FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant To Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of June, 2003
Commission File Number 000-32953
Copamex, S.A. de C.V.
(Translation of Registrant's name into English)
Montes Apalaches 101
Residencial San Augustin, C.P. 66260
San Pedro Garza Garcia, N.L. Mexico
(Address of principal office)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F ___
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):
Indicated by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ___ No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-
NET SALES INCREASED 6.4 % AND TOTAL DEBT DECLINED
BY US$38.0 MILLION DURING THE FIRST QUARTER OF 2003
Monterrey, Mexico - April 30, 2003 - COPAMEX, S.A. de C.V. ("COPAMEX") one of
the leading producers of paper-based consumer products and value-added
industrial paper products in Mexico, today reported its definitive results for
the three months ended as of March 31, 2003 compared with its results for the
three months ended as of March 31, 2002, stated in millions of Mexican constant
pesos as of March 31, 2003 ("Ps."), prepared in accordance with Mexican GAAP.
================================================================================
COPAMEX reported that consolidated net sales for 1Q'03 as compared to 1Q'02 grew
6.4 percent from Ps.1,873 to Ps.1,992 and EBITDA increased 3.7 percent from
Ps.296.4 to Ps.307.6 mostly as a result of added production capacity of tissue
paper and an improvement in sales of baby diapers and adult incontinence
products. Its corrugated containers division showed better results with a 16.0
percent increase in sales volume over the same period last year. For the first
three months of 2003, net sales of consumer products represented 47.0 percent of
consolidated net sales.
COPAMEX reduced its total debt by US$38.0 million from US$508.2 million in 4Q'02
to US$470.2 million in 1Q'03. US$10.0 million of this came from free cash flows
and US$28.0 came from the proceeds of a factoring-facility. As a result,
COPAMEX's Debt-to-EBITDA ratio decreased to 4.18 in 1Q'03 compared with 4.46 in
4Q'02 while its EBITDA-to-interest expense ratio was 2.5, similar to the
previous-quarter's figure.
COPAMEX is working on two major transactions to improve its capital structure.
The first is a "Sales & Lease Back" of certain properties for an amount of up to
US$42.0 million. The second is a financing with the IFC (International Finance
Corporation) for US$182.0 million.
Contacts:
Francisco Elosua Ricardo Garza Califa
Investor Relations Manager Investor Relations
COPAMEX COPAMEX
Tel. +52 (81) 8152-6125 Tel. +52 (81) 8152-6126
Fax: +52 (81) 8152-6129 Fax: +52 (81) 8152-6129
frelosua@copamex.com rgarzaka@copamex.com
-------------------- --------------------
As used in this document EBITDA is operating income (loss) before interest
expense, depreciation and amortization. Amortization is not deducted from
operating income, but instead is recorded in other income (loss). EBITDA is not
(a) a measure determined under U.S. or Mexican GAAP,(b) an alternative to U.S.
or Mexican GAAP operating income (loss) or net income (loss) or (c) a measure of
liquidity or cash flows as determined under U.S. or Mexican GAAP. EBITDA does
not represent discretionary funds. EBITDA, as calculated by COPAMEX, may not be
comparable to similarly titled measures reported by other companies. EBITDA is
presented because COPAMEX believes that EBITDA provides useful information
regarding its debt service ability. EBITDA should not be considered in isolation
or as a substitute for the consolidated income statements or the consolidated
statements of changes in financial position prepared in accordance with Mexican
GAAP or as a measure of profitability or liquidity.
This document may contain forward-looking statements concerning COPAMEX's future
performance and/or results of operations and should be considered as good faith
estimates of COPAMEX. These forward-looking statements reflect management's
expectations and are based upon currently available data. Actual results are
subject to future events and uncertainties that could materially impact
COPAMEX's actual performance or results of operations.
