SHANGHAI, Aug. 27 /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 first half
2009. This earnings release reflects both pro forma and actual
financial results due to the completion of China Cablecom's
acquisition of a 60% 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 first
and second quarter 2008 results of operations reflect the Hubei
acquisition as well as the business combination with Jaguar
Acquisition Corporation as if they occurred on January 1, 2008.
Second Quarter 2009 Highlights: -- Hubei revenues were $8.4
million, an increase of 22% over last year and 9% over last quarter
-- Hubei earnings before interest, taxes, depreciation and
amortization ("EBITDA") representing the Company's 60% share was
$2.0 million, an increase of 38% over last year and 40% over last
quarter -- Hubei added nearly 87,000 digital subscribers during the
quarter -- Binzhou revenues were $2.3 million, an increase of 2%
over last year -- Binzhou EBITDA representing the Company's 60%
share was $0.9 million, down 2% from last year First Quarter 2009
Highlights: -- Hubei revenues were $7.7 million, an increase of 22%
over last year -- Hubei EBITDA representing the Company's 60% share
was $1.5 million, down 2% over last year -- Hubei added more than
84,000 digital subscribers during the quarter -- Binzhou revenues
were $2.3 million, an increase of 14% over last year -- Binzhou
EBITDA representing the Company's 60% share was $0.9 million, an
increase of 6% over last year Six Months Ended June 30, 2009
Highlights: -- Hubei revenues were $16.1 million, an increase of
22% over last year -- Hubei EBITDA representing the Company's 60%
share was $3.5 million, an increase of 18% over last year -- Hubei
paying subscribers as of June 30, 2009 were 1,125,021, an increase
of 14% over last year and 5% over last quarter -- Hubei added
nearly 171,000 digital subscribers in the first half of the year,
more than 10 times the number of digital subscribers as of January
1, 2009 -- Binzhou revenues were $4.6 million, an increase of 7%
over last year -- Binzhou EBITDA representing the Company's 60%
share as of June 30, 2009, was $1.8 million, an increase of 2% over
last year -- Binzhou paying subscribers as of June 30, 2009 were
479,604, an increase of 2% over last year -- Consolidated pro forma
paying subscribers for China Cablecom as of June 30, 2009 was 1.6
million, an increase of 10% over last year Comments from Mr. Pu
Yue, Chief Executive Officer "The first half of 2009 presented
measurable organic growth and ARPU increases at our Hubei and
Binzhou operating entities. During the second quarter of this year,
our team has been actively working with our debt holders to
restructure our loan obligations as well as acquisition payment
obligations to our Hubei joint venture partners. Though this has
delayed our reporting of our results of operations, we are now
current with our reporting calendar and believe that we will have a
resolution to announce on these matters shortly," says Pu Yue,
Chief Executive officer of China Cablecom. "Despite the challenging
financial markets, we believe that our cable operations in China
are strong and growing. We set record revenue, EBITDA and paying
subscriber levels at our operating subsidiaries during the first
six months of 2009. We believe that we are poised for greater
growth as we capture the enormous upside associated with the
adoption and implementation of digital cable. At Hubei, the network
continues to grow at an amazing pace as paying subscribers grew 14%
over the last year. Digital cable subscribers also grew at a rapid
rate as Hubei now has more than 10 times the number of digital
subscribes than last year. Lastly, we remain conservative in
managing our operating costs and expect to be on schedule to
decrease our corporate overhead by more than 50%." Financial
Results for the First Quarter of 2009 - Pro Forma Basis
Consolidated revenues for the first quarter of 2009 were $10.0
million compared to pro forma revenues of $8.3 million for the
first quarter of 2008. The increase was due to growth in paying
subscribers and revenues generated in subscription and installation
fees. Consolidated operating expenses for the first quarter of 2009
were $5.8 million compared to pro forma operating expenses of $5.8
million for the first quarter of 2008. Based on U.S. GAAP, net
comprehensive loss for first quarter of 2009 was $5.7 million, or
$0.58 loss per basic and fully diluted share, compared to a net
comprehensive loss of $1.6 million, or $1.04 loss per basic and
fully diluted share for the first quarter of 2008. The net loss for
the first quarter of 2009 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 $3.6 million.
Financial Results for the Second Quarter of 2009 - Pro Forma Basis
Consolidated revenues for the second quarter of 2009 were $10.7
million compared to pro forma revenues of $9.1 million for the
second quarter of 2008. The increase was due to growth in paying
subscribers and revenues generated in subscription and installation
fees. Consolidated operating expenses for the second quarter of
2009 were $4.7 million compared to pro forma operating expenses of
$6.8 million for the second quarter of 2008. The reduction of
operating costs resulted from a significant decrease of
approximately $2.0 million of selling, general administration
expenses at Hubei after China Cablecom's acquisition. Based on U.S.
