||||||||
Other
expense
|
(6,759 | ) | 5,969 | (790 | ) | |||||||
Net
income
|
34,340 | - | 34,340 |
As reported
previously
|
Adjustment
|
As
restated
|
||||||||||
Additional
paid-in capital at June 30, 2006
|
$ |
917,755
|
$ |
7,181
|
$ |
924,936
|
||||||
Accumulated
deficit at June 30, 2006
|
(54,715 | ) | (7,181 | ) | (61,896 | ) |
Fair Value on
Acquisition
|
||||
Property,
plant and equipment
|
$ |
35
|
||
Intangible
assets subject to amortization (1)
|
4,784
|
|||
Intangible
assets not subject to amortization (2)
|
8,974
|
|||
Other
assets
|
2,904
|
|||
Goodwill
|
2,311
|
|||
Deferred
tax liability
|
(1,575 | ) | ||
Other
liabilities
|
(6,398 | ) | ||
Total purchase
price
|
$ |
11,035
|
||
(1)
The intangible assets subject to amortization comprise customer
relationships, which are being amortized over one to twenty years
(weighted average: 15.5 years) and trademarks, which are being amortized
over two years.
|
||||
(2)
Intangible assets not subject to amortization represent television
broadcast licenses.
|
Fair Value on
Acquisition
|
||||
Intangible
assets subject to amortization (1)
|
$ |
4,517
|
||
Intangible
assets not subject to amortization (2)
|
23,597
|
|||
Goodwill
|
23,974
|
|||
Deferred
tax liability
|
(4,498 | ) | ||
Minority
interests
|
4,029
|
|||
Total purchase
price
|
$ |
51,619
|
||
(1)
The intangible assets subject to amortization comprise customer
relationships, which are being amortized over one to ten years (weighted
average: 8.3 years).
|
||||
(2)
Intangible assets not subject to amortization comprise approximately US$
9.2 million in trademarks and US$ 14.4 million relating to television
broadcast licenses.
|
Balance
|
Additions
|
Foreign currency
movement
|
Balance
|
|||||||||||||
Croatia
|
$ |
-
|
$ |
712
|
$ |
-
|
$ |
712
|
||||||||
Czech
Republic
|
823,786
|
-
|
(14,804 | ) |
808,982
|
|||||||||||
Romania
|
31,130
|
26,285
|
-
|
57,415
|
||||||||||||
Slovak
Republic
|
25,483
|
-
|
1,427
|
26,910
|
||||||||||||
Slovenia
|
16,458
|
-
|
415
|
16,873
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
4,096
|
-
|
-
|
4,096
|
||||||||||||
Ukraine
(KINO, CITI)
|
4,627
|
3,124
|
-
|
7,751
|
||||||||||||
Total
|
$ |
905,580
|
$ |
30,121
|
$ | (12,962 | ) | $ |
922,739
|
Indefinite-Lived Broadcast
Licenses
|
Amortized Broadcast
Licenses
|
Total
|
||||||||||
Balance, December 31,
2006
|
$ |
26,344
|
$ |
172,386
|
$ |
198,730
|
||||||
Additions
|
23,421
|
-
|
23,421
|
|||||||||
Amortization
|
-
|
(8,446 | ) | (8,446 | ) | |||||||
Foreign
currency movements
|
132
|
(2,956 | ) | (2,824 | ) | |||||||
$ |
49,897
|
$ |
160,984
|
$ |
210,881
|
Gross
value
|
$ |
198,523
|
$ |
201,994
|
||||
Accumulated
amortization
|
(37,539 | ) | (29,608 | ) | ||||
Total net book
value
|
$ |
160,984
|
$ |
172,386
|
Trademarks
|
Customer
Relationships
|
Other
|
Total
|
|||||||||||||
Balance, December 31,
2006
|
$ |
44,026
|
$ |
27,213
|
$ |
703
|
$ |
71,942
|
||||||||
Additions
|
9,787
|
8,664
|
14
|
18,465
|
||||||||||||
Amortization
|
(106 | ) | (1,727 | ) | (48 | ) | (1,881 | ) | ||||||||
Foreign
currency movements
|
(241 | ) |
127
|
52
|
(62 | ) | ||||||||||
$ |
53,466
|
$ |
34,277
|
$ |
721
|
$ |
88,464
|
Gross
value
|
$ |
95,359
|
$ |
76,695
|
||||
Accumulated
amortization
|
(6,895 | ) | (4,753 | ) | ||||
Total net book
value
|
$ |
88,464
|
$ |
71,942
|
Carrying
Value
|
Fair
Value
|
|||||||||||||||
EUR
245.0 million 8.25% Senior Notes
|
$ |
330,858
|
$ |
322,666
|
$ |
357,326
|
$ |
353,722
|
||||||||
EUR
125.0 million Floating Rate Senior Notes
|
-
|
164,625
|
-
|
170,181
|
||||||||||||
EUR
150.0 million Floating Rate Senior Notes
|
202,566
|
-
|
202,313
|
-
|
||||||||||||
$ |
533,424
|
$ |
487,291
|
$ |
559,639
|
$ |
523,903
|
From:
|
Fixed Rate
Notes
Redemption
Price
|
|||
104.125 | % | |||
102.063 | % | |||
100.000 | % |
From:
|
2014 Floating
Rate Notes
Redemption
Price
|
|||
102.000 | % | |||
101.000 | % | |||
100.000 | % |
Croatia
|
$ |
383
|
$ |
4,183
|
||||
Slovenia
|
743
|
724
|
||||||
Ukraine
(STUDIO 1+1)
|
48
|
47
|
||||||
Total restricted
cash
|
$ |
1,174
|
$ |
4,954
|
Trading:
|
||||||||
Third-party
customers
|
$ |
187,160
|
$ |
156,701
|
||||
Less:
allowance for bad debts and credit notes
|
(12,748 | ) | (11,472 | ) | ||||
Related
parties
|
5,114
|
7,655
|
||||||
Less:
allowance for bad debts and credit notes
|
(134 | ) | (798 | ) | ||||
Total
trading
|
$ |
179,392
|
$ |
152,086
|
||||
Other:
|
||||||||
Third-party
customers
|
$ |
365
|
$ |
359
|
||||
Less:
allowance for bad debts and credit notes
|
(105 | ) | (103 | ) | ||||
Related
parties
|
468
|
454
|
||||||
Less:
allowance for bad debts and credit notes
|
(61 | ) | (291 | ) | ||||
Total
other
|
$ |
667
|
$ |
419
|
||||
Total accounts
receivable
|
$ |
180,059
|
$ |
152,505
|
Current:
|
||||||||
Prepaid
programming
|
$ |
32,531
|
$ |
23,072
|
||||
Other
prepaid expenses
|
17,182
|
13,177
|
||||||
Deferred
tax
|
2,872
|
2,124
|
||||||
VAT
recoverable
|
2,328
|
2,562
|
||||||
Loan
to related party
|
600
|
600
|
||||||
Capitalized
debt issuance costs
|
2,723
|
2,908
|
||||||
Other
|
3,519
|
3,112
|
||||||
Total other current
assets
|
$ |
61,755
|
$ |
47,555
|
||||
Non-current:
|
||||||||
Capitalized
debt costs
|
$ |
10,765
|
$ |
11,264
|
||||
Loan
to related party
|
1,441
|
1,603
|
||||||
Deferred
tax
|
4,636
|
3,443
|
||||||
Other
|
2,309
|
1,165
|
||||||
Total other non-current
assets
|
$ |
19,151
|
$ |
17,475
|
Land
and buildings
|
$ |
57,958
|
$ |
56,212
|
||||
Station
machinery, fixtures and equipment
|
124,354
|
115,238
|
||||||
Other
equipment
|
23,933
|
21,980
|
||||||
Software
licenses
|
17,283
|
15,495
|
||||||
Construction
in progress
|
18,404
|
4,070
|
||||||
Total
cost
|
241,932
|
212,995
|
||||||
Less: Accumulated
depreciation
|
(111,751 | ) | (97,190 | ) | ||||
Total net book
value
|
$ |
130,181
|
$ |
115,805
|
||||
Assets held under capital
leases (included above)
|
||||||||
Land
and buildings
|
$ |
5,682
|
$ |
5,541
|
||||
Station
machinery, fixtures and equipment
|
1,674
|
2,330
|
||||||
Total
cost
|
7,356
|
7,871
|
||||||
Less:
Accumulated depreciation
|
(1,533 | ) | (1,877 | ) | ||||
Net book
value
|
$ |
5,823
|
$ |
5,994
|
Accounts
payable
|
$ |
27,080
|
$ |
47,447
|
||||
Programming
liabilities
|
38,647
|
32,316
|
||||||
Accrued
interest payable
|
5,149
|
5,375
|
||||||
Deferred
income
|
20,505
|
3,212
|
||||||
Accrued
staff costs
|
16,854
|
12,947
|
||||||
Accrued
production costs
|
7,197
|
7,435
|
||||||
Accrued
legal costs
|
8,709
|
3,619
|
||||||
Accrued
rent costs
|
1,339
|
1,163
|
||||||
Authors’
rights
|
7,215
|
943
|
||||||
Onerous
contracts
|
1,804
|
-
|
||||||
Other
accrued liabilities
|
7,141
|
5,260
|
||||||
Total accounts payable and
accrued liabilities
|
$ |
141,640
|
$ |
119,717
|
Credit
facilities:
|
|||||||||
Corporate
|
(a)
|
$ |
-
|
$ |
-
|
||||
Croatia
|
(b)
|
-
|
847
|
||||||
Czech
Republic
|
(c)
– (e)
|
11,760
|
11,975
|
||||||
Romania
|
(f)
|
40
|
-
|
||||||
Slovenia
|
(g)
|
-
|
-
|
||||||
Ukraine
(KINO, CITI)
|
(h)
|
1,705
|
1,703
|
||||||
Total credit
facilities
|
$ |
13,505
|
$ |
14,525
|
|||||
Capital
leases:
|
|||||||||
Croatia
operations, net of interest
|
$ |
-
|
$ |
19
|
|||||
Romania
operations, net of interest
|
430
|
495
|
|||||||
Slovak
Republic operations, net of interest
|
112
|
154
|
|||||||
Slovenia
operations, net of interest
|
4,188
|
4,223
|
|||||||
Total capital
leases
|
$ |
4,730
|
$ |
4,891
|
|||||
Total credit facilities and
capital leases
|
$ |
18,235
|
$ |
19,416
|
|||||
Less
current maturities
|
(12,433 | ) | (13,057 | ) | |||||
Total non-current
maturities
|
$ |
5,802
|
$ |
6,359
|
2007
|
$ |
11,805
|
||
2008
|
-
|
|||
2009
|
1,700
|
|||
2010
|
-
|
|||
2011
|
-
|
|||
2012
and thereafter
|
533,424
|
|||
Total
|
$ |
546,929
|
2007
|
$ |
464
|
||
2008
|
1,190
|
|||
2009
|
726
|
|||
2010
|
620
|
|||
2011
|
620
|
|||
2012
and thereafter
|
3,024
|
|||
$ |
6,644
|
|||
Less:
amount representing interest
|
(1,914 | ) | ||
Present value of net minimum
lease payments
|
$ |
4,730
|
For the Three Months
Ended June
30,
|
For the Six
Months
|
|||||||||||||||
2006
|
2007
|
2006
|
||||||||||||||
Stock-based
compensation charged under SFAS 123(R)
|
$ |
1,343
|
$ |
730
|
$ |
2,605
|
$ |
1,418
|
Date of Option
Grant
|
Number of Options
Granted
|
Risk-free interest rate
(%)
|
Expected term
(years)
|
Expected
volatility (%)
|
Dividend
yield (%)
|
Weighted-average fair
value ($/share)
|
||||||||||||||||||
12,500
|
4.57 | % |
6.25
|
41.29 | % | 0 | % | $ |
42.25
|
|||||||||||||||
35,000
|
4.92 | % |
3.00
|
32.38 | % | 0 | % | $ |
25.19
|
|||||||||||||||
5,000
|
4.92 | % |
3.00
|
32.38 | % | 0 | % | $ |
23.35
|
Shares
|
Weighted Average Exercise Price
per Share
|
Weighted Average Remaining
Contractual Term (years)
|
Aggregate Intrinsic
Value
|
|||||||||||||
Outstanding
at December 31, 2007
|
1,288,575
|
$ |
35.51
|
7.45
|
$ |
44,443
|
||||||||||
Granted
|
52,500
|
89.77
|
||||||||||||||
Exercised
|
(227,783 | ) |
11.99
|
|||||||||||||
Forfeited
|
(18,125 | ) |
46.76
|
|||||||||||||
1,095,167
|
$ |
42.82
|
7.14
|
$ |
59,974
|
|||||||||||
Vested
or expected to vest at June 30, 2007
|
1,022,652
|
42.09
|
7.07
|
56,747
|
||||||||||||
467,792
|
$ |
23.71
|
6.45
|
$ |
34,557
|
|
|
For the Three Months
Ended June
30,
|
|
|
For the Six
Months
|
|
||||||||||
|
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income / (loss) available
for common shareholders
|
|
$
|
34,590
|
|
|
$
|
8,522
|
|
|
$
|
34,340
|
|
|
$
|
(9,742
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average outstanding
shares of common stock (000’s)
|
|
|
40,941
|
|
|
|
40,597
|
|
|
|
40,867
|
|
|
|
39,355
|
|
Dilutive
effect of employee stock options (000’s)
|
|
|
466
|
|
|
|
589
|
|
|
|
523
|
|
|
|
-
|
|
Common stock and common stock
equivalents (000’s)
|
|
|
41,407
|
|
|
|
41,186
|
|
|
|
41,390
|
|
|
|
39,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income / (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.84
|
|
|
$
|
0.21
|
|
|
$
|
0.84
|
|
|
$
|
(0.25
|
)
|
Diluted
|
|
$
|
0.83
|
|
|
$
|
0.21
|
|
|
$
|
0.83
|
|
|
$
|
(0.25
|
)
|
·
|
expenses
presented as corporate operating costs in our consolidated statements of
operations and comprehensive
income;
|
·
|
certain
unusual or infrequent items (e.g., extraordinary gains and losses,
impairments on assets or
investments).
