6-K 1 gi7026.txt FORM 6-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of August, 2006 GRUPO IUSACELL, S.A. de C.V. ----------------------------------------------- (Translation of registrant's name into English) Montes Urales 460 Col. Lomas de Chapultepec, Deleg. Miguel Hidalgo 11000, Mexico D.F. ------------------------------------------------ (Address of principal executive office) Indicate by check mark whether the registrant files or will fill annual reports under cover of Form 20-F or Form 40-F: Form 20-F [X] Form 40-F [ ] Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g-3-2(b) under the Securities and Exchange Act of 1934. Yes [ ] No [X] ================================================================================ Documents Furnished By the Registrant ------------------------------------- 1. Press Release of the Registrant dated August 28, 2006 2 INVESTOR CONTACTS Jose Luis Riera K. Chief Financial Officer 5255-5109-5927 J.Victor Ferrer Finance Manager 5255-5109-5273 vferrer@iusacell.com.mx IUSACELL EXECUTES ITS CONVENIO CONCURSAL WITH CREDITORS ------------------------------------------------------- Mexico City, August 28, 2006 - Grupo Iusacell, S.A. de C.V. [BMV: CEL] ("Iusacell") announces, as part of its plan of reorganization (convenio concursal) process, the execution of the convenio concursal by a group of creditors representing approximately 90% of the Company's total debt, which the Company expects, with the consent of the conciliator appointed by the Federal Institute Specializing in Concursos Mercantiles (Instituto Federal de Especialistas en Concursos Mercantiles -- IFECOM), to submit for approval to a Mexican judge (Juzgado Septimo de Distrito en Materia Civil del Primer Circuito). Among other things, upon the court's approval of that submission, Iusacell's restructuring process will have been completed. In order to comply with all the requirements of the concurso mercantil process and conclude the process as quickly as possible, Iusacell is closely cooperating with Lic. Enrique Estrella Menendez, the conciliator appointed by IFECOM in connection with the Company's restructuring proceedings. The convenio concursal among Iusacell and its creditors was executed in accordance with its previously announced restructuring agreement, which will consist of the exchange of its US$350 million 14.25% notes due 2006 (the "2006 Notes") for an aggregate principal amount of US$175 million of new notes due 2013 that will bear interest at an annual rate of 10% (with semi-annual interest payments in arrears, including the option for Iusacell to capitalize up to 40% of each interest payment). The restructuring agreement also includes the cancellation of any default interest due and payable under the 2006 Notes. "We consider the signing of this plan of reorganization to be not just a materialization of the agreement reached with our creditors but an unprecedented achievement when compared to similar Mexican restructurings - not only because of its terms but also the considerable approval obtained by our creditors," declared Gustavo Guzman, CEO of Iusacell. ********************** 3 ABOUT IUSACELL Grupo Iusacell, S.A. de C.V. (Iusacell, BMV: CEL) is a wireless cellular and PCS service provider in Mexico with a national footprint. Iusacell offers more and better voice communication and data services through state-of-the-art technology, such as its new 3G network, throughout all of the regions in which it operate. In addition to our core mobile telephony services, we also provide a wide range of other telecommunications services, including long distance, wireless local telephony and data transmission services. Additional information is available at www.iusacell.com LEGAL DISCLAIMER Grupo Iusacell, S.A. de C.V. quarterly reports and all other written materials may from time to time contain statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Discussion of factors that may affect future results is contained in our filings with the Securities and Exchange Commission. 4 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. GRUPO IUSACELL, S.A. DE C.V. Date: August 28, 2006 /s/ Fernando Cabrera --------------------- Name: Fernando Cabrera Title: Attorney in fact /s/ Jose Luis Riera --------------------- Name: Jose Luis Riera Title: Attorney in fact 5

Change Change -------------------- ------------------ 2Q05 2Q06 $ % 6M05 6M06 $ % -------- -------- -------- -------- -------- -------- -------- ------ Net Revenues 1,460 1,852 392 27% 2,831 3,653 822 29% Total Cost 763 1,115 353 46% 1,440 2,210 769 53% Operating Expenses 389 437 48 12% 808 870 62 8% EBITDA 308 300 (9) 3% 583 573 (9) (2)% Net Loss (34) (867) (833) (n.m.) (409) (1,355) (946) (231)%

