FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
|X| QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED MARCH 31, 2007
or
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
Commission File Number 000-08187
CABELTEL INTERNATIONAL CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Nevada 75-2399477
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(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
1755 Wittington Place, Suite 340
Dallas, Texas
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(Address of principal executive offices)
75234
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(Zip Code)
(972) 407-8400
(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year, if
changed since last report)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes |X|. No |_|.
Indicate by check mark whether the Registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). Yes |_|. No |X|.
Indicate by check mark whether the Registrant is a large accelerated filer, an
accelerated filer or a non-accelerated filer. See definition of accelerated
filer in Rule 12b-2 of the Exchange Act (Check one):
Large accelerated filer |_| Accelerated filer |_| Non-accelerated filer |X|
Indicate by check mark whether the Registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes |_|. No |X|.
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:
Indicate by check mark whether the Registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes |_|. No |_|.
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the latest practicable date.
Common Stock, $.01 par value 986,953
(Class) (Outstanding at April 30, 2007)
CABELTEL INTERNATIONAL CORPORATION
Index to Quarterly Report on Form 10-Q
Period ended March 31, 2007
PART I: FINANCIAL INFORMATION..................................................3
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Item 1: Financial Statements...............................................3
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Consolidated Balance Sheets..............................................3
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Consolidated Statements of Operations....................................5
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Consolidated Statements of Cash Flow.....................................6
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CabelTel International Corporation.......................................7
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Notes To Consolidated Financial Statements...............................7
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Item 2: Management's Discussion and Analysis of
Financial Condition and Results of Operations......................9
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Item 3. Quantitative and Qualitative Disclosures About Market Risk........12
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Item 4. Controls and Procedures...........................................12
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PART II: OTHER INFORMATION....................................................12
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds........12
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Item 6. Exhibits...........................................................13
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Signatures.................................................................15
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PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
CabelTel International Corporation
Consolidated Balance Sheets
(amounts in thousands)
March 31, December 31,
Assets 2007 2006
(Unaudited)
----------- ------------
Current assets
Cash and cash equivalents $ 254 $ 324
Notes and interest receivable - related party 1,557 1,428
Other current assets 59 36
Assets held for sale 6,750 7,047
------ ------
Total current assets 8,620 8,835
Property and equipment, at cost
Land and improvements 20 20
Buildings and improvements 169 169
Equipment and furnishings 297 290
------ ------
486 479
Less accumulated depreciation 371 364
------ ------
115 115
Deferred tax asset 491 491
Other assets 104 261
------ ------
Total Assets $9,330 $9,702
====== ======
The accompanying notes are an integral part of these Consolidated Financial
Statements.
3
CabelTel International Corporation
Consolidated Balance Sheets - Continued
(amounts in thousands, except share amounts)
March 31, December 31,
Liabilities and Stockholders' equity 2007 2006
(Unaudited)
----------- ------------
Current liabilities
Accounts payable - trade $ 248 $ 439
Accrued expenses 273 124
Liabilities held for sale 6,750 6,642
-------- --------
Total current liabilities 7,271 7,205
Other long-term liabilities 408 418
-------- --------
Total liabilities 7,679 7,623
Stockholders' equity
Preferred stock, Series B 1 1
Common stock $.01 par value; authorized,
100,000,000 shares; 976,955 shares at
March 31, 2006 and 986,953 shares at
March 31, 2007 issued and outstanding 10 10
Additional paid-in capital 55,992 55,992
Accumulated deficit (54,352) (53,924)
-------- --------
1,651 2,079
-------- --------
Total Liabilities and Equity $ 9,330 $ 9,702
======== ========
The accompanying notes are an integral part of these Consolidated Financial
Statements.