|
For the Three Months Ended June
30,
|
||||||||||||||||
Segment Net Revenues
(1)
|
Segment
EBITDA
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Country:
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ |
10,414
|
$ |
5,647
|
$ | (2,167 | ) | $ | (2,639 | ) | ||||||
Czech
Republic (TV NOVA, GALAXIE SPORT)
|
80,544
|
56,312
|
47,595
|
29,509
|
||||||||||||
Romania
(2)
|
52,224
|
37,769
|
22,530
|
16,424
|
||||||||||||
Slovak
Republic (MARKIZA TV)
|
29,652
|
20,046
|
11,712
|
7,827
|
||||||||||||
Slovenia
(POP TV, KANAL A)
|
20,095
|
15,555
|
8,388
|
6,430
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
22,701
|
21,062
|
565
|
6,037
|
||||||||||||
Ukraine
(KINO, CITI)
|
654
|
198
|
(1,755 | ) | (432 | ) | ||||||||||
Total segment
data
|
$ |
216,284
|
$ |
156,589
|
$ |
86,868
|
$ |
63,156
|
||||||||
Reconciliation to condensed
consolidated statement of operations:
|
||||||||||||||||
Consolidated net revenues /
income before provision for income taxes, minority interest and
discontinued operations
|
$ |
216,284
|
$ |
156,589
|
$ |
53,739
|
$ |
12,103
|
||||||||
Corporate
operating costs
|
-
|
-
|
7,444
|
7,696
|
||||||||||||
Depreciation
of station property, plant and equipment
|
-
|
-
|
7,680
|
6,059
|
||||||||||||
Amortization
of broadcast licenses and other intangibles
|
-
|
-
|
5,165
|
4,620
|
||||||||||||
Impairment
charge
|
-
|
-
|
-
|
748
|
||||||||||||
Interest
income
|
-
|
-
|
(1,732 | ) | (1,741 | ) | ||||||||||
Interest
expense
|
-
|
-
|
19,438
|
11,337
|
||||||||||||
Foreign
currency exchange loss, net
|
-
|
-
|
2,116
|
20,625
|
||||||||||||
Change
in fair value of derivatives
|
-
|
-
|
(7,528 | ) |
1,876
|
|||||||||||
Other
income
|
-
|
-
|
546
|
(167 | ) | |||||||||||
Total segment
data
|
$ |
216,284
|
$ |
156,589
|
$ |
86,868
|
$ |
63,156
|
||||||||
(1)
All net revenues are derived from external customers. There are no
inter-segmental revenues.
|
||||||||||||||||
(2)
Romanian networks are PRO TV, PRO CINEMA, ACASA, PRO TV INTERNATIONAL and
SPORT.RO.
|
|
|
For the Six Months Ended June
30,
|
|
|||||||||||||
|
|
Segment Net Revenues
(1)
|
|
|
Segment
EBITDA
|
|
||||||||||
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
||||
Country:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Croatia
(NOVA TV)
|
|
$
|
17,646
|
|
|
$
|
9,457
|
|
|
$
|
(6,819
|
)
|
|
$
|
(7,081
|
)
|
Czech
Republic (TV NOVA, GALAXIE SPORT)
|
|
|
132,063
|
|
|
|
96,861
|
|
|
|
73,262
|
|
|
|
42,335
|
|
Romania
(2)
|
|
|
91,566
|
|
|
|
67,640
|
|
|
|
37,666
|
|
|
|
28,037
|
|
Slovak
Republic (MARKIZA TV)
|
|
|
48,329
|
|
|
|
31,252
|
|
|
|
17,468
|
|
|
|
6,850
|
|
Slovenia
(POP TV, KANAL A)
|
|
|
32,764
|
|
|
|
25,782
|
|
|
|
11,389
|
|
|
|
9,463
|
|
Ukraine
(STUDIO 1+1)
|
|
|
40,776
|
|
|
|
46,540
|
|
|
|
(1,805
|
)
|
|
|
17,024
|
|
Ukraine
(KINO, CITI) (3)
|
|
|
1,052
|
|
|
|
572
|
|
|
|
(4,172
|
)
|
|
|
(557
|
)
|
Total segment
data
|
|
$
|
364,196
|
|
|
$
|
278,104
|
|
|
$
|
126,989
|
|
|
$
|
96,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to condensed
consolidated statement of operations:
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net revenues /
income before provision for income taxes, minority interest, equity in
income of unconsolidated affiliates and discontinued
operations
|
|
$
|
364,196
|
|
|
$
|
276,343
|
|
|
$
|
58,188
|
|
|
$
|
7,811
|
|
Corporate
operating costs
|
|
|
-
|
|
|
|
-
|
|
|
|
22,217
|
|
|
|
15,677
|
|
Depreciation
of station property, plant and equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
14,579
|
|
|
|
11,761
|
|
Amortization
of broadcast licenses and other intangibles
|
|
|
-
|
|
|
|
-
|
|
|
|
10,327
|
|
|
|
8,952
|
|
Impairment
charge
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
748
|
|
Unconsolidated
equity affiliates (4)
|
|
|
-
|
|
|
|
1,761
|
|
|
|
-
|
|
|
|
(1,283
|
)
|
Interest
income
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,146
|
)
|
|
|
(3,194
|
)
|
Interest
expense
|
|
|
-
|
|
|
|
-
|
|
|
|
30,834
|
|
|
|
21,855
|
|
Foreign
currency exchange loss, net
|
|
|
-
|
|
|
|
-
|
|
|
|
5,252
|
|
|
|
31,487
|
|
Change
in fair value of derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
(12,052
|
)
|
|
|
1,876
|
|
Other
expense
|
|
|
-
|
|
|
|
-
|
|
|
|
790
|
|
|
|
381
|
|
Total segment
data
|
|
$
|
364,196
|
|
|
$
|
278,104
|
|
|
$
|
126,989
|
|
|
$
|
96,071
|
|
(1)
All net revenues are derived from external customers. There are no
inter-segmental revenues.
|
||||||||||||||||
(2)
Romanian networks are PRO TV, PRO CINEMA, ACASA, PRO TV INTERNATIONAL and
SPORT.RO.
|
||||||||||||||||
(3)
We acquired our Ukraine (KINO, CITI) operations in January
2006.
|
||||||||||||||||
(4)
Our Slovak Republic operations were accounted for as an equity affiliate
until January 23, 2006.
|
For the Three Months
Ended June
30,
|
For the Six
Months
|
|||||||||||||||
2006
|
2007
|
2006
|
||||||||||||||
Depreciation of station
property, plant and equipment and amortization of broadcast licenses and
other intangibles:
|
||||||||||||||||
Croatia
|
$ |
947
|
$ |
902
|
$ |
1,732
|
$ |
1,431
|
||||||||
Czech
Republic
|
6,689
|
5,883
|
13,150
|
11,408
|
||||||||||||
Romania
|
2,180
|
1,137
|
3,927
|
2,364
|
||||||||||||
Slovak
Republic
|
947
|
877
|
2,134
|
2,348
|
||||||||||||
Slovenia
|
1,110
|
810
|
2,096
|
1,540
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
799
|
929
|
1,544
|
1,501
|
||||||||||||
Ukraine
(KINO, CITI)
|
173
|
141
|
323
|
298
|
||||||||||||
Total
|
$ |
12,845
|
$ |
10,679
|
$ |
24,906
|
$ |
20,890
|
||||||||
Reconciliation to condensed
consolidated statement of operations:
|
||||||||||||||||
Unconsolidated
equity affiliates
|
-
|
-
|
-
|
(177 | ) | |||||||||||
Total consolidated depreciation
and amortization
|
$ |
12,845
|
$ |
10,679
|
$ |
24,906
|
$ |
20,713
|
||||||||
Represented
as follows:
|
||||||||||||||||
Depreciation
of station property, plant & equipment
|
7,680
|
6,059
|
14,579
|
11,761
|
||||||||||||
Amortization
of broadcast licenses and other intangibles
|
5,165
|
4,620
|
10,327
|
8,952
|
Total assets
(1):
|
||||||||
Croatia
|
$ |
34,859
|
$ |
30,394
|
||||
Czech
Republic
|
1,205,154
|
1,200,894
|
||||||
Romania
|
302,436
|
206,850
|
||||||
Slovak
Republic
|
110,576
|
86,872
|
||||||
Slovenia
|
75,858
|
67,919
|
||||||
Ukraine
(STUDIO 1+1)
|
80,287
|
75,020
|
||||||
Ukraine
(KINO, CITI)
|
14,756
|
13,293
|
||||||
Total segment
assets
|
$ |
1,823,926
|
$ |
1,681,242
|
||||
Reconciliation to condensed
consolidated balance sheets:
|
||||||||
Corporate
|
76,366
|
137,758
|
||||||
Total
assets
|
$ |
1,900,292
|
$ |
1,819,000
|
||||
(1)
Segment assets exclude any inter-company investments, loans, payables and
receivables.
