UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
CASE NO.: 02-16020 (BRL)
CHAPTER 11
DEBTOR: UNITED PAN-EUROPE COMMUNICATIONS N.V.
MONTHLY OPERATING STATEMENT FOR THE PERIOD FROM JANUARY 1, 2003
TO JANUARY 31, 2003
DEBTOR'S ADDRESS: BOEING AVENUE 53, SCHIPHOL RIJK, THE NETHERLANDS
MONTHLY DISBURSEMENTS: EURO (83)
DEBTOR'S ATTORNEY USA: White & Case LLP
Mr. W. Wynne
1155 Avenue of the Americas
New York, NY 10036-2787
USA
DEBTOR'S ATTORNEY THE NETHERLANDS: Allen & Overy
Mr. R. Abendroth
Apollolaan 15
1077 AB Amsterdam
The Netherlands
MONTHLY OPERATING PROFIT (LOSS): EURO (892)
REPORT PREPARER: Charles H.R. Bracken
The undersigned, having reviewed the attached report and being familiar with the
Debtor's financial affairs, verifies under penalty of perjury, that the
information contained therein is complete, accurate and truthful to the best of
my knowledge.
DATE: February 18, 2003 /s/ Charles H.R Bracken
----------------- --------------------------------
Name: Charles H.R Bracken
Title: Chief Financial Officer
UNITED PAN-EUROPE COMMUNICATIONS N.V.
PARENT ONLY FINANCIAL STATEMENTS
(Stated in thousands, except share amounts and number of shares)
(Unaudited)
Month end exchange rate USD/Euro 0.92435.
As of As of
January 31, 2003 January 31, 2003
------------------- -----------------
(Unaudited, in (Unaudited, in
thousands of Euros) thousands of USD)
ASSETS:
Current assets
Cash and cash equivalents, including restricted cash of 2,532............. 15,883 17,183
Other receivables......................................................... 4,518 4,888
Deferred financing costs, net............................................. 52,612 56,918
Prepaid expenses and other current assets................................. 30,428 32,918
------------------ ------------------
Total current assets................................................... 103,441 111,907
Investments in and advances to affiliated companies, accounted for under the
equity method............................................................... 1,538,716 1,664,647
Property, plant and equipment, net............................................ 26,838 29,034
Other assets.................................................................. 62,540 67,658
------------------ ------------------
Total assets........................................................... 1,731,535 1,873,246
================== ==================
LIABILITIES AND SHAREHOLDERS' DEFICIT:
Current liabilities
Accounts payable (1)...................................................... 36,889 39,908
Accrued liabilities, including related party accrued interest of 143,998
(2)..................................................................... 397,296 429,811
Current portion of long-term debt, including related party debt of
1,437,698............................................................... 4,075,052 4,408,560
------------------ ------------------
Total current liabilities............................................. 4,509,237 4,878,279
Long-term affiliated debt................................................. 396,575 429,031
Deferred gain on sale of assets........................................... 150,321 162,623
------------------ ------------------
Total liabilities..................................................... 5,056,133 5,469,933
------------------ ------------------
Convertible preferred stock................................................... 1,651,424 1,786,579
Shareholders' deficit
Priority stock, 1.0 par value, 300 shares authorized, issued and
outstanding............................................................. - -
Ordinary stock, 1.0 par value, 1,000,000,000 shares authorized,
443,417,525 shares issued and outstanding............................... 443,418 479,708
Additional paid-in capital................................................ 2,746,131 2,970,878
Deferred compensation..................................................... (15,694) (16,978)
Accumulated deficit....................................................... (8,302,922) (8,982,444)
Other cumulative comprehensive income..................................... 153,045 165,570
------------------ ------------------
Total shareholders' deficit............................................ (4,976,022) (5,383,266)
------------------ ------------------
Total liabilities and shareholders' deficit............................ 1,731,535 1,873,246
================== ==================
The accompanying notes are an integral part of these
condensed financial statements.
(1) Accounts Payable includes disputed Philips invoice of 25,222 and disputed
CineNova invoice of 11,667.
(2) Accrued liabilities include accrued third party interest on the Company's
debt of 246,206, accrued interest on debt held by related party of 143,998,
wage tax of 4,626 and accrual for disputed CineNova invoices of 2,466.
UNITED PAN-EUROPE COMMUNICATIONS N.V.
PARENT ONLY FINANCIAL STATEMENTS
(Stated in thousands, except share amounts and number of shares)
(Unaudited)
Month end exchange rate USD/Euro 0.92435.
For the Period For the Period
from January 1, 2003 from January 1, 2003
to January 31, 2003 to January 31, 2003
--------------------- ---------------------
(Unaudited, stated in (Unaudited, stated in
thousands) thousands)
Euros USD
Corporate general and administrative expense .............. (311) (336)
Depreciation............................................... (581) (629)
-------------------- --------------------
Net operating loss..................................... (892) (965)
Restructuring charges, miscellaneous....................... (78) (84)
Interest income............................................ 77 83
Interest income, affiliated companies (1).................. 79,231 85,715
Interest expense (2)....................................... (29,935) (32,385)
Interest expense, affiliated companies (3)................. (3,172) (3,432)
Interest expense - related party (4)....................... (14,226) (15,390)
Foreign exchange gain (loss) and other income (expense),
net (5).................................................. 106,694 115,426
--------------------- --------------------
Net income before income taxes and other items......... 137,699 148,968
Share in results of affiliated companies, net.............. (89,423) (96,741)
--------------------- --------------------
Net income............................................. 48,276 52,227
===================== ====================
Basic net loss attributable to common shareholders......... 39,749 43,002
===================== ====================
The accompanying notes are an integral part of these
condensed financial statements.
