SHANGHAI, Dec. 8 /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 third
quarter ended September 30, 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 third quarter of 2009 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. Third Quarter 2009 Highlights: -- Hubei
revenues for the first nine months of 2009 were $25.1 million, up
25% over the same period last year -- Hubei earnings before
interest, taxes, depreciation and amortization (EBITDA) for the
first nine months of 2009 were $5.8 million, up 34% over the same
period last year -- Hubei paying subscribers as of September 30,
2009 were 1,166,178, up 16% over the same date last year -- Binzhou
revenues for the first nine months of 2009 were $7.3 million, up 7%
over the same period last year -- Binzhou EBITDA for the first nine
months of 2009 were $2.7 million, down 7% over the same period last
year -- Binzhou paying subscribers as of September 30, 2009 were
481,186, up 1% over the same date last year -- Consolidated paying
subscribers as of September 30, 2009 were approximately 1.6
million, up 11% over the same date last year Comments from Mr.
Clive Ng, Founder & Executive Chairman and Mr. Pu Yue, Chief
Executive Officer "Our primary focus for 2009 was on growing our
cable operations organically and establishing a value-added service
platform to enhance ARPU opportunities. As a result, we've
demonstrated sustainable growth in our Hubei and Binzhou ventures
and more recently announced a strategic broadband development
agreement with one of China's largest service providers," says
Clive Ng, Founder & Executive Chairman of China Cablecom.
"Throughout the fiscal year, we believe that China Cablecom has
delivered top line growth at a rate of 18%, this quarter adding an
additional 42,739 paying subscribers, indicative of the strength in
our growth despite the softening of global financial markets,"
comments Pu Yue, Chief Executive Officer of China Cablecom. "While
digitization is still in its infancy when compared to other parts
of the world, we have witnessed the acceleration of this conversion
beyond our expectations with digital subscribers of 210,000 in
Hubei and 50,000 in Binzhou. Digital ARPU on average accounts for
nearly twice as much as analog cable, driving up our EBITDA and
cash flows and we believe we are positioned to seize upon this
highly profitable digital cable market." Financial Results for the
Quarter Ended September 30, 2009 Consolidated revenues for the
third quarter of 2009 were $11.7 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 third quarter of 2009 were $4.9 million compared
to operating expenses of $5.5 million for the third quarter of
2008. The reduction of operating costs resulted from the reduction
of overhead, both in corporate and operating entities. Based on
U.S. GAAP, net comprehensive loss for the third quarter of 2009 was
$2.9 million, or $0.30 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 third quarter of 2009 was significantly impacted by (1)
non-cash amortization of intangible assets of which were acquired
in connection with China Cablecom's acquisition of Binzhou
Broadcasting and Hubei in the amount of $0.37 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 May 2008 convertible note offering in the
amount of $2.34 million. Financial Results for the Nine Months
Ended September 30, 2009 - Pro Forma Basis Pro forma revenues for
the nine months ended September 30, 2009 were $32.4 million. Pro
forma operating expenses for the nine months ended September 30,
2009 were $15.4 million. On a GAAP basis, net comprehensive loss
for the nine months ended September 30, 2009 was $12.9 million, or
$1.34 per basic and fully diluted share. For the nine months ended
September 30, 2009, the company used weighted average shares
outstanding of 9.7 million. The net loss for the nine months ended
September 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 $1.12 and $0.98 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 $9.5 million. Recent Company Highlights -- In early
October, China Cablecom reached an agreement with majority holders
and holders of debt securities to restructure its outstanding debt
obligations and cash interest through the issuance of preferred
stock convertible into ordinary shares, in exchange for the