QUARTERLY INCOME STATEMENT --------------------------------------------------------------------- 2Q05 2Q06 CHANGE --------------------- --------------------- --------------------- Gross Revenues 107% 1,560 105% 1,947 387 25% Commissions (7)% (100) (5)% (95) 5 5% --------------------- --------------------- Net Revenues 100% 1,460 100% 1,852 392 27% --------------------- --------------------- Cost of services 42% 620 43% 793 173 28% Handset Subsidy 10% 143 17% 323 180 126% --------------------- --------------------- Total Cost 52% 763 60% 1,115 353 46% --------------------- --------------------- Gross Profit 48% 698 40% 737 39 6% --------------------- --------------------- Operating Expenses 27% 389 24% 437 48 12% Depreciation and Amortization 27% 398 20% 379 (19) (5)% --------------------- --------------------- Total Expenses 54% 787 44% 816 30 4% --------------------- --------------------- Operating Loss (6)% (89) (4)% (79) 10 11% --------------------- --------------------- Operating Profit before Depreciation and Amortization 21% 308 16% 300 (9) (3)% --------------------- --------------------- Loss from sale of fixed assets and other expenses 1% 10 1% 11 2 19% Comprehensive Financing Cost Interest Expense - Net (19)% (283) (17)% (310) (27) (9)% Exchange gain (loss) 29% 425 (23)% (430) (856) (201)% Gain from net monetary position (3)% (49) (3)% (59) (10) (20)% --------------------- --------------------- 6% 93 (43)% (800) (892) (n.m.) --------------------- --------------------- Loss before taxes 1% 13 (47)% (868) (881) (n.m.) --------------------- --------------------- Tax Provisions (3)% (44) (0)% (1) 43 97% Equity in income (loss) of subsidiaries 0% - 0% 0 0 n.m. Minority interest (0)% (3) 0% 2 5 180% --------------------- --------------------- --------------------- Net loss (2)% (34) (47)% (867) (833) (n.m.) ===================== ===================== =====================

ACCUMULATED INCOME STATEMENT --------------------------------------------------------------------- 6M05 6M06 CHANGE --------------------- --------------------- --------------------- Gross Revenues 107% 3,035 106% 3,859 824 27% Commissions (7)% (204) (6)% (206) (2) (1)% --------------------- --------------------- Net Revenues 100% 2,831 100% 3,653 822 29% --------------------- --------------------- Cost of services 43% 1,219 43% 1,576 357 29% Handset Subsidy 8% 221 17% 634 412 186% --------------------- --------------------- Total Cost 51% 1,440 60% 2,210 769 53% --------------------- --------------------- Gross Profit 49% 1,391 40% 1,443 53 4% --------------------- --------------------- Operating Expenses 29% 808 24% 870 62 8% Depreciation and Amortization 28% 793 21% 774 (19) (2)% --------------------- --------------------- Total Expenses 57% 1,601 45% 1,644 43 3% --------------------- --------------------- Operating Loss (7)% (211) (5)% (201) 10 5% --------------------- --------------------- Operating Profit before Depreciation and Amortization 21% 583 16% 573 (9) (2)% --------------------- --------------------- Loss from sale of fixed assets and other expenses (1)% (24) 5% 165 189 n.m. Comprehensive Financing Cost Interest Expense - Net (20)% (556) (16)% (594) (38) (7)% Exchange gain (loss) 14% 405 (21)% (755) (1,160) (287)% Gain from net monetary position 1% 36 1% 27 (9) (24)% --------------------- --------------------- (4)% (115) (36)% (1,321) (1,207) (n.m.) --------------------- --------------------- Loss before taxes (24)% (349) (37)% (1,357) (1,008) (288)% --------------------- --------------------- Tax Provisions (2)% (58) (0)% (1) 57 98% Equity in income (loss) of 0% - (0)% (0) (0) (n.m.) subsidiaries Minority interest (0)% (1) 0% 3 5 n.m. --------------------- --------------------- --------------------- Net loss (14)% (409) (37)% (1,355) (946) (231)% ===================== ===================== =====================

