Moscow CableCom Corp Announces Third Fiscal Quarter Results

Moscow CableCom Corp Announces Third Fiscal Quarter Results NEW YORK, Jan. 18 /PRNewswire-FirstCall/ -- Moscow CableCom Corp. (NASDAQ:MOCC) today announced the results of its operations for the three and nine months ended November 30, 2004. For the three-month period, the Company incurred a net loss applicable to common shares of $1,384,000 or $0.16 per share, basic and diluted, as compared to a loss applicable to common shares of $456,000 or $0.22 per share basic and diluted for the third quarter of the prior fiscal year. For the nine-month period ended November 30, 2004, the Company incurred a net loss applicable to common shares of $3,968,000, or $0.46 per share, basic and diluted, as compared to results of the prior year's first nine months for which the Company reported a loss applicable to common shares of $1667,000, or $0.80 per share, basic and diluted for the same period in the prior year. The current year results reflect the consolidation of the results of ComCor-TV ("CCTV") which was acquired in February 2004 and weighted average shares outstanding of 8,760,905 and 8,591,116 for the three and nine month periods, respectively, while the prior year's results included just the Company's then 12.5% indirect equity interest in CCTV and 2,099,908 weighted average shares outstanding for each of the three and nine-month periods. CCTV's results are consolidated using a two-month lag period. Accordingly, CCTV's results of operations for the three and nine months ended September 30, 2004 have been included in the Company's consolidated results through November 30, 2004. However, $525,000 of CCTV's losses incurred in the period prior to the CCTV acquisition, from January 1, 2004 to February 24, 2004, have been excluded from the Company's nine month year-to-date results. Revenues during the current year quarter totaled $1,470,000 and year-to- date, revenues totaled $4,252,000. Revenues from CCTV were 74.0% and 76.5% higher than the revenues which it had reported in the prior year for the comparable three and nine-month periods, respectively. The three and nine- month revenue increases include year-over-year increases of 117.4% and 109.5%, respectively, in monthly subscription fees for its television and Internet access services. Three and nine-month subscription revenues totaled $1,402,000 and $3,732,000 for the three and nine months in the current year, respectively, as compared to $645,000 and $1,781,000, for the respective comparable periods in the prior year, respectively. At November 30, 2004, CCTV had an access network of 197,521 homes in Moscow for its broadband-based cable offerings, as compared to 154,786 homes at December 31, 2003. At November 30, 2004, construction was in progress on approximately 35,000 homes, which are expected to be put into service during the first quarter of 2005. Warren Mobley, newly appointed President and Chief Executive Officer, stated, "During the Company's third fiscal quarter, subscriber growth increased and the Company began to deploy the funds extended by Columbus Nova in advance of the closing of the $51 million debt and equity financing which closed just last week. I am pleased to join a company that had developed momentum with modest financial resources, and I am confident that the new financing will allow us to better focus the company on its strategic direction and act more quickly in taking advantage of the opportunities for broadband services in the Moscow market." About Moscow CableCom Moscow CableCom, (http://www.moscowcablecom.com/), is a US-based company quoted on the NASDAQ NM under the ticker "MOCC". The Company owns 100% of ComCor-TV ("CCTV"), a Moscow-based hybrid-fiber-coaxial pay-TV and Internet service provider that has licenses to provide telecommunications services to 1.5 million homes and businesses in Moscow. