EX-99.1 2 cabel8kex991081706.txt PRESS RELEASE DATED AUGUST 17, 2006 EXHIBIT 99.1 CabelTel International Corporation Reports 2006 Second Quarter Results Dallas, Texas (Business Wire) August 17, 2006: CabelTel International Corporation (AMEX: GBR, "the Company"), a Dallas-based company with investments, as of June 30, 2006, in a retirement center, a North Texas outlet mall and gas and oil wells, today reported a net income of $1.2 million or $1.25 per share for the six months ended June 30, 2006, compared to a net loss of $297,000 or $0.30 per share for the same period in 2005. Key items for the six months ended June 30, 2006, compared to the same period in 2005 included: The Company reported net income of $1.2 million for the six months ended June 30, 2006 as compared to a net loss of $297,000 for the same period in 2005. For the six months ended June 30, 2006, the Company recorded revenues of $2.2 million for its real estate operations, as compared to $2.2 million for the same period in 2005. For the six months ended June 30, 2006, revenues for the oil and gas operation was $995,000 as compared to $810,000 for the same period in 2005. The increase was due principally to increases in the price of crude oil. For the six months ended June 30, 2006, real estate operating expenses were $1.6 million as compared to $1.3 million for the six months ended June 30, 2005. The increase was due principally to increases in operating costs, including promotional expenses, for the Gainesville outlet mall during the period. For the six months ended June 30, 2006, operating expenses for the oil and gas operation were $726,000 as compared to $559,000 for the same period in 2005. The increase was due principally to the cost of well repairs. For the six months ended June 30, 2006, interest income was $322,000 as compared to $68,000 for the same period in 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 $615,000 for the six months ended June 30, 2006 as compared to $268,000 for the six months ended June 30, 2005. The increase was primarily due to interest paid on borrowings which funded the increased notes receivable from CableTEL mentioned above. Pursuant to an agreement rescinding the acquisition of CableTEL AD, the Company received a "break up fee" of a $1.5 million participation in a $2.4 million bond. The Company recorded the $1.5 million, net of expenses, as other income in June 2006. The Company also sold its Gaywood Oil & Gas subsidiaries for $1.7 million in June of 2006 and recorded a gain on the sale of $418,000. 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 Statements of Operations (Amounts in thousands, except per share data) For The Three Month For The Six Month Period Ended Period Ended June 30, June 30, 2006 2005 2006 2005 ---------- ---------- ---------- ---------- (Unaudited) (Unaudited) Revenue Real estate operations $ 1,072 $ 1,136 $ 2,222 $ 2,236 Oil and gas operations 541 396 995 810 ---------- ---------- ---------- ---------- 1,613 1,532 3,217 3,046 ---------- ---------- ---------- ---------- Operating expenses Real estate operations 704 770 1,561 1,457 Oil and gas operations 374 319 780 612 Lease expense 238 231 474 462 Corporate general and administrative 249 268 563 532 ---------- ---------- ---------- ---------- 1,565 1,588 3,324 3,063 ---------- ---------- ---------- ---------- Operating earnings (loss) 48 (56) (107) (17) Other income (expense) Interest income 5 28 322 68 Interest expense (155) (133) (615) (268) Net gain (loss) on sale of assets 418 -- 418 (118) Other 1,531 18 1,532 50 ---------- ---------- ---------- ---------- 1,799 (87) 1,657 (268) ---------- ---------- ---------- ---------- Income (loss) from continuing operations 1,847 (143) 1,550 (285) (Loss) from discontinued operations -- (17) -- (12) Provision for income taxes 330 -- 330 -- Net income (loss) applicable to common shares $ 1,517 $ (160) $ 1,220 $ (297) Earnings (loss) per share - basic Continuing operations $ 1.55 $ (0.15) $ 1.25 $ (0.29) Discontinued operations -- (0.01) -- (0.01) ---------- ---------- ---------- ---------- Net loss per share $ 1.55 $ (0.16) $ 1.25 $ (0.30) ---------- ---------- ---------- ---------- Basic weighted average common shares 977 977 977 977
CabelTel International Corporation Consolidated Balance Sheets (Amounts in thousands) June 30, December 31, Assets 2006 2005 (Unaudited) ------------ ------------ Current assets Cash and cash equivalents $ 332 $ 650 Accounts receivable-trade 240 339 Note receivable 6 306 Other current assets 1,838 179 ------------ ------------ Total current assets 2,416 1,474 Notes receivable net of deferred income 1,809 309 Property and equipment, at cost Land and improvements 2,232 2,232 Buildings and improvements 5,304 5,298 Equipment and furnishings 302 292 Proven oil and gas properties (full cost method) -- 1,401 ------------ ------------ 7,838 9,223 Less accumulated depreciation and depletion 835 963 ------------ ------------ 7,003 8,260 Deferred tax asset 831 1,161 Due from CableTEL AD - related party -- 8,004 Other assets 854 872 ------------ ------------ $ 12,913 $ 20,080 ============ ============ CabelTel International Corporation Consolidated Balance Sheets (Amounts in thousands) June 30, December 31, Liabilities and Stockholders' equity 2006 2005 (Unaudited) ------------ ------------ Current liabilities Current maturities of long-term debt $ 2,486 $ 2,383 Accounts payable - trade 547 842 Accrued expenses 1,154 1,236 Other current liabilities 414 371 ------------ ------------ Total current liabilities 4,601 4,832 Long-term debt 6,147 13,560 Other long term liabilities 193 936 ------------ ------------ Total liabilities 10,941 19,328 Stockholders' equity Preferred stock, Series B 1 1 Preferred stock, Series J 2% -- 3,150 Preferred stock, Series J 2% contra equity -- (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 (54,005) (55,225) ------------ ------------ 1,972 752 ------------ ------------ $ 12,913 $ 20,080 ============ ============