CabelTel International Corporation Reports First Quarter 2008 Results

Thu May 15, 5:32 PM

DALLAS--(BUSINESS WIRE)--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  

CabelTel International Corporation
Oscar Smith, 972-407-8400
or
Gene Bertcher, 972-407-8400