4
CabelTel International Corporation
Consolidated Statements of Operations
(amounts in thousands, except per share data)
For The Three Month
Period Ended
March 31,
2007 2006
---------- ---------
(Unaudited)
Revenue
Operating expenses
Real estate operations 320 306
Lease expense 240 236
Corporate general and administrative 209 378
----- -----
769 920
----- -----
Operating loss (48) (163)
Other income (expense)
Interest income 84 317
Interest expense -- (263)
Other income (expense) net 10 (4)
----- -----
94 50
----- -----
Earnings (loss) from continuing operations 46 (113)
----- -----
Net income (loss) from continuing operations 46 (113)
Discontinued operations
Loss from operations (159) (185)
Provision for asset impairment (314) --
----- -----
Net loss on discontinued operations (473) (185)
----- -----
Net loss applicable to common shares $(427) $(298)
===== =====
Net earnings (loss) per common share -
basic and diluted
Continuing operations $0.04 $(0.11)
Discontinued operations (0.47) (0.20)
----- -----
Net income (loss) per share $(0.43) $(0.31)
===== =====
Weighted average of common and equivalent shares
outstanding - basic and diluted 987 977
The accompanying notes are an integral part of these Consolidated Financial
Statements.
5
CabelTel International Corporation
Consolidated Statements of Cash Flow
(amounts in thousands)
For The Three Month
Period Ended March 31,
2007 2006
---------- --------
(Unaudited) (Unaudited)
Cash flows from operating activities
Net earnings (loss) from continuing operations $ 46 $(113)
Adjustments to reconcile net earnings (loss) to net
cash provided by (used in) operating activities
Depreciation and amortization 12 10
Changes in operating assets and liabilities
Interest receivable (29) --
Other current and non-current assets (23) (134)
Other assets 152 (33)
Accounts payable and other liabilities (53) 313
----- -----
Net cash provided by (used in) operating activities 105 188
Cash flows used in investing activities
Funding of note receivable (100) --
Fixed asset additions (7) (5)
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Net cash provided by (used in) investing activities
(107) (5)
Cash flows from financing activities
Proceeds from notes payable -- 150
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Net cash provided by financing activities -- 150
Cash flows from discontinued operations
Cash used by operating activities (46) (848)
Cash used by financing (22) --
----- -----
Net cash used in discontinued operations (68) (848)
NET DECREASE IN CASH AND
CASH EQUIVALENTS (70) (515)
Cash and cash equivalents at beginning of period 324 650
----- -----
Cash and cash equivalents at end of period $ 254 $ 135
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The accompanying notes are an integral part of these Consolidated Financial
Statements.
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CabelTel International Corporation
Notes To Consolidated Financial Statements
Note A: Basis of Presentation
The accompanying unaudited consolidated financial statements include the
accounts of CabelTel International Corporation and its majority-owned
subsidiaries (collectively, "CIC" or the "Company"). All significant
intercompany transactions and accounts have been eliminated. Certain 2006
balances have been reclassified to conform to the 2007 presentation.
The unaudited financial statements included herein have been prepared by the
Company without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission. The financial statements reflect all adjustments that
are, in the opinion of management, necessary to fairly present such information.
All such adjustments are of a normal recurring nature. Although the Company
believes that the disclosures are adequate to make the information presented not
misleading, certain information and footnote disclosures, including a
description of significant accounting policies normally included in financial
statements prepared in accordance with accounting principles generally accepted
in the United States of America, have been condensed or omitted pursuant to such
rules and regulations.
These financial statements should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company's Annual Report
on Form 10-K for the fiscal year ending December 31, 2006. Operating results for
the three month period ended March 31, 2007 are not necessarily indicative of
the results that may be expected for any subsequent quarter or for the fiscal
year ending December 31, 2007.
Note B: Transfer of ownership of the Gainesville Outlet Mall
The Company has as agreement to transfer it's ownership of the Gainesville
Outlet Mall and 40 acres of adjacent, vacant land to an independent third party.
The mall, which the Company acquired in 2003, has incurred both cash and
accounting losses for the past several years. The Company has recorded an
impairment loss of $314,000 in the quarter ended March 31, 2007. The assets and
liabilities being transferred have been reflected as Assets and Liabilities Held
for Sale.