|
Long-lived assets
(1):
|
||||||||
Croatia
|
$ |
8,040
|
$ |
6,804
|
||||
Czech
Republic
|
36,687
|
28,002
|
||||||
Romania
|
34,906
|
32,312
|
||||||
Slovak
Republic
|
20,374
|
19,498
|
||||||
Slovenia
|
16,904
|
15,595
|
||||||
Ukraine
(STUDIO 1+1)
|
7,569
|
7,965
|
||||||
Ukraine
(KINO, CITI)
|
4,082
|
3,674
|
||||||
Total long-lived
assets
|
$ |
128,562
|
$ |
113,850
|
||||
Reconciliation to condensed
consolidated balance sheets:
|
||||||||
Corporate
|
1,619
|
1,955
|
||||||
Total long-lived
assets
|
$ |
130,181
|
$ |
115,805
|
||||
(1)
Reflects property, plant and equipment
|
For the Three
Months
Ended June
30,
|
For the Six
Months
|
|||||||||||||||
2006
|
2007
|
2006
|
||||||||||||||
Tax
on disposal of discontinued operations
|
-
|
1,277
|
-
|
(2,530 | ) | |||||||||||
Net income / (loss) from
discontinued operations
|
$ |
-
|
$ |
1,277
|
$ |
-
|
$ | (2,530 | ) |
Croatia
|
$ |
2,771
|
||
Czech
Republic
|
48,033
|
|||
Romania
|
23,244
|
|||
Slovak
Republic
|
16,717
|
|||
Slovenia
|
6,914
|
|||
Ukraine
(STUDIO 1+1)
|
18,792
|
|||
Ukraine
(KINO, CITI)
|
843
|
|||
Total
|
$ |
117,314
|
2007
|
$ |
1,673
|
||
2008
|
1,911
|
|||
2009
|
1,169
|
|||
2010
|
834
|
|||
2011
|
428
|
|||
2012
and thereafter
|
-
|
|||
Total
|
$ |
6,015
|
Croatia
|
The
license of NOVA TV (Croatia) expires in April 2010.
|
Czech Republic
|
The
license of TV NOVA (Czech Republic) expires in January 2017. The
GALAXIE SPORT license expires in March 2014.
|
Romania
|
Licenses
expire on dates ranging from August 2007 to February
2016.
|
Slovak Republic
|
The
license of MARKIZA TV in the Slovak Republic expires in September
2019.
|
Slovenia
|
The
licenses of POP TV and KANAL A expire in August 2012.
|
Ukraine
|
The
15-hour prime time and off prime time license of STUDIO 1+1 expires in
December 2016. The license to broadcast for the remaining nine hours in
off prime expires in August 2014. Licenses used for the KINO
and CITI channels expire on dates ranging from June 2008 to July
2016.
|
I.
|
Forward-looking
Statements
|
II.
|
Executive
Summary
|
III.
|
Analysis of Segment
Results
|
IV.
|
Analysis of the Results of
Consolidated Operations
|
V.
|
Liquidity and Capital
Resources
|
VI.
|
Critical Accounting Policies
and Estimates
|
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Net
revenues
|
$ |
216,284
|
$ |
156,589
|
$ |
59,695
|
||||||
Operating
income
|
66,579
|
44,033
|
22,546
|
|||||||||
Net
income from continuing operations
|
34,590
|
7,245
|
27,345
|
|||||||||
Net
income
|
$ |
34,590
|
$ |
8,522
|
$ |
26,068
|
||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Net
revenues
|
$ |
364,196
|
$ |
276,343
|
$ |
87,853
|
||||||
Operating
income
|
79,866
|
60,216
|
19,650
|
|||||||||
Net
income / (loss) from continuing operations
|
34,340
|
(7,212) |
41,552
|
|||||||||
Net income /
(loss)
|
$ |
34,340
|
$ | (9,742) | $ |
44,082
|
·
|
In
the three months ended June 30, 2007, we reported growth in Segment Net
Revenues of 38% and Segment EBITDA of 38% compared to the three months
ended June 30, 2006, delivering a Segment EBITDA margin of 40%, in line
with that reported in the three months ended June 30, 2006 (Segment EBITDA
is defined and reconciled to our consolidated results in Item 1, Note
16).
|
·
|
Other
than our operations in Ukraine, each of our stations reported revenue
growth in excess of 25% compared to the three months ended June 30, 2006,
with particularly strong growth reported in Croatia and the
Slovak Republic. Our operations in Ukraine experienced a slight
increase in Segment Net Revenues but a significant decline in Segment
EBITDA as we were required to increase our investment in programming in
the face of increased competition and poor ratings
performance.
|
·
|
On
May 15, 2007 we redeemed our EUR 125.0 million floating rate Senior Notes,
bearing interest at six-month EURIBOR plus
5.50%.
|
·
|
On
May 16, 2007 we issued EUR 150.0 million of floating rate Senior Notes,
bearing interest at six-month EURIBOR plus
1.625%.
|
·
|
On
June 1, 2007, we completed the acquisition of an additional 5% interest in
Pro TV and MPI and now own a 95.0% interest in our Romania
operations.
|
·
|
On
June 25, 2007, our shares of Class A Common Stock were included within the
broad-market Russell 3000 Index, the large-cap stocks Russell 1000 Index
and the Russell Global Index.
|
·
|
On
July 13, 2007, we acquired an additional 20.0% interest in Markiza and now
own 100.0% of our Slovak Republic
operations.
|
·
|
Pursuing
sub-regional efficiencies, especially in the area of local programming
between Slovenia and Croatia and between the Czech and Slovak
Republics;
|
·
|
Supporting
the growth of television advertising in our markets through increased
development and through the launch or acquisition of additional channels
to expand our advertising inventory and target niche
audiences;
|
·
|
Leveraging
our existing brands and assets to develop new revenue opportunities,
including in the creation and distribution of programming and in the new
media sectors; and
|
·
|
Continuing
to expand our footprint into additional Central and Eastern European
markets when financially prudent opportunities
arise.
|
·
|
Continuing
to improve the effectiveness of our operations in the Czech Republic and
the Slovak Republic.
|
·
|
Additional
investment in Russian series and local programming for STUDIO 1+1, which
have driven ratings historically, and continuing the development of our
Ukraine channels KINO and CITI which were launched in
2006.
|
·
|
Further
development of our non-broadcast activities, particularly in new media,
which is being coordinated across our
markets.
|
·
|
expenses
presented as corporate operating costs in our condensed consolidated
statement of operations and comprehensive
income;
|
·
|
certain
unusual or infrequent items (e.g., extraordinary gains and losses,
impairments of assets or
investments).
|
SEGMENT FINANCIAL
INFORMATION
|
||||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||||
2007
|
(1)
|
2006
|
(1)
|
|||||||||||
Segment Net
Revenue
|
||||||||||||||
Croatia
(NOVA TV)
|
$ |
10,414
|
5 | % | $ |
5,647
|
4 | % | ||||||
Czech
Republic (TV NOVA, GALAXIE SPORT)
|
80,544
|
37 | % |
56,312
|
36 | % | ||||||||
Romania
(2)
|
52,224
|
24 | % |
37,769
|
24 | % | ||||||||
Slovak
Republic (MARKIZA TV)
|
29,652
|
14 | % |
20,046
|
13 | % | ||||||||
Slovenia
(POP TV, KANAL A)
|
20,095
|
9 | % |
15,555
|
10 | % | ||||||||
Ukraine
(STUDIO 1+1)
|
22,701
|
11 | % |
21,062
|
13 | % | ||||||||
Ukraine
(KINO, CITI)
|
654
|
-
|
198
|
-
|
||||||||||
Total Segment Net
Revenues
|
$ |
216,284
|
100 | % | $ |
156,589
|
100 | % | ||||||
Represented
by:
|
||||||||||||||
Broadcast
operations
|
$ |
214,987
|
99 | % | $ |
155,902
|
100 | % | ||||||
Non-broadcast
operations
|
1,297
|
1 | % |
687
|
-
|
|||||||||
Total Segment
Revenues
|
$ |
216,284
|
100 | % | $ |
156,589
|
100 | % | ||||||
Segment
EBITDA
|
||||||||||||||
Croatia
(NOVA TV)
|
$ | (2,167) | (2) | % | $ | (2,639) | (4) | % | ||||||
Czech
Republic (TV NOVA, GALAXIE SPORT)
|
47,595
|
55 | % |
29,509
|
47 | % | ||||||||
Romania
(2)
|
22,530
|
26 | % |
16,424
|
26 | % | ||||||||
Slovak
Republic (MARKIZA TV)
|
11,712
|
13 | % |
7,827
|
12 | % | ||||||||
Slovenia
(POP TV, KANAL A)
|
8,388
|
9 | % |
6,430
|
10 | % | ||||||||
Ukraine
(STUDIO 1+1)
|
565
|
1 | % |
6,037
|
10 | % | ||||||||
Ukraine
(KINO, CITI)
|
(1,755) | (2) | % | (432) | (1) | % | ||||||||
Total Segment
EBITDA
|
$ |
86,868
|
100 | % | $ |
63,156
|
100 | % | ||||||
Represented
by:
|
||||||||||||||
Broadcast
operations
|
$ |
87,175
|
100 | % | $ |
62,970
|
100 | % | ||||||
Non-broadcast
operations
|
(307) |
-
|
186
|
-
|
||||||||||
Total Segment
EBITDA
|
$ |
86,868
|
100 | % | $ |
63,156
|
100 | % | ||||||
Segment EBITDA Margin
(3)
|
40 | % | 40 | % |
(1)
Percentage of Total Segment Net Revenues and Total Segment
EBITDA.
|
||||||||||||||||
(2)
Romania networks are PRO TV, PRO CINEMA, ACASA, PRO TV INTERNATIONAL and
SPORT.RO.
|
||||||||||||||||
(3)
We define Segment EBITDA margin as the ratio of Segment EBITDA to Segment
Net Revenue.
|
SEGMENT FINANCIAL
INFORMATION
|
||||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||||
2007
|
(1)
|
2006
|
(1)
|
|||||||||||
Segment Net
Revenue
|
||||||||||||||
Croatia
(NOVA TV)
|
$ |
17,646
|
5 | % | $ |
9,457
|
4 | % | ||||||
Czech
Republic (TV NOVA)
|
132,063
|
37 | % |
96,861
|
35 | % | ||||||||
Romania
(2)
|
91,566
|
25 | % |
67,640
|
24 | % | ||||||||
Slovak
Republic (MARKIZA TV) (3)
|
48,329
|
13 | % |
31,252
|
11 | % | ||||||||
Slovenia
(POP TV, KANAL A)
|
32,764
|
9 | % |
25,782
|
9 | % | ||||||||
Ukraine
(STUDIO 1+1)
|
40,776
|
11 | % |
46,540
|
17 | % | ||||||||
Ukraine
(KINO, CITI) (4)
|
1,052
|
-
|
572
|
-
|
||||||||||
Total Segment Net
Revenues
|
$ |
364,196
|
100 | % | $ |
278,104
|
100 | % | ||||||
Represented
by:
|
||||||||||||||
Broadcast
operations
|
$ |
362,409
|
100 | % | $ |
276,975
|
100 | % | ||||||
Non-broadcast
operations
|
1,787
|
-
|
1,129
|
-
|
||||||||||
Total Segment
Revenues
|
$ |
364,196
|
100 | % | $ |
278,104
|
100 | % | ||||||
Segment
EBITDA
|
||||||||||||||
Croatia
(NOVA TV)
|
$ | (6,819) | (5) | % | $ | (7,081) | (7) | % | ||||||
Czech
Republic (TV NOVA)
|
73,262
|
58 | % |
42,335
|
44 | % | ||||||||
Romania
(2)
|
37,666
|
29 | % |
28,037
|
29 | % | ||||||||
Slovak
Republic (MARKIZA TV) (3)
|
17,468
|
13 | % |
6,850
|
7 | % | ||||||||
Slovenia
(POP TV, KANAL A)
|
11,389
|
9 | % |
9,463
|
10 | % | ||||||||
Ukraine
(STUDIO 1+1)
|
(1,805) | (1) | % |
17,024
|
18 | % | ||||||||
Ukraine
(KINO, CITI) (4)
|
(4,172) | (3) | % | (557) | (1) | % | ||||||||
Total Segment
EBITDA
|
$ |
126,989
|
100 | % | $ |
96,071
|
100 | % | ||||||
Represented
by:
|
||||||||||||||
Broadcast
operations
|
$ |
127,889
|
101 | % | $ |
95,916
|
100 | % | ||||||
Non-broadcast
operations
|
(900) | (1) | % |
155
|
-
|
|||||||||
Total Segment
EBITDA
|
$ |
126,989
|
100 | % | $ |
96,071
|
100 | % | ||||||
Segment EBITDA Margin
(5)
|
35 | % | 35 | % |
(1)
Percentage of Total Segment Net Revenues and Total Segment
EBITDA.
