Canadian cable equipment supplier Cabletel Communications reports five-fold increase in third quarter net income.MARKHAM, Ontario--(BUSINESS WIRE)--Oct. 28, 1996-- ANTEC appoints two directors to Cabletel's board 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 record results for the third quarter and nine months ended September 30, 1996. The Company also announced that pursuant to Cabletel's August purchase of the Canadian distribution operations of ANTEC Corporation (Nasdaq: ANTC ANTC Advanced Networking Test Center ANTC Alliance for a New Transportation Charter ANTC Adjusted Net Tax Capacity ANTC Antennapedia Complex ANTC Advanced National Technical Certificate (Nigeria) ANTC Anticipated Net Tax Capacity ), in which ANTEC received cash and 1,450,000 Cabletel shares -- a 22% stake -- ANTEC exercised its right to nominate nom·i·nate tr.v. nom·i·nat·ed, nom·i·nat·ing, nom·i·nates 1. To propose by name as a candidate, especially for election. 2. To designate or appoint to an office, responsibility, or honor. two directors to Cabletel's Board. The ANTEC officers joining the Board are Executive Vice President and Chief Financial Officer Lawrence A. Margolis, 48, and Executive Vice President and President of ANTEC International Antec International was formerly one of the world's largest biosecurity companies, specialising in production of disinfectants and cleansing agents. It played a minor but important role in controlling the 2001 UK foot and mouth crisis. James L. Faust, 54. The additions increase the size of Cabletel's Board to eight. 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 ) in the third quarter ended September 30, 1996 increased 70% to $17,528,027, compared to $10,299,103 in the third quarter of 1995. The growth in sales for the quarter is attributable to increased capital expenditures and system upgrades by Canadian cable system operators which is driving demand for Cabletel's broadband equipment. The Company noted that since the integration and addition of ANTEC's products did not take place until September Until September is a 1984 romantic drama set in France. It stars Karen Allen as an American tourist in Paris who falls in love with a married Frenchman (Thierry Lhermitte). External links , the quarterly results largely reflect the strength of Cabletel's core operations. For the third quarter of 1996, net income rose over five-fold to $434,032, or $0.08 per share, compared to net income of $77,173, or $0.02 per share, in the third quarter of 1995. The weighted average number of shares outstanding for the third quarter of fiscal 1996 increased 14.7% to 5,246,704, compared with 4,575,000 during the same period last year, primarily as a result of the mid-quarter issuance of shares to ANTEC. For the nine month period ended September 30, 1996, net sales increased 21% to $39,893,319, compared to $32,854,234 in the same period a year ago. The Company reported net income of $734,407, or $0.16 per share, a 68% increase over net income of $437,731, or $0.10 per share, in the same period last year. Per share results are based on a weighted average number of shares outstanding of 4,628,571 and 4,575,000 for the first nine months of 1996 and 1995, respectively. Commenting on the record third quarter results, Sheldon Rittenberg, President and Chief Executive Officer of Cabletel, stated, "Having completed a wave of merger and acquisition activity over the past two years, Canadian cable operators are now focused on upgrading their infrastructure to meet the competitive and technological demands of today's marketplace. Accordingly, we are seeing a resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. in 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. that is driving demand for virtually all of Cabletel's products, increasing our revenues and providing operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. that resulted in strong net margin gains. During the quarter we made significant shipments to several large multiple systems operators. "Of particular significance was the strength of our core business during the quarter which, independent of the September integration of ANTEC products into our distribution system, showed excellent year-over-year gains. Customer response to the ANTEC acquisition has been positive, and we look forward to strengthening our ability to provide better service through an expanded selection of products. We are pleased with the pace of integration and anticipate the full benefit of our expanded customer and product base in future periods. Lawrence Margolis and James Faust of ANTEC add tremendous depth and industry experience to our board and their contributions will enable us to optimize the long-term value of the Cabletel/ANTEC alliance. "Looking forward, we entered the fourth quarter with a backlog of over $8 million, the expectation of the first full quarter of contribution from ANTEC and an excellent industry environment which we are well-positioned to exploit and which should result in further operating leverage. "Finally, during the quarter, ARC International This article is about the publicly traded processor company. For the privately held French housewares company of the same name, see ARC International (household). (AMEX: ATV (1) (Advanced TV) An early name for the digital TV standard proposed by the Advisory Committee on Advanced Television Service (ACATS). See ACATS. See also ATV Forum. (2) (Analog TV) Refers to the NTSC, PAL and SECAM analog TV standads. ), Cabletel's majority shareholder, converted at market rates, a note into 165,153 Cabletel shares in addition to the shares purchased as part of the acquisition of ANTEC's Canadian distribution business. We view these transactions as an indication of ARC's long-term support of the Company and the strong prospects of our business." Cabletel Communications Corp. is the largest Canadian full- service distributor of broadband communications equipment used in the cable television and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industries. Its core business focuses on the distribution and sale of over 8,000 products required to construct, build, maintain and upgrade cable television and telecommunications systems. Through its wholly-owned subsidiary, Stirling Connectors Inc., the company is a leading manufacturer of brass and aluminum connectors for use in the cable distribution system. 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 Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Net Sales $17,528,027 $10,299,103 $39,893,319 $32,854,234
Cost of Sales 14,796,272 8,611,182 33,378,974 27,169,032
Gross profit 2,731,755 1,687,921 6,514,345 5,685,202
Selling, General &
Administrative
Expenses 1,821,360 1,362,613 4,861,721 4,316,826
Income from operations 910,395 325,308 1,652,624 1,368,376
Other:
Interest expense 78,364 132,135 235,718 432,645
Income before taxes 832,032 193,173 1,416,907 935,731
Income taxes 398,000 116,000 682,500 498,000
Net income $434,032 $77,173 $734,407 $437,731
Net income per share $0.08 $0.02 $0.16 $0.10
Weighted average shares
outstanding 5,246,704 4,575,000 4,628,571 4,575,000
CONTACT: Cabletel Communications, Markham Arnold S. Tenney, Chairman, 416/630-0200 |
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