China Cablecom Holdings, Ltd. Reports First Quarter 2010 Financial Results

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), announced today its unaudited financial results for the first quarter ended March 31, 2010.

First Quarter 2010 Highlights:

Hubei revenues were $10.3 million, an increase of 35% over the first quarter of 2009
Hubei earnings before interest, taxes, depreciation and amortization ("EBITDA") representing the Company's 55% share was $2.5 million, an increase of 87% over the first quarter of 2009
Hubei added nearly 40,000 subscribers during the quarter
Binzhou revenues were $3.1 million, an increase of 35% over the first quarter of 2009
Binzhou EBITDA representing the Company's 60% share was $1.1 million, an increase of 18% over the first quarter of 2009

Comments from Mr. Clive Ng, Founder & Executive Chairman

"We are so pleased to be reporting such a strong quarter," says Clive Ng, Founder and Executive Chairman of China Cablecom. "The performance of both operations in Binzhou and Hubei have exceeded our expectations and delivered significant growth in revenues, EBITDA, subscription, digitization and ARPU. We feel this quarter represents a more accurate reflection on the strength of our business in the long-term and we are excited about the opportunities that lay ahead for the Company and our shareholders."

Financial Results for the First Quarter of 2010

Consolidated revenues for the first quarter of 2010 were $13.4 million compared to consolidated revenues of $10 million for the first quarter of 2009. The increase was due to growth in paying subscribers and revenues generated in subscription and installation fees. Consolidated operating expenses for the first quarter of 2010 were $5.6 million compared to consolidated operating expenses of $5.8 million for the first quarter of 2009.

Effective March 2, 2010, the Company's shareholders approved a one-for-three reverse stock split of all outstanding ordinary shares, as recommended and approved by the Company's Board of Directors. Accordingly, China Cablecom shareholders received one ordinary share of the Company for each three ordinary shares held as of the effective date of the reverse split. This split is retroactively applied to prior year share data for calculation of earnings per share.

Based on U.S. GAAP, net loss attributable to ordinary shareholders for the first quarter of 2010 was $2.3 million or $0.48 per basic and fully diluted share compared to net loss attributable to ordinary shareholders of $5.6 million, or $1.74 per basic and fully diluted share in the first quarter of 2009.

The net loss for the first quarter 2010 was significantly impacted by (1) non-cash amortization of intangible assets which were acquired in connection with China Cablecom's acquisition of Binzhou Broadcasting and Hubei in the amount of $0.37 million and $0.33 million, respectively, (2) non-cash interest expense associated with original issue debt discount and deferred financing costs relating to China Cablecom's senior secured, junior secured and unsecured notes in the amount of $0.88 million, (3) non-cash stock based compensation in the amount of $0.43 million.

Recent Company Highlights

During the first quarter of 2010, China Cablecom's ordinary shares underwent a one-for-three reverse stock split effective March 2, 2010.

In connection with China Cablecom's comprehensive debt restructuring in October 2009, Series B preferred shares were issued, which are convertible at the option of the holder into ordinary shares on a share-for-share basis. Beginning April 2010, over 2.8 million Preferred B shares were converted into ordinary shares and an aggregate of $2.2 million of Cablecom's long-term debt was cancelled as a result.

The Company recently announced a Shandong government initiative to consolidate its provincial cable assets, resulting in a temporary deferment of China Cablecom's obligation to pay outstanding cash payments of approximately $16.5 million to the Binzhou joint venture partners.

Business Outlook

China Cablecom estimates total consolidated revenues for the full year of 2010 to be between $50-55 million. This includes total paying subscribers to reach 1.8 million and a consolidated digital subscriber count of 750,000.

Based on these metrics, the Company estimates EBITDA for 2010, to be in the range of $14-15 million, accounting for the 60% economic ownership in Binzhou and 55% economic ownership in Hubei.

Operating Metrics

The following summary financial and operating highlights for Binzhou and Hubei reflect the results of the respective operating joint ventures on a stand-alone basis and do not include China Cablecom's corporate operations and overhead. EBITDA reflects China Cablecom's consolidated share of 55% and 60% in Hubei Chutian and Binzhou Broadcasting, respectively.


		Quarter ended March 31,
(unaudited)	2010		2009	%
Binzhou Broadcasting
Revenue	$3,087,653		$2,282,599	35%
EBITDA - 60% share	$1,091,161		$923,531	18%
Non-financial metrics:
Paying subscribers	482,067		478,129	1%
Digital subscribers	75,252		nm
ARPU	$1.91		$1.37	40%
Hubei Chutian
Revenue	$10,336,995		$7,676,246	35%
EBITDA - 55% share	$2,487,847		$1,332,959	87%
Non-financial metrics:
Paying subscribers	1,231,263		1,075,214	15%
Digital subscribers	424,040		nm
ARPU	$2.45		$2.06	19%

Total revenue	$13,424,648		$9,958,845	35%
Total EBITDA - CABL's share	$3,579,009		$2,256,490	59%

nm = not meaningful

Conference Call and Webcast

China Cablecom's management team will host a conference call today at 8:30 a.m. EDT, June 29, 2010 (or 8:30 p.m., June 29, 2010 Shanghai time). To listen to the conference call, please use the dial in numbers below:

USA Toll Number: 1-877-941-2332

International: 1-480-629-9722

A replay of the call will be available for two weeks following the call and can be accessed by dialing the numbers below:

USA Toll Number: 1-800-406-7325

International: 1-303-590-3030

PASSCODE: 4309628#

The conference call will be available on webcast live and available for replay at: www.chinacablecom.net.