|
|||||||||||||||
(2)
Romania networks are PRO TV, PRO CINEMA, ACASA, PRO TV INTERNATIONAL and
SPORT.RO.
|
|||||||||||||||
(3)
Our Slovak Republic operations were accounted for as an equity affiliate
until January 23, 2006.
|
|||||||||||||||
(4)
We acquired our Ukraine (KINO, CITI) operations on January 11,
2006.
|
|||||||||||||||
(5)
We define Segment EBITDA margin as the ratio of Segment EBITDA to Segment
Net Revenue.
|
CROATIA SEGMENT FINANCIAL
INFORMATION
|
||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
8,482
|
$ |
4,698
|
$ |
3,784
|
||||||
Non-spot
revenues
|
1,932
|
949
|
983
|
|||||||||
Segment Net
Revenues
|
$ |
10,414
|
$ |
5,647
|
$ |
4,767
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
10,389
|
$ |
5,647
|
$ |
4,742
|
||||||
Non-broadcast
operations
|
25
|
-
|
25
|
|||||||||
Segment Net
Revenues
|
$ |
10,414
|
$ |
5,647
|
$ |
4,767
|
||||||
Segment
EBITDA
|
$ | (2,167 | ) | $ | (2,639 | ) | $ |
472
|
||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (2,144 | ) | $ | (2,639 | ) | $ |
495
|
||||
Non-broadcast
operations
|
(23 | ) |
-
|
(23 | ) | |||||||
Segment
EBITDA
|
$ | (2,167 | ) | $ | (2,639 | ) | $ |
472
|
||||
Segment EBITDA
Margin
|
(21 | )% | (47 | )% | 26 | % |
·
|
Segment Net Revenues for
the three months ended June 30, 2007 increased by US$ 4.8 million, or 84%,
compared to the three months ended June 30, 2006. In local
currency, Segment Net Revenues increased by 73%. Spot revenues
increased by US$ 3.8 million, or 81%, as a result of a significant
increase in the volume of GRPs sold. Non-spot revenues
increased by US$ 1.0 million, or 104%, as a result of increased levels of
sponsorship.
|
·
|
Segment EBITDA for the
three months ended June 30, 2007 was a loss of US$ 2.2 million compared to
a loss of US$ 2.6 million in the three months ended June 30, 2006, an
improvement of 18%. In local currency, Segment EBITDA improved
by 20%.
|
CROATIA SEGMENT FINANCIAL
INFORMATION
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
13,503
|
$ |
7,751
|
$ |
5,752
|
||||||
Non-spot
revenues
|
4,143
|
1,706
|
2,437
|
|||||||||
Segment Net
Revenues
|
$ |
17,646
|
$ |
9,457
|
$ |
8,189
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
17,616
|
$ |
9,457
|
$ |
8,159
|
||||||
Non-broadcast
operations
|
30
|
-
|
30
|
|||||||||
Segment Net
Revenues
|
$ |
17,646
|
$ |
9,457
|
$ |
8,189
|
||||||
Segment
EBITDA
|
$ | (6,819) | $ | (7,081) | $ |
262
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (6,767) | $ | (7,081) | $ |
314
|
||||||
Non-broadcast
operations
|
(52) |
-
|
(52) | |||||||||
Segment
EBITDA
|
$ | (6,819) | $ | (7,081) | $ |
262
|
||||||
Segment EBITDA
Margin
|
(39) | % | (75) | % | 36 | % |
·
|
Segment Net Revenues for
the six months ended June 30, 2007 increased by US$ 8.2 million, or 87%,
compared to the six months ended June 30, 2006. In local
currency, Segment Net Revenues increased by 73%. Spot revenues
increased by US$ 5.8 million, or 74%, as a result of a significant
increase in the volume of GRPs sold, augmented by increased
prices. Non-spot revenues increased by US$ 2.4 million, or
143%, as a result of increased levels of
sponsorship.
|
·
|
Segment EBITDA for the
six months ended June 30, 2007 was a loss of US$ 6.8 million compared to a
loss of US$ 7.1 million in the six months ended June 30, 2006, an
improvement of 4%. In local currency, Segment EBITDA improved
by 10%.
|
CZECH REPUBLIC SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
74,048
|
$ |
49,390
|
$ |
24,658
|
||||||
Non-spot
revenues
|
6,496
|
6,922
|
(426) | |||||||||
Segment Net
Revenues
|
$ |
80,544
|
$ |
56,312
|
$ |
24,232
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
80,489
|
$ |
56,092
|
$ |
24,397
|
||||||
Non-broadcast
operations
|
55
|
220
|
(165) | |||||||||
Segment Net
Revenues
|
$ |
80,544
|
$ |
56,312
|
$ |
24,232
|
||||||
Segment
EBITDA
|
$ |
47,595
|
$ |
29,509
|
$ |
18,086
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
47,822
|
$ |
29,463
|
$ |
18,359
|
||||||
Non-broadcast
operations
|
(227) |
46
|
(273) | |||||||||
Segment
EBITDA
|
$ |
47,595
|
$ |
29,509
|
$ |
18,086
|
||||||
Segment EBITDA
Margin
|
59 | % | 52 | % | 7 | % |
·
|
Segment Net Revenues for
the three months ended June 30, 2007 increased by US$ 24.2 million, or
43%, compared to the three months ended June 30, 2006. In local
currency, Segment Net Revenues increased by 33%. Spot revenues
increased by US$ 24.7 million, or 50%, primarily due to an increase in the
volume of GRPs sold as advertisers have shifted expenditure to our channel
from our competitors, as well as increased average revenue per rating
point sold. Non-spot revenue decreased by US$ 0.4 million, or 6%,
primarily due to a reduction in the number of shows generating voting
revenue in the three months ended June 30, 2007 compared to those programs
broadcast in the three months ended June 30, 2006 and also a reduction in
votes in the shows that were
broadcast.
|
·
|
Segment EBITDA for the
three months ended June 30, 2007 increased by US$ 18.1 million, or 61%,
compared to the three months ended June 30, 2006, resulting in an EBITDA
margin of 59% compared to 52% in the three months ended June 30,
2006. In local currency, Segment EBITDA increased by
48%. Costs charged in arriving at Segment EBITDA for the three
months ended June 30, 2007 increased by US$ 6.1 million, or 23%, compared
to the three months ended June 30, 2006. Cost of programming
increased by US$ 2.3 million, or 15%, primarily due to increased
investment in local productions. Other operating costs
increased by US$ 3.3 million, or 49%, primarily due to increased accruals
for performance-related bonus payments. Selling, general and
administrative expenses increased by US$ 0.5 million, or 12%, primarily
due to increased marketing and research
costs.
|
CZECH REPUBLIC SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
120,712
|
$ |
82,833
|
$ |
37,879
|
||||||
Non-spot
revenues
|
11,351
|
14,028
|
(2,677) | |||||||||
Segment Net
Revenues
|
$ |
132,063
|
$ |
96,861
|
$ |
35,202
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
131,969
|
$ |
96,494
|
$ |
35,475
|
||||||
Non-broadcast
operations
|
94
|
367
|
(273) | |||||||||
Segment Net
Revenues
|
$ |
132,063
|
$ |
96,861
|
$ |
35,202
|
||||||
Segment
EBITDA
|
$ |
73,262
|
$ |
42,335
|
$ |
30,927
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
73,759
|
$ |
42,319
|
$ |
31,440
|
||||||
Non-broadcast
operations
|
(497) |
16
|
(513) | |||||||||
Segment
EBITDA
|
$ |
73,262
|
$ |
42,335
|
$ |
30,927
|
||||||
Segment EBITDA
Margin
|
55 | % | 44 | % | 11 | % |
·
|
Segment Net Revenues for
the six months ended June 30, 2007 increased by US$ 35.2 million, or 36%,
compared to the six months ended June 30, 2006. In local
currency, Segment Net Revenues increased by 25%. Spot revenues
increased by US$ 37.9 million, or 46%, primarily due to an increase in the
volume of GRPs sold, as well as increased average revenue per rating point
sold. Non-spot revenue decreased by US$ 2.7 million, or 19%, primarily due
to a reduction in the number of shows generating voting revenue in the six
months ended June 30, 2007 compared to those programs broadcast in the six
months ended June 30, 2006 and also a reduction in votes in the shows that
were broadcast.
|
·
|
Segment EBITDA for the
six months ended June 30, 2007 increased by US$ 30.9 million, or 73%,
compared to the six months ended June 30, 2006, resulting in an EBITDA
margin of 55% compared to 44% in the six months ended June 30,
2006. In local currency, Segment EBITDA increased by
58%. Costs charged in arriving at Segment EBITDA for the six
months ended June 30, 2007 increased by US$ 4.2 million, or 8%, compared
to the six months ended June 30, 2006. Cost of programming was
in line with the six months ended June 30, 2006 as we focused on improving
operational efficiency. Other operating costs increased by US$
4.2 million, or 33%, primarily due to increased accruals for
performance-related bonus payments. Selling, general and
administrative expenses were in line with the six months ended June 30,
2006 primarily
due to increased accruals for performance-related bonus
payments. Selling, general and administrative expenses were in
line with the six months ended June 30,
2006.
|
ROMANIA SEGMENT FINANCIAL
INFORMATION
|
||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
49,069
|
$ |
35,735
|
$ |
13,334
|
||||||
Non-spot
revenues
|
3,155
|
2,034
|
1,121
|
|||||||||
Segment Net
Revenues
|
$ |
52,224
|
$ |
37,769
|
$ |
14,455
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
52,168
|
$ |
37,769
|
$ |
14,399
|
||||||
Non-broadcast
operations
|
56
|
-
|
56
|
|||||||||
Segment Net
Revenues
|
$ |
52,224
|
$ |
37,769
|
$ |
14,455
|
||||||
Segment
EBITDA
|
$ |
22,530
|
$ |
16,424
|
$ |
6,106
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
22,625
|
$ |
16,424
|
$ |
6,201
|
||||||
Non-broadcast
operations
|
(95) |
-
|
(95) | |||||||||
Segment
EBITDA
|
$ |
22,530
|
$ |
16,424
|
$ |
6,106
|
||||||
Segment EBITDA
Margin
|
43 | % | 43 | % |
-
|
·
|
Segment Net Revenues for
the three months ended June 30, 2007 increased by US$ 14.5 million, or
38%, compared to the three months ended June 30, 2006. Spot revenues
increased by US$ 13.3 million, or 37%, driven primarily by increases in
the average revenue per rating point sold in each of our three existing
channels, which more than offset a decline in the volume of GRPs sold.
