SHANGHAI, June 29 /PRNewswire-FirstCall/ -- China Cablecom Holdings, Ltd. ("China Cablecom" or the "Company") CABL CABLW 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.
SOURCE China Cablecom Holdings, Ltd.
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