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This press release contains "forward-looking statements", as the phrase is defined in Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements relate to CCTV's development, including CCTV's ability to attract new subscribers, its ability to continue to expand its network, its ability to achieve positive cash flow and Moscow CableCom's ability to raise funds for the expansion of CCTV's network, including the consummation of the proposed financing transaction with Columbus Nova, and are based on management's best assessment of Moscow CableCom's and CCTV's strategic and financial position and of future market conditions and trends. These discussions involve risks and uncertainties, and the actual outcome may differ materially from these statements. Certain factors that could cause actual results to differ materially from those discussed in any forward-looking statements are described in the Company's Annual Report on Form 10-K for the year ended February 29, 2004 and other public filings made by the Company with the Securities and Exchange Commission, which descriptions are incorporated herein by reference. Moscow CableCom Corp. disclaims any obligation to update developments of these risks or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments. MOSCOW CABLECOM CORP. Consolidated Condensed Balance Sheets (In thousands, except per share data) November 30, 2004 February 29, 2004 (unaudited) ASSETS Current assets: Cash and cash equivalents $3,669 $3,240 Marketable securities - 2,897 Accounts and other receivables, less allowance for doubtful accounts of $83 and $40, respectively 122 124 Inventories 631 793 Taxes receivable 1,420 1,396 Prepaid expenses and other current assets 869 154 Deferred income taxes 128 - Total current assets 6,839 8,604 Property, plant and equipment, net 16,783 13,552 Construction in progress and advances 3,265 5,209 Prepaid pension expense 4,884 4,754 Intangible assets and goodwill - 10,071 Intangible assets, net 5,608 - Goodwill 4,365 - Investment in Institute for Automated Systems 7,700 7,894 Other assets 920 448 Total assets $50,364 $50,532 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $2,598 $598 Payable to affiliate 1,518 1,824 Accounts payable 1,748 880 Accrued liabilities 2,039 1,565 Deferred income taxes - 614 Total current liabilities 7,903 5,481 Long-term debt, less current maturities 2,385 2,941 Other long-term obligations 881 625 Deferred income taxes 4,532 4,063 Total liabilities 15,701 13,110 Commitments and contingencies Stockholders' equity: Cumulative convertible preferred stock, no par value; authorized 800,000 shares; 150,144 shares and 188,006 shares issued and outstanding, respectively; liquidation preference $18.75 per share 2,792 3,497 Common stock, $.01 par value; authorized 15,000,000 shares; issued and outstanding 8,798,028 shares and 8,430,335 shares respectively 88 84 Additional paid-in capital 35,260 33,350 Retained earnings (accumulated deficit) (3,477) 491 Total stockholders' equity 34,663 37,422 Total liabilities and stockholders' equity $50,364 $50,532 MOSCOW CABLECOM CORP. Consolidated Condensed Statements of Operations (In thousands, except per share data) (unaudited) Three months ended Nine months ended November 30, November 30, 2004 2003 2004 2003 Sales and revenues Subscription revenue, connection fees and equipment sales $1,447 $- $4,010 $- Other 23 - 242 - Total revenue 1,470 - 4,252 - Cost of sales Services from related party 346 - 965 - Salaries and benefits 465 - 818 - Depreciation and amortization 400 - 1,049 - Other 67 - 925 - Total cost of sales 1,278 - 3,757 - Gross margin 192 - 495 - Operating expenses Salaries and benefits 579 182 2,223 425 Depreciation 57 60 268 178 General and administrative 852 416 2,753 1,526 Total operating expenses 1,488 658 5,244 2,129 Loss from operations (1,296) (658) (4,749) (2,129) Equity in losses of Institute for Automated Systems (23) - (194) - Equity in losses of Moscow Broadband - (167) - (488) Communication Ltd. Investment income and other income 73 473 599 1,418 Interest expense (76) (65) (197) (184) Foreign currency translation gain (loss) (17) - 28 - Loss before income taxes (1,339) (417) (4,513) (1,383) Income tax benefit (expense) 12 32 192 (72) Losses of subsidiaries prior to consolidation - - 525 - Net loss (1,327) (385) (3,796) (1,455) Preferred dividends (57) (71) (172) (212) Net loss applicable to common shares $(1,384) $(456) $(3,968) $(1,667) Earnings per common share: Basic and diluted $(0.16) $(0.22) $(0.46) $(0.80) Weighted average shares outstanding 8,760,905 2,099,908 8,591,116 2,099,908 Source: Moscow CableCom Corp. CONTACT: Donald Miller-Jones, Chief Financial Officer of Moscow CableCom Corp., +7-095-737-5163, millerjones@moscowcablecom.com; or Barbara Cano of Breakstone & Ruth International, +1-646-536-7015, bcano@breakstoneruth.com, for Moscow CableCom Corp. Web site: http://www.moscowcablecom.com/ ------- Profile: International Entertainment