EX-99.1 2 cic8kex991040207.txt Exhibit 99.1 For Immediate Release Contact: Oscar Smith Gene Bertcher (972) 407-8400 CABELTEL INTERNATIONAL CORPORATION REPORTS 2006 RESULTS Dallas, Texas (Business Wire) April 2, 2007: CabelTel International Corporation (AMEX: GBR, "the Company"), a Dallas-based company with investments in a retirement center and a North Texas outlet mall, today reported a net income of $1,301,000 or $1.32 per share for the twelve months ended December 31, 2006, compared to a net loss of $986,000 or $1.01 per share for the year ended December 31, 2005. Revenues and Operating Expenses from operations of a retirement facility: Revenues were $2,695,000 in 2006 as compared to $2,597,000 in 2005. Retirement operating expenses, which consist of assisted living operations expense, lease expense and depreciation and amortization, were $2,130,000 in 2006 as compared to $2,006,000 in 2005. Revenues and Operating Expenses from operations of an outlet mall: Revenues were $1,235,000 in 2006 as compared to $1,501,000 in 2005. Operating expenses were $1,760,000 in 2006 as compared to $1,845,000 in 2005. The decrease in revenue is due to the net reduction in occupancy and rent adjustments for several tenants. The increase in expenses is due to overall operating costs throughout the operation. Corporate General and Administrative Expense: These expenses were $1,091,000 in 2006 and $1,191,000 in 2005. During 2006, the Company reduced certain salary and personnel expenses that existed in 2005. Other Income (Expense): Other income was $2,584,000 in 2006. In June 2006, the Company rescinded its acquisition of CableTel AD and received a break up fee of $1,500,000 which resulted in net income, after deducting expenses, of $1,467,000. In addition, in November 2006, the Company settled a third party obligation and recorded a gain on such settlement of $1,021,000. Additionally, the Company collected payments on certain receivables that were previously written off. Interest and Dividend Income: Interest and dividend income was $447,000 in 2006 and $700,000 in 2005. During 2006, the Company recorded interest income of $314,000 from funds it had advanced to CabelTEL AD for operations and acquisitions in Bulgaria as compared to $515,000 in 2005. Interest Expense: Interest expense was $924,000 in 2006 and $1,161,000 in 2005. During the fourth quarter of 2004 and continuing through 2005, the Company borrowed a total of $7,200,000 which it advanced to CabelTEL AD for operations and acquisitions in Bulgaria. The interest expense on this debt was $314,000 in 2006 as compared to $515,000 in 2005. As part of the agreement to rescind the acquisition of CableTEL AD, a corporation affiliated with one of the original sellers assumed from the Company all indebtedness incurred by the Company in connection with or related to advances by the Company to CableTEL AD or its affiliates to fund the operation of CableTEL AD. In exchange the Company surrendered all claims it had against CableTel AD or its affiliates for reimbursement for such advances. Discontinued Operations: During 2006, the Company sold Gaywood Oil and Gas. During 2005, the Company disposed of an assisted living community in South Carolina. During 2004, the Company disposed of assisted living communities in Georgia and Washington. In addition, the Company entered into a contract to sell a third assisted living community in North Carolina, which was sold in January 2005. These were reflected as assets held for sale. 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. CabelTel International Corporation and Subsidiaries CONSOLIDATED BALANCE SHEETS (Amounts in thousands) December 31, -------------------------------- 2006 2005 Assets ------------- ------------- Current assets Cash and cash equivalents $ 324 $ 650 Accounts receivable - trade 31 339 Note and interest receivable - related party 1,428 -- Notes receivable -- 306 Other current assets, net 71 179 ------------- ------------- Total current assets 1,854 1,474 Notes receivable net of deferred income -- 309 Property and equipment, at cost Land and improvements 2,237 2,232 Buildings and improvements 5,240 5,298 Equipment and furnishings 315 292 Proven oil and gas properties (full cost method) -- 1,401 ------------- ------------- 7,792 9,223 Less accumulated depreciation, depletion, and amortization 959 963 ------------- ------------- 6,833 8,260 Deferred tax asset 491 1,161 Due from CableTEL AD - related party -- 8,004 Deposits 146 129 Other assets 378 743 ------------- ------------- Total Assets $ 9,702 $20,080 ============= ============= CabelTel International Corporation and Subsidiaries CONSOLIDATED BALANCE SHEETS - CONTINUED (Amounts in thousands, except share amounts) -------------------------------------------------------------------------------- December 31, =========================================================---------------------- Liabilities And Stockholders' Equity 2006 2005 ---------- ----------- ---------- ----------- Current liabilities Current maturities of long-term debt $ 135 $ 2,383 Accounts payable - trade 500 842 Accrued expenses 339 1,236 Other current liabilities 153 371 ---------- ----------- Total Current Liabilities 1,127 4,832 Long-term debt 6,078 13,560 Other long-term liabilities 418 936 ---------- ----------- Total liabilities 7,623 19,328 Stockholders' equity Preferred stock, Series B 1 1 Preferred stock, Series J 2% -- 3,150 Preferred stock, Series J contra equity -- (3,150) Common stock, $.01 par value; authorized, 4,000,000 shares; issued and outstanding, 986,953 shares at December 31, 2006 and 976,955 shares at December 31, 2005 10 10 Additional paid-in capital 55,992 55,966 Accumulated deficit (53,924) (55,225) ---------- ----------- 2,079 752 ---------- ----------- Total Liabilities & Equity $ 9,702 $ 20,080 ========== ===========
CabelTel International Corporation and Subsidiaries CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts) Year Ended December 31, ----------------------------- 2006 2005 2004 ------- ------- ------- Revenue Real estate operations $ 4,268 $ 4,098 $ 4,643 ------- ------- ------- Operating expenses Real estate operations 3,060 3,001 3,172 Lease expense 939 932 917 Corporate general and administrative 1,091 1,191 1,694 ------- ------- ------- 5,090 5,124 5,783 ------- ------- ------- Operating earnings (loss) (822) (1,026) (1,140) Other income (expense) Interest income 447 700 213 Interest expense (924) (1,161) (904) Gain (loss) on sale of assets, net -- (39) 1,247 Other income (expense), net 2,584 285 (403) ------- ------- ------- 2,107 (215) 153 ------- ------- ------- Earnings (loss) from continuing operations 1,285 (1,241) (987) Provision for income taxes (437) -- -- ------- ------- ------- Net income (loss) from continuing operations 848 (1,241) (987) Discontinued operations Gain from operations (net of $91 income tax in 2006) 177 337 (38) Gain from sale of assets (net of $142 income tax in 2006) 276 (82) 209 ------- ------- ------- Net gain (loss) from discontinued operations 453 255 171 ------- ------- ------- Net income (loss) applicable to common shares 1,301 (986) (816) ======= ======= ======= Earnings (loss) per common share - basic and diluted Continuing operations $ 0.86 $ (1.27) $ (1.01) Discontinued operations 0.46 0.26 0.17 ------- ------- ------- Net earnings (loss) per share $ 1.32 $ (1.01) $ (0.84) ======= ======= ======= Weighted average common and equivalent shares outstanding - basic and diluted 987 977 977