Non-spot revenues increased by US$ 1.1 million, or 55%, primarily due to
increased cable tariff revenue. The acquisition of Sport.ro added
approximately US$ 2.2 million to our revenues for the three months ended
June 30, 2007.
|
·
|
Segment EBITDA for the
three months ended June 30, 2007 increased by US$ 6.1 million, or 37%,
compared to the three months ended June 30, 2006, resulting in an
unchanged EBITDA margin of 43%. Costs charged in arriving at
Segment EBITDA for the three months ended June 30, 2007 increased by US$
8.3 million, or 39%, compared to the three months ended June 30,
2006. Cost of programming grew by US$ 8.6 million, or 66%, due
partially to the inclusion of the salary-related costs of production staff
within cost of programming rather than operating costs; excluding the
impact of this change in classification, cost of programming increased by
US$ 6.4 million, or 49%, as a result of increased market competition and
investment in quality programming. Other operating costs
decreased by US$ 0.6 million, or 10%, after the difference in
classification described above; excluding the impact of this change in
classification, other operating costs increased by US$ 1.6 million, or
29%, primarily due to the impact of a weaker dollar on local currency
denominated staffing costs. Selling, general and administrative
expenses increased by US$ 0.3 million, or 10%, primarily due to increased
marketing and research costs and increased office running
costs. The acquisition of Sport.ro added approximately US$ 0.6
million to our Segment EBITDA for the three months ended June 30,
2007.
|
ROMANIA SEGMENT FINANCIAL
INFORMATION
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
85,604
|
$ |
63,870
|
$ |
21,734
|
||||||
Non-spot
revenues
|
5,962
|
3,770
|
2,192
|
|||||||||
Segment Net
Revenues
|
$ |
91,566
|
$ |
67,640
|
$ |
23,926
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
91,510
|
$ |
67,640
|
$ |
23,870
|
||||||
Non-broadcast
operations
|
56
|
-
|
56
|
|||||||||
Segment Net
Revenues
|
$ |
91,566
|
$ |
67,640
|
$ |
23,926
|
||||||
Segment
EBITDA
|
$ |
37,666
|
$ |
28,037
|
$ |
9,629
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
37,899
|
$ |
28,037
|
$ |
9,862
|
||||||
Non-broadcast
operations
|
(233) |
-
|
(233) | |||||||||
Segment
EBITDA
|
$ |
37,666
|
$ |
28,037
|
$ |
9,629
|
||||||
Segment EBITDA
Margin
|
41 | % | 41 | % |
-
|
·
|
Segment Net Revenues for
the six months ended June 30, 2007 increased by US$ 23.9 million, or 35%,
compared to the six months ended June 30, 2006. Spot revenues increased by
US$ 21.7 million, or 34%, driven primarily by increases in the average
revenue per rating point sold in each of our three existing channels,
which more than offset a decline in the volume of GRPs sold. Non-spot
revenues increased by US$ 2.2 million, or 58%, primarily due to increased
cable tariff revenue.
The acquisition of Sport.ro added approximately US$ 2.9 million to our
revenues for the six months ended June 30,
2007.
|
·
|
Segment EBITDA for the
six months ended June 30, 2007 increased by US$ 9.6 million, or 34%,
compared to the six months ended June 30, 2006, with an unchanged EBITDA
margin of 41%. Costs charged in arriving at Segment EBITDA for
the six months ended June 30, 2007 increased by US$ 14.3 million, or 36%,
compared to the six months ended June 30, 2006. Cost of
programming grew by US$ 14.5 million, or 58%, due partially to the
inclusion of the salary-related costs of production staff within cost of
programming rather than operating costs; excluding the impact of this
change in classification, cost of programming increased by US$ 10.5
million, or 42%, as a result of increased market competition and
investment in quality programming. Other operating costs
decreased by US$ 0.7 million, or 6%, after the difference in
classification described above; excluding the impact of this change in
classification, other operating costs increased by US$ 3.3 million, or
34%, primarily due to the impact of a weaker dollar on local currency
denominated staffing costs. Selling, general and administrative
expenses increased by US$ 0.5 million, or 11%, primarily due to increased
marketing and research costs and increased office running
costs. The acquisition of Sport.ro added approximately US$ 0.8
million to our Segment EBITDA for the six months ended June 30,
2007.
|
SLOVAK REPUBLIC SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
28,494
|
$ |
19,182
|
$ |
9,312
|
||||||
Non-spot
revenues
|
1,158
|
864
|
294
|
|||||||||
Segment Net
Revenues
|
$ |
29,652
|
$ |
20,046
|
$ |
9,606
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
29,563
|
$ |
20,039
|
$ |
9,524
|
||||||
Non-broadcast
operations
|
89
|
7
|
82
|
|||||||||
Segment Net
Revenues
|
$ |
29,652
|
$ |
20,046
|
$ |
9,606
|
||||||
Segment
EBITDA
|
$ |
11,712
|
$ |
7,827
|
$ |
3,885
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
11,894
|
$ |
7,821
|
$ |
4,073
|
||||||
Non-broadcast
operations
|
(182) |
6
|
(188) | |||||||||
Segment
EBITDA
|
$ |
11,712
|
$ |
7,827
|
$ |
3,885
|
||||||
Segment EBITDA
Margin
|
39 | % | 39 | % |
-
|
·
|
Segment Net Revenues for
the three months ended June 30, 2007 increased by US$ 9.6 million, or 48%,
compared to the three months ended June 30, 2006. In local
currency, Segment Net Revenues increased by 23%. The increase
in Segment Net Revenues was due to an increase of US$ 9.3 million, or 49%,
in spot revenues and an increase of US$ 0.3 million, or 34%, in non-spot
revenues. The increase in spot revenues is mainly due to
increases in the average revenue per rating point sold, as well as an
increase in the volume of advertising spots
sold.
|
·
|
Segment EBITDA for the
three months ended June 30, 2007 increased by US$ 3.9 million, or 50%,
compared to the three months ended June 30, 2006, resulting in an
unchanged EBITDA margin of 39%. In local currency, Segment
EBITDA increased by 23%. Costs charged in arriving at Segment
EBITDA for the three months ended June 30, 2007 increased by US$ 5.7
million, or 47%, compared to the three months ended June 30,
2006. Cost of programming increased by US$ 3.5 million, or 54%
primarily due to increased investment in local productions such as
Bailando. Other operating costs increased by US$ 1.8 million,
or 47%, primarily due to increased accruals for performance-related bonus
payments and increased broadcast and operating
expenses. Selling, general and administrative expenses
increased by US$ 0.4 million, or 23%, primarily due to increased
consultancy costs.
|
SLOVAK REPUBLIC SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
46,569
|
$ |
29,496
|
$ |
17,073
|
||||||
Non-spot
revenues
|
1,760
|
1,756
|
4
|
|||||||||
Segment Net
Revenues
|
$ |
48,329
|
$ |
31,252
|
$ |
17,077
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
48,225
|
$ |
31,245
|
$ |
16,980
|
||||||
Non-broadcast
operations
|
104
|
7
|
97
|
|||||||||
Segment Net
Revenues
|
$ |
48,329
|
$ |
31,252
|
$ |
17,077
|
||||||
Segment
EBITDA
|
$ |
17,468
|
$ |
6,850
|
$ |
10,618
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
17,753
|
$ |
6,869
|
$ |
10,884
|
||||||
Non-broadcast
operations
|
(285) | (19) | (266) | |||||||||
Segment
EBITDA
|
$ |
17,468
|
$ |
6,850
|
$ |
10,618
|
||||||
Segment EBITDA
Margin
|
36 | % | 22 | % | 14 | % |
·
|
Segment Net Revenues for
the six months ended June 30, 2007 increased by US$ 17.1 million, or 55%,
compared to the six months ended June 30, 2006. In local
currency, Segment Net Revenues increased by 36%. The increase
in Segment Net Revenues was due to an increase of US$ 17.1 million, or
58%, in spot revenues, with non-spot revenues in line with the six months
ended June 30, 2007. The increase in spot revenues is mainly
due to increases in the average revenue per rating point sold, as well as
an increase in the volume of advertising spots sold. Our
advertising revenues benefited from the launch of a new mobile phone
operator during the six months ended June 30, 2007, as well as increased
spending from existing customers, particularly in the pharmaceutical
sector. Segment Net Revenues for the six months ended June 30,
2006 included approximately US$ 1.8 million in respect of the period prior
to acquisition on January 23, 2006 when Markiza was accounted for as an
equity affiliate.
|
·
|
Segment EBITDA for the
six months ended June 30, 2007 increased by US$ 10.6 million, or 155%,
compared to the six months ended June 30, 2006, resulting in an EBITDA
margin of 36% compared to 22% in the six months ended June 30,
2006. In local currency, Segment EBITDA increased by
77%. Costs charged in arriving at Segment EBITDA for the six
months ended June 30, 2007 increased by US$ 6.5 million, or 26%, compared
to the six months ended June 30, 2006. Cost of programming
increased by US$ 3.1 million, or 23%, due to increased investment in local
productions and syndicated programming; the amount charged in the six
months ended June 30, 2006 included a charge of US$ 0.7 million to write
off an unsuccessful show. Other operating costs increased by
US$ 2.4 million, or 31%, due to increased accruals for performance-related
bonus payments, increased broadcast and operating expenses and increased
music right costs. Selling, general and administrative expenses
increased by US$ 0.9 million, or 28%, primarily due to increased
consultancy and increased marketing and research costs. Costs
charged in arriving at Segment EBITDA for the six months ended June 30,
2006 included US$ 1.7 million of programming costs, US$ 0.9 million of
other operating costs and US$ 0.4 million of selling, general and
administrative expenses in respect of the period prior to acquisition on
January 23, 2006.
|
SLOVENIA SEGMENT FINANCIAL
INFORMATION
|
||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
17,435
|
$ |
14,934
|
$ |
2,501
|
||||||
Non-spot
revenues
|
2,660
|
621
|
2,039
|
|||||||||
Segment Net
Revenues
|
$ |
20,095
|
$ |
15,555
|
$ |
4,540
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
19,023
|
$ |
15,095
|
$ |
3,928
|
||||||
Non-broadcast
operations
|
1,072
|
460
|
612
|
|||||||||
Segment Net
Revenues
|
$ |
20,095
|
$ |
15,555
|
$ |
4,540
|
||||||
Segment
EBITDA
|
$ |
8,388
|
$ |
6,430
|
$ |
1,958
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
8,017
|
$ |
6,296
|
$ |
1,721
|
||||||
Non-broadcast
operations
|
371
|
134
|
237
|
|||||||||
Segment
EBITDA
|
$ |
8,388
|
$ |
6,430
|
$ |
1,958
|
||||||
Segment EBITDA
Margin
|
42 | % | 41 | % | 1 | % |
·
|
Segment Net Revenues for
the three months ended June 30, 2007 increased by US$ 4.5 million, or 29%,
compared to the three months ended June 30, 2006. Spot revenues
increased by US$ 2.5 million, or 17%, as our operations benefited from an
increase in the average revenue per thirty-second advertising spot,
particularly from large fast-moving consumer goods clients and local
retailers, which more than offset a decline in the volume of GRPs
sold. Non-spot revenues increased by US$ 2.0 million, or 328%,
due to an increased level of sponsorship and an increase in non-broadcast
advertising revenue.
|
·
|
Segment EBITDA for the
three months ended June 30, 2007 increased by US$ 2.0 million, or 30%,
compared to the three months June 30, 2006, resulting in an EBITDA margin
of 42% compared to 41% in the three months ended June 30,
2006. Costs charged in arriving at Segment EBITDA for the three
months ended June 30, 2007 increased by US$ 2.6 million, or 28%, compared
to the three months ended June 30, 2006. Cost of programming
grew by US$ 2.5 million, or 59%, due to increased investment in
programming in a more competitive market environment. Other
operating costs decreased by US$ 0.4 million, or 12%, primarily due to
lower salary and freelance costs, partially offset by higher music rights
costs and higher transmitter and associated maintenance
costs. Selling, general and administrative expenses increased
by US$ 0.5 million, or 39%, primarily due to higher office running costs
and increased marketing and research
costs.
|
SLOVENIA SEGMENT FINANCIAL
INFORMATION
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
28,760
|
$ |
24,675
|
$ |
4,085
|
||||||
Non-spot
revenues
|
4,004
|
1,107
|
2,897
|
|||||||||
Segment Net
Revenues
|
$ |
32,764
|
$ |
25,782
|
$ |
6,982
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
31,261
|
$ |
25,027
|
$ |
6,234
|
||||||
Non-broadcast
operations
|
1,503
|
755
|
748
|
|||||||||
Segment Net
Revenues
|
$ |
32,764
|
$ |
25,782
|
$ |
6,982
|
||||||
Segment
EBITDA
|
$ |
11,389
|
$ |
9,463
|
$ |
1,926
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
11,039
|
$ |
9,305
|
$ |
1,734
|
||||||
Non-broadcast
operations
|
350
|
158
|
192
|
|||||||||
Segment
EBITDA
|
$ |
11,389
|
$ |
9,463
|
$ |
1,926
|
||||||
Segment EBITDA
Margin
|
35 | % | 37 | % | (2) | % |
·
|
Segment Net Revenues for
the six months ended June 30, 2007 increased by US$ 7.0 million, or 27%,
compared to the six months ended June 30, 2006. Spot revenues
increased by US$ 4.1 million, or 17%, as our operations benefited from an
increase in the average revenue per thirty-second advertising spot, which
more than offset a decline in the volume of GRPs sold. Non-spot
revenues increased by US$ 2.9 million, or 262%, due to an increased level
of sponsorship and an increase in non-broadcast advertising
revenue.
