Cabletel Communications Reports First Quarter Results.MARKHAM, Ontario--(BUSINESS WIRE)--April 27, 1998-- Establishes New Relationships With Telco Equipment Customers Cabletel Communications Corp. (AMEX AMEX See: American Stock Exchange : TTV TTV Transfusion Transmitted Virus TTV Total Thickness Variation (semiconductor wafer planarity) TTV TechTV TTV Total Transaction Value TTV Tapping the Vein (band) TTV Target Test Vehicle , TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : TTV) today reported results for the first quarter ended March 31, 1998. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight (all figures reported in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents ) for the 1998 first quarter were $9,999,509, compared to $13,889,402 in the comparable year ago period. Selling, general and administrative expenses for the 1998 first quarter fell 18% to $1,674,241 from $2,047,193 in first quarter of 1997 as a result of a 15 percent personnel reduction effected in the second quarter of 1997. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses (net income plus depreciation, amortization and other non-cash items) for the 1998 first quarter was $41,650, or $0.01 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $285,220, or $0.04 per diluted share, in the comparable 1997 period. The company reported a net loss of $217,973, or $0.03 per diluted share, for the period ended March 31, 1998, compared to net income of $60,756, or $0.01 per diluted share, for the comparable year ago period. Per share results are based on a weighted average number of diluted shares outstanding of 6,560,345 and 6,744,637 for the first quarters of 1998 and 1997, respectively. Commenting on the results, Sheldon Rittenberg, President and Chief Executive Officer of Cabletel, stated, "First quarter results reflect seasonally adjusted Seasonally adjusted Mathematically adjusted by moderating a macroeconomic indicator (e.g., oil prices/imports) so that relative comparisons can be drawn from month to month all year. sales due to slower winter construction activity and a reduced level of capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. by our cable television equipment customers. Despite significantly lower sales during the quarter, the Company's streamlined operations helped it achieve positive cash flow from operations, and we look forward to transforming our new telco relationships into improved second quarter results." Mr. Rittenberg added, "Cabletel continues to aggressively identify new product lines and develop new customers. We are particularly encouraged by our efforts to build new relationships within the telephony service industry. The internet's growing popularity is creating demand for additional phone lines in many Canadian homes, and we are poised to meet that demand through Raychem's digital mini-plexer, a product line exclusive to Cabletel which enables single-loop subscriber lines The line from the customer site to the local telephone company. See subscriber network. to carry up to six digital signals. As that Telco and CATV (Community Antenna TV) The original name for cable TV. It used a single antenna at the highest location in the community in order to deliver a quality signal to homes in areas with hilly terrain or other interference. industries move toward complete digital transmission, we are working with new vendors to add high quality signal processing See DSP. and transmission products that will keep Cabletel on the cutting edge of this transformation." Cabletel Communications Corp. is the largest full-service distributor of broadband equipment to the Canadian cable television and telecommunications industries, offering over 8,000 products required to construct, build, maintain and upgrade cable television and telecommunications systems. The Company also manufactures connectors for use in cable distribution systems through its wholly-owned subsidiary, Stirling Connectors Inc. -0- Except for the historical information in this press release, it includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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. -0-
Cabletel Communications Corp.
Consolidated Statement of Operations
(Canadian $)
(Unaudited)
Three Months Ended
March 31,
1998 1997
Net Sales $9,999,509 $13,889,402
Cost of Sales 8,372,440 11,338,255
Gross profit 1,627,069 2,551,147
Selling, General &
Administrative Expenses 1,674,241 2,047,193
Income (loss) from operations (47,172) 503,954
Other:
Depreciation & Amortization 229,419 226,182
Interest expense 76,832 112,016
Income (loss) before taxes (353,423) 165,756
Income taxes (benefit) (135,450) 105,000
Net income (loss) $(217,973) $ 60,756
Net income (loss) per share(a)
Basic $ (0.03) $ 0.01
Diluted $ (0.03) $ 0.01
Weighted average
shares outstanding
Basic 6,522,890 6,495,112
Diluted 6,560,345 6,744,637
(a) Reflects the Statement of Financial Accounting Standards No. 128
which was adopted in the fourth quarter of 1997. `Basic' net
income per share only includes shares outstanding in the
calculation. `Diluted' net income per share includes options and
warrants in the calculation. Prior periods' net income per share
amounts have been restated to reflect this presentation.
CONTACT: Ron Eilath Arnold S. Tenney Chief Financial Officer Chairman 905/475-1030 416/630-0200 |
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