Note C: Short-Term Note Receivable - Related Party
In 2006 the Company made an unsecured loan with a current principal balance of
$1,377,000 to Eurenergy Resources Corporation (a company that is 20% owned by an
entity deemed to be related to CabelTel). The loan has an annual interest rate
of 8% per annum with principal and interest payable within 30 days after demand
and, if not sooner demanded, on July 17, 2007. As of March 31, 2007 accrued
interest was $80,000.
In March 2007, the Company made a $100,000 loan to an entity affiliated to the
Company. This loan was repaid in May 2007.
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Note D: Discontinued Operations
The operation of the Gainesville Outlet Mall has been reflected as a
discontinued operation in 2007 and 2006. ("See Note B ")
Effective June 30, 2006, the Company sold all of its membership interests in
Gaywood Oil & Gas, LLC and Gaywood Oil & Gas II, LLC ("Gaywood) which owned oil
and gas leases in Gregg and Rusk Counties, Texas and on which approximately 50
oil-producing wells were operating. These wells averaged two to three barrels of
oil per day. The sale price of $1,737,000 was received in cash on July 5, 2006.
The Company recorded a gain on the sale of $418,000. The operation of Gaywood
has been reflected as a discontinued operation in 2006.
Note E: Segment Reporting
Business Operations
Currently, the Company operates one retirement community in King City, Oregon,
with a capacity of 114 residents.
Certain 2006 amounts have been reclassified to conform to the current
presentation. The segment information and reconciliation to income (loss) from
operations are as follows:
Three Months Ended March 31, 2007
CIC Discontinued
Corporate Real Estate Consolidated Operations
--------- ----------- ------------ ----------
Revenue $ 39 $ 682 $ 721 $ 303
Operating expenses
Operations -- 320 320 399
Lease expense 20 220 240 --
Corporate general and
administrative 209 -- 209 --
------- ------- ------- -------
229 540 769 399
------- ------- ------- -------
Operating earnings (loss) (190) 142 (48) (96)
Interest Income 84 -- 84 --
Interest (expense) -- -- -- (78)
Gain (loss) on sale of assets -- -- -- (314)
Other income 8 2 10 15
Net earnings (loss) from
continuing operations $ (98) $ 144 $ 46 $ (473)
======= ======= ======= =======
Total assets $ 1,789 $ 791 $ 2,580 $ 6,750
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Three Months Ended March 31, 2006
CIC Discontinued
Corporate Real Estate Consolidated Operations
--------- ----------- ------------ ----------
Revenue $ 89 $ 668 $ 757 $ 873
Operating expenses
Operations -- 306 306 865
Lease expense 25 211 236 --
Corporate general and
administrative 378 -- 378 --
-------- -------- -------- --------
403 517 920 865
-------- -------- -------- --------
Operating earnings (loss) (314) 151 (163) 8
Interest income 317 -- 317 --
Interest (expense) (263) -- (263) (197)
Other income (6) 2 (4) 4
-------- -------- -------- --------
Net earnings (loss) from
continuing operations $ (266) $ 153 $ (113) $ (185)
======== ======== ======== ========
Total assets $ 9,204 $ 2,410 $ 11,614 $ 8,094
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ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Critical Accounting Policies and Estimates
The Company's discussion and analysis of its financial condition and results of
operations are based upon the Company's Consolidated Financial Statements, which
have been prepared in accordance with accounting principles generally accepted
in the United States. Certain of the Company's accounting policies require the
application of judgment in selecting the appropriate assumptions for calculating
financial estimates. By their nature, these judgments are subject to an inherent
degree of uncertainty. These judgments and estimates are based upon the
Company's historical experience, current trends and information available from
other sources that are believed to be reasonable under the circumstances, the
results of which form the basis for making judgments about the carrying value of
assets and liabilities that are not readily apparent from other sources. Actual
results may differ from these estimates under different assumptions or
conditions.
