EX-99.1 2 cabeltel8kex991041905.txt PRESS RELEASE DATED APRIL 19, 2005 EXHIBIT 99.1 CABELTEL INTERNATIONAL CORPORATION ANNOUNCES 2004 RESULTS FOR IMMEDIATE RELEASE Contact: Gene Bertcher Oscar Smith Phone: (972) 407-8400 Dallas, Texas, (Business Wire) April 19, 2005...CabelTel International Corporation (formerly Greenbriar Corporation) (AMEX: GBR) announced today its operating results for fiscal year 2004. Throughout this release CableTel International Corporation is also referred to as "the Company." Operating revenues for the Company's year ending December 31, 2004 were $11,049,000 compared to $8,338,000 for the prior year. The Company's net loss in 2004 was $2,165,000 compared to net earnings of $455,000 in 2003. The net loss applicable to common shares for 2004 was $2,323,000 compared to net earnings of $455,000 for 2003. The fully diluted loss per share in 2004 was $2.38 compared to 2003's fully diluted earnings per share of $0.43. On October 12, 2004 the Company acquired two privately-held U.S. Corporations in exchange for 31,500 shares of newly-designated Series J 2% Preferred Stock. The two U.S. corporations collectively own 100% of Tacaruna BV, a Netherlands company, which in turn directly and indirectly owns a combined 74.8% of CableTEL AD ("CableTEL"). CableTEL is a cable television operator in the Country of Bulgaria. At present CableTEL believes it is the largest cable television operator in Bulgaria and estimates that its cable subscribers represent approximately 11.5% of the market in Bulgaria. CableTEL also operates fixed voice telephony services and provides internet access data services, primarily in Bulgaria. The Series J 2% Preferred Stock is not convertible to common stock. However, in accordance with certain terms of the acquisition agreement CabelTel International Corporation is required to seek shareholder approval of an exchange of the Series J 2% Preferred Stock for 8,788,000 shares of the Company's common stock. On a pro forma basis, including the 8,788,000 shares potentially to be issued, the net loss per common share for 2004 was $0.24 compared to net earnings of $0.05 for 2003. While CabelTel International Corporation was the acquiring company, due to the relative values of the entities for reporting purposes the transaction was accounted for as a reverse acquisition. This means that CabelTel International Corporation is being accounted for as if it had been acquired by CableTEL AD. For that reason, in the 2004 Form 10-K presentation, the Company's Income Statements for 2002 and 2003 only represent the operations of CableTEL AD. The 2004 Income Statement reflects the operations of CableTEL AD combined with CabelTel International Corporation as if acquired on October 1, 2004. The Balance Sheets represent only CableTEL AD for December 31, 2003 and the consolidated Company as of December 31, 2004. During the past eighteen months CableTEL has substantially completed the first fiber optic backbone in Bulgaria with connectivity to Turkey, Greece, Romania and Macedonia. The total investment in the backbone will be approximately $30,000,000. Most of the costs of building the backbone were incurred in 2004 and were financed both through debt and vendor financing. CableTEL included three separate and independent fiber optic ducts in the backbone and only needs one for its operations. The other two ducts are being constructed for the purpose of sale to independent third parties. CableTEL has sold one duct for a total contract price of approximately $13,000,000. It received approximately $1,800,000 of the contract in 2004 and anticipates receiving the balance of $11.2 million in 2005, primarily in the first half of the year. CableTEL is actively pursuing the sale of the remaining duct. The Company changed its name from Greenbriar Corporation to CabelTel International Corporation in February of this year. "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Any of the matters and subject areas discussed in this press release that are not historical or current facts deal with potential future circumstances, operations, and prospects. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally and may also materially differ from CabelTel International Corporation's actual future experience involving any one or more of such matters and subject areas relating to interest rate fluctuations, ability to obtain adequate debit and equity financing, demand, pricing, competition, construction, licensing, permitting, construction delays on new developments, contractual and licensure matters and other delays on the disposition, transition, or restructuring of currently or previously owned, leased or managed investments in the Company's portfolio, and the ability of the Company to continue managing its costs and cash flow. CabelTel International Corporation has attempted to identify, in context, certain of the factors that the Company currently believes may cause actual future experience and results to differ from CabelTel International Corporation's current expectations regarding the relevant matter or subject area. These and other risks and uncertainties are detailed in the Company's reports filed with the Securities and Exchange Commission (SEC), including Greenbriar Corporation's Annual Reports on form 10-K and Quarterly Reports on Form 10-Q.