reduction of the principal amount of its long term remaining debt
-- In connection with the restructuring, the Company completed a
$33 million private placement of senior secured notes with net
proceeds used to satisfy remaining payments of Hubei assets under
the amended framework agreement 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
September 30, ---------------------------------------- (unaudited)
2009 2008 % ---------- ---------- ---- Binzhou Broadcasting Revenue
$2,699,219 $2,505,381 8% EBITDA - 60% share $864,119 $1,094,207
-21% Non-financial metrics: ---------------------- Paying
subscribers 481,186 477,160 1% Digital subscribers 58,657 nm ARPU
$1.56 $1.47 6% Hubei Chutian Revenue $9,020,850 $6,867,016 31%
EBITDA - 60% share $2,321,625 $1,369,586 70% Non-financial metrics:
---------------------- Paying subscribers 1,166,178 1,009,347 16%
Digital subscribers 273,836 nm ARPU $2.20 $1.81 22% Total revenue
$11,720,068 $9,372,397 25% Total EBITDA - 60% $3,185,745 $2,463,794
29% nm = not meaningful 9 months ended September 30,
---------------------------------------- (unaudited) 2009 2008 %
---------- ---------- ---- Binzhou Broadcasting Revenue $7,304,176
$6,795,598 7% EBITDA - 60% share $2,678,936 $2,873,528 -7%
Non-financial metrics: ---------------------- Paying subscribers
481,186 477,160 1% Digital subscribers 58,657 nm ARPU $1.44 $1.38
4% Hubei Chutian Revenue $25,096,906 $19,997,735 25% EBITDA - 60%
share $5,817,949 $4,333,312 34% Non-financial metrics:
---------------------- Paying subscribers 1,166,178 1,009,347 16%
Digital subscribers 273,836 nm ARPU $2.12 $1.76 20% Total revenue
$32,401,081 $26,793,333 21% Total EBITDA - 60% $8,496,885
$7,206,840 18% nm = not meaningful Conference Call and Webcast
China Cablecom's management team will host a conference call today
at 8:30 a.m. EST, December 8, 2009 (or 9:30 p.m., December 8, 2009
Shanghai time). To listen to the conference call, please use the
dial in numbers below: USA Toll Number: 1-866-225-8754
International: 1-408-629-9692 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: 4181650# 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. China Cablecom has
consummated the acquisition of a 55% economic interest in a cable
network in Hubei province with paying subscribers exceeding
1,100,000. 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 1.67 million
paying subscribers. China Cablecom's 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 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
numerous risks, uncertainties and assumptions, Any forward-looking
statements are not guarantees of future performance and actual
results of operations, financial condition and liquidity. The
forward-looking statements herein speak only as of the date stated
herein and might not occur or the actual results may differ
materially 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 Annual Report on Form 20-F filed on July 15, 2009.
China Cablecom Holdings, Ltd. http://www.chinacablecom.net/
CONTACT: Debra Chen (917-499-8129) Email: CHINA CABLECOM HOLDINGS
LIMITED ------------------------------- Unaudited Consolidated
Balance Sheets (in US dollars, except share data)
---------------------------------- Sept. 30, 2009 Dec. 31, 2008
(unaudited) (audited) -------------- ------------- ASSETS Current
Assets Cash and cash equivalents $33,416,503 $29,182,251 Accounts
receivable 1,190,359 1,628,710 Prepaid expenses and other
receivables 8,028,202 9,236,025 Inventories 7,500,588 3,744,745
--------------------------------------- ----------- -----------
Total Current Assets 50,135,652 43,791,731 Property, Plant &
Equipments, Net 84,651,352 79,877,186 Construction In Progress
4,353,686 1,036,667 Intangible assets, net 55,020,202 57,126,002
Other Assets Deferred financing costs, net 836,624 1,243,923
--------------------------------------- ----------- -----------
Total Assets $194,997,516 $183,075,509
--------------------------------------- ----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Current
portion of long term debt - net of discount $9,996,160 $9,481,940
Accounts payable 14,698,539 8,872,144 Service performance
obligation- deferred revenue assumed 5,149,476 1,661,311 Other
current liabilities 9,140,139 7,630,924 Note payable-non