|
UKRAINE (STUDIO 1+1) SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
18,285
|
$ |
17,596
|
$ |
689
|
||||||
Non-spot
revenues
|
4,416
|
3,466
|
950
|
|||||||||
Segment Net
Revenues
|
$ |
22,701
|
$ |
21,062
|
$ |
1,639
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
22,701
|
$ |
21,062
|
$ |
1,639
|
||||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment Net
Revenues
|
$ |
22,701
|
$ |
21,062
|
$ |
1,639
|
||||||
Segment
EBITDA
|
$ |
565
|
$ |
6,037
|
$ | (5,472) | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
716
|
$ |
6,037
|
$ | (5,321) | ||||||
Non-broadcast
operations
|
(151) |
-
|
(151) | |||||||||
Segment
EBITDA
|
$ |
565
|
$ |
6,037
|
$ | (5,472) | ||||||
Segment EBITDA
Margin
|
2 | % | 29 | % | (27) | % |
·
|
Segment Net Revenues for
the three months ended June 30, 2007 increased by US$ 1.6 million, or 8%,
compared to the three months ended June 30, 2006. Spot revenues increased
by US$ 0.6 million, or 4%. There was a decrease in the volume
of GRPs sold in the three months ended June 30, 2007 compared to the three
months ended June 30, 2006 as our ratings declined due to the poor
performance of the Russian series of Mothers and Daughters and of Damned
Paradise (which aired following the conclusion of the successful current
run of Cadets), particularly as against the runaway success of a new
Russian series Day of Tatyana on Inter, which is expected to run until
early 2008. We also suffered increased competition from other
broadcasters. These factors were partially offset by an increase in the
average revenue per rating point sold. Non-spot revenues
increased by US$ 1.0 million, or 27%, primarily due to increased
sponsorship and the sale of surplus
programming.
|
·
|
Segment EBITDA for the
three months ended June 30, 2007 decreased by US$ 5.5 million, or 87%,
compared to the three months ended June 30, 2006, resulting in an EBITDA
margin of 2% compared to 29% in the three months ended June 30,
2006. Costs charged in arriving at Segment EBITDA for the three
months ended June 30, 2007 increased by US$ 7.1 million, or 47%, compared
to the three months ended June 30, 2006. Cost of programming
grew by US$ 7.7 million, or 87%, including a charge of US$ 2.2
million to write off poorly performing programming, principally second
runs of American series. The increase in cost of programming
reflects continued price inflation for Russian programming, which drives
strong ratings in the market, as well as increased investment in such
programming to improve our programming schedule and boost ratings
following disappointing ratings in the first half of 2007 and against
unusually strong programming on Inter. Other operating costs
increased by US$ 1.0 million, or 31%, due to increased salary costs and
increased broadcast operating expenses. Selling, general and
administrative expenses decreased by US$ 1.6 million, or 53%, primarily
due to decreased taxes and reduced bad debt
expense.
|
UKRAINE (STUDIO 1+1) SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
33,106
|
$ |
40,324
|
$ | (7,218 | ) | |||||
Non-spot
revenues
|
7,670
|
6,216
|
1,454
|
|||||||||
Segment Net
Revenues
|
$ |
40,776
|
$ |
46,540
|
$ | (5,764 | ) | |||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
40,776
|
$ |
46,540
|
$ | (5,764 | ) | |||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment Net
Revenues
|
$ |
40,776
|
$ |
46,540
|
$ | (5,764 | ) | |||||
Segment
EBITDA
|
$ | (1,805 | ) | $ |
17,024
|
$ | (18,829 | ) | ||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (1,622 | ) | $ |
17,024
|
$ | (18,646 | ) | ||||
Non-broadcast
operations
|
(183 | ) |
-
|
(183 | ) | |||||||
Segment
EBITDA
|
$ | (1,805 | ) | $ |
17,024
|
$ | (18,829 | ) | ||||
Segment EBITDA
Margin
|
(4 | )% | 37 | % | (41 | )% |
·
|
Segment Net Revenues for
the six months ended June 30, 2007 decreased by US$ 5.8 million, or 12%,
compared to the six months ended June 30, 2006. Spot revenues decreased by
US$ 7.2 million, or 18%. There was a decrease in the volume of
GRPs sold as our ratings declined due to the poor performance of certain
series on Studio 1+1 and increased competition from other
broadcasters. There was also a decrease in the average revenue
per rating point sold in the six months ended June 30, 2007 compared to
the six months ended June 30, 2006 due to extreme price competition in the
first quarter. In the six months ended June 30, 2006, we benefited
from US$ 8.4 million of political advertising revenue ahead of the
parliamentary elections in March 2006 as well as the extraordinary ratings
success of the Russian series Ugly Betty, which ran until July 2006.
Non-spot revenues increased by US$ 1.5 million, or 23%, primarily due to
the sale of surplus programming and increased sponsorship.
|
·
|
Segment EBITDA for the
six months ended June 30, 2007 decreased by US$ 18.8 million, or 111%,
compared to the six months ended June 30, 2006, resulting in an EBITDA
loss of (4)% compared to an EBITDA margin of 37% in the six months ended
June 30, 2006. Costs charged in arriving at Segment EBITDA for
the six months ended June 30, 2007 increased by US$ 13.1 million, or 44%,
compared to the six months ended June 30, 2006. Cost of
programming grew by US$ 13.0 million, or 75%, including a charge of
US$ 2.7 million to write off poorly performing programming,
principally second runs of American series. The increase in
cost of programming reflects continued price inflation for Russian
programming, which drives strong ratings in the market, as well as
increased investment in such programming to improve our programming
schedule and boost ratings following disappointing ratings in the first
half of 2007 and against unusually strong programming on
Inter. Other operating costs increased by US$ 1.6 million, or
22%, due to increased salary costs and increased broadcast operating
expenses. Selling, general and administrative expenses
decreased by US$ 1.5 million, or 27%, primarily due to decreased taxes and
reduced bad debt expense.
We
plan continued investment in programming throughout the remainder of 2007
as we seek to recover audience share and improve
profitability. The performance of our Ukraine operations
remains subject both to political developments, which can have a
significant impact on market development in the second half of 2007, and
to the competitive dynamics of the market (See Part II, Item IA – “Risk
Factors”).
|
UKRAINE (KINO, CITI) SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Spot
revenues
|
$ |
334
|
$ |
106
|
$ |
228
|
||||||
Non-spot
revenues
|
320
|
92
|
228
|
|||||||||
Segment Net
Revenues
|
$ |
654
|
$ |
198
|
$ |
456
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
654
|
$ |
198
|
$ |
456
|
||||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment Net
Revenues
|
$ |
654
|
$ |
198
|
$ |
456
|
||||||
Segment
EBITDA
|
$ | (1,755) | $ | (432) | $ | (1,323) | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (1,755) | $ | (432) | $ | (1,323) | ||||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment
EBITDA
|
$ | (1,755) | $ | (432) | $ | (1,323) | ||||||
Segment EBITDA
Margin
|
(268) | % | (218) | % | (50) | % |
·
|
Segment Net Revenues for
the three months ended June 30, 2007 increased by US$ 0.5 million, or
230%, compared to the three months ended June 30, 2006. Spot revenues
increased by US$ 0.2 million, or 215%. Non-spot revenues
increased by US$ 0.2 million, or 248%, primarily due to increased program
sponsorship.
|
·
|
Segment EBITDA for the
three months ended June 30, 2007 decreased by US$ 1.3 million, or 306%,
compared to the three months ended June 30, 2006, resulting in an EBITDA
margin of (268)%
compared to (218)% in the three months ended June 30,
2006. Costs charged in arriving at Segment EBITDA for the three
months ended June 30, 2007 increased by US$ 1.8 million, or 282%, compared
to the three months ended June 30, 2006 as we continued to develop the
channels. Cost of programming grew by US$ 1.3 million, or
854%. Other operating costs increased by US$ 0.2 million, or
62%. Selling, general and administrative expenses increased by
US$ 0.3 million, or 313%.
|
UKRAINE (KINO, CITI) SEGMENT
FINANCIAL INFORMATION
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006(1)
|
Movement
|
||||||||||
Spot
revenues
|
$ |
477
|
$ |
321
|
$ |
156
|
||||||
Non-spot
revenues
|
575
|
251
|
324
|
|||||||||
Segment Net
Revenues
|
$ |
1,052
|
$ |
572
|
$ |
480
|
||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ |
1,052
|
$ |
572
|
$ |
480
|
||||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment Net
Revenues
|
$ |
1,052
|
$ |
572
|
$ |
480
|
||||||
Segment
EBITDA
|
$ | (4,172) | $ | (557) | $ | (3,615) | ||||||
Represented
by:
|
||||||||||||
Broadcast
operations
|
$ | (4,172) | $ | (557) | $ | (3,615) | ||||||
Non-broadcast
operations
|
-
|
-
|
-
|
|||||||||
Segment
EBITDA
|
$ | (4,172) | $ | (557) | $ | (3,615) | ||||||
Segment EBITDA
Margin
|
(397) | % | (97) | % | (300) | % | ||||||
(1)
From acquisition on January 11, 2006 only
|
·
|
Segment Net Revenues for
the six months ended June 30, 2007 increased by US$ 0.5 million, or 84%,
compared to the six months ended June 30, 2006. Spot revenues increased by
US$ 0.2 million, or 49%. Non-spot revenues increased by US$ 0.3
million, or 129%, primarily due to increased program
sponsorship.
|
·
|
Segment EBITDA for the
six months ended June 30, 2007 decreased by US$ 3.6 million, or 649%,
compared to the six months ended June 30, 2006, resulting in an EBITDA
margin of (397)% compared to (97)% in the six months ended June 30,
2006. Costs charged in arriving at Segment EBITDA for the six
months ended June 30, 2007 increased by US$ 4.1 million, or 362%, compared
to the six months ended June 30, 2006 as we continued to develop the
channels. Cost of programming grew by US$ 3.0 million, or
1465%. Other operating costs increased by US$ 0.6 million, or
101%. Selling, general and administrative expenses increased by
US$ 0.5 million, or 167%.
