China Cablecom Announces an Update to Its Financial Results for the Fourth Quarter of 2009

Jun 29, 2010, 06:30 ET from China Cablecom Holdings, Ltd.

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.

CHINA CABLECOM HOLDINGS, LTD.

CONSOLIDATED BALANCE SHEETS







December 31, 2009


 December 31, 2008





(restated)

ASSETS





Current Assets:





Cash and cash equivalents

$

23,938,460

$

29,182,251

Accounts receivable


1,973,333


1,628,710

Prepaid expenses and advances


9,222,547


9,236,025

Inventories


6,033,914


3,744,745

       Total Current Assets


41,168,254


43,791,731






Property, Plant & Equipment, net


89,329,880


79,877,186

Construction In Progress


3,967,552


1,036,667

Intangible assets, net


35,042,708


37,850,441

Goodwill


19,275,561


19,275,561

Other Assets:





Deferred financing costs, net


1,987,215


1,243,923

        Total Assets

$

190,771,170

$

183,075,509

LIABILITIES AND SHAREHOLDERS' EQUITY




Current Liabilities:





Promissory note – net of discount

$

-

$

9,481,940

Accounts payable


17,504,073


8,872,144

Service performance obligation – deferred revenue


3,069,899


1,661,311

Other current liabilities


9,374,749


7,630,924

Note payable – noncontrolling interest


27,626,772


55,420,250

        Total Current Liabilities


57,575,493


83,066,569

Long Term Liabilities:





Senior secured notes, net of discount


7,973,096


-

Secured notes, net of discount


17,062,563


-

Unsecured notes, net of discount


5,134,795


-

Convertible notes, net of discount


-


16,684,044

Note payable – noncontrolling interest, net of current portion


64,347,852


51,777,719

        Total Liabilities


152,093,799


151,528,332











EQUITY





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)


31,081


-

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)


11,579


-

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)


7,033


4,839

Additional paid-in capital


109,452,870


45,526,562

Statutory reserves


141,582


131,501

Accumulated deficit


(73,111,896)


(16,532,864)

Accumulated other comprehensive income


595,396


613,064

Shareholders' equity


37,127,645


29,743,102

Non-controlling interest


1,549,726


1,804,075

        Total equity


38,677,371


31,547,177

        Total liabilities and shareholders' equity

$

190,771,170

$

183,075,509



CHINA CABLECOM HOLDINGS, LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS




For the year ended


For the year ended



December 31, 2009


December 31, 2008






Revenue

$

45,563,281

$

23,439,217

Cost of revenue


(29,867,222)


(13,436,959)

Gross profit


15,696,059


10,002,258

Operating expenses





    General and administrative expenses


(22,652,668)


(15,125,517)

           Total operating expenses


(22,652,668)


(15,125,517)

Loss from operations


(6,956,609)


(5,123,259)

Other income / (expenses)





Interest income


151,993


340,102

Interest expense


(9,982,012)


(8,741,899)

Loss on debt extinguishment


(39,663,466)


-

Other income


845,980


680,574

           Total other expenses


(48,647,506)


(7,721,223)

Loss before income taxes and non-controlling interest


(55,604,114)


(12,844,482)

Income taxes


(571,981)


(341,748)

Net loss, net of tax


(56,176,095)


(13,186,230)


Less:  Net profit attributable to non-controlling interest


392,856


986,619

Net loss attributable to China Cablecom Holdings, Ltd.

$

(56,568,951)

$

(14,172,849)






Loss per ordinary share:





- Basic and fully diluted

$

(16.68)

$

(5.73)

Weighted average number of shares





- Basic and fully diluted


3,391,924


2,472,504



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.

China Cablecom Holdings, Ltd.

www.chinacablecom.net

CONTACT: Debra Chen (917-499-8129)

Email: debra@chinacablecom.net



SOURCE China Cablecom Holdings, Ltd.



RELATED LINKS

http://www.chinacablecom.net