SHANGHAI, March 25 /PRNewswire-FirstCall/ -- China Cablecom
Holdings, Ltd. ("China Cablecom" or the "Company") (NASDAQ:CABL)
(NASDAQ:CABLW) (NASDAQ: CABLU), a joint-venture provider of cable
television services in the People's Republic of China ("PRC"),
announced today its unaudited financial results for the fourth
quarter and full year ended December 31, 2008. This earnings
release reflects both pro forma and actual financial results due to
the completion of China Cablecom's acquisition of a 60 percent
economic interest in Hubei Chutian Video & Information Network
("Hubei") late in the second quarter of 2008. For purposes of U.S.
Generally Accepted Accounting Principles (U.S. GAAP), the financial
results of Hubei have been consolidated beginning July 1, 2008. To
enhance comparability, pro forma fourth quarter 2008 results of
operations reflect the Hubei acquisition as well as the business
combination with Jaguar Acquisition Corporation as if they had
occurred on January 1, 2008. Fourth Quarter of 2008: -- Hubei
revenues for the fourth quarter 2008 were $7.5 million, up 41% over
the same period last year -- Hubei earnings before interest, taxes,
depreciation and amortization (EBITDA) representing 60% of CABL
shares for the fourth quarter of 2008 were $1.6 million, up 35%
compared to the same period last year -- Binzhou revenues for the
fourth quarter of 2008 was $2.3 million, up 16% over the same
period last year -- Binzhou EBITDA representing 60% of CABL shares
was $0.7 million, up 44% compared to the same period last year Full
Year Ended December 31, 2008: -- Hubei revenues for the full year
2008 were $27.5 million, up 53% compared to full year 2007 -- Hubei
EBITDA representing 60% of CABL shares for the full year of 2008
were $5.9 million, up 50% over the prior year 2007 -- Hubei paying
subscribers as of December 31, 2008 were 1,030,212, up 10% from
total paying subscribers as of December 31, 2007 -- Binzhou
revenues for the full year 2008 were $9.1 million, up 30% compared
to full year 2007 -- Binzhou EBITDA representing 60% of CABL shares
for the full year 2008 was $3.6 million, up 76% over the prior year
2007 -- Binzhou paying subscribers as of December 31, 2008 were
477,910, up 16% from total paying subscribers as of December 31,
2007 -- Consolidated paying subscribers as of December 31, 2008 was
approximately 1,508,122, up 12% over full year ended 2007 Comments
from Mr. Pu Yue, Chief Executive Officer "China Cablecom's
operating subsidiaries continue to generate notable growth despite
the on-going challenges that have plagued the financial markets.
Our fourth quarter and end of year marked double digit growth in
top line revenues, EBITDA, and paying subscribers," says Pu Yue,
Chief Executive Officer of China Cablecom. "We have executed on a
remarkable vision and made significant progress in 2008, concluding
the year with tighter operational controls and lower overhead
costs, signaling the strength and stability of our cable and media
business. "While China continues to invest in its infrastructure
spending through an aggressive stimulus plan, we are highly
optimistic that the country remains on track to deliver full
migration to digitalization by 2015. Looking ahead to 2009, we are
committed to pursuing initiatives that deploy our cash resources
effectively, capturing higher quality revenues through the
monetization of our cable assets and implementing a value-added
service platform." Financial Results for the Quarter Ended December
31, 2008 - Pro Forma Basis Consolidated revenues for the fourth
quarter of 2008 were $9.8 million compared to revenues of $9.4
million for the third quarter of 2008. The increase was primarily
due to the growth in paying subscribers, including revenue
generated through installation fees. Consolidated operating
expenses for the fourth quarter were $5.7 million, compared to
operating expenses of $5.6 million for the third quarter 2008. The
fourth quarter's general and administrative expenses included
amortization of intangible assets and deferred finance costs of $1
million, overhead costs from administrative expenses (headquarters)
of $1.2 million, and operating JV overhead costs of $3.5 million
which covers salaries, travel and entertainment, and office
expenses. Based on U.S. GAAP net comprehensive loss for the fourth
quarter of 2008 was $4.3 million or $0.44 per basic and fully
diluted share compared to a net comprehensive loss of $4.5 million,
or $0.48 per basic and fully diluted share in the third quarter of
2008. The net loss for the fourth quarter 2008 was significantly
impacted by (1) non-cash amortization of intangible assets which
were acquired in connection with China Cablecom's acquisition of
Binzhou Broadcasting and Hubei in the amount of $0.37 million and
$0.33 million, respectively, and (2) non-cash interest expense
associated with original issue debt discount and deferred financing
costs relating to China Cablecom's September 2007 bridge financing
and May 2008 convertible note offering in the amount of $3 million.