Copamex, S.A. de C.V. and Subsidiaries
Consolidated Balance Sheets as of March 31, 2003 and 2002
(Thousands of constant Mexican pesos as of March 31, 2003)
March '03 March '02 March '03 March '02
- -----------------------------------------------------------------------------------------------------------------------------------
Assets: Liabilities:
Current assets
Cash and cash equivalents 76,967 83,861 Short-term debt 832,846 1,872,683
Accounts receivable 1,062,259 1,651,194 Current portion of long-term debt 597,349 397,726
Inventories 1,131,591 962,181 Suppliers 1,253,469 888,966
Other accounts receivable 883,529 611,215 Income tax and employee profit sharing 32,924 51,265
Other accounts payable 821,046 611,413
- -----------------------------------------------------------------------------------------------------------------------------------
Total current assets 3,154,346 3,308,451 Total current liabilities 3,537,634 3,822,053
- -----------------------------------------------------------------------------------------------------------------------------------
Long-term debt 3,642,903 2,717,697
Investment in shares 0 98,601 Labor obligations 102,363 95,742
-------------------------------------------------------------------
Property, plant and 8,948,051 9,030,186 Total long-term liabilities 3,745,266 2,813,439
equipment, net -------------------------------------------------------------------
Other assets 666,636 647,405 Deferred income taxes 1,718,615 1,936,526
-------------------------------------------------------------------
Goodwill 75,719 125,276 Total liabilities 9,001,515 8,572,018
-------------------------------------------------------------------
Stockholders' Equity:
Minority interest 202,240 265,496
Capital stock 5,164,995 5,159,511
Additional paid-in capital 6,783 6,783
Retained earnings 1,239,389 1,601,047
Net (loss) income (163,840) 308,160
Insufficiency from restatement of
stockholders' equity (712,913) (655,272)
Cumulative effect of deferred income (1,893,417) (2,047,824)
taxes
-------------------------------------------------------------------
Total majority stockholders' equity 3,640,997 4,372,405
-------------------------------------------------------------------
Total stockholders' equity 3,843,237 4,637,901
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets 12,844,752 13,209,919 Total liabilities and stockholders' 12,844,751 13,209,919
equity
===================================================================================================================================
Copamex, S.A. de C.V. and Subsidiaries
Consolidated Statements of Income
for the periods ended March 31, 2003 and 2002
(Thousands of constant Mexican pesos as of March 31, 2003)
Jan - March '03 Jan - March '02 CHANGE
--------------------- --------------------- ---------------------
Ps. $ %
--------- ------
Net sales 1,992,139 100.0% 1,872,802 100.0% 119,337 6.4%
Cost of goods sold (1,347,023) -67.6% (1,210,859) -64.7% (136,164) -11.2%
- -----------------------------------------------------------------------------------------------------------------------------
Gross profit 645,116 32.4% 661,943 35.3% (16,827) -2.5%
- -----------------------------------------------------------------------------------------------------------------------------
Selling, general and administrative expenses (436,013) -21.9% (461,066) -24.6% 25,053 5.4%
- -----------------------------------------------------------------------------------------------------------------------------
Operating profit 209,103 10.5% 200,877 10.7% 8,226 4.1%
- -----------------------------------------------------------------------------------------------------------------------------
Comprehensive cost of financing:
Interest income 9,316 0.5% 13,409 0.7% (4,093) 30.5%
Interest expense (142,163) -7.1% (137,059) -7.3% (5,104) -3.7%
Exchange gain (loss), net (168,892) -8.5% 86,887 4.6% (255,779) 294.4%
Result from monetary position 34,842 1.7% 30,274 1.6% 4,568 15.1%
- -----------------------------------------------------------------------------------------------------------------------------
Total comprehensive cost of financing (266,897) -13.4% (6,489) -0.3% (260,408) 4013.1%
- -----------------------------------------------------------------------------------------------------------------------------
Income after comprehensive cost of financing (57,794) -2.9% 194,388 10.4% (252,182) -129.7%
- -----------------------------------------------------------------------------------------------------------------------------
Other expenses, net (75,630) -3.8% (25,981) -1.4% (49,649) 191.1%
- -----------------------------------------------------------------------------------------------------------------------------
Income before taxes and employee profit sharing (133,424) -6.7% 168,407 9.0% (301,831) -179.2%
- -----------------------------------------------------------------------------------------------------------------------------
Income tax (4,411) -0.2% (15,870) -0.8% 11,459 72.2%
Deferred income tax (26,430) -1.3% 170,745 9.1% (197,175) 115.5%
Employee profit sharing (2,705) -0.1% (2,871) -0.2% 166 5.8%
- -----------------------------------------------------------------------------------------------------------------------------
Income before minority interest (166,970) -8.4% 320,411 17.1% (487,381) -152.1%
- -----------------------------------------------------------------------------------------------------------------------------
Minority interest 3,130 0.2% (12,251) -0.7% 15,381 125.5%
- -----------------------------------------------------------------------------------------------------------------------------
Net income (163,840) -8.2% 308,160 16.5% (472,000) -153.2%
- -----------------------------------------------------------------------------------------------------------------------------
Copamex, S.A. de C.V. and Subsidiaries
Consolidated Statements of Changes in Financial Position
for the periods ended March 31, 2003 and 2002
(Thousands of constant Mexican pesos as of March 31, 2003)
1Q '03 1Q '02
-------- --------
Net income (166,970) 320,411
Items not requiring the use of resources :
Depreciation and amortization 118,097 106,904
Provision for labor obligations 3,320 4,281
Deferred taxes 26,430 (170,745)
Others 37,025 0
-------- --------
Total 17,902 260,851
-------- --------
Changes in working capital :
Accounts receivable 418,568 (91,404)
Inventories (92,024) 20,861
Suppliers 116,758 (118,182)
Other accounts payable and accountable (162,923) 13,776
-------- --------
Resources provided by operating activities 298,281 85,902
-------- --------
Financing activities:
Bank loans (300,528) (149,123)
Others (7,131) 438
-------- --------
Resources used by financing activities (307,659) (148,685)
-------- --------
Investing activities:
Property, plant and equipment, net (44,200) (80,370)
Other investments 41,141 (5,811)
-------- --------
Resources used in investing activities (3,058) (86,181)
-------- --------
Decrease in cash and cash equivalents (12,437) (148,964)
-------- --------
Cash and cash equivalents at the beginning of period 89,404 232,825
-------- --------
Cash and cash equivalents at the end of the period 76,967 83,861
-------- --------
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Copamex, S.A. de C.V.
(Registrant)
By: /s/ Carlos Luis Diaz Saenz
------------------------------------
Carlos Luis Diaz Saenz
General Counsel
Date: June 27, 2003