EX-99.1 2 cic8kex991051508.txt Exhibit 99.1 CabelTEL International Corporation For Immediate Release Contact: Oscar Smith Gene Bertcher (972)407-8400 CABELTEL INTERNATIONAL CORPORATION REPORTS FIRST QUARTER 2008 RESULTS Dallas, Texas (Business Wire) May 15, 2008: CabelTel International Corporation (AMEX: GBR, "the Company"), a Dallas-based company with investments in a retirement center and oil and gas leases, today reported net income of $56,000 or $0.04 per share for the three months ended March 31, 2008, compared to a net loss of $427,000 or $0.43 per share for the same period in 2007. For the three months ended March 31, 2008, the Company recorded revenues of $704,000 from its retirement property compared to $721,000 for the three months ended March 31, 2007. The Company's retirement property is fully occupied and it is anticipated that it will remain so during 2008. For the three months ended March 31, 2008, operating expenses and lease expense at the retirement property were $551,000 as compared to $560,000 for the three months ended March 31, 2007. For the three months ended March 31, 2008, corporate general & administrative expenses were $261,000 as compared to $209,000 for the three months ended March 31, 2007. The increase was due to increases in professional fees. For the three months ended March 31, 2008, interest income was $52,000 compared to $29,000 for the three months ended March 31, 2007. The increase is due to the Company's increased investment in interest bearing notes. The Company recorded interest expense for the three months ended March 31, 2008, of $162,000 as compared to no interest expense for the same period in 2007. A wholly owned subsidiary of the Company purchased leasehold interests in November 2007 in approximately 1,712 acres of land in the Fayetteville Shale area of Arkansas in exchange for a note with interest at 9.5% per annum. Other income was $274,000 for the three months ended March 31, 2008, as compared to $65,000 for the same period in 2007. The increase was due to the collection of back interest from a mortgage bond receivable due to the sale of a property in August 2001. Because the mortgage bond was payable based on cash flow and profit of the property, the uncollected interest was not recorded until collected. On May 9, 2008 the Company sold 4,110 acres of mineral interest leasehold rights in the Fayetteville Shale area of Arkansas to an unrelated third party. The sale of these interests resulted in the Company receiving net cash of approximately $16 million and recording an after tax gain of approximately $14.5 million. According to Gene S. Bertcher, President and Chief Executive Officer, "The Company intends to continue to pursue opportunities to acquire existing oil and gas operations and or acquire mineral leasehold rights for the purpose of developing oil and gas operations in the future." 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 release. 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, 2008. CabelTel International Corporation Consolidated Statements of Operations (amounts in thousands, except per share data) For The Three Month Period Ended March 31, 2008 2007 ------- ------- (Unaudited) Revenue Real estate operations $ 704 $ 721 ------- ------- Operating expenses Real estate operations 315 320 Lease expense 236 240 Corporate general and administrative 261 209 ------- ------- 812 769 ------- ------- Operating loss (108) (48) Other income (expense) Interest income 52 29 Interest expense (162) -- Other income 274 65 ------- ------- 164 94 ------- ------- Net income from continuing operations 56 46 ------- ------- Discontinued operations Loss from operations -- (159) Provision for asset impairment -- (314) ------- ------- Net loss on discontinued operations -- (473) ------- ------- Net income (loss) applicable to common shares 56 $ (427) ======= ======= Net earnings (loss) per common share - basic and diluted Continuing operations $ 0.04 $ 0.04 Discontinued operations -- (0.47) ------- ------- Net income (loss) per share $ 0.04 $ (0.43) ======= ======= Weighted average of common and equivalent shares outstanding - basic and diluted 1,133 987 CabelTel International Corporation Consolidated Balance Sheets (amounts in thousands) March 31, December 31, Assets 2008 2007 (Unaudited) ------- ------- Current assets Cash and cash equivalents $ 35 $ 172 Notes and interest receivable - related party 5,123 2,200 Other current assets 291 8 ------- ------- Total current assets 5,449 2,380 Investment in mineral rights 6,848 6,848 Property and equipment, at cost Land and improvements 20 20 Buildings and improvements 171 172 Equipment and furnishings 355 336 ------- ------- 546 528 Less accumulated depreciation 406 397 ------- ------- 140 131 Deferred tax asset 250 250 Other assets 196 177 ------- ------- Total Assets $12,883 $ 9,786 ======= ======= CabelTel International Corporation Consolidated Balance Sheets - continued (amounts in thousands, except share amounts) March 31, December 31, Liabilities and stockholders' equity 2008 2007 (Unaudited) -------- -------- Current liabilities Accounts payable - trade $ 78 $ 90 Accrued expenses 251 175 -------- -------- Total current liabilities 329 265 Long-term debt - related party 7,083 6,921 Other long-term liabilities 443 459 -------- -------- Total liabilities 7,855 7,645 Stockholders' equity Preferred stock, Series B 1 1 Common stock $.01 par value; authorized, 100,000,000 shares; 1,936,939 shares at March 31, 2008 and 986,939 shares at December 31, 2007 issued and outstanding 19 10 Additional paid-in capital 58,814 55,992 Accumulated deficit (53,806) (53,862) -------- -------- 5,028 2,141 -------- -------- Total Liabilities and Equity $ 12,883 $ 9,786 ======== ========