|
COST OF
PROGRAMMING
|
||||||||||||||||
For the Three Months Ended
June 30,
(US$ 000’s)
|
For the Six Months Ended
June 30,
(US$ 000’s)
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Production
expenses
|
$ |
40,778
|
$ |
26,045
|
$ |
68,334
|
$ |
49,020
|
||||||||
Program
amortization
|
41,995
|
26,805
|
80,792
|
52,248
|
||||||||||||
Cost of
programming
|
$ |
82,773
|
$ |
52,850
|
$ |
149,126
|
$ |
101,268
|
·
|
US$
4.8 million of additional programming costs from our Slovak Republic
operations, which have been consolidated for the entire six-month period
in 2007;
|
PROGRAM AMORTIZATION AND CASH
PAID FOR PROGRAMMING
|
||||||||||||||||
For the Three Months Ended
June 30,
(US$ 000’s)
|
For the Six Months Ended
June 30,
(US$ 000’s)
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Program
amortization:
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ |
5,234
|
$ |
3,472
|
$ |
10,634
|
$ |
6,890
|
||||||||
Czech
Republic (TV NOVA)
|
7,295
|
6,506
|
13,851
|
13,889
|
||||||||||||
Romania
(PRO TV, ACASA, PRO CINEMA, PRO TV INTERNATIONAL and
SPORT.RO)
|
9,906
|
7,074
|
19,335
|
13,790
|
||||||||||||
Slovak
Republic (MARKIZA TV) (post-acquisition)
|
2,969
|
(1)3,642 |
6,176
|
(1)4,078 | ||||||||||||
Slovenia
(POP TV and KANAL A)
|
2,246
|
1,788
|
4,442
|
3,205
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
13,561
|
5,964
|
24,489
|
12,010
|
||||||||||||
Ukraine
(KINO, CITI)
|
784
|
94
|
1,865
|
121
|
||||||||||||
$ |
41,995
|
$ |
28,540
|
80,792
|
$ |
53,983
|
||||||||||
(1)
Includes the program amortization of our operations in the Slovak Republic
(MARKIZA TV) for the period prior to January 23, 2006 when they were
accounted for as an equity affiliate
|
||||||||||||||||
Cash
paid for programming:
|
||||||||||||||||
Croatia
(NOVA TV)
|
$ |
10,002
|
$ |
3,232
|
$ |
10,907
|
$ |
7,598
|
||||||||
Czech
Republic (TV NOVA)
|
4,269
|
4,277
|
10,846
|
16,213
|
||||||||||||
Romania
(PRO TV, ACASA, PRO CINEMA, PRO TV INTERNATIONAL and
SPORT.RO)
|
12,931
|
10,789
|
22,977
|
17,395
|
||||||||||||
Slovak
Republic (MARKIZA TV)
|
4,466
|
2,263
|
8,165
|
5,542
|
||||||||||||
Slovenia
(POP TV and KANAL A)
|
2,480
|
1,680
|
4,652
|
3,499
|
||||||||||||
Ukraine
(STUDIO 1+1)
|
16,075
|
5,437
|
26,559
|
13,409
|
||||||||||||
Ukraine
(KINO, CITI)
|
375
|
273
|
1,117
|
388
|
||||||||||||
$ |
50,598
|
$ |
27,951
|
$ |
85,223
|
$ |
64,044
|
CONSOLIDATED NET
REVENUES
|
||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Croatia
|
$ |
10,414
|
$ |
5,647
|
$ |
4,767
|
||||||
Czech
Republic
|
80,544
|
56,312
|
24,232
|
|||||||||
Romania
|
52,224
|
37,769
|
14,455
|
|||||||||
Slovak
Republic
|
29,652
|
20,046
|
9,606
|
|||||||||
Slovenia
|
20,095
|
15,555
|
4,540
|
|||||||||
Ukraine
(STUDIO 1+1)
|
22,701
|
21,062
|
1,639
|
|||||||||
Ukraine
(KINO, CITI)
|
654
|
198
|
456
|
|||||||||
Total Consolidated Net
Revenues
|
$ |
216,284
|
$ |
156,589
|
$ |
59,695
|
CONSOLIDATED NET
REVENUES
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Croatia
|
$ |
17,646
|
$ |
9,457
|
$ |
8,189
|
||||||
Czech
Republic
|
132,063
|
96,861
|
35,202
|
|||||||||
Romania
|
91,566
|
67,640
|
23,926
|
|||||||||
Slovak
Republic *
|
48,329
|
29,491
|
18,838
|
|||||||||
Slovenia
|
32,764
|
25,782
|
6,982
|
|||||||||
Ukraine
(STUDIO 1+1)
|
40,776
|
46,540
|
(5,764 | ) | ||||||||
Ukraine
(KINO, CITI)
|
1,052
|
572
|
480
|
|||||||||
Total Consolidated Net
Revenues
|
$ |
364,196
|
$ |
276,343
|
$ |
87,853
|
CONSOLIDATED COST OF
REVENUES
|
||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Operating
costs
|
$ |
30,944
|
$ |
26,042
|
$ |
4,902
|
||||||
Cost
of programming
|
82,773
|
52,850
|
29,923
|
|||||||||
Depreciation
of station property, plant and equipment
|
7,680
|
6,059
|
1,621
|
|||||||||
Amortization
of broadcast licenses and other intangibles
|
5,165
|
4,620
|
545
|
|||||||||
Total Consolidated Cost of
Revenues
|
$ |
126,562
|
$ |
89,571
|
$ |
36,991
|
CONSOLIDATED COST OF
REVENUES
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Operating
costs
|
$ |
56,601
|
$ |
49,014
|
$ |
7,587
|
||||||
Cost
of programming
|
149,126
|
101,268
|
47,858
|
|||||||||
Depreciation
of station property, plant and equipment
|
14,579
|
11,761
|
2,818
|
|||||||||
Amortization
of broadcast licenses and other intangibles
|
10,327
|
8,952
|
1,375
|
|||||||||
Total Consolidated Cost of
Revenues
|
$ |
230,633
|
$ |
170,995
|
$ |
59,638
|
CONSOLIDATED STATION SELLING,
GENERAL AND ADMINISTRATIVE EXPENSES
|
||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Croatia
|
$ |
2,013
|
$ |
1,248
|
$ |
765
|
||||||
Czech
Republic
|
4,908
|
4,388
|
520
|
|||||||||
Romania
|
2,918
|
2,646
|
272
|
|||||||||
Slovak
Republic
|
2,321
|
1,894
|
427
|
|||||||||
Slovenia
|
1,770
|
1,271
|
499
|
|||||||||
Ukraine
(STUDIO 1+1)
|
1,417
|
3,009
|
(1,592 | ) | ||||||||
Ukraine
(KINO, CITI)
|
352
|
85
|
267
|
|||||||||
Total Consolidated Station
Selling, General and Administrative Expenses
|
$ |
15,699
|
$ |
14,541
|
$ |
1,158
|
CONSOLIDATED STATION SELLING,
GENERAL AND ADMINISTRATIVE EXPENSES
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Croatia
|
$ |
3,739
|
$ |
2,790
|
$ |
949
|
||||||
Czech
Republic
|
10,000
|
10,065
|
(65 | ) | ||||||||
Romania
|
5,342
|
4,810
|
532
|
|||||||||
Slovak
Republic
|
4,259
|
2,913
|
1,346
|
|||||||||
Slovenia
|
3,477
|
2,484
|
993
|
|||||||||
Ukraine
(STUDIO 1+1)
|
3,883
|
5,353
|
(1,470 | ) | ||||||||
Ukraine
(KINO, CITI)
|
780
|
292
|
488
|
|||||||||
Total Consolidated Station
Selling, General and Administrative Expenses
|
$ |
31,480
|
$ |
28,707
|
$ |
2,773
|
CORPORATE OPERATING
COSTS
|
||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Corporate
operating costs (excluding stock-based compensation)
|
$ |
6,101
|
$ |
6,966
|
$ | (865 | ) | |||||
Stock-based
compensation
|
1,343
|
730
|
613
|
|||||||||
Corporate Operating
Costs
|
$ |
7,444
|
$ |
7,696
|
$ | (252 | ) |
·
|
Decreased
legal costs incurred in connection with legal proceedings in respect of
our Ukraine operations, partly offset
by;
|
CORPORATE OPERATING
COSTS
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Corporate
operating costs (excluding stock-based compensation)
|
$ |
19,612
|
$ |
14,259
|
$ | 5,353 | ||||||
Stock-based
compensation
|
2,605
|
1,418
|
1,187
|
|||||||||
Corporate Operating
Costs
|
$ |
22,217
|
$ |
15,677
|
$ |
6,540
|
·
|
A
charge of EUR 4.5 million (approximately US$ 6.0 million) in respect of
the estimated cost of settlement of our Croatia litigation (see Item 1,
Note 18);
|
·
|
Increased
business development expenses incurred in researching potential
acquisition targets, partly offset
by:
|
·
|
Decreased
property-related costs, as the expense incurred in the six months ended
June 30, 2006 included a lease exit charge of approximately US$
1.6 million (including additional depreciation of US$ 0.3 million)
incurred following relocation of our London office during the first
quarter of 2006; and
|
·
|
Decreased
legal costs incurred in connection with legal proceedings in respect of
our Ukraine operations.
|
OPERATING
INCOME
|
||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Operating
Income
|
$ |
66,579
|
$ |
44,033
|
$ |
22,546
|
OPERATING
INCOME
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Operating
Income
|
$ |
79,866
|
$ |
60,216
|
$ |
19,650
|
OTHER INCOME / (EXPENSE)
ITEMS
|
||||||||||||
For the Three Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Interest
income
|
$ |
1,732
|
$ |
1,741
|
$ | (9 | ) | |||||
Interest
expense
|
(19,438 | ) | (11,337 | ) | (8,101 | ) | ||||||
Foreign
currency exchange loss, net
|
(2,116 | ) | (20,625 | ) |
18,509
|
|||||||
Change
in fair value of derivatives
|
7,528
|
(1,876 | ) |
9,404
|
||||||||
Other
(expense) / income
|
(546 | ) |
167
|
(713 | ) | |||||||
Provision
for income taxes
|
(13,419 | ) | (3,582 | ) | (9,837 | ) | ||||||
Minority
interest in income of consolidated subsidiaries
|
(5,730 | ) | (1,276 | ) | (4,454 | ) | ||||||
Discontinued
operations
|
$ |
-
|
$ |
1,277
|
$ | (1,277 | ) |
OTHER INCOME / (EXPENSE)
ITEMS
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Interest
income
|
$ |
3,146
|
$ |
3,194
|
$ | (48 | ) | |||||
Interest
expense
|
(30,834 | ) | (21,855 | ) | (8,979 | ) | ||||||
Foreign
currency exchange gain loss, net
|
(5,252 | ) | (31,487 | ) |
26,235
|
|||||||
Change
in fair value of derivatives
|
12,052
|
(1,876 | ) |
13,928
|
||||||||
Other
expense
|
(790 | ) | (381 | ) | (409 | ) | ||||||
Provision
for income taxes
|
(18,478 | ) | (7,576 | ) | (10,902 | ) | ||||||
Minority
interest in income of consolidated subsidiaries
|
(5,370 | ) | (6,717 | ) |
1,347
|
|||||||
Equity
in income / (loss) of unconsolidated affiliates
|
-
|
(730 | ) |
730
|
||||||||
Discontinued
operations
|
$ |
-
|
$ | (2,530 | ) | $ |
2,530
|
EQUITY IN INCOME / (LOSS) OF
UNCONSOLIDATED AFFILIATES
|
||||||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||||||
2007
|
2006
|
Movement
|
||||||||||
Romania
operations
|
$ |
-
|
$ |
7
|
$ | (7 | ) | |||||
Slovak
Republic operations
|
-
|
(737 | ) |
737
|
||||||||
Equity in Income / (Loss) of
Unconsolidated Affiliates
|
$ |
-
|
$ | (730 | ) | $ |
730
|
SUMMARIZED CONDENSED
CONSOLIDATED BALANCE SHEET (US$ 000’s)
|
||||||||||||
Movement
|
||||||||||||
Current
assets
|
$ |
426,598
|
$ |
413,616
|
$ |
12,982
|
||||||
Non-current
assets
|
1,473,694
|
1,405,384
|
68,310
|
|||||||||
Current
liabilities
|
214,237
|
182,961
|
31,276
|
|||||||||
Non-current
liabilities
|
611,475
|
574,084
|
37,391
|
|||||||||
Minority
interests in consolidated subsidiaries
|
21,556
|
26,189
|
(4,633 | ) | ||||||||
Shareholders’
equity
|
$ |
1,053,024
|
$ |
1,035,766
|
17,258
|
SUMMARY OF CASH
FLOWS
|
||||||||
For the Six Months Ended June
30, (US$ 000's)
|
||||||||
2007
|
2006
|
|||||||
Net
cash generated from continuing operating activities
|
$ |
21,601
|
$ |
37,275
|
||||
Net
cash used in continuing investing activities
|
(88,113 | ) | (81,568 | ) | ||||
Net
cash received from financing activities
|
31,125
|
138,233
|
||||||
Net
cash used in discontinued operations – operating
activities
|
(1,624 | ) | (1,690 | ) | ||||
Net (decrease)/increase in cash
and cash equivalents
|
$ | (29,242 | ) | $ |
87,340
|
·
|
Payment
of US$ 51.6 million in connection with our acquisition of an additional 5%
stake in our Romania broadcasting operations and a 20% stake in our
Romanian production company (for further information, see Part I, Item 1,
Note 3);
|
·
|
Payments
of EUR 6.7 million (approximately US$ 8.4 million) in connection with our
acquisition of Sport.ro (for further information, see Part I, Item 1, Note
3);
|
·
|
Payments
of US$ 2.1 million in connection with our acquisition of a 60.4% stake in
each of Tor and Zhysa (for further information, see Part I, Item 1, Note
3); and
|
Operating segment (US$
000’s)
|
||||||||
Croatia
|
$ |
85,140
|
$ |
67,623
|
||||
Czech
Republic
|
411,821
|
434,897
|
||||||
Romania
|
37,235
|
25,620
|
||||||
Slovak
Republic
|
23,518
|
23,670
|
||||||
Slovenia
|
58
|
-
|
||||||
Ukraine
(STUDIO 1+1)
|
556
|
-
|
||||||
Ukraine
(KINO, CITI)
|
11,972
|
4,621
|
||||||
Total
|
$ |
570,300
|
$ |
556,431
|
Contractual
Obligations
|
Payments due by period (US$
000’s)
|
|||||||||||||||||||
Total
|
Less than 1
year
|
1-3
years
|
3-5
years
|
More than 5
years
|
||||||||||||||||
Long-Term
Debt – principal
|
$ |
546,929
|
$ |
11,805
|
$ |
1,700
|
$ |
-
|
$ |
533,424
|
||||||||||
Long-Term
Debt – interest
|
208,481
|
39,510
|
78,383
|
78,077
|
12,511
|
|||||||||||||||
Capital
Lease Obligations
|
6,644
|
540
|
1,840
|
1,240
|
3,024
|
|||||||||||||||
Operating
Leases
|
6,015
|
2,611
|
2,419
|
985
|
-
|
|||||||||||||||
Unconditional
Purchase Obligations
|
118,498
|
110,045
|
6,059
|
1,580
|
814
|
|||||||||||||||
Other
Long-Term Obligations
|
9,199
|
7,199
|
2,000
|
-
|
-
|
|||||||||||||||
Total Contractual
Obligations
|
$ |
895,766
|
$ |
171,710
|
$ |
92,401
|
$ |
81,882
|
$ |
549,773
|
(US$
000’s)
|
||||||||
Corporate
|
(1)–(2) | $ |
533,424
|
|||||
Croatia
operations
|
(3) |
-
|
||||||
Czech
Republic operations
|
(4)–(6) |
11,760
|
||||||
Romania
operations
|
(7) |
40
|
||||||
Slovenia
operations
|
(8) |
-
|
||||||
Ukraine
(KINO, CITI) operations
|
(9) |
1,705
|
||||||
Total
|
$ |
546,929
|
(1)
|
In
May 2005, we issued Senior Notes in the aggregate principal amount of EUR
370.0 million (approximately US$ 499.7 million) consisting of EUR
245.0 million (approximately US$ 330.9 million) of 8.25% Senior Notes
due May 2012 and EUR 125.0 million (approximately US$ 168.8
million) of floating rate Senior Notes due May 2012, which bore
interest at six-month Euro Inter-Bank Offered Rate (“EURIBOR”) plus
5.50%. On May 15, 2007, we redeemed the floating rate Senior
Notes.
