Cemex 1999 Annual Report Download - page 29

27
Notes to Selected Consolidated Financial Information
1) Cost of sales includes depreciation.
2) Comprehensive financing income (cost) includes financial expense,financial income,
gains (losses) on marketable securities,net foreign exchange variation,and net mone-
tary position.
3) In July 1995,a CEMEX subsidiary entered into a transaction pursuant to which it trans-
ferred a portion of the common stock of Valenciana in exchange for $40 billion pesetas,
which,as of December 31,1999, represented 24.77% of such stock.This original amount
was refinanced in August 1997 at US$320 million,and subsequently in February 1999 at
US$500 million.Since the first refinancing,the minority interest in the income statement
has not been recognized since CEMEX,through its subsidiary,has retained dividend and
voting rights over such shares and has the option to acquire them in three tranches,the
last of which matures in June 2001.The company includes the cost of retaining its option
in the financial expense account.Such shares are being treated as owned by a third party,
thereby creating a minority interest over the consolidated stockholders’equity in
Valenciana.As of December 31,1999,such minority interest accounted for 34.5% of
CEMEX’s minority stockholders’equity.
4) On April 28,1994,CEMEX declared a stock split of three shares per each share held by a
shareholder.Additionally,as part of the transformation of CEMEX from a fixed to a vari-
able capital company,and an increase in the variable portion of its capital stock,CEMEX
issued a new share of variable capital of like series for every eight shares (after making
the stock split effective).All CPO and per-CPO amounts for 1989 through 1993 have been
adjusted to make the effect of the stock split retroactive.
5) On September 14,1999,the Company concluded an exchange offer of its old series “A”
and “B”shares,and its old Ordinary Participation Certificates (“CPOs”),for new CPOs.As a
result,most of the holders of the old series “A”and “B”shares and old CPOs received for
each one of their titles a new CPO,which represents the participation in two new series
“A”shares and one new series “B”share of the Company. As a part of the exchange offer,
on September 15,1999,the Company effected a stock split of two series “A”shares and
one series “B”share for each of the old shares of any series.The proportional equity inter-
est participation of the shareholders in the Company’s common stock did not change as a
result of the exchange offer and the stock split mentioned above.
The earnings per CPO and the number of CPOs outstanding disclosed in these notes to
the financial statements for the years ended December 31,1989 through 1998,have
been adjusted to make the effect of the stock split retroactive.
In order to comply with accounting principles in Mexico,in the Financial Statements,such
figures are presented on a per-share basis (see Footnote 20 to the Financial Statements).
6) The number of CPOs outstanding represents the total CPOs outstanding at the close of
each year,stated in millions of CPOs,and includes the total number of CPOs issued by
CEMEX utilized in derivative transactions,and excludes the total numbers of CPOs issued
by CEMEX and owned by subsidiaries. Each ADS listed on the New York Stock Exchange
represents five CPOs.
7) For the periods ended on December 31,1989 to 1995,the “Earnings per CPO”amounts
were determined by considering the total outstanding CPOs at the year’s end.For the
periods ended on December 31,1996 to 1999,the “Earnings per CPO”amounts were
determined by considering the average number of CPOs outstanding each year,i.e.,
1.298,1.283,1.262, and 1.256 billion,respectively.
8) Dividends declared at each year’s annual stockholders’meeting for each period are
reflected as dividends for the preceding year.
9) As a result of CEMEX’s Share Repurchase Program in 1997,24 million CPOs were acquired
for an amount of approximately US$119 million.The CPOs acquired through this program
accounted for approximately 2% of the CPOs outstanding at that date.
10) Net working capital equals accounts receivable plus inventories minus trade payables.
11) EBITDA is earnings before interest,taxes,depreciation,and amortization.Amortization
of goodwill is not included in operating income,but is instead recorded in other income
(expense) below the operating line.EBITDA does not include certain other income and
expenses that are not included in operating income under Mexican GAAP.
1995 1996 1997 1998 1999
2,564 3,365 3,788 4,315 4,828 17.2
1,564 2,041 2,322 2,495 2,690
1,000 1,325 1,467 1,820 2,138 25.8
388 522 572 642 702
612 802 895 1,178 1,436 31.2
567 529 159 (132) (29)
(162) (171) (138) (152) (296)
1,017 1,160 916 893 1,111 22.1
109 119 107 39 56
759 977 761 803 973 23.2
0.59 0.75 0.59 0.64 0.77 21.8
0.07 _(9) 0.12 0.14 n.a.
1,286 1,303 1,268 1,258 1,366
2.95 3.76 2.97 3.18 3.87 21.8
0.33 _(9) 0.60 0.70 n.a.
355 409 380 407 326
567 611 588 638 699
4,939 5,743 6,006 6,142 6,922
8,370 9,942 10,231 10,460 11,864
870 815 657 1,106 1,030
3,034 3,954 3,961 3,136 3,341
4,603 5,605 5,535 5,321 5,430 14.9
889 1,000 1,181 1,251 1,253
2,878 3,337 3,515 3,887 5,182 15.0
3,767 4,337 4,696 5,138 6,435 15.0
2.24 2.56 2.77 3.09 3.79
23.9% 23.8% 23.6% 27.3% 29.8%
31.8% 32.3% 31.5% 34.4% 37.1%
815 1,087 1,193 1,485 1,791 26.0
Average
Annual
Growth
89-99