Cabletel Reports Q4

MARKHAM, Ontario -- Cabletel Communications Corp. (AMEX: TTV; TSX: TTV), the leading distributor of broadband equipment to the Canadian television and telecommunications industries, today announced results for the fourth quarter and year ended December 31, 2002 (all figures are in Canadian dollars). Greg Walling, President and CEO of Cabletel, commented, "Management is quite disappointed with fourth quarter results that were adversely impacted by a very poor December performance. Extremely harsh winter conditions and the continued slowdown of Cable industry purchases resulted in lower than anticipated sales. We are, however, pleased with the progress achieved by Cabletel in 2002. Substantial operating efficiencies were achieved resulting in improvements in gross margin, operating profit and cash flow. We reduced our net loss from approximately $2.9 in 2001 to a net loss of approximately $1 million in 2002. Cabletel will continue to focus on improving its operating fundamentals in 2003." Ron Eilath, Chief Financial Officer of Cabletel, noted, "During the year ended 2002, the Company was negatively impacted with a foreign exchange loss of $260,094. However, as a result of a strengthening in the Canadian dollar vs. the U.S. dollar, Cabletel expects to realize foreign exchange benefits in the first quarter of 2003." For the three months ended December 31, 2002, the Company incurred a net loss of $291,502 compared to net income of $217,644 for the three months ended December 31, 2001. Basic and fully diluted loss per share was $0.04 for the three months ended December 31, 2002 compared to basic and fully diluted income per share of $0.03 for the three months ended December 31, 2001. Inclusive of certain second quarter write-offs previously reported, for the year ended December 31, 2002, the Company incurred a net loss of $1,018,117 compared to a net loss of $2,906,118 for the year ended December 31, 2001. Basic and fully diluted loss per share for the year ended December 31, 2002 was $0.14 compared to basic and fully diluted loss per share of $0.41 for the year ended December 31, 2001. Consolidated net sales for the three months ended December 31, 2002 decreased by $2,941,394 or 19.9% to $11,834,794 compared to consolidated net sales of $14,776,188 for the three months ended December 31, 2001. Consolidated net sales for the year ended December 31, 2002 decreased by $4,491,824 or 7.7% to $53,629,075 compared to consolidated net sales of $58,120,899 for the year ended December 31, 2001. The decrease is primarily attributable to the Company's Distribution and Technology segments, where financial and market conditions that impacted growth in the cable, technology and satellite industry resulted in reduced capital spending within the industry during the year. However, the Distribution segment benefited from its arrangement to supply product to a major project in Eastern Canada. This was supplemented by increased sales in the Manufacturing segment, where sales increased by 16% for the year ended December 31, 2002. Cabletel Communications Corp.