GAAP, net comprehensive loss for second quarter of 2009 was $4.4
million, or $0.46 loss per basic and fully diluted share, compared
to a net comprehensive loss of $3.5 million, or $0.38 loss per
basic and fully diluted share for the second quarter of 2008. The
net loss for the second quarter of 2009 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 $3.6 million.
Financial Results for the Six Months ended June 30, 2009
Consolidated revenues for the six months ended June 30, 2009 were
$10.7 million compared to pro forma revenues of $9.1 million for
same period in 2008. The increase was due to growth in paying
subscribers and revenues generated in subscription and installation
fees. Consolidated operating expenses for the six months ended June
30, 2009 were $10.5 million compared to pro forma operating
expenses of $12.6 million for the same period in 2008. The
reduction in operating expenses was largely contributable to
Hubei's savings on selling, general and administrative expenses
post China Cablecom's acquisition. Based on U.S. GAAP, net
comprehensive loss for the six months ended June 30, 2009 was $10.1
million, or $1.04 loss per basic and fully diluted share, compared
to a net comprehensive loss of $5.1 million, or $1.00 loss per
basic and fully diluted share for the same period in 2008. The net
loss for the six months ended June 30, 2009 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 $0.74 million and
$0.66 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 $7.2
million. Recent Company Highlights -- In February 2009, management
presented at the Roth Capital Growth Stock Conference in Laguna
Niguel, California -- During the first quarter of 2009, the Company
provided an update on Binzhou Broadcasting whereby the joint
venture partners granted an extension on the remaining payments
until December 31, 2009 -- Sikan Tong, previously serving as the
Company's Senior Vice President of Finance was appointed as the
Chief Financial Officer of the Company in March 2009 -- China
Cablecom is currently in negotiations with the its joint venture
partners of Hubei SOE and local municipal branches of SARFT on
discussions involving the restructuring of the Company's debt,
assets and obligations with Hubei Chutian Broadcasting and
Television Network Company Operating Metrics 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, 2008. 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
March 31, ------------------------------------- (unaudited) 2009
2008 % ---- ---- -- Binzhou Broadcasting Revenue $2,282,599
$2,003,766 14% EBITDA - 60% share $923,531 $869,884 6%
Non-financial metrics: ---------------------- Paying subscribers
478,129 426,685 12% Digital subscribers 2,000 nm ARPU $1.37 $1.38
-1% Hubei Chutian Revenue $7,676,246 $6,269,190 22% EBITDA - 60%
share $1,454,137 $1,483,060 -2% Non-financial metrics:
---------------------- Paying subscribers 1,075,214 962,034 12%
Digital subscribers 98,847 nm ARPU $2.06 $1.74 18% Total revenue
$9,958,845 $8,272,956 20% Total EBITDA - 60% $2,377,668 $2,352,944
1% nm = not meaningful Quarter ended June 30, Six months ended June
30, ------------------------ -------------------------- (unaudited)
2009 2008 % 2009 2008 % ---- ---- - ---- ---- - Binzhou
Broadcasting Revenue $2,322,358 $2,286,451 2% $4,604,957 $4,290,217
7% EBITDA - 60% share $891,286 $909,437 -2% $1,814,817 $1,779,321
2% Non-financial metrics: --------------------- Paying subscribers
479,604 470,111 2% 479,604 470,111 2% Digital subscribers 3,465 nm
3,465 nm ARPU $1.40 $1.35 4% $1.38 $1.36 1% Hubei Chutian Revenue
$8,399,810 $6,861,529 22% $16,076,056 $13,130,719 22% EBITDA - 60%
share $2,042,186 $1,480,666 38% $3,496,323 $2,963,726 18%
Non-financial metrics: --------------------- Paying subscribers
1,125,021 986,444 14% 1,125,021 986,444 14% Digital subscribers
185,794 nm 185,794 nm ARPU $2.08 $1.85 12% $2.07 $1.80 15% Total
revenue $10,722,168 $9,147,980 17% $20,681,013 $17,420,936 19%
Total EBITDA - 60% $2,933,472 $2,390,103 23% $5,311,140 $4,743,047
12% nm = not meaningful Conference Call and Webcast China
Cablecom's management team will host a conference call today at
8:30 a.m. EDT, August 27, 2009 (or 8:30 p.m., August 27, 2009
Shanghai time). To listen to the conference call, please use the
dial in numbers below: USA Toll Number: 1-877-941-9205
International: 1-408-629-9835 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: 4145747# The conference
call will be available on webcast live and available for replay at:
http://www.chinacablecom.net/. About China Cablecom Holdings China
Cablecom Holdings 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 & digital cable
services. China Cablecom recently entered into an agreement to
acquire a 60% 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 SARFT in five different municipalities to serve as a
holding company of the relevant businesses. China Cablecom operates
22 cable networks with over 1.2 million paying subscribers. China
Cablecom Holdings' strategy is to replicate the acquisitions by
operating partnership models in other municipalities and provinces
in the PRC and then introducing operating efficiencies and
increasing service offerings in the networks 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.