The Company believes the following critical accounting policies are more
significant to the judgments and estimates used in the preparation of its
consolidated financial statements. Revisions in such estimates are recorded in
the period in which the facts that give rise to the revisions become known.
The Company's allowance for doubtful accounts receivable and notes receivable is
based on an analysis of the risk of loss on specific accounts. The analysis
places particular emphasis on past due accounts. Management considers such
information as the nature and age of the receivable, the payment history of the
tenant, customer or other debtor and the financial condition of the tenant or
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other debtor. Management's estimate of the required allowance, which is reviewed
on a quarterly basis, is subject to revision as these factors change.
Deferred Tax Assets
Significant management judgment is required in determining the provision for
income taxes, deferred tax assets and liabilities and any valuation allowance
recorded against net deferred tax assets. The future recoverability of the
Company's net deferred tax assets is dependent upon the generation of future
taxable income prior to the expiration of the loss carry forwards. The Company
believes that it will generate future taxable income to fully utilize the net
deferred tax assets.
Liquidity and Capital Resources
On March 31, 2007, the Company had current assets of $8.6 million and current
liabilities of $7.3 million. Cash and cash equivalents at March 31, 2007 were
$254,000.
Net cash provided by operating activities was $267,000 for the three months
ended March 31, 2007. During the three month period the Company had a net income
of $208,000 from continuing operations.
Net cash used in investing activities was $107,000 for the three months ended
March 31, 2007, which consists principally of a $100,000 loan made by the
Company to a related party along with the addition of fixed assets
Net cash used in discontinued operations was $230,000 in 2007, which represents
the net cash expenditures at the Gainesville Outlet Mall for the three months
ended March 31, 2007.
Results of Operations
The Company reported a net loss of $427,000 for the three months ended March 31,
2007, as compared to a net loss of $298,000 for the three month period ending
March 31, 2006.
For the three months ended March 31, 2007, the Company recorded revenues of
$721,000 compared to $757,000 for the three months ended March 31, 2006. The
Company's retirement property is fully occupied and it is anticipated that it
will remain so during 2007. The decrease in revenue in 2007, as compared to
2006, is principally due to a decrease in certain fees received from a related
party for providing accounting services.
For the three months ended March 31, 2007, operating expenses at the retirement
center were $320,000 as compared to $306,000 for the three months ended March
31, 2006. The slight increase for the period was due to general cost increases
at the facility.
For the three months ended March 31, 2007, corporate general & administrative
expenses were $209,000 as compared to $378,000 for the three months ended March
31, 2006. In 2006 the company incurred approximately $80,000 in payroll and
consulting fees which were not incurred in 2007. In general there was an overall
reduction in administrative costs in the latter part of 2006 which has the
effect of lowering administrative costs in 2007.
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For the three months ended March 31, 2007, interest income was $84,000 compared
to $317,000 for the three months ended March 31, 2006. During the first quarter
of 2006 the Company recorded $306,000 of interest income from loans made to
CabelTEL AD in Bulgaria (see interest expense, below). In 2006 the Company sold
Gaywood for cash and has invested the proceeds in an interest bearing note which
has resulted in an increase in interest of $74,000 in 2007 when compared to
2006.
The Company recorded no interest expense for the three months ended March 31,
2007, as compared to $346,000 same period in 2006. During the first quarter of
2006 the Company recorded $306,000 of interest expense from loans made for the
purpose of advancing funds to CabelTEL AD in Bulgaria (see interest income,
above). The balance of the interest in the three months ended March 31, 2006 was
for a note that was paid off later in 2006.