2Q05 2Q06 CHANGE --------------------- --------------------- --------------------- Cash and cash equivalents 4 0% 31 0% 27 n.m. Customers 389 4% 465 4% 76 19% Due from related parties 96 1% 310 3% 214 224% Advanced payments and other receivables 314 3% 249 2% (65) (21)% Unamortized handset subsidy 275 3% 441 4% 166 60% Inventories 100 1% 42 0% (58) (58)% --------------------- --------------------- Current assets 1,177 11% 1,536 14% 359 31% Fixed assets 6,696 62% 5,843 53% (852) (13)% Goodwill - Net 1,857 17% 1,862 17% 4 0% Other assets 1,100 10% 1,772 16% 673 61% --------------------- --------------------- Total assets 10,829 100% 11,013 100% 184 2% --------------------- --------------------- Short-term debt 8,773 81% 8,945 81% 172 2% Accrued interest 2,022 19% 2,900 26% 878 43% --------------------- --------------------- Short-term liabilities with financial cost 10,795 100% 11,845 108% 1,050 10% Suppliers 284 3% 436 4% 152 54% Related parties 220 2% 220 2% 0 0% Unaccrued air time 165 2% 63 1% (102) (62)% Accumulated expenses and other payables 949 9% 1,012 9% 64 7% --------------------- --------------------- Short-term liabilities without financial cost 1,617 15% 1,731 16% 114 7% --------------------- --------------------- SHORT-TERM LIABILITIES 12,412 115% 13,576 123% 1,164 9% LONG-TERM LIABILITIES 25 0% - 0% (25) (100)% Advances from customers - 878 8% 878 100% --------------------- --------------------- STOCKHOLDERS' EQUITY (1,608) (15)% (3,441) (31)% (1,833) (114)% --------------------- --------------------- LIABILITIES + EQUITY 10,829 100% 11,013 100% 184 2% --------------------- --------------------- ---------------------

INCOME STATEMENT --------------------------------------------------------------------- 2Q05 2Q06 CHANGE --------------------- --------------------- --------------------- Revenue 107% 1,623 105% 2,021 399 25% Commissions (7)% (100) (5)% (95) 5 5% --------------------- --------------------- Net Revenue 100% 1,523 100% 1,927 404 27% --------------------- --------------------- Cost of services 41% 629 45% 863 235 37% Handsets subsidy 9% 143 17% 323 180 n.m. --------------------- --------------------- Total Cost 51% 772 62% 1,186 414 54% --------------------- --------------------- Gross Profit 49% 751 38% 741 (10) (1)% --------------------- --------------------- Operating expenses 25% 382 22% 427 46 12% Depreciation and amortization 24% 359 18% 341 (18) (5)% --------------------- --------------------- Total Expenses 49% 741 40% 769 28 4% --------------------- --------------------- Operating Loss 1% 10 (1)% (28) (38) n.m. --------------------- --------------------- EBITDA 24% 369 16% 313 (56) 15% --------------------- --------------------- (Profit) loss from fixed assets sales 1% 10 0% 7 (2) n.m. Integral Financing Cost Interest expense, net (8)% (124) (8)% (156) (33) (27)% Foreign exchange loss (gain) 14% 208 (10)% (200) (408) n.m. Gain from monetary position (1)% (15) (1)% (26) (11) (75)% --------------------- --------------------- 5% 70 (20)% (382) (452) n.m. --------------------- --------------------- Loss Before Taxes 6% 90 (21)% (402) (492) n.m. --------------------- --------------------- Taxes (3)% (44) (6)% (111) (67) n.m. Equity participation in net loss (income) of subsidiaries 0% - 0% - - n.a. Extraordinary item 0% - 0% - - n.a. Minority interest (0)% (3) 0% 2 5 180% --------------------- --------------------- --------------------- Net Profit (Loss) 3% 43 (27)% (511) (554) n.a. ===================== ===================== =====================