China Cablecom Holdings 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 China
Cablecom Holdings makes with the U.S. Securities and Exchange
Commission, including the Registration Statement on Form S-1 filed
on April 18, 2008. CHINA CABLECOM HOLDINGS LIMITED
------------------------------------- Unaudited Consolidated
Balance Sheets (in US dollars, except share data)
------------------------------------- June 30, March 31, Dec. 31,
2009 2009 2008 (unaudited) (unaudited) (audited) -----------
----------- ------------ ASSETS Current Assets Cash and cash
equivalents $31,145,513 $29,629,771 $29,182,251 Accounts receivable
301,065 745,671 1,628,710 Prepaid expenses and other receivables
10,389,334 9,820,393 9,236,025 Inventories 6,658,038 4,174,194
3,744,745 ----------------------------- ------------ ------------
------------ Total Current Assets 48,493,950 44,370,029 43,791,731
Property, Plant & Equipments, Net 80,492,398 79,259,733
79,877,186 Construction In Progress 3,251,779 2,045,005 1,036,667
Intangible assets, net 55,722,135 56,424,069 57,126,002 Other
Assets Deferred financing costs, net 792,703 914,373 1,243,923
----------------------------- ------------ ------------
------------ Total Assets $188,752,965 $183,013,209 $183,075,509
----------------------------- ------------ ------------
------------ LIABILITIES AND STOCKHOLDERS' EQUITY Current
Liabilities Current portion of long term debt - net of discount
$9,996,160 $9,996,160 $9,481,940 Accounts payable 13,949,099
8,647,184 8,872,144 Service performance obligation-deferred revenue
assumed 6,325,476 5,857,510 1,661,311 Other current liabilities
7,997,399 7,515,259 7,630,924 Note payable-non controlling
("minority") interest 55,391,666 54,558,879 55,420,250
----------------------------- ------------ ------------
------------ 93,659,800 86,574,992 83,066,569 Long Term Liabilities
Note payable - noncontrolling ("minority") interest, net of current
portion 51,798,182 51,767,873 51,777,719 Convertible notes, net of
discount and current portion 21,756,033 19,188,078 16,684,044
----------------------------- ------------ ------------
------------ Total Liabilities 167,214,015 157,530,943 151,528,332
----------------------------- ------------ ------------
------------ Noncontrolling ("minority") interest 1,828,786
1,353,689 1,768,004 ----------------------------- ------------
------------ ------------ STOCKHOLDERS' EQUITY Common stock, $.0005
par value; 40,000,000 authorized shares, 9,677,131 shares,
9,677,131 shares and 9,308,031 shares issued and outstanding at
June 30, 2009, March 31 and December 31, 2008, respectively 4,839
4,839 4,839 Additional paid in capital 45,526,562 45,526,562
45,526,562 Statutory reserve 131,501 131,501 131,501 Accumulated
deficit (26,586,992) (22,183,584) (16,532,864) Accumulated other
comprehensive income 634,254 649,259 649,135
----------------------------- ------------ ------------
------------ Total stockholders' equity 19,710,164 24,128,577
29,779,173 ----------------------------- ------------ ------------
------------ Total liabilities and stockholders' equity
$188,752,965 $183,013,209 $183,075,509
----------------------------- ------------ ------------
------------ CHINA CABLECOM HOLDINGS LIMITED
---------------------------------------------- Unaudited
Consolidated Statements of Operation (in US dollars, except share
data) ---------------------------------------------- Quarter ended
March 31, 2009 2008 ---- ---- Revenue $9,958,845 $2,003,766 Cost of
sales 6,416,527 1,081,972 ------------------------------------
---------- ---------- Gross profit 3,542,318 921,794 Operating
expenses Amortization expenses - - General and administrative
expenses 5,826,361 1,626,254 ------------------------------------
---------- ---------- 5,826,361 1,626,254 ---------- ----------
Loss from operations (2,284,043) (704,460)
------------------------------------ ---------- ---------- Other
income (expense) Interest income 44,474 40,515 Other income 211,613
65,334 Interest expense (3,292,253) (1,101,077)
------------------------------------ ---------- ----------
(3,036,166) (995,228) ---------- -------- Loss before income taxes
(5,320,209) (1,699,688) Income taxes (110,485) (127,814)
------------------------------------ ---------- ---------- Loss
from operations before noncontrolling ("minority") interest