Forward Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: A number of the matters and subject areas discussed in this filing that
are not historical or current facts deal with potential future circumstances,
operations and prospects. The discussion of such matters and subject areas is
qualified by the inherent risks and uncertainties surrounding future
expectations generally, and also may materially differ from the Company's actual
future experience involving any one or more of such matters and subject areas
relating to interest rate fluctuations, ability to obtain adequate debt and
equity financing, demand, pricing, competition, construction, licensing,
permitting, construction delays on new developments, contractual and licensure,
and other delays on the disposition, transition, or restructuring of currently
or previously owned, leased or managed properties in the Company's portfolio,
and the ability of the Company to continue managing its costs and cash flow
while maintaining high occupancy rates and market rate charges in its retirement
community. The Company has attempted to identify, in context, certain of the
factors that it currently believes may cause actual future experience and
results to differ from the Company's current expectations regarding the relevant
matter of subject area. These and other risks and uncertainties are detailed in
the Company's reports filed with the Securities and Exchange Commission ("SEC"),
including the Company's Annual Reports on Form 10-K and Quarterly Reports on
Form 10-Q.
Inflation
The Company's principal source of revenue is from rents in a retirement
community and fees for services rendered. The real estate operation is affected
by rental rates that are highly dependent upon market conditions and the
competitive environment in the areas where the property is located. Compensation
to employees and maintenance are the principal cost elements relative to the
operation of this property. Although the Company has not historically
experienced any adverse effects of inflation on salaries or other operating
expenses, there can be no assurance that such trends will continue or that,
should inflationary pressures arise, the Company will be able to offset such
costs by increasing rental rates in its real estate operation.
Environmental Matters
The Company has conducted environmental assessments on most of its existing
owned or leased properties. These assessments have not revealed any
environmental liability that the Company believes would have a material adverse
effect on the Company's business, assets or results of operations. The Company
is not aware of any such environmental liability. The Company believes that all
of its properties are in compliance in all material respects with all federal,
state and local laws, ordinances and regulations regarding hazardous or toxic
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substances or petroleum products. The Company has not been notified by any
governmental authority and is not otherwise aware of any material
non-compliance, liability or claim relating to hazardous or toxic substances or
petroleum products in connection with any of its communities.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rate Risk
Nearly all of the Company's debt is financed at fixed rates of interest.
Therefore, we have minimal risk from exposure to changes in interest rates.
ITEM 4. CONTROLS AND PROCEDURES
As required by Rule 13(a)-15(b), the Company's management, including the
principal executive officer, chief financial officer and principal accounting
officer, conducted an evaluation as of the end of the period covered by this
Report, of the effectiveness of the Company's disclosure controls and procedures
as defined in Exchange Act Rule 13(a)-15(e). Based on that evaluation, the chief
executive officer and the chief financial officer concluded that the Company's
disclosure controls and procedures were effective as of the end of the period
covered by this Report. As required by Rule 13(a)-15(d), the Company's
management, including the chief executive officer, chief financial officer and
principal accounting officer, also conducted an evaluation of the Company's
internal controls over financial reporting to determine whether any changes
occurred in the first fiscal quarter that materially affected, or are reasonably
likely to materially effect, the Company's internal control over financial
reporting. Based on that evaluation, there has been no such change during the
first fiscal quarter.
It should be noted that any system of controls, however well designed and
operated, can only provide reasonable and not absolute assurance that the
objectives of the system will be met. In addition, the design of any control
system is based, in part, on certain assumptions about the likelihood of future
events.
PART II: OTHER INFORMATION
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
During the period of time covered by this Report, CabelTel International
Corporation did not repurchase any of its equity securities. The following table
sets forth a summary for the quarter, indicating no repurchases were made and
that, at the end of the period covered by this Report, no specified number of
shares may be purchased under any program in place.
Period Total Number of Shares Average Price Total Number of Maximum Number of
------
Shares Purchased as Shares that May
Part of Publicly Yet be Purchased
Purchased Paid per Share Announced Program Under the Program(a)
--------- -------------- ----------------- --------------------
Balance as of December 31, 2006.......... -- $ -- -- --
January 1-31, 2007....................... -- -- -- --
February 1-28, 2007...................... -- -- -- --
March 1-31, 2007 ........................ -- -- -- --
--------------- --------------- --------------- ---------------
Total ................................... -- $ -- -- --
================ ================ =============== =================
(a) As a courtesy to stockholders of less than 100 shares and to relieve such
stockholders of having to pay a broker's commission, the Company, although
not obligated to do so, has periodically repurchased its common stock at
the then most recent closing price of the Company's common stock on the
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last trading day before the stock certificate(s) is (are) actually received
by the Company from the stockholder. The number of such shares purchased in
any period of time has been minimal. No shares were purchased during the
quarter ended March 31, 2007.