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 Annual Report on Form 20-F filed with respect to the year ended December 31, 2008.

China Cablecom Holdings, Ltd.
www.chinacablecom.net
CONTACT: Debra Chen (917-499-8129)
Email: debra@chinacablecom.net


CHINA CABLECOM HOLDINGS LIMITED
Unaudited Consolidated Balance Sheets

		March 31, 2010		December 31, 2009
		(unaudited)		(audited)
ASSETS
Current Assets:
Cash and cash equivalents	$	26,673,466	$	23,938,460
Accounts receivable		2,266,151		1,973,333
Prepaid expenses and advances		9,349,781		9,222,547
Inventories		6,200,944		6,033,914
Total Current Assets		44,490,342		41,168,254

Property, Plant & Equipment, net		87,565,573		89,329,880
Construction In Progress		5,879,514		3,967,551
Intangible assets, net		34,340,774		35,042,708
Goodwill		19,275,561		19,275,561
Other Assets:
Deferred financing costs, net		1,902,573		1,987,215
Total Assets	$	193,454,337	$	190,771,170
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	14,178,112	$	17,504,073
Service performance obligation – deferred revenue		6,386,556		3,069,899
Other current liabilities		10,052,252		9,374,749
Note payable – noncontrolling interest		30,548,693		27,626,772
Total Current Liabilities		61,165,613		57,575,493
Long Term Liabilities:
Senior secured notes, net of discount		8,568,277		7,973,096
Secured notes, net of discount		16,287,024		17,062,563
Unsecured notes, net of discount		5,134,795		5,134,795
Convertible notes, net of discount		-		-
Note payable – noncontrolling interest, net of current portion		64,365,762		64,347,852
Total Liabilities		155,521,471		152,093,799


EQUITY
Series A convertible preferred shares, $.0005 par value; 70,000,000 authorized shares, 59,980,370 shares issued and outstanding (December 31, 2009 62,161,965 shares issued)		29,990		31,081
Series B convertible preferred shares, $.0005 par value; 25,000,000 authorized shares, 23,158,080 shares issued and outstanding (December 31, 2009 23,158,080 shares issued)		11,579		11,579
Ordinary shares, $.0015 par value; 51,666,667 authorized shares, 5,415,333 shares issued and outstanding (December 31, 2009 4,688,151 shares issued)		8,124		7,033
Additional paid-in capital		110,654,924		109,452,870
Statutory reserves		141,582		141,582
Accumulated deficit		(75,465,651)		(73,111,896)
Accumulated other comprehensive income		599,262		595,396
Shareholders' equity		35,979,810		37,127,645
Non-controlling interest		1,953,056		1,549,726
Total equity		37,932,866		38,677,371
Total liabilities and shareholders' equity	$	193,454,337	$	190,771,170


CHINA CABLECOM HOLDINGS LIMITED
Unaudited Consolidated Statements of Operation
		Three months ended		Three months ended
		March 31, 2010		March 31, 2009

Revenue	$	13,424,648	$	9,958,845
Cost of revenue		(8,477,319)		6,416,527
Gross profit		4,947,329		3,542,318
Operating expenses
General and administrative expenses		(5,645,853)		5,826,361
Total operating expenses		(5,645,853)		5,826,361
Loss from operations		(698,524)		(2,284,043)
Other income / (expenses)
Interest income		34,548		44,474
Interest expense		(967,947)		(3,292,253)
Other income		165,824		211,613
Total other expenses		(767,575)		(3,036,166)
Loss before income taxes and non-controlling interest		(1,466,099)		(5,320,209)
Income taxes		(480,652)		(110,485)
Net loss, net of tax		(1,946,751)		(5,430,694)
Less: Net profit attributable to non-controlling interest		(407,004)		(196,881)
Net loss attributable to China Cablecom Holdings, Ltd.	$	(2,353,755)	$	(5,627,575)

Loss per ordinary share:
- Basic and fully diluted	$	(0.48)	$	(1.74)
Weighted average number of shares
- Basic and fully diluted		4,885,483		3,225,710

Reconciliation of Non-U.S. GAAP Measures

This release contains discussion of China Cablecom's revenues, as well as EBITDA. Although EBITDA is not a measure of financial condition or performance determined in accordance with U.S. GAAP, China Cablecom uses EBITDA to value businesses it acquires or anticipates acquiring. EBITDA is not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies unless the definition is the same.

Below is a table reconciling certain non- U.S. GAAP financial measures appearing elsewhere herein relating to China Cablecom to the most closely analogous U.S. GAAP measures:


	3 Months ended
	31-Mar-10


Net loss attribute to ordinary share holders	$(2,353,755)
Amortization	786,575
Depreciation	2,771,390
Interest income	(22,298)
Interest & Finance	933,129
Stock based compensation	426,515
Income tax	268,743
Non-GAAP income (EBITDA)	$2,810,299

Reconciliation to operating metrics
Binzhou Broadcasting EBITDA - 60% share	$1,091,161
Hubei Chutian EBITDA - 55% share	2,487,847
Corporate overhead	(768,709)
	$2,810,299