Financial Results for the Full Year 2008 Ended December 31, 2008 -
Pro Forma Basis Pro forma revenues for the twelve months ended
December 31, 2008 were $36.6 million. Pro forma operating expenses
for the twelve months ended December 31, 2008 were $23.8 million.
Based on U.S. GAAP net comprehensive loss for the twelve months
ended December 31, 2008 was $13.9 million, or $1.87 per basic and
fully diluted share. For the twelve months ended December 31, 2008,
the Company used weighted average shares outstanding of 7.4
million. The net loss for the twelve months ended December 31, 2008
was significantly impacted by (1) non-cash amortization of
intangible assets which were acquired in connection with China
Cablecom's acquisition of Binzhou Broadcasting and Hubei in the
amount of $1.50 million and $0.65 million, respectively, and (2)
interest expense associated with original issue debt discount and
deferred financing costs relating to China Cablecom's September
2007 bridge financing and May 2008 convertible note offering in the
amount of $8.7 million of which $7.5 million was non-cash interest
expense. Balance Sheet Highlights As of December 31, 2008, the
Company had $29.2 million in cash and cash equivalents. Recent
Company Highlights For the fourth quarter of 2008, management
participated in speaking panels and investor conferences to
generate continued exposure and visibility for the Company. As of
October 2008, management had attended and presented at Maxim's
Growth Conference, Adam Friedman's Fall China Growth Conference,
Rodman & Renshaw's Annual Global Investment Conference, Roth
Capital's China Comes to Vegas and Digital Media Wire's Future of
Television Summit. In December 2008, China Cablecom announced an
extension for the outstanding payment owed to Binzhou Broadcasting
with respect to a joint venture formed in September 2007 to operate
the cable networks in Shandong Province. This extension was granted
until January 31, 2009 and then later extended further until
December 31, 2009. China Cablecom is currently in negotiations with
the Hubei SOE and local municipal branches of SARFT on pursuing an
extension in the remaining payments owed on cable assets purchased
in June 2008. Discussions on delaying payments or restructuring the
acquisition will be provided by management within the next 60 days.
The following summary financial and operating highlights for
Binzhou and Hubei reflect the results of the respective operating
joint ventures on a stand-alone basis and do not include China
Cablecom's corporate operations and overhead. The summary
information is presented on a pro forma basis, which assumes that
the acquisitions took place on January 1, 2007. For Hubei, the
summary information reflects the 23 cities acquired in the amended
acquisition agreement. EBITDA reflects China Cablecom's
consolidated share of 60%. Quarter ended December 31, Year ended
December 31, (unaudited) 2008 2007 % 2008 2007 % Binzhou
Broadcasting Revenue 2,323,804 1,994,773 16% 9,119,402 7,014,675
30% EBITDA - 60% share 689,099 478,358 44% 3,562,627 2,028,025 76%
Non-financial metrics: Paying subscribers 477,910 411,246 16%
477,910 411,246 16% ARPU 1.46 1.29 1.45 1.14 Hubei Chutian (1)
Revenue 7,452,800 5,300,103 41% 27,450,535 17,996,661 53% EBITDA -
60% share 1,557,690 1,153,275 35% 5,873,003 3,915,982 50%
Non-financial metrics: Paying subscribers 1,030,212 934,065 10%
1,030,212 934,065 10% ARPU 1.93 1.51 1.78 1.71 Total revenue
9,776,604 7,294,876 34% 36,569,937 25,011,336 46% EBITDA -60%
2,246,789 1,631,633 38% 9,435,630 5,944,006 59% Selected unaudited
pro forma information reflecting China Cablecom's 60% consolidation
of Hubei, is as follows: Year ended Year ended December 31,
December 31, 2007 2008 (in millions) Consolidated pro forma China
Cablecom (1) Revenues $25.0 $36.6 EBITDA $6.4 $6.0 (1) Assumes the
following took place on January 1, 2007: (1) the business
combination between Jaguar Acquisition Corporation and China
Cablecom and (2) the consummation of the consolidation of 17 cities
included in phase one of the Hubei Broadcasting acquisition.
