Boardwalk Announces Strong First Quarter Results; Well Positioned for Continued Solid Performance.Business Editors CALGARY, Alberta--(BUSINESS WIRE)--May 23, 2001 Boardwalk Equities Inc. (NYSE NYSE See: New York Stock Exchange :BEI Bei (pā, bā), river, c.200 mi (320 km) long, formed by the union of two headstreams in the Nanling Mts., N Guangdong prov., S China. It flows S into the Xi River, E of Guangzhou, to form the Pearl River delta. )(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :BEI.) announced today strong financial results for its first quarter ending March 31, 2001. For the quarter the Company reported Total Revenues of $68 million, Funds From Operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. (FFO FFO See: Funds from operations ) of $18.5 million and FFO per share of $0.37. Effective December 31, 2000, the Company changed its fiscal period end to December 31 from May 31. Due to this change, comparable results for the same period are not available. For illustrative il·lus·tra·tive adj. Acting or serving as an illustration. il·lus  tra·tive·ly adv.Adj. 1. purposes only, where applicable, we have presented the Company's results for the three month period ending February 29, 2000. Readers are cautioned that these periods are not for identical comparable periods and that the real estate industry is subject to seasonal fluctuations that will affect straight comparisons of these amounts. Highlights of the Company's first quarter 2001 financial results include: -- Rental Revenues of $50.0 million, which compares to $46.2 million for the three month period ending February 29, 2000 -- Total Revenues of $68.0 million, compared to $48.1 million for the three month period ending February 29, 2000 -- Net Rental Income of $32.4 million, which compares to $30.2 million for the three month period ending February 29, 2000 -- Funds from Operations (FFO) of $18.5 million, compared to $9.8 million for the three month period ending February 29, 2000 -- FFO per share of $0.37, compared to $0.20 for the three month period ending February 29, 2000 -- Net Earnings of $4.9 million, compared to $3.4 million for the three month period ending February 29, 2000 -- EPS of $0.10, compared to $0.07 for the three month period ending February 29, 2000 Commenting on the Company's first quarter results, Sam Kolias Sam Kolias is the CEO of Boardwalk REIT (TSX: BEI.UN).[1] He and his brother Van Kolias, Senior VP of Quality Control of Boardwalk, are at #81 of the top 100 richest people in Canada as compiled by Canadian Business magazine for 2006. , President and C.E.O. said "We have gotten off to an excellent start in 2001 and are pleased with our financial performance. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that we can continue to demonstrate solid performance for the balance of the year." The first quarter results include a sale of a property which resulted in $18.0 million of revenues and $7.5 million of pre-tax operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. . The sale provided a $0.15 contribution to FFO per share in the quarter. The Company continues to realize the benefit of improved efficiencies from the roll out last year of its web-enabled real time property management system, which management believes is the first of its kind in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . General and Administrative expenses in the quarter were consistent with those posted in the more recent quarters. The Company continues to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·gation n. the risk associated with energy
costs throughout the portfolio. As previously announced, the Company
locked in electricity prices in Alberta for a period of 3 to 5 years.
The Company also recently locked in natural gas prices for its Alberta
portfolio at around CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $7.90 per gigajoule for a one year term. The
Company also continues to pursue other conservation and sub-metering
initiatives to further minimize the impact of any future energy price
increases.Portfolio Performance The Company continues to see improvement in its portfolio performance, in part a result of the company's value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. capital and service programs designed to improve both the quality and service to existing and new customers. Boardwalk's overall occupancy was at 94%; which is consistent with the amounts reported for the three months ended February 29, 2000. Average rents across the Company's portfolio in the quarter increased to $667 per unit per month compared to $616 for the three months ended February 29, 2000. Same-Store Results Boardwalk also showed solid improvement in its stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. properties (defined as properties owned for over 24 months). A total of 20,221 units were classified as stabilized for the latest quarter, representing 80% of Boardwalk's total portfolio. Again, due to the change in the Company's fiscal year end, for illustrative purposes only, we have made the prior period comparison to the three month period ending February 29, 2000. On this basis, "same-store" results for the Company's stabilized portfolio for the three month period ending March 31, 2001 showed improved results with rental revenue growth of 6.6% and NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics growth of 15.4% compared to the three month period ended February 29, 2000.