INCOME STATEMENT --------------------------------------------------------------------- 6M05 6M06 CHANGE --------------------- --------------------- --------------------- Revenue 107% 3,121 105% 3,999 878 28% Commissions (7)% (204) (5)% (206) (2) (1)% --------------------- --------------------- Net Revenue 100% 2,917 100% 3,793 876 30% --------------------- --------------------- Cost of services 47% 1,372 45% 1,701 329 24% Handsets subsidy 8% 221 17% 634 412 186% --------------------- --------------------- Total Cost 55% 1,593 62% 2,335 741 47% --------------------- --------------------- Gross Profit 45% 1,323 38% 1,459 135 10% --------------------- --------------------- Operating expenses 27% 795 22% 852 56 7% Depreciation and amortization 25% 718 18% 698 (19) (3)% --------------------- --------------------- Total Expenses 52% 1,513 41% 1,550 37 2% --------------------- --------------------- Operating Loss (6)% (189) (2)% (91) 98 52% --------------------- --------------------- EBITDA 18% 528 16% 607 79 15% --------------------- --------------------- (Profit) loss from fixed assets sales (1)% (24) 4% 162 186 n.m. Integral Financing Cost Interest expense, net (8)% (237) (8)% (296) (59) (25)% Foreign exchange loss (gain) 7% 198 (9)% (356) (555) n.m. Gain from monetary position 1% 21 0% 12 (9) (43)% --------------------- --------------------- (1)% (17) (17)% (640) (623) n.m. --------------------- --------------------- Loss Before Taxes (8)% (230) (15)% (570) (339) (147)% --------------------- --------------------- Taxes (2)% (58) (3)% (111) (53) n.m. Equity participation in net loss (income) of subsidiaries 0% - 0% - - n.a. Extraordinary item 0% - 0% - - n.a. Minority interest (0)% (1) 0% 3 5 n.m. --------------------- --------------------- --------------------- Net Loss (10)% (289) (18)% (677) (388) (134)% ===================== ===================== =====================

6M05 6M06 CHANGE --------------------- --------------------- --------------------- Cash and marketable securities 3 0% 11 0% 9 n.a. Accounts receivable, net 388 4% 467 5% 79 20% Unamortized handset subsidy 275 3% 441 4% 166 60% Related parties 347 4% 705 7% 358 103% Recoverable taxes and other 260 3% 207 2% (53) (20)% Inventories 100 1% 42 0% (58) (58)% --------------------- --------------------- TOTAL CURRENT ASSETS 1,371 14% 1,872 19% 501 37% Property and equipment, net 6,164 64% 5,226 53% (938) (15)% Excess of cost of investments in subsidiaries over book value, net 1,672 17% 1,672 17% (0) (0)% Other assets 435 5% 1,152 12% 716 165% --------------------- --------------------- TOTAL ASSETS 9,641 100% 9,920 100% 279 3% --------------------- --------------------- Short-term debt 4,602 48% 4,692 47% 90 2% Accrued interest 466 5% 713 7% 247 53% Short-term liabilities with financial cost 5,068 53% 5,405 54% 337 7% Accrued liabilities 718 7% 593 6% (125) (17)% Related parties 221 2% 699 7% 478 217% Accounts payable 256 3% 129 1% (127) (50)% Unaccrued air time 165 2% 63 1% (102) (62)% --------------------- --------------------- Short-term liabilities without financial cost 1,360 14% 1,484 15% 124 9% SHORT-TERM LIABILITIES 6,428 67% 6,890 69% 462 7% LONG-TERM LIABILITIES 0 0% - 0% (0) (100)% Advances from customers 878 9% 878 n.a. --------------------- --------------------- Minority interest (81) (1)% (74) (1)% 7 (9)% TOTAL SHAREHOLDERS' EQUITY 3,294 34% 2,226 22% (1,067) (32)% --------------------- --------------------- TOTAL LIABILITIES AND SHAREHOLDERS'S EQUITY 9,641 100% 9,920 100% 279 3% --------------------- --------------------- ---------------------

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