EX-99.1 2 cabel8kex991052406.txt PRESS RELEASE DATED MAY 24, 2006 EXHIBIT 99.1 CabelTEL International Corporation CabelTel International Corporation Reports 2006 First Quarter Results Dallas, Texas (Business Wire) May 24, 2006: CabelTel International Corporation (AMEX: GBR, "the Company"), a Dallas-based company with investments in a retirement center, gas and oil wells, a North Texas outlet mall and a Bulgarian telecommunications company, today reported a net loss of $298,000 or $0.31 per share for the three months ended March 31, 2006, compared to a loss of $137,000 and $0.14 per share for the same period in 2005. On October 12, 2004, the Company acquired, for 31,500 shares of newly-designated 2% Series J Preferred Stock, 74.8% of CableTEL AD ("CableTEL"), a Bulgarian telecommunications company. The terms of the acquisition agreement require the Company to present a proposal to its stockholders to approve the mandatory exchange of all shares of Series J Preferred Stock into 8,788,500 shares of common stock which, if approved by stockholders, would represent 90% of the resulting total issued and outstanding shares of common stock in the Company. As of this date, the exchange has not occurred. The Company's financial statements do not reflect CableTEL AD and will not do so until the exchange is completed. Key items for the three months ended March 31, 2006, compared to the same period in 2005 included: The Company reported a net loss of $298,000 for the three months ended March 31, 2006 as compared to a net loss of $137,000 for the three period ending March 31, 2005. For the three months ended March 31, 2006, the Company recorded revenues of $1.2 million for its real estate operations, as compared to $1.1 million for the three months ended March 31, 2005. For the three months ended March 31, 2006, revenues for the oil and gas operation was $454,000 as compared to $414,000 for the three months ended March 31, 2005. The increase was due principally to increases in the price of crude oil. For the three months ended March 31, 2006, real estate operating expenses were $878,000 as compared to $606,000 for the three months ended March 31, 2005. The increase was due principally to increases in operating costs, including promotional expenses, for the Gainesville outlet mall during the period. For the three months ended March 31, 2006, operating expenses for the oil and gas operation were $331,000 as compared to $267,000 for the three months ended March 31, 2005. The increase was due principally to the cost of well repairs. For the three months ended March 31, 2006, the depletion, depreciation and amortization expense was $125,000 as compared to $109,000 for the three months ended March 31, 2005. For the three months ended March 31, 2006, interest income was $317,000 as compared to $95,000 for the three months ended March 31, 2005. The increase was due principally to an increase in notes receivable due from CableTEL AD, a related party, in 2006, as compared to 2005. Interest expense was $460,000 for the three months and three months ended March 31, 2006 as compared to $190,000 for the three months and three months ended March 31, 2005. The increase was primarily due to interest paid on borrowings which funded the increased notes receivable from CableTEL mentioned above. CabelTel International Corporation (AMEX: GBR) is a Dallas-based company with investments in a retirement center, gas and oil wells, a North Texas outlet mall and a Bulgarian telecommunications company. For more information, go to the Company's website at www.cabeltel.us. Certain statements in this media release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. The words "estimate", "plan", "intend", "expect", "anticipate", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are found at various places throughout this Report and in the documents incorporated herein by reference. CabelTel International Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Although we believe that our expectations are based upon reasonable assumptions, we can give no assurance that our goals will be achieved. Important factors that could cause our actual results to differ from estimates or projects contained in any forward-looking statements are described under ITEM 1A. RISK FACTORS in the Company's Form 10-K for the fiscal year ended December 31, 2005. Contact: Gene Bertcher or Oscar Smith (972) 407-8400
CabelTel International Corporation Consolidated Balance Sheets (Amounts in thousands) March 31, December 31, Assets 2006 2005 (Unaudited) ------------ ------------ Current assets Cash and cash equivalents $ 135 $ 650 Accounts receivable-trade 326 339 Note receivable 156 306 Other current assets 340 179 ------------ ------------ Total current assets 957 1,474 Notes receivable net of deferred income 310 309 Property and equipment, at cost Land and improvements 2,232 2,232 Buildings and improvements 5,299 5,298 Equipment and furnishings 294 292 Proven oil and gas properties (full cost method) 1,401 1,401 ------------ ------------ 9,226 9,223 Less accumulated depreciation and depletion 1,048 963 ------------ ------------ 8,178 8,260 Deferred tax asset 1,161 1,161 Due from CableTEL AD - related party 8,236 8,004 Other assets 866 872 ------------ ------------ $ 19,708 $20,080 ============ ============
CabelTel International Corporation Consolidated Balance Sheets - Continued (Amounts in thousands, except share amounts) March 31, December 31, Liabilities and Stockholders' equity 2006 2005 (Unaudited) ------------ ------------ Current liabilities Current maturities of long-term debt $ 2,384 $ 2,383 Accounts payable - trade 690 842 Accrued expenses 990 1,236 Other current liabilities 414 371 ------------ ------------ Total current liabilities 4,478 4,832 Long-term debt 13,527 13,560 Other long term liabilities 1,249 936 ------------ ------------ Total liabilities 19,254 19,328 Stockholders' equity Preferred stock, Series B 1 1 Preferred stock, Series J 2% 3,150 3,150 Preferred stock, Series J 2% contra equity (3,150) (3,150) Common stock $.01 par value; authorized, 4,000,000 shares; 976,955 shares issued and outstanding 10 10 Additional paid-in capital 55,966 55,966 Accumulated deficit (55,523) (55,225) ------------ ------------ 454 752 ------------ ------------ $ 19,708 $ 20,080 ============ ============
CabelTel International Corporation Consolidated Statements of Operations (Amounts in thousands, except per share data) For The Three Month Period Ended March 31, 2006 2005 ------- ------- (Unaudited) Revenue Real estate operations $ 1,176 $ 1,100 Oil and gas operations 454 414 ------- ------- 1,630 1,514 ------- ------- Operating expenses Real estate operations 878 606 Oil and gas operations 331 267 Lease expense 236 231 Depletion, depreciation and amortization 125 109 Corporate general and administrative 215 262 ------- ------- 1,785 1,475 ------- ------- Operating earnings (loss) (155) 39 Other income (expense) Interest income 317 95 Interest expense (460) (190) Net loss on sale of assets -- (118) Other -- 32 ------- ------- (143) (181) ------- ------- Loss from continuing operations (298) (142) Discontinued operations Gain (loss) from discontinued operations -- 5 ------- ------- Net earnings (loss) applicable to common shares (298) (137) ------- ------- Earnings per common share - basic Continuing operations $ (0.31) $ (0.14) Discontinued operations -- -- Net earnings (loss) per share $ (0.31) $ (0.14) ======= ======= Weighted average of common and equivalent shares outstanding - basic and diluted 977 977