CabelTel International Corporation and Subsidiaries CONSOLIDATED BALANCE SHEETS (Amounts in thousands) December 31, ASSETS 2004 2003 ----------- ----------- CURRENT ASSETS Cash and cash equivalents $ 1,352 $ 1,427 Accounts receivable - trade 1,016 443 Notes receivable 856 -- Inventory 1,166 235 Assets held for sale 3,939 -- Other current assets, net 710 1,573 ----------- ----------- Total Current Assets 3,678 PROPERTS AND EQUIPTMENT, AT COST Land and improvements $ 2,114 -- Buildings and improvements 9,982 544 Equipment and furnishings 12,246 7,378 Assets under construction 11,571 3,833 Proven oil and gas properties (full cost method) 1,357 -- ----------- ----------- 37,270 11,755 Less accumulated depreciation, depletion, and amortization (5,172) (3,454) ----------- ----------- 32,098 8,301 Goodwill 8,339 2,905 OTHER ASSETS 1,037 80 ----------- ----------- Total Assets $ 50,513 $ 14,964 =========== =========== CabelTel International Corporation and Subsidiaries CONSOLIDATED BALANCE SHEETS - CONTINUED (Amounts in thousands, except share amounts) December 31, LIABILITIES AND STOCKHOLDERS' EQUITY 2004 2003 ----------- ----------- CURRENT LIABILITIES Current maturities of long-term debt $ 9,603 $ 2,553 Current notes payable -- 352 Accounts payable - trade 3,887 964 Accrued expenses 9,498 134 Other current liabilities 1,792 2,211 ----------- ----------- Total Current Liabilities 24,780 6,214 LONG-TERM DEBT Long-term debt 9,740 -- Long-term debt -- related parties 10,523 2,120 ----------- ----------- 20,263 2,120 ----------- ----------- OTHER LONG-TERM LIABILITIES 1,557 68 ----------- ----------- Total Liabilities 46,600 8,402 Minority Interest 2,954 827 STOCKHOLDERS' EQUITY Preferred stock, Series B 1 1 Preferred stock, Series J 3,150 -- Common stock, $.01 par value; authorized, 4,000,000 shares; issued and outstanding, 977,000 shares issued and outstanding 10 10 Additional paid-in capital 4 5,575 Accumulated other comprehensive income (loss) 1,014 1,204 Retained earnings (3,220) (1,055) 959 5,735 ----------- ----------- Total liabilities & equity 50,513 14,964 =========== ===========
CabelTel International Corporation and Subsidiaries CONSOLIDATED STATEMENT OF OPERATONS (Amounts in thousands, except share amounts) Year ended December 31, 2004 2003 2002 -------- -------- -------- Revenue Cable operations $ 9,463 $ 8,338 $ 6,262 Real estate operations 1,173 -- -- Oil and gas operations 413 -- -- -------- -------- -------- 11,049 8,338 6,262 -------- -------- -------- Operating expenses Cable operations 6,226 5,731 3,286 Real estate operations 722 -- -- Oil and gas operations 237 -- -- Lease expense 1,178 560 613 Depreciation, depletion, and amortization 1,612 1,439 913 Corporate general and administrative 4,166 1,056 921 -------- -------- -------- 14,141 8,786 5,733 -------- -------- -------- Operating earnings (loss) (3,092) (448) 529 Other income (expense) Interest income 44 6 5 Interest expense (926) (202) (45) Gain on foreign transactions, net 241 413 338 Gain on sale of assets, net 844 368 -- Other income (expense), net 325 389 1 -------- -------- -------- 528 974 299 -------- -------- -------- Earnings (loss) before income taxes and minority interest (2,564) 526 828 Income tax (income) expense 32 (66) 122 Minority interest (431) 137 109 -------- -------- -------- Net earnings (loss) from continuing operations (2,165) 455 597 -------- -------- -------- Discontinued operations -- -- (508) Net income (loss) $ (2,165) $ 455 $ 89 Preferred dividend requirement (158) -- -- -------- -------- -------- Net income (loss) applicable to common shares $ (2,323) $ 455 $ 89 ======== ======== ======== Earnings per share - basic Net income (loss) from continuing operations $ (2.38) $ 0.47 $ 0.61 Discontinued operations -- -- (0.52) -------- -------- -------- Net earnings (loss) per share $ (2.38) $ 0.47 $ 0.09 Basic weighted average common shares 977 977 977 CONSOLIDATION OF OPERTATION - CONTINUED Earnings per share - diluted Net income (loss) from continuing operations $ (2.38) $ 0.43 $ 0.60 Discontinued operations -- -- (0.51) -------- -------- -------- Net earnings (loss) per share $ (2.38) $ 0.43 $ 0.09 Diluted weighted average common shares 977 1,057 997 In accordance with the provisions of the acquisition agreement the Company is required to have a shareholder vote permitting the Series J shareholders to convert into 8,788,000 shares of the Company's common stock. The following pro forma earnings per share assume such conversion has occurred. Pro-forma earnings per share - diluted Net income (loss) from continuing operations $ (0.24) $ 0.05 $ 0.06 Discontinued operations -- -- (0.05) -------- -------- -------- Net earnings (loss) per share $ (0.24) $ 0.05 $ 0.01 Diluted weighted average common shares 9,766 9,846 9,786