(1) Interest income from affiliated companies relates to the accretion of
interest on the loan to affiliated companies. The interest income is added
to the outstanding loan balances and is payable at the maturity of the
loan.
(2) Interest expense relates to the accretion of interest on the Company's
senior notes and senior discount notes which will not be paid in cash.
(3) Interest expense from affiliated companies relates to the accretion of
interest on the loan from affiliated companies. The interest expense is
added to the outstanding loan balances and is payable at the maturity of
the loan.
(4) Interest expense related party relates to the accretion of interest on the
Company's senior notes and senior discount notes held by UPC's parent
company, which will not be paid in cash.
(5) Foreign exchange gain (loss) and other income (expense), net relates to
unrealized currency exchange gains on the Company's outstanding debt. The
foreign exchange gain (loss) and other income (expense), net are non-cash
gain and or losses.
UNITED PAN-EUROPE COMMUNICATIONS N.V.
PARENT ONLY FINANCIAL STATEMENTS
(Unaudited)
Month end exchange rate USD/Euro 0.92435.
For the Period For the Period
from January 1, 2003 from January 1, 2003
to January 31, 2003 to January 31, 2003
------------------------- -------------------------
(Unaudited, in thousands) (Unaudited, in thousands)
Euros USD
Cash f1ows from operating activities:
Net income............................................................ 48,276 52,227
Adjustments to reconcile net income (loss) to net cash flows from
operating activities:
Depreciation ..................................................... 581 629
Accretion of interest expense..................................... (57,491) (62,196)
Restructuring charges, miscellaneous.............................. 78 84
Amortization of deferred financing costs.......................... 699 756
Exchange rate differences......................................... (106,696) (115,428)
Share in results of affiliated companies.......................... 89,423 96,741
Changes in assets and liabilities:
Increase in receivables........................................ (664) (718)
Increase in other current liabilities.......................... 26,026 28,156
-------------------- ---------------------
Net cash flows from operating activities.............................. 232 251
-------------------- ---------------------
Cash flows from investing activities:
Net cash flows from investing activities.............................. - -
-------------------- ---------------------
Cash flows from financing activities:
Net cash flows from financing activities.............................. - -
-------------------- ---------------------
Effect of exchange rates on cash...................................... - -
-------------------- ---------------------
Net increase in cash and cash equivalents............................. 232 251
Cash and cash equivalents at beginning of period...................... 15,651 16,932
-------------------- ---------------------
Cash and cash equivalents at end of period............................ 15,883 17,183
==================== =====================
The accompanying notes are an integral part of these
condensed financial statements.
UNITED PAN-EUROPE COMMUNICATIONS N.V.
PARENT ONLY FINANCIAL STATEMENTS
(Unaudited)
Notes to the Financial Statements
Basis of Presentation
The accompanying parent only financial statements of United Pan-Europe
Communications N.V. ("the Company") have been prepared in accordance with United
States generally accepted accounting principles for the purpose of the
requirements in the Chapter 11 filing with the United States Bankruptcy Court.
The interim unaudited parent only financial statements should be read in
conjunction with the audited financial statements of the Company as of and for
the year ended December 31, 2001. Operating results for the period from January
1, 2003 to January 31, 2003 are not necessarily indicative of the results that
may be expected for the full year ending December 31, 2003. The preparation of
financial statements in conformity with United States generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. Actual
results may differ from those estimates. Activity related to the Company's
subsidiaries is included on the balance sheet as "investments in and advances to
affiliated companies, accounted for under the equity method", and on the
statement of operations as "share in results of affiliated companies". Not all
actual information with respect to the consolidated financial statements of the
Company was available at the date of preparation of the parent only financial
statements, the Company therefore used best estimates, as a result the actual
January financial information may differ from the information presented in this
report.
Basic Net Income Attributable to Common Shareholders
Month end exchange rate USD/Euro 0.92435.
For the Period For the Period
from January 1, 2003 from January 1, 2003
to January 31, 2003 to January 31, 2003
------------------------- -------------------------
(Unaudited, in thousands) (Unaudlted, in thousands)
Euros USD
Net income...................................................... 48,276 52,227
Accretion of Series 1 convertible preferred stock............... (8,527) (9,225)
------------------ --------------------------
Basic net loss attributable to common shareholders............ 39,749 43,002
================== ==========================
Cash Disbursements Schedule
Schedule of cash disbursements for the period from January 1, 2003 to January
31, 2003. Stated in thousands of Euros.
1. All wages paid and salaries paid (GROSS) or incurred - EUR 0
2. The amount of payroll taxes withheld - EUR 0
3. The amount of employer payroll contributions incurred - EUR 0
4. The gross taxable sales - EUR O
5. Sales tax collected - EUR 0
6. Property taxes - EUR 0
7. Any other taxes - EUR 0
8. Selling, General and Administrative Expenses - EUR 82.5
9. The date and amount paid over to each taxing agency for taxes
identified in items 2,3 and 5 above - Not applicable
UNITED PAN-EUROPE COMMUNICATIONS N.V.
PARENT ONLY FINANCIAL STATEMENTS
(Unaudited)
Insurances
The debtor hereby confirms that all insurance policies are fully paid for
the current period.