Fido phone owner Microcell dogged by losses: $152M in Q3; finances precarious

**Timsta** · 11-10-2002, 03:11 PM

FIDO loses more money.. company in jeopardy

Microcell Telecommunications, the smallest of Canada's four wireless phone carriers, disclosed another major quarterly loss Friday and warned that its finances are precarious. The operator of the Fido cellphone brand said it lost $152.3 million in the third quarter on revenue of $154.5 million.

The loss amounted to 63 cents a share and compared with a loss of $142.9 million or $1.37 per share a year earlier, when revenue was $146.6 million.

Microcell stated that "there is significant concern regarding the company's ability to continue as a going concern."

Jacques Leduc, chief financial officer, said in an interview that the warning is just to comply with accounting rules.

He said the company's operations are providing positive cash flow and the customer base is increasing. Operating income for the quarter rose to $26.6 million, from $5.4 million a year earlier.

However, Leduc acknowledged a problem with the balance sheet, bearing $1.9 billion in debt taken on to build the company's network.

Since August an outside firm, Rothschild Inc., has been looking at alternatives including restructuring the debt, merging with another company or even filing for court protection from creditors.

Microcell, controlled by Quebec entrepreneur Charles Sirois, said that since the end of the quarter on Sept. 30 it has secured bank promises to forbear from any action against the company before Dec. 23 in the event of a default on loan payments.

For the time being, said Leduc, "We're in compliance with all our long-term debt agreements."

As of Sept. 30 the company said it had $125 million in cash and short-term securities. It used up $25.6 million in the quarter, of which $16.4 million was for debt service.

Microcell ended the third quarter with 1.19 million retail customers, a gain of 150,805 during the quarter, and provided digital services to 22,062 wholesale subscribers.

Microcell shares (TSX:MTI.B) fell two cents to 12 cents Friday. The 52-week high is $4.59 and the low is 5.5 cents.

**Fried Bacon** · 11-11-2002, 02:14 AM

OK now this is about the sixth time this info has been posted. If ever there was a reason to have a moderator this is it.
Do people not read other posts?
How about I post the same thing every day with a different thread about oh .....Fido using a dog theme.
Better yet several threads a day with the same theme.

Please read other posts first.

**VTECMAN** · 11-11-2002, 02:22 AM

Originally posted by Fried Bacon
OK now this is about the sixth time this info has been posted. If ever there was a reason to have a moderator this is it.
Do people not read other posts?
How about I post the same thing every day with a different thread about oh .....Fido using a dog theme.
Better yet several threads a day with the same theme.

Please read other posts first.

It kinda sux when the moderator is a FIDO hater.

**Timsta** · 11-11-2002, 02:42 AM

this was a new news arcticle.. so don't go whining. geezus.. just sharing info.. if you have read it before, so be it... some ppl might not have read about it.

**VTECMAN** · 11-11-2002, 02:44 AM

Originally posted by Timsta
this was a new news arcticle.. so don't go whining. geezus.. just sharing info.. if you have read it before, so be it... some ppl might not have read about it.

Thats true, this wasn't posted before.