EX-99.1 2 cabel8kex991111506.txt PRESS RELEASE DATED NOVEMBER 15, 2006 EXHIBIT 99.1 For Immediate Release Contact: Oscar Smith Gene Bertcher (972) 407-8400 CABELTEL INTERNATIONAL CORPORATION ANNOUNCES QUARTERLY RESULTS Dallas (November 15, 2006) - CabelTel International Corporation (AMEX: GBR) today announced a net loss of $128,000 or 13(cent) per share for the three months ended September 30, 2006 compared to a loss of $419,000 or 30(cent) per share for the same period in 2005. For the nine months ended September 30, 2006 the Company reported earnings of $1.1 million or $1.11 per share compared to a loss of $591,000 or 60(cent) per share for the same period in 2005. Key items for the nine months ended September 30, 2006 compared to the same period in 2005 were: |X| For the three and nine months ended September 30, 2006, the Company recorded revenues of $1.1 million and $3.3 million for its real estate operations, as compared to $969,000 and $3,205,000 for the three and nine months ended September 30, 2005. The Company's retirement property is fully occupied and it is anticipated that it will remain so during 2006. The Company's retail shopping mall is approximately 60% occupied at September 30, 2006. The increase in revenue in 2006, as compared to 2005, is partially due to rent increases at the retirement property. In addition the Company received fees of $37,500 of $112,500 for the three and nine months ended September 30, 2006 from a related party for providing accounting services. |X| For the three and nine months ended September 30, 2006, real estate operating expenses were $794,000 and $2.4 million, as compared to $800,000 and $2.3 million for the three and nine months ended September 30, 2005. The increase for the nine months ended September 30, 2006 was due to operating costs that include promotional expenses for the Gainesville Outlet Mall. |X| For the three and nine months ended September 30, 2006, interest income was $95,000 and $417,000, as compared to $22,000 and $90,000 for the three and nine months ended September 30, 2005. During the first quarter of 2006 the Company recorded $306,000 of interest income from loans made to CabelTEL AD in Bulgaria. |X| Interest expense was $200,000 and $815,000 for the three months and nine months ended September 30, 2006, as compared to $151,000 and $419,000 for the three months and nine months ended September 30, 2005. During the first quarter of 2006 the Company recorded $306,000 of interest expense from loans made for the purpose of advancing funds to CabelTEL AD in Bulgaria. |X| Gain on the sale of assets was $418,000 for the nine months ended September 30, 2006. On June 30, 2006 the Company sold Gaywood Oil and Gas. |X| Other income was $115,000 and $1.7 million for the three and nine months ended September 30, 2006 as compared to $27,000 and $77,000 for the three months and nine months ended September 30, 2005. The income in 2006 was due almost entirely to the company's rescinding it's acquisition of CableTEL AD and recording a break up fee of $1,500,000 net of expenses. CabelTel International Corporation operates one retirement community in King City, Oregon, with a capacity of 114 residents and owns and operates an outlet mall with approximately 315,000 square feet of retail space available for lease in Gainesville, Texas. ####
CabelTel International Corporation Consolidated Balance Sheets (Amounts in thousands) September 30, December 31, Assets 2006 2005 (Unaudited) ------------- ------------- Current assets Cash and cash equivalents $ 186 $ 650 Accounts receivable - trade 107 339 Notes receivable - related party 1,377 -- Note receivable -- 306 Other current assets 247 179 ------------- ------------- Total current assets 1,917 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 5,298 5,298 Equipment and furnishings 310 292 Proven oil and gas properties (full cost method) -- 1,401 ------------- ------------- 7,840 9,223 Less accumulated depreciation and depletion 897 963 ------------- ------------- 6,943 8,260 Deferred tax asset 831 1,161 Due from CableTEL AD - related party -- 8,004 Deposits 229 129 Other assets 747 743 ------------- ------------- $ 12,476 $ 20,080 ============= =============
CabelTel International Corporation Consolidated Balance Sheets - Continued (Amounts in thousands, except share amounts) September 30, December 31, Liabilities and Stockholders' equity 2006 2005 (Unaudited) ------------- ------------- Current liabilities Current maturities of long-term debt $ 2,389 $ 2,383 Accounts payable - trade 477 842 Accrued expenses 1,218 1,236 Other current liabilities 237 371 ------------- ------------- Total current liabilities 4,321 4,832 Long-term debt 6,112 13,560 Other long-term liabilities 199 936 ------------- ------------- Total liabilities 10,632 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; 977,000 shares issued and outstanding 10 10 Additional paid-in capital 55,966 55,966 Accumulated deficit (54,133) (55,225) ------------- ------------- 1,844 752 ------------- ------------- $ 12,476 $ 20,080 ============= =============
CabelTel International Corporation Consolidated Statements of Operations (Amounts in thousands, except per share data) For The Three Month For The Nine Month Period Ended Period Ended September 30, September 30, 2006 2005 2006 2005 ---------- ---------- ---------- ---------- (Unaudited) (Unaudited) Revenue Real estate operations 1,091 $ 969 $ 3,313 $ 3,205 ---------- ---------- ---------- ---------- Operating expenses Real estate operations 794 800 2,355 2,257 Lease expense 233 230 707 692 Corporate general and administrative 202 256 765 787 ---------- ---------- ---------- ---------- 1,229 1,286 3,827 3,736 ---------- ---------- ---------- ---------- Operating earnings (loss) (138) (317) (514) (531) Other income (expense) Interest income 95 22 417 90 Interest expense (200) (151) (815) (419) Net loss on sale of assets -- -- -- (36) Other 115 27 1,648 77 ---------- ---------- ---------- ---------- 10 (102) 1,250 (288) ---------- ---------- ---------- ---------- Earnings from continuing operations (128) (419) 736 (819) Provision for income taxes -- -- 330 -- ---------- ---------- ---------- ---------- Net income (loss) from continuing operations (128) (419) 406 (819) Discontinued operations Gain from operations -- 125 268 310 Gain from sale of assets -- -- 418 (82) ---------- ---------- ---------- ---------- Net gain on discontinued operations -- 125 686 228 ---------- ---------- ---------- ---------- Net income (loss) applicable to common shares (128) (294) 1,092 (591) ========== ========== ========== ========== Net earnings (loss) per common share - basic and diluted Continuing operations $ (0.13) $ (0.43) $ 0.40 $ (0.84) Discontinued operations -- 0.13 0.71 0.24 ---------- ---------- ---------- ---------- Net income (loss) per share $ (0.13) $ (0.30) $ 1.11 $ (0.60) ---------- ---------- ---------- ---------- Weighted average of common and equivalent shares outstanding - basic and diluted 977 977 977 977