controlling ("minority") interest 61,124,739 55,420,250
--------------------------------------- ----------- -----------
100,109,053 83,066,569 Long Term Liabilities Note payable -
noncontrolling ("minority") interest, net of current portion
51,820,178 51,777,719 Convertible notes, net of discount and
current portion 23,994,922 16,684,044
--------------------------------------- ----------- -----------
Total Liabilities 175,924,153 151,528,332
--------------------------------------- ----------- -----------
Noncontrolling ("minority") interest 2,260,434 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 September 30, 2009 and December
31, 2008, respectively 4,839 4,839 Additional paid in capital
45,526,562 45,526,562 Statutory reserve 131,501 131,501 Accumulated
deficit (29,445,627) (16,532,864) Accumulated other comprehensive
income 595,654 649,135 ---------------------------------------
----------- ----------- Total stockholders' equity 16,812,929
29,779,173 --------------------------------------- -----------
----------- Total liabilities and stockholders' equity $194,997,516
$183,075,509 --------------------------------------- -----------
----------- CHINA CABLECOM HOLDINGS LIMITED
----------------------------------- Unaudited Consolidated
Statements of Operation (in US dollars, except share data)
---------------------------------- Quarter ended Nine months ended
Sept. 30, Sept. 30, 2009 2008 2009 2008 ---------- ----------
---------- ---------- Revenue $11,720,068 $9,372,397 $32,401,081
$13,662,614 Cost of sales 7,160,277 5,369,616 20,185,718 7,684,984
------------------- ---------- ---------- ---------- ----------
Gross profit 4,559,791 4,002,781 12,215,363 5,977,630 Operating
expenses Amortization expenses General and administrative expenses
4,881,269 5,553,279 15,397,009 9,449,817 -------------------
---------- ---------- ---------- ---------- Loss from operations
(321,478) (1,550,498) (3,181,646) (3,472,187) -------------------
---------- ---------- ---------- ---------- Other income (expense)
Interest income 28,226 119,998 111,073 391,986 Other income 203,122
274,840 656,379 342,288 Interest expense (2,240,009) (2,685,499)
(9,020,884) (5,655,162) ------------------- ---------- ----------
---------- ---------- (2,008,661) (2,290,661) (8,253,432)
(4,920,888) ---------- ---------- ---------- ---------- Loss before
income taxes (2,330,139) (3,841,159) (11,435,078) (8,393,075)
Income taxes (121,927) (268,965) (376,439) (534,535)
------------------- ---------- ---------- ---------- ----------
Loss from operations before noncontrolling ("minority") interest
(2,452,066) (4,110,124) (11,811,517) (8,927,610) Noncontrolling
("minority") Interest in income (396,764) (315,629) (1,101,246)
(631,845) ------------------- ---------- ---------- ----------
---------- Net loss (2,848,830) (4,425,753) (12,912,763)
(9,559,455) Other comprehensive income Foreign currency translation
difference (12,334) (82,800) (27,215) (14,084) -------------------
---------- ---------- ---------- ---------- Net Comprehensive loss
$(2,861,164) (4,508,553) $(12,939,978) $(9,573,539)
------------------- ---------- ---------- ---------- ----------
Loss per common share: - Basic and fully diluted $(0.30) (0.48)
$(1.34) $(1.46) Weighted average shares - Basic and fully diluted
9,677,131 9,308,031 9,677,131 6,545,523 -------------------
---------- ---------- ---------- ---------- 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 Nine months ended Sept. 30, 2009
Sept. 30, 2009 -------------- -------------- Net comprehensive loss
$(2,870,969) $(12,939,978) Amortization 808,011 2,663,099
Depreciation 2,363,893 6,610,229 Interest income (28,227) (111,074)
Interest & finance 2,240,009 9,020,884 Income tax 73,156
225,863 ---------- ---------- Non-GAAP income (EBITDA) $2,585,873
$5,469,023 ========== ========== Reconciliation to operating
metrics Binzhou Broadcasting EBITDA -60% share $864,119 $2,678,936
Hubei Chutian EBITDA -60% share 2,321,625 5,817,949 Corporate
overhead (599,871) (3,027,862) ---------- ---------- $2,585,873
$5,469,023 ========== ========== DATASOURCE: China Cablecom
Holdings, Ltd. CONTACT: Debra Chen of China Cablecom Holdings,
Ltd., +1-917-499-8129, Web Site: http://www.chinacablecom.net/
Copyright