16 June 2004 23:27
Moscow CableCom Corp. Reports Fourth Quarter and Year End Results; Company Also Reports Results of Partial Redemption of
its Preferred Stock
Moscow CableCom Corp. Andrew M. O'Shea, 860-298-0444 aoshea@moscowcablecom.com or Adam Friedman Associates LLC
Barbara J. Cano, 212-981-2529, Ext. 22 barbara@adam-friedman.com Moscow CableCom Corp. (NASDAQ: MOCC), the parent
company of ComCor-TV, a Russian company that has licenses to provide telecommunications services to 1.5 million homes
and businesses in Moscow, today announced its financial results for the fiscal year ended February 29, 2004.
The Company incurred a net loss applicable to common shares of $2,440,000, or $1.12 per share, basic and diluted, for
fiscal 2004, as compared to a net loss applicable to common shares of $728,000, or $0.35 per share, basic and diluted,
for fiscal 2003. Results for fiscal 2003 included a loss from continuing operations of $2,332,000, or $1.11 per share,
income from discontinued operations of $132,000, or $0.06 per share, and a gain from the sale of the operating assets of
The J.M. Ney Company of $1,472,000, or $0.70 per share.
For the three months ended February 29, 2004, the Company incurred a net loss applicable to common shares of
$773,000, or $0.32 per share, basic and diluted, as compared to the fiscal 2003 fourth quarter when the Company reported
a net loss of $577,000, or $0.27 per share, basic and diluted.
The Company also announced that its partial redemption of its Preferred Stock had resulted in the conversion of
29,016 shares of Preferred Stock into 88,635 shares of Common Stock and the redemption of 8,761 shares of Preferred
Stock for cash. This action represents a reduction of approximately 20% of the Preferred Stock that had been outstanding
at the Company's fiscal year end.
Francis E. Baker, Chairman of Moscow CableCom Corp. stated, "We were very pleased to have completed our
acquisition of ComCor-TV this past February, combining the interests of all our respective shareholders under one
company that is financially stronger with improved administrative efficiency. ComCor-TV has demonstrated strong
operating progress thus far, and we remain confident that future subscriber growth rates will continue to accelerate,
and that, together, we will expand our market for broadband communication, information and entertainment services in
Moscow."
About Moscow CableCom Corp.
Moscow CableCom, formerly known as Andersen Group Inc. (www.moscowcablecom.com), is a US-based company quoted on the
NASDAQ NM under the ticker "MOCC". The Company owns 100% of ComCor-TV, a Russian company that has licenses to
provide telecommunications services to 1.5 million homes and businesses in Moscow. CCTV is using access to an 8,000 Km
MFON (Moscow Fiber Optic Network) to provide broadband services including cable television and high-speed Internet
access to residential and business customers, with plans to add additional services including IP-based telephony.
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, and its ability to
achieve positive cash flow and Moscow CableCom's ability to raise funds for the expansion of CCTV's network,
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. -0- *T MOSCOW
CABLECOM CORP. Consolidated Balance Sheets February 29, 2004 and February 28, 2003 (in thousands, except per share data)
2004 2003 --------------------------------------------------- --------- -------- Assets Current assets: Cash and cash
equivalents $ 3,240 $ 6,279 Marketable securities 2,897 1,809 Accounts and other receivables, less allowance for
doubtful accounts of $40 in 2004 and $25 in 2003 124 48 Inventories 793 - Taxes receivable 1,396 - Prepaid expenses and
other current assets 154 242 --------------------------------------------------- --------- -------- Total current assets
8,604 8,378 Property, plant and equipment, net 13,552 3,403 Construction in progress and advances 5,209 - Prepaid
pension expense 4,754 4,591 Intangible assets and Goodwill 10,071 - Investment in Institute for Automated Systems 7,894
- Investment in Moscow Broadband Communication Ltd. - 1,971 Other assets 448 702
--------------------------------------------------- --------- -------- Total assets $50,532 $19,045
--------------------------------------------------- --------- -------- Liabilities and Stockholders' Equity Current
liabilities: Current maturities of long-term debt $ 598 $ 407 Payable to affiliate 1,824 - Accounts payable 880 288
Accrued liabilities 1,565 907 Deferred income taxes 614 132 ---------------------------------------------------
--------- -------- Total current liabilities 5,481 1,734 Long-term debt, less current maturities 2,941 1,674 Other
long-term obligations 625 867 Deferred income taxes 4,063 1,668 ---------------------------------------------------
--------- -------- Total liabilities 13,110 5,943 --------------------------------------------------- --------- --------
Commitments and contingencies Stockholders' equity: Cumulative convertible preferred stock, no par value;
authorized 800,000 shares; 188,006 shares issued and outstanding in 2004 and 2003; liquidation preference $18.75 per
share 3,497 3,497 Common stock, $.01 par value; authorized 15,000,000 shares; issued and outstanding 8,430,335 shares in
2004 and 2,099,908 shares in 2003 84 21 Additional paid-in capital 33,350 6,653 Retained earnings 491 2,931
--------------------------------------------------- --------- -------- Total stockholders' equity 37,422 13,102
--------------------------------------------------- --------- -------- Total liabilities and stockholders' equity
$50,532 $19,045 --------------------------------------------------- --------- -------- *T -0- *T MOSCOW CABLECOM CORP.
Consolidated Statements of Operations Years ended February 29, 2004, February 28, 2003 and February 28, 2002 (in
thousands, except per share data) 2004 2003 2002 ----------------------------------------------------------------------
Revenues $ - $ - $ - ---------------------------------------------------------------------- Costs and expenses: General
and administrative 2,956 2,531 1,956 Loss on sale of real estate - - 197 Interest expense 245 256 374
---------------------------------------------------------------------- 3,201 2,787 2,527 Investment income and other
income 1,629 914 590 ---------------------------------------------------------------------- Loss from continuing
operations before equity in losses of unconsolidated subsidiary, income taxes and cumulative effect-type accounting
adjustment (1,572)(1,873) (1,937) Equity in losses of Moscow Broadband Communication Ltd. (643) (712) (671)
---------------------------------------------------------------------- Loss from continuing operations before income
taxes and cumulative effect-type accounting adjustment (2,215)(2,585) (2,608) Income tax (benefit) (57) (535) (955)
---------------------------------------------------------------------- Net loss from continuing operations before
cumulative effect-type accounting adjustment (2,158)(2,050) (1,653) Cumulative effect-type accounting adjustment - loss
on derivative securities, net of income tax - - (47)
---------------------------------------------------------------------- Net loss from continuing operations
(2,158)(2,050) (1,700) Net income from discontinued operations, net of income taxes of $80 and $1,366, respectively -
132 2,228 Gain on sale of discontinued segment, net of income taxes of $686 - - 1,472
---------------------------------------------------------------------- Net (loss) income (2,158) (446) 528 Preferred
dividends (282) (282) (286) ---------------------------------------------------------------------- (Loss) income
applicable to common shareholders $(2,440) $(728) $242
---------------------------------------------------------------------- Income (loss) per common share: BASIC AND
DILUTED: Net income (loss) from continuing operations before cumulative effect-type accounting adjustments
$(1.12)$(1.11) $(0.93) Cumulative effect-type accounting adjustment - - (0.02) Income from discontinued operations - .06
1.07 Gain on sale of discontinued segment - .70 - ----------------------------------------------------------------------
$(1.12)$(0.35) $0.12 ---------------------------------------------------------------------- *T
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