Roger, nice report card, TTV turning around.
Do you expect TTV to get more orders from CSCO?
Hefty back log... all in all, I beginning to really like TTV.
**********
Wednesday March 8, 7:48 am Eastern Time
Company Press Release
Cabletel Communications Reports Sharp Fourth
Quarter and Year-End Increases
38% Fourth Quarter Revenue Gain, Record $9.9 Million Backlog & Multiple Significant
Contracts Point to Further Growth in 2000
MARKHAM, Ontario--(BUSINESS WIRE)--March 8, 2000-- Cabletel Communications' (AMEX:TTV, TSE:TTV), the
leading distributor of broadband equipment to the Canadian television and telecommunications industries, today reported its
fifth consecutive profitable quarter and year-end results that reflect sharp revenue gains and a notable turnaround to profitability.
A 38% fourth quarter revenue gain, a record $9.9 million backlog (up from $3.6 million) and multiple significant contracts point
to further growth in 2000.
Cabletel's net sales for the fourth quarter ended December 31, 1999 rose to $15,011,195 from the $10,895,593 recorded for
the fourth quarter of 1998 (all figures are in Canadian dollars). Net income for the quarter amounted to $210,979, or $0.03 per
share, compared to $73,202, or $0.01 per share, for the same period last year.
Sales for the year ended December 31, 1999 rose 28% to $54,445,287 from the $42,629,700 reported for 1998. Income
before income taxes for 1999 showed a turnaround of nearly $2.2 million (exclusive of 1998 restructuring costs). Net income
for 1999 rose to $567,377, or $0.09 per share, from a loss of $7,784,636 (including the $7,098,077 restructuring charge), or
$1.19 per share for 1998.
Cabletel noted that its aggressive 1999 growth focus had achieved notable results and is expected to continue to show benefits
going forward. This initiative focused on domestic and international sales, products that produce high margins, product
diversification and expansion of its customer base into new markets. Supplemented by cost reduction efforts, gross profit
margins increased to 16.3% in 1999 from 15.4% in 1998. In addition, selling, general and administrative expenses declined to
14.1% in 1999 from 15.9%. The Company expects further efficiencies to result from its recent consolidation of operations into
new and larger quarters.
Cabletel is benefiting from several important agreements and contracts such as -- partnering with Cisco Systems
(NASDAQ:CSCO - news) Canada to provide cable operators the most advanced internet equipment, marketing BARCO
Communication Systems' (BANVF) digital broadcasting products to the broadcasting industry, Cabletel's Stirling Connectors
Division's key contracts from Charter Communications (NASDAQ:CHTR - news) the fourth largest U.S. cable operator, 3M
Spain and for Israel's first Direct Broadcast Satellite service.
Greg Walling, Cabletel's President and Chief Executive Officer commented, ``We are pleased with our accelerating sales
growth and profitability in 1999. Our dual focus in 2000 will be to sustain growth on both the top and bottom lines thereby
enhancing shareholder value. With a strong backlog and sales to date surpassing expectations we look forward to another
exciting year. It should be noted that Stirling Connectors has been and is expected to continue to be a key factor in our
growth.'
Cabletel Communications offers a wide variety of products to the Canadian television and telecommunications industries
required to construct, build, maintain and upgrade systems. The Company's engineering division offers technical advice and
integration support to customers. Stirling Connectors, Cabletel's manufacturing division supplies national and international clients
with proprietary products for deployment in cable, DBS and other wireless distribution systems. More information about
Cabletel can be found at www.cabletelgroup.com.
Except for the historical information in this document, it includes forward-looking statements that involve risks and uncertainties
including, but not limited to, quarterly fluctuations in results, the management of growth, and other risks detailed from time to
time in the Company's Securities and Exchange Commission filings Actual results may differ materially from management
expectations.
Cabletel Communications Corp.
Consolidated Statement of Operations
( Canadian $ )
( Unaudited )
Three Months Ended Twelve Months Ended
Dec 31 Dec 31
1999 1998 1999 1998
---- ---- ---- ----
NET SALES $15,011,195 $10,895,593 $54,445,287 $42,629,700
COST OF SALES 12,540,447 9,126,038 45,617,176 36,053,729
----------- ----------- ----------- -----------
GROSS PROFIT 2,470,748 1,769,555 8,828,111 6,575,971
----------- ----------- ----------- -----------
RESTRUCTURING
COSTS -- -- -- 7,098,077
SELLING,
GENERAL &
ADMINISTRATIVE
EXPENSES 2,244,229 1,729,821 7,681,348 6,795,076
----------- ----------- ----------- -----------
INCOME (LOSS)
FROM OPERATIONS 226,519 39,734 1,146,763 (7,317,182)
OTHER:
DEPRECIATION
AND
AMORTIZATION 105,869 198,177 325,618 890,676
INTEREST
EXPENSE 72,258 80,949 298,869 364,222
(GAIN) ON SALE
OF BLDG 0 -- (122,070) --
(GAIN) ON LIFE
INSURANCE 0 -- (72,570) --
------------------------------------------------------
INCOME (LOSS)
BEFORE INCOME
TAXES 48,393 (239,392) 716,916 (8,572,080)
INCOME TAXES
PROVISION (162,587) (312,594) 149,539 (787,444)
------------------------------------------------------
NET INCOME
(LOSS) $ 210,979 $ 73,202 $ 567,377 ($ 7,784,636)
------------------------------------------------------
NET INCOME
(LOSS) PER
SHARE
Basic $ 0.03 $ 0.01 $ 0.09 ($ 1.19)
Diluted $ 0.03 $ 0.01 $ 0.08 ($ 1.19)
Weighted average
no. of shares:
Basic 6,585,286 6,545,112 6,555,238 6,537,603
----------- ----------- ----------- -----------
Diluted 7,093,438 6,545,112 6,949,153 6,537,603
----------- ----------- ----------- -----------
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