ITEM 6. EXHIBITS
The following exhibits are filed herewith or incorporated by reference as
indicated below.
Exhibit Designation Exhibit Description
3.1 Articles of Incorporation of Medical Resource Companies of
America (incorporated by reference to Exhibit 3.1 to Registrant's
Form S-4 Registration Statement No. 333-55968 dated December 21,
1992)
3.2 Amendment to the Articles of Incorporation of Medical Resource
Companies of America (incorporated by reference to Exhibit 3.5 to
Registrant's Form 8-K dated April 1, 1993)
3.3 Restated Articles of Incorporation of Greenbriar Corporation
(incorporated by reference to Exhibit 3.1.1 to Registrant's Form
10-K dated December 31, 1995)
3.4 Amendment to the Articles of Incorporation of Medical Resource
Companies of America (incorporated by reference to Exhibit to
Registrant's PRES 14-C dated February 27, 1996)
3.5 Bylaws of Registrant (incorporated by reference to Exhibit 3.2 to
Registrant's Form S-4 Registration Statement No. 333-55968 dated
December 21, 1992)
3.6 Amendment to Section 3.1 of Bylaws of Registrant adopted October
9, 2003 (incorporated by reference to Exhibit 3.2.1 to
Registrant's Form S-4 Registration Statement No. 333-55968 dated
December 21, 1992)
3.7 Certificate of Decrease in Authorized and Issued Shares effective
November 30, 2001 (incorporated by reference to Exhibit 2.1.7 to
Registrant's Form 10-K dated December 31, 2002)
3.8 Certificate of Designations, Preferences and Rights of Preferred
Stock dated May 7, 1993 relating to Registrant's Series B
Preferred Stock (incorporated by reference to Exhibit 4.1.2 to
Registrant's Form S-3 Registration Statement No. 333-64840 dated
June 22, 1993)
3.9 Certificate of Voting Powers, Designations, Preferences and
Rights of Registrant's Series F Senior Convertible Preferred
Stock dated December 31, 1997 (incorporated by reference to
Exhibit 2.2.2 of Registrant's Form 10-KSB for the fiscal year
ended December 31, 1997)
3.10 Certificate of Voting Powers, Designations, Preferences and
Rights of Registrant's Series G Senior Non-Voting Convertible
Preferred Stock dated December 31, 1997 (incorporated by
reference to Exhibit 2.2.3 of Registrant's Form 10-KSB for the
fiscal year ended December 31, 1997)
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3.11 Certificate of Designations dated October 12, 2004 as filed with
the Secretary of State of Nevada on October 13, 2004
(incorporated by reference to Exhibit 3.4 of Registrant's Current
Report on Form 8-K for event occurring October 12, 2004)
3.12 Certificate of Amendment to Articles of Incorporation effective
February 8, 2005 (incorporated by reference to Exhibit 3.5 of
Registrant's Current Report on Form 8-K for event occurring
February 8, 2005)
31.1* Certification pursuant to Rule 13a-14 and 15d-14 under the
Securities Exchange Act of 1934, as amended, of Principal
Executive Officer and Chief Financial Officer
32.1* Certification of Principal Executive Officer and Chief Financial
Officer pursuant to 18 U.S.C. ss. 1350
*Filed herewith.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, Registrant has duly caused this Report to be signed on
its behalf by the undersigned, thereunto duly authorized.
CabelTel International Corporation
Date: May 14, 2007 By: /s/ Gene S. Bertcher
----------------------------------
President and
Chief Financial Officer
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