SHANGHAI, June 29 /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), today announced an update to its
fourth quarter 2009 financial results.
Subsequent to the announcement of preliminary unaudited
financial results for the fourth quarter of 2009 on April 6, 2010, China Cablecom's management has
reassessed the fair value allocation between the Senior Secured
Notes and Series B Preferred Shares issued in October 2009 for $33
million proceeds in total, based on which it has determined
that a reclassification adjustment of $6.7
million between Senior Secured Notes and additional paid-in
capital and a related reclassification of $1.8 million between deferred financing costs and
additional paid-in capital is required. Consequently, an adjustment
of interest expense of $0.3 million
and an adjustment of amortization on other deferred financing cost
of $0.1 million are also
required.
The updated unaudited consolidated balance sheet as of
December 31, 2009 and the updated
unaudited consolidated statements of operations for the fourth
quarter and year ended December 31,
2009 are included below.
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CHINA
CABLECOM HOLDINGS, LTD.
CONSOLIDATED
BALANCE SHEETS
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December 31, 2009
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December 31,
2008
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(restated)
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ASSETS
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Current Assets:
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Cash and cash
equivalents
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$
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23,938,460
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$
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29,182,251
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Accounts
receivable
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1,973,333
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1,628,710
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Prepaid expenses
and advances
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9,222,547
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9,236,025
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Inventories
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6,033,914
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3,744,745
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Total
Current Assets
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41,168,254
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43,791,731
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Property, Plant & Equipment,
net
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89,329,880
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79,877,186
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Construction In Progress
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3,967,552
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1,036,667
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Intangible assets, net
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35,042,708
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37,850,441
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Goodwill
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19,275,561
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19,275,561
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Other Assets:
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Deferred financing
costs, net
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1,987,215
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1,243,923
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Total
Assets
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$
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190,771,170
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$
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183,075,509
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LIABILITIES AND SHAREHOLDERS'
EQUITY
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Current Liabilities:
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Promissory note –
net of discount
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$
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-
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$
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9,481,940
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Accounts
payable
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17,504,073
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8,872,144
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Service
performance obligation – deferred revenue
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3,069,899
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1,661,311
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Other current
liabilities
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9,374,749
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7,630,924
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Note payable –
noncontrolling interest
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27,626,772
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55,420,250
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Total
Current Liabilities
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57,575,493
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83,066,569
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Long Term Liabilities:
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Senior secured notes, net of
discount
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7,973,096
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-
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Secured notes, net of
discount
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17,062,563
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-
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Unsecured notes, net of
discount
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5,134,795
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-
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Convertible notes, net of
discount
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-
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16,684,044
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Note payable – noncontrolling
interest, net of current portion
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64,347,852
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51,777,719
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Total
Liabilities
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152,093,799
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151,528,332
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EQUITY
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Series A convertible preferred shares,
$.0005 par value; 70,000,000 authorized shares, 62,161,965
shares issued and outstanding
(December 31, 2008 none issued)
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31,081
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-
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Series B convertible preferred shares,
$.0005 par value; 25,000,000 authorized shares, 23,158,080
shares issued and outstanding
(December 31, 2008 none issued)
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11,579
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-
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Ordinary shares, $.0015 par value;
51,666,667 authorized shares, 4,688,151 shares issued and
outstanding (December 31, 2008
3,225,711 shares
issued)
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7,033
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4,839
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Additional paid-in capital
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109,452,870
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45,526,562
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Statutory reserves
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141,582
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131,501
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Accumulated deficit
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(73,111,896)
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(16,532,864)
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Accumulated other comprehensive
income
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595,396
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613,064
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Shareholders' equity
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37,127,645
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29,743,102
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Non-controlling interest
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1,549,726
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1,804,075
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Total
equity
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38,677,371
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31,547,177
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Total
liabilities and shareholders' equity
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$
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190,771,170
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$
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183,075,509
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CHINA
CABLECOM HOLDINGS,
LTD.
CONSOLIDATED
STATEMENTS OF OPERATIONS
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For the year
ended
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For the year
ended
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December 31,
2009
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December 31,
2008
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Revenue
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$
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45,563,281
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$
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23,439,217
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Cost of revenue
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(29,867,222)
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(13,436,959)
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Gross profit
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15,696,059
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10,002,258
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Operating expenses
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General and
administrative expenses
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(22,652,668)
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(15,125,517)
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Total operating expenses
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(22,652,668)
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(15,125,517)
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Loss from operations
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(6,956,609)
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(5,123,259)
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Other income / (expenses)
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Interest income
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151,993
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340,102
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Interest expense
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(9,982,012)
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(8,741,899)
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Loss on debt extinguishment
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(39,663,466)
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-
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Other income
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845,980
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680,574
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Total other expenses
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(48,647,506)
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(7,721,223)
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Loss before income taxes and
non-controlling interest
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(55,604,114)
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(12,844,482)
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Income taxes
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(571,981)
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(341,748)
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Net loss, net of tax
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(56,176,095)
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(13,186,230)
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Less: Net profit attributable to
non-controlling interest
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392,856
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986,619
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Net loss attributable to China
Cablecom Holdings, Ltd.
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$
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(56,568,951)
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$
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(14,172,849)
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Loss per ordinary share:
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- Basic and fully diluted
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$
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(16.68)
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$
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(5.73)
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Weighted average number of
shares
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- Basic and fully diluted
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3,391,924
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2,472,504
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About China Cablecom Holdings
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 percent economic interest in a cable network in
Hubei province with paying
subscribers exceeding 1,200,000. 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
1.7 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 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.
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China Cablecom
Holdings, Ltd.
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www.chinacablecom.net
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CONTACT: Debra Chen
(917-499-8129)
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Email:
debra@chinacablecom.net
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SOURCE China Cablecom Holdings, Ltd.