Conference Call and Webcast China Cablecom's management team will
host a conference call today at 8:30 AM ET, March 25, 2009 (or 8:30
PM, March 25, 2009 Shanghai time). To listen to the conference
call, please use the dial in numbers below: USA Toll Number:
1-800-762-8779 International: 1-408-629-9031 A replay of the call
will be available for two weeks following the call and can be
accessed by dialing the numbers below: USA Toll Number:
1-800-406-7325 International: 1-303-590-3030 PASSCODE: 4018139# The
conference call will be available on webcast live and available for
replay at: http://www.chinacablecom.net/. About China Cablecom
China Cablecom is a joint-venture provider of cable television
services in the People's Republic of China, operating in
partnership with a local state-owned enterprise ("SOE") authorized
by the PRC government to control the distribution of cable TV
services through the deployment of analog and digital cable
services. In June 2008, China Cablecom consummated an agreement to
acquire a 60 percent economic interest in a cable network in Hubei
province with paying subscribers exceeding 800,000. The Company
originally acquired operating rights of the Binzhou Broadcasting
network in Binzhou, Shandong Province in September 2007 by entering
into a series of asset purchase and services agreements with a
company organized by SOEs, owned directly or indirectly by local
branches of State Administration of Radio, Film and Television in
five different municipalities to serve as a holding company of the
relevant businesses. China Cablecom now operates 28 cable networks
with over 1.4 million paying subscribers. China Cablecom's strategy
is to replicate the acquisition by operating partnership models in
other municipalities and provinces in the PRC and then introducing
operating efficiencies and increasing service offerings in the
networks in which it operates. Safe Harbor Statement The matters
discussed in this press release contain "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements contained in this
presentation and in the Company's other written and oral reports
are based on current Company expectations and are subject to risks
and uncertainties, which could cause actual results to differ
materially. Any forward-looking statements are not guarantees of
future performance and actual results of operations, financial
condition and liquidity, and developments in the industry may
differ materially from those made in or suggested by the
forward-looking statements contained herein. These forward-looking
statements are subject to numerous risks, uncertainties and
assumptions. The forward-looking statements herein speak only as of
the date stated herein and might not occur in light of these risks,
uncertainties, and assumptions. The Company undertakes no
obligation and disclaims any obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise. You should carefully
consider these factors as well as the additional risk factors
outlined in the filings that the Company makes with the U.S.
Securities and Exchange Commission, including the Registration
Statement on Form S-1 filed on April 18, 2008. CONTACT: China
Cablecom Holdings, Ltd. Debra Chen Phone: 917.499.8129 Email: CHINA
CABLECOM HOLDINGS LIMITED Unaudited Consolidated Balance Sheets (in
US dollars, except share data) Dec 31, 2008 December 31, 2007
ASSETS (unaudited) Current Assets: Cash and cash equivalents
$29,182,251 $12,638,574 Accounts receivable 1,628,710 - Prepaid
expenses and advances 9,236,025 668,518 Inventories 3,744,745
766,120 Note receivable - 237,500 Assets to be used by
noncontrolling ("minority") interest - note 4 - 1,883,769 Total
Current Assets 43,791,731 16,194,481 Property, Plant &
Equipment, Net 79,877,186 20,721,845 Construction In Progress
1,036,667 1,242,289 Intangible assets, net 57,126,002 18,362,729
Other Assets: Note receivable - 237,500 Deferred financing costs,
net 1,243,923 1,188,020 Deferred shell merger costs, net - 971,622
Deemed receivable from noncontrolling ("minority") interest for
settlement of certain net liabilities - note 12 - 10,577,656 Total
