EX-99.1 2 cic8kex991052107.txt Exhibit 99.1 For Immediate Release Contact: Oscar Smith Gene Bertcher (972) 407-8400 CABELTEL INTERNATIONAL CORPORATION ANNOUNCES QUARTERLY RESULTS Dallas (May 16, 2007) - CabelTel International Corporation (AMEX: GBR) (the "Company") today announced a net loss of $427,000 or 43 cents per share for the three months ended March 31, 2007 compared to a loss of $298,000 or 31 cents per share for the same period in 2006. The Company earned $46,000 or four cents per share from continuing operations compared to a continuing operations loss of $113,000 or 11 cents per share during the same period in 2006. The Company has as agreement to transfer its ownership of the Gainesville Outlet Mall and 40 acres of adjacent, vacant land to an independent third party. The Company has recorded an impairment loss of $314,000 in the quarter ended March 31, 2007. The assets and liabilities being transferred have been reflected as Assets and Liabilities Held for Sale on the Company's balance sheet for the period. Key items for the three months ended March 31, 2007 compared to the same period in 2006 were: o For the three months ended March 31, 2007, the Company recorded revenues of $721,000 compared to $757,000 for the three months ended March 31, 2006. The Company's retirement property is fully occupied and it is anticipated that it will remain so during 2007. The decrease in revenue in 2007, as compared to 2006, is principally due to a decrease in certain fees received from a related party for providing accounting services. o For the three months ended March 31, 2007, operating expenses at the retirement center were $320,000 as compared to $306,000 for the three months ended March 31, 2006. The slight increase for the period was due to general cost increases at the facility. o For the three months ended March 31, 2007, corporate general & administrative expenses were $209,000 as compared to $378,000 for the three months ended March 31, 2006. In 2006 the company incurred approximately $80,000 in payroll and consulting fees which were not incurred in 2007. In general there was an overall reduction in administrative costs in the latter part of 2006 which has the effect of lowering administrative costs in 2007. o For the three months ended March 31, 2007, interest income was $84,000 compared to $317,000 for the three months ended March 31, 2006. During the first quarter of 2006 the Company recorded $306,000 of interest income from loans made to CabelTEL AD in Bulgaria. In 2006 the Company sold its Gaywood subsidiary for cash and invested the proceeds in an interest bearing note which has resulted in an increase in interest of $74,000 in 2007 when compared to 2006. o The Company recorded no interest expense for the three months ended March 31, 2007, as compared to $263,000 same period in 2006. 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. The balance of the interest in the three months ended March 31, 2006 was for a note that was paid off later in 2006. CabelTel International Corporation operates one retirement community in King City, Oregon, with a capacity of 114 residents. #### CabelTel International Corporation Consolidated Balance Sheets (amounts in thousands) March 31, December 31, Assets 2007 2006 (Unaudited) ----------- ----------- Current assets Cash and cash equivalents $ 254 $ 324 Notes and interest receivable - related party 1,557 1,428 Other current assets 59 36 Assets held for sale 6,750 7,047 ------ ------ Total current assets 8,620 8,835 Property and equipment, at cost Land and improvements 20 20 Buildings and improvements 169 169 Equipment and furnishings 297 290 ------ ------ 486 479 Less accumulated depreciation 371 364 ------ ------ 115 115 Deferred tax asset 491 491 Other assets 104 261 ------ ------ Total Assets $9,330 $9,702 ====== ====== CabelTel International Corporation Consolidated Balance Sheets - Continued (amounts in thousands, except share amounts) March 31, December 31, Liabilities and Stockholders' equity 2007 2006 (Unaudited) ----------- ------------- Current liabilities Accounts payable - trade $ 248 $ 439 Accrued expenses 273 124 Liabilities held for sale 6,750 6,642 -------- -------- Total current liabilities 7,271 7,205 Other long-term liabilities 407 418 -------- -------- Total liabilities 7,678 7,623 Stockholders' equity Preferred stock, Series B 1 1 Common stock $.01 par value; authorized, 100,000,000 shares; 976,955 shares at March 31, 2006 and 986,953 shares at March 31, 2007 issued and outstanding 10 10 Additional paid-in capital 55,992 55,992 Accumulated deficit (54,351) (53,924) -------- -------- 1,652 2,079 -------- -------- Total Liabilities and Equity $ 9,330 $ 9,702 ======== ======== CabelTel International Corporation Consolidated Statements of Operations (amounts in thousands, except per share data) For The Three Month Period Ended March 31, 2007 2006 ------ ------ (Unaudited) Revenue Real estate operations $ 721 $ 757 ----- ----- Operating expenses Real estate operations 320 306 Lease expense 240 236 Corporate general and administrative 209 378 ----- ----- 769 920 ----- ----- Operating loss (48) (163) Other income (expense) Interest income 84 317 Interest expense -- (263) Other income (expense) net 10 (4) ----- ----- 94 50 ----- ----- Net income (loss) from continuing operations 46 (113) ----- ----- Discontinued operations Loss from operations (159) (185) Provision for asset impairment (314) -- ----- ----- ----- ----- Net loss on discontinued operations (473) (185) ----- ----- ----- ----- Net loss applicable to common shares $(427) $(298) ===== ===== ===== ===== Net earnings (loss) per common share - basic and diluted Continuing operations $0.04 $(0.11) Discontinued operations (0.47) (0.20) ----- ----- ----- ----- Net income (loss) per share $(0.43) $(0.31) ===== ===== ===== ===== Weighted average of common and equivalent shares outstanding - basic and diluted 987 977