(5,430,694) (1,827,502) Noncontrolling ("minority") interest in
income (220,026) (153,342) ------------------------------------
---------- ---------- Net loss (5,650,720) (1,980,844) Other
comprehensive income Foreign currency translation difference 124
404,649 ------------------------------------ ---------- ----------
Net comprehensive loss $(5,650,596) $(1,576,195)
------------------------------------ ---------- ---------- Loss per
common share: - Basic and fully diluted $(0.58) $(1.04) Weighted
average shares - Basic and fully diluted 9,677,131 1,900,000
------------------------------------ ---------- ---------- CHINA
CABLECOM HOLDINGS LIMITED
---------------------------------------------- Unaudited
Consolidated Statements of Operation (in US dollars, except share
data) ---------------------------------------------- Quarter ended
June 30, Six months ended June 30, 2009 2008 2009 2008 ---- ----
---- ---- Revenue $10,722,168 $2,286,451 $20,681,013 $4,290,217
Cost of sales 6,608,915 1,233,395 13,025,441 2,315,367
------------------- ----------- ----------- ----------- -----------
Gross profit 4,113,253 1,053,056 7,655,572 1,974,850 Operating
expenses Amortization expenses - General and administrative
expenses 4,689,379 2,270,283 10,515,740 3,896,537
------------------ ----------- ----------- ----------- -----------
4,689,379 2,270,283 10,515,740 3,896,537 ----------- -----------
----------- ----------- Loss from operations (576,126) (1,217,227)
(2,860,168) (1,921,687) ------------------ ----------- -----------
----------- ----------- Other income (expense) Interest income
38,373 231,473 82,847 271,988 Other income 241,644 2,114 453,257
67,448 Interest expense (3,488,622) (1,868,587) (6,780,875)
(2,969,664) ------------------- ----------- ----------- -----------
----------- (3,208,605) (1,635,000) (6,244,771) (2,630,228)
----------- ----------- ----------- ----------- Loss before income
taxes (3,784,731) (2,852,227) (9,104,939) (4,551,915) Income taxes
(144,026) (137,756) (254,512) (265,570) -------------------
----------- ----------- ----------- ----------- Loss from
operations before noncontrolling ("minority") interest (3,928,757)
(2,989,983) (9,359,451) (4,817,485) Noncontrolling ("minority")
interest in income (474,651) (162,874) (694,677) (316,216)
------------------- ----------- ----------- ----------- -----------
Net loss (4,403,408) (3,152,857) (10,054,128) (5,133,701) Other
comprehensive income Foreign currency translation difference
(15,005) (335,933) (14,881) 68,716 ------------------- -----------
----------- ----------- ----------- Net comprehensive loss
$(4,418,413) $(3,488,790) $(10,069,009) $(5,064,985)
------------------- ----------- ----------- ----------- -----------
Loss per common share: - Basic and fully diluted $(0.46) $(0.38)
$(1.04) $(1.00) Weighted average shares - Basic and fully diluted
9,677,131 8,230,501 9,677,131 5,149,090 -------------------
----------- ----------- ----------- ----------- Reconciliation of
Non-U.S. GAAP Measures This release contains discussion of China
Cablecom's revenues, and projected and pro forma revenues, as well
as 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: Quarter ended ----------------------------- Six
months ended June 30, June 30, 2009 March 31, 2009 2009
------------- -------------- -------------- Net comprehensive loss
$(4,418,413) $(5,650,596) $(10,069,009) Amortization 823,604
1,031,483 1,855,087 Depreciation 2,150,038 2,096,298 4,246,336
Interest income (38,373) (44,474) (82,847) Interest & finance
3,488,622 3,292,253 6,780,875 Income tax 86,416 66,291 152,707
------ ------ ------- Non-GAAP income (EBITDA) $2,091,894 $791,255
$2,883,149 ========== ======== ========== Reconciliation to
operating metrics Binzhou Broadcasting EBITDA - 60% share $891,286
$923,531 $1,814,817 Hubei Chutian EBITDA - 60% share 2,042,186
1,454,137 3,496,323 Corporate overhead (841,578) (1,586,413)
(2,427,991) -------- ---------- ---------- $2,091,894 $791,255
$2,883,149 ========== ======== ========== China Cablecom Holdings,
Ltd. http://www.chinacablecom.net/ CONTACT: Debra Chen
(917-499-8129) Email: DATASOURCE: China Cablecom Holdings, Ltd.
CONTACT: Debra Chen, +1-917-499-8129, Web Site:
http://www.chinacablecom.net/
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