|
(2)
|
On
July 21, 2006, we entered into a five-year revolving loan agreement for
EUR 100.0 million (approximately US$ 135.1 million) arranged by the
European Bank for Reconstruction and Development (the
“Loan”). ING Bank N.V. (“ING”) and Ceska Sporitelna, a.s.
(“CS”) are participating in the facility for EUR 50.0 million in
aggregate.
|
(3)
|
On
March 28, 2007, we repaid EUR 0.6 million (approximately US$ 0.8 million),
which was the total amount outstanding to our Croatia operations under two
loan agreements with Hypo Alpe-Adria Bank d.d. Following this repayment,
the security held by the bank was
released.
|
(4)
|
CET
21 has a four-year credit facility of CZK 1.2 billion (approximately US$
56.4 million) with Ceska Sporitelna, a.s. (“CS”). The final
repayment date is October 31, 2009. This facility may, at the
option of CET 21, be drawn in CZK, US$ or EUR and bears interest at the
three-month, six-month or twelve-month London Inter-Bank Offered Rate
(“LIBOR”), EURIBOR or Prague Inter-Bank Offered Rate (“PRIBOR”) rate plus
1.95%. This facility is secured by a pledge of receivables,
which are also subject to a factoring arrangement with Factoring Ceska
Sporitelna, a.s., a subsidiary of CS. As at June 30, 2007,
there were no drawings under this facility, however on July 10, 2007, CZK
860.0 million (approximately US$ 40.4 million) was drawn down under this
facility and on July 31, 2007, CZK 260.0 million (approximately US$ 12.7
million) was repaid.
|
(5)
|
CET
21 has a working capital credit facility of CZK 250.0 million
(approximately US$ 11.8 million) with CS. This working capital
facility bears interest at the three-month PRIBOR rate plus 1.65% and is
secured by a pledge of receivables, which are also subject to a factoring
arrangement with Factoring Ceska Sporitelna, a.s. On June 30, 2007, the
full CZK 250.0 million (approximately US$ 11.8
million) was drawn under this facility bearing interest at an aggregate
4.65% (three-month PRIBOR effective for this loan was
3.00%).
|
(6)
|
As
at June 30, 2007, there were no drawings under a CZK 300.0 million
(approximately US$ 14.1 million) factoring facility with Factoring Ceska
Sporitelna, a.s., a subsidiary of CS. This facility is
available until June 30, 2010 and bears interest at the rate of one-month
PRIBOR plus 1.40% for the period that actively assigned accounts
receivable are outstanding.
|
(7)
|
As
at June 30, 2007, an amount of RON 97 thousand (approximately US$ 40
thousand) was outstanding under a loan agreement from one of the founding
shareholders of Sport.ro. The loan is interest free and is repayable in
equal monthly instalments by August 31,
2007.
|
(8)
|
A
revolving five-year facility agreement was entered into by Pro Plus for up
to EUR 37.5 million (approximately US$ 50.6 million) in aggregate
principal amount with ING Bank N.V., Nova Ljubljanska Banka d.d.,
Ljubljana and Bank Austria Creditanstalt d.d., Ljubljana. The
facility availability amortizes by 10.0% each year for four years
commencing one year after signing, with 60.0% repayable after five
years. This facility is secured by a pledge of the bank
accounts of Pro Plus, the assignment of certain receivables, a pledge of
our interest in Pro Plus and a guarantee of our wholly-owned subsidiary
CME Media Enterprises B.V. Loans drawn under this facility will
bear interest at a rate of EURIBOR for the period of drawing plus a margin
of between 2.1% and 3.6% that varies according to the ratio of
consolidated net debt to consolidated broadcasting cash flow for Pro
Plus. As at June 30, 2007, EUR 33.8 million (approximately US$
45.6 million) was available for drawing under this revolving
facility; there were no drawings
outstanding.
|
(9)
|
Our
Ukraine (KINO, CITI) operations have entered into a number of three-year
unsecured loans with Glavred-Media, LLC, the minority shareholder in
Ukrpromtorg. As at June 30, 2007, the total value of loans
drawn was US$ 1.7 million. The loans are repayable between
August 2009 and December 2009 and bear interest at
9.0%.
|
Jurisdiction
|
Year
|
Croatia
|
2003
|
Czech
Republic
|
2003
|
Germany
|
2000
|
Netherlands
|
2004
|
Romania
|
2002
|
Slovak
Republic
|
2001
|
Slovenia
|
2001
|
Ukraine
|
2003
|
United
States
|
2001
|
31.01
|
Sarbanes-Oxley
Certification s. 302 CEO, dated February 22,
2008 .
|
31.02
|
Sarbanes-Oxley
Certification s. 302 CFO, dated February 22,
2008 .
|
32.01
|
Sarbanes-Oxley
Certification – CEO and CFO, dated February 22, 2008 (furnished
only).
|
Date:
February 22, 2008
|
/s/ Michael
Garin
|
Michael
Garin
|
|
Chief
Executive Officer
|
|
(Duly
Authorized Officer)
|
|
Date:
February 22, 2008
|
/s/ Wallace
Macmillan
|
Wallace
Macmillan
|
|
Chief
Financial Officer
|
|
(Principal
Financial Officer and Accounting
Officer)
|
s.
302 Sarbanes-Oxley Certification - CEO, dated February 22,
2008
|
|
s.
302 Sarbanes-Oxley Certification - CFO, dated February 22,
2008
|
|
s.
906 Sarbanes-Oxley Certification - CEO and CFO, dated February 22,
2008 (furnished only)
|
This ‘10-Q/A’ Filing | Date | Other Filings | ||
---|---|---|---|---|
4/15/12 | ||||
5/15/11 | ||||
5/14/11 | ||||
6/30/10 | 10-Q, 10-Q/A, 8-K | |||
5/15/10 | ||||
5/14/10 | ||||
3/31/10 | 10-Q | |||
11/12/09 | ||||
10/31/09 | ||||
5/15/09 | 4, 4/A, DEF 14A, PRE 14A | |||
5/14/09 | ||||
12/31/08 | 10-K, 8-K | |||
11/15/08 | ||||
5/15/08 | ||||
5/14/08 | ||||
4/30/08 | 10-Q, 8-K | |||
Filed on: | 2/22/08 | 10-Q/A, 8-K | ||
1/1/08 | ||||
12/31/07 | 10-K | |||
11/15/07 | ||||
9/30/07 | 10-Q, 10-Q/A | |||
9/24/07 | ||||
9/4/07 | ||||
8/31/07 | ||||
8/2/07 | 10-Q, 8-K | |||
7/31/07 | ||||
7/30/07 | ||||
7/13/07 | 8-K | |||
7/10/07 | ||||
For Period End: | 6/30/07 | 10-Q | ||
6/25/07 | ||||
6/21/07 | ||||
6/6/07 | ||||
6/5/07 | 4, DEF 14A, PRE 14A | |||
6/1/07 | 8-K | |||
5/25/07 | ||||
5/16/07 | 8-K | |||
5/15/07 | 8-K | |||
5/11/07 | 8-K | |||
5/8/07 | ||||
4/18/07 | ||||
4/4/07 | 4 | |||
4/2/07 | ||||
3/31/07 | 10-Q, 10-Q/A | |||
3/28/07 | ||||
3/15/07 | 4 | |||
3/1/07 | 10-K, 8-K | |||
2/28/07 | ||||
2/20/07 | ||||
1/25/07 | ||||
1/1/07 | ||||
12/31/06 | 10-K, 10-K/A | |||
12/18/06 | ||||
12/14/06 | 4 | |||
12/1/06 | ||||
11/21/06 | ||||
11/6/06 | ||||
11/3/06 | ||||
10/31/06 | ||||
8/28/06 | 3, 4 | |||
8/16/06 | ||||
8/1/06 | 3, 4, 8-K | |||
7/21/06 | 8-K | |||
7/12/06 | ||||
6/30/06 | 10-Q | |||
5/24/06 | ||||
4/27/06 | ||||
1/23/06 | 8-K | |||
1/12/06 | ||||
1/11/06 | 3, 4, SC 13G, SC 13G/A | |||
12/31/05 | 10-K, 10-K/A | |||
12/23/05 | ||||
10/13/05 | ||||
7/29/05 | ||||
7/21/05 | ||||
5/5/05 | ||||
4/18/05 | S-3/A | |||
12/30/04 | ||||
12/15/04 | 4 | |||
10/29/04 | ||||
9/24/04 | ||||
9/9/04 | 4 | |||
9/1/04 | 4 | |||
6/30/04 | 10-Q | |||
4/30/04 | ||||
2/9/04 | ||||
12/31/03 | 10-K, 10-K/A | |||
10/23/03 | 8-K/A | |||
6/19/03 | ||||
5/19/03 | ||||
11/20/02 | ||||
4/10/01 | ||||
2/9/01 | ||||
List all Filings |