Assets $183,075,509 $69,496,142 LIABILITIES AND STOCKHOLDERS'
EQUITY Current Liabilities: Current portion of long term debt - net
of discount $9,481,940 $9,617,646 Accounts payable 8,872,144
2,460,843 Service performance obligation-deferred revenue 1,661,311
110,745 Other current liabilities 7,630,924 1,378,135 Note payable
- noncontrolling ("minority")interest 55,420,250 17,218,612
Liabilities to be settled by noncontrolling ("minority") interest -
note 4 - 12,461,425 Total Current Liabilities 83,066,569 43,247,406
Long Term Liabilities: Convertible notes, net of discount
16,684,044 - Note payable - noncontrolling ("minority") interest,
net of current portion 51,777,719 17,046,817 Note payable, net of
discount and current portion - 7,477,822 Total Liabilities
151,528,332 67,772,045 Noncontrolling ("minority") interest
1,768,004 21,883 STOCKHOLDERS' EQUITY Preferred stock, $.0005 par
value; 1,000,000 authorized shares, none issued - - Common stock,
$.0005 par value; 40,000,000 authorized shares, 9,677,131 shares
issued and outstanding (December 31, 2007 equivalent shares
outstanding 2,066,680) 4,839 1,333 Additional paid in capital
45,526,562 3,575,737 Statutory reserves 131,501 46,269 Accumulated
deficit (16,532,864) (2,274,783) Accumulated other comprehensive
income 649,135 353,658 Total stockholders' equity 29,779,173
1,702,214 Total liabilities and stockholders' equity $183,075,509
$69,496,142 CHINA CABLECOM HOLDINGS LIMITED Unaudited Consolidated
Statements of Operations (in US dollars, except share data) For the
year For the year ended ended December 31, 2008 December 31, 2007
(unaudited) Revenue $23,439,217 $1,994,773 Cost of revenue
13,436,959 1,016,766 Gross profit 10,002,258 978,007 Operating
expenses Selling expenses - 66,853 General and administrative
expenses 15,125,517 1,595,106 Total operating expenses 15,125,517
1,661,959 Loss from operations (5,123,259) (683,952) Other income
and (expenses) Interest income 340,102 66,692 Interest expense
(8,741,899) (1,473,766) Other income / (expenses) 680,574 (3,625)
Total other expenses (7,721,223) (1,410,699) Loss before income
taxes (12,844,482) (2,094,651) Income taxes (341,748) (40,202) Loss
from operations before noncontrolling ("minority") interest
(13,186,230) (2,134,853) Noncontrolling ("minority") interest in
income (986,619) (20,551) Net loss (14,172,849) (2,155,404) Other
comprehensive income/(loss) Foreign currency translation adjustment
295,477 353,658 Comprehensive loss $(13,877,372) $(1,801,746) Loss
per common share: - Basic and fully diluted $(1.87) $(0.87)
Weighted average number of shares - Basic and fully diluted
7,417,512 2,066,680 Non-U.S. GAAP Financial Measures This release
contains discussion of China Cablecom's revenues, and projected and
pro forma revenues, as well as earnings before interest, taxes,
depreciation and amortization (EBITDA) and projected/pro forma
EBITDA and EBITDA. Although EBITDA and projected/pro forma EBITDA
are not measures of financial condition or performance determined
in accordance with U.S. GAAP, China Cablecom uses EBITDA to value
businesses it acquires or anticipates acquiring. EBITDA and
projected/pro forma EBITDA are not defined in the same manner by
all companies and may not be comparable to other similarly titled
measures of other companies unless the definition is the same.
Below is a table reconciling certain non-U.S. GAAP financial
measures appearing elsewhere herein relating to China Cablecom to
the most closely analogous U.S. GAAP measures: CHINA CABLECOM
HOLDINGS LIMITED Non-U.S. GAAP financial reconciliation (in US
dollars, except share data) Quarter ended Year ended December 31,
2008 December 31, 2008 Net comprehensive loss $(4,303,833)
$(13,877,373) Amortization 1,049,160 3,362,656 Depreciation
1,794,922 4,927,885 Interest income 51,884 (340,102) Interest &
Finance 3,086,737 8,741,899 Income tax (174,058) 205,048 Non-U.S.
GAAP Income (EBITDA) $1,504,811 $3,020,014 DATASOURCE: China
Cablecom Holdings, Ltd. CONTACT: Debra Chen of China Cablecom
Holdings, Ltd., +1-917-499-8129, Web Site:
http://www.chinacablecom.net/
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