---------------------------------------------------------------
Rental Rental
Revenues Expenses NOI
---------------------------------------------------------------
Edmonton +9.09% -9.34% +19.11%
Calgary +2.57% -26.03% +15.52%
Other Alberta +10.26% +10.46% +10.20%
Saskatoon +11.96% -0.87% +22.25%
Regina +1.30% +4.59% -1.19%
Total Stabilized +6.64% -9.76% +15.43%
---------------------------------------------------------------
Acquisition and Disposition Activity The Company completed the acquisition of a total of 711 units in the quarter located primarily in Edmonton and Saskatoon Saskatoon (săskət  n`), city (1991 pop. 186,058), S central Sask., Canada, on the South Saskatchewan River. . In aggregate,
the acquisition cost of the properties totaled $27.9 million, or
approximately $38,500 per unit, representing an amount well below
replacement cost. The details of the transaction involved Boardwalk
assuming approximately $14 million of existing mortgage debt, the
issuance of 649,125 shares for proceeds of $7.1 million and the payment
of $6.7 million in cash.The anticipated going-in unleveraged return on the properties is in excess of 9.5% and management believes that it will be able to enhance these returns through its proven property management and repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. techniques and achieve very attractive returns on its equity investment in the projects. During the quarter the Company completed the sale of a project in Edmonton totaling 236 units. The project was sold for $18.0 million, or approximately $76,300 per unit, with a pre-tax profit of $7.5 million, or $0.15 per share. The profit that Boardwalk realized on the sale of the property is another illustration of the Company's ability to acquire, reposition and enhance returns and values significantly. The Company had acquired the property in mid- mid- pref. Middle: midbrain. 1996 as part of a portfolio purchase and subsequently had undertaken a major upgrade to the property which repositioned it in the marketplace and resulted in a significant increase in rental revenues and cash flows. The property sale is consistent with the Company's strategy of continuously looking at selective opportunities to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose certain properties within its portfolio where value has been created and where management believe it can re-deploy the capital into other opportunities offering higher returns, growth and value creation potential. Continued Balance Sheet Strength The Company maintained its strong financial position in the quarter. The Company's mortgage debt totaled $1.06 billion as at March 31, 2001, up marginally from $1.03 billion at December 31, 2001. All of the Company's outstanding mortgage debt as of March 31, 2001 was at fixed rates and carried a weighted average interest rate of 6.32% (compared to 6.27% at December 31, 2001 and 6.31% at February 29, 2000), with a weighted average remaining term to maturity of over 5 years. The Company's liquidity remained strong, with its operating and demand facility remained untapped and its cash resources continued to grow, amounting to over $18 million as at March 31, 2001. Suite Systems Inc. - Initial Roll Out Underway Suite Systems Inc. (SSI (1) See server-side include and single-system image. (2) (Small-Scale Integration) Less than 100 transistors on a chip. See MSI, LSI, VLSI and ULSI. 1. (electronics) SSI - small scale integration. 2. ), currently 100%-owned by Boardwalk, began the initial roll-out of its services in the first quarter of the year. It began selling its digital TV and high-speed Internet See broadband. services at two of Boardwalk's properties in Calgary. In just under two months since it began marketing its services at the two initial buildings it has over 100 subscribers, achieving healthy penetration rates over a short period of time. A number of additional Boardwalk properties have been pre-wired for SSI's services and a measured roll-out is anticipated over the balance of the year. SSI has also entered into initial agreements to service several non-Boardwalk owned properties. Sam Kolias, Boardwalk's President and C.E.O. said that "the roll-out of Suite Systems' services to our properties will give our residents an unprecedented level of communications and information services See Information Systems. which we believe will serve as an attractive additional amenity a·men·i·ty n. pl. a·men·i·ties 1. The quality of being pleasant or attractive; agreeableness. 2. Something that contributes to physical or material comfort. 3. to our properties. We remain committed to providing our residents with the best value, service and amenities in the multi-family industry." SSI continues to be in negotiation with several municipal electric utilities (MEU's) and other owners of rights of way and dark fiber assets regarding a variety of partnership arrangements including revenue share and equity participation arrangements. The Company anticipates concluding one or more of these agreements over the next several months. These relationships are expected to result in a number of benefits to SSI including allowing an accelerated roll-out in its target markets as well as a more cost-effective and scaleable business model. Boardwalk's investment in SSI totaled $34 million at the end of the first quarter, or approximately 2% of the Company's total assets. This amount includes over $6.5 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Centre 15 office building in Calgary, located one block away from Boardwalk's head office, which houses SSI's head office as well as its video head-end and central switch facilities. We certainly are not sitting still with respect to various other technology-related activities relating to our core business. We are now implementing the individual meter technology on close to 400 units with a goal to do about 3000 units over the next year. We estimate that this will save us over $1 million per year. We are also continuing to identify duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. entry procedures with the goal to further identify efficiencies like sites authorizing auto debit A monetary amount that is subtracted from an account balance. A debit from one account is a credit to another. See credit. payments to contractors streamlining the payment process, tightening controls while providing more timely cash flow information. We will also focus on transferring our Boardwalk phone traffic to our new switch, which will further introduce savings on our general and administrative expenses. We are also stepping up our attention on our ownership database assets with a goal to widen wid·en tr. & intr.v. wid·ened, wid·en·ing, wid·ens To make or become wide or wider. wid en·er n. discussions with potential vendors further, learning the
status of more owners and being in a better position to react as vendor
situations and markets change.Outlook Commenting on the outlook for the Company, George Reti RETI - RTI , Executive Vice President, said "We remain optimistic that we are well positioned as a Company and in terms of our major market areas to generate strong growth over the next several years. As for the balance of the year, we remain optimistic about the Company's ability to show improved results." Boardwalk's largest portfolio concentration is in Alberta, which accounts for over 67% of its total units. Economists continue to predict that Alberta will lead the country in economic growth through 2002. CMHC CMHC community mental health center. recently released its Housing Outlook publications in which it predicted apartment rental rate growth in 2001 for Calgary of 5.0% and for Edmonton 7.5%. With respect to current "street" estimates, Rob Geremia, Chief Financial Officer, said "We are comfortable with the lower end of the the current analyst forecast range for FFO of between $1.15 and $1.20 per share for the current year, including a forecast contribution realized from our ongoing sales activity of approximately $0.25 per share for the full year." Conference Call Information Investors, analysts and interested parties are invited to join Boardwalk's quarterly conference call to be held today at 11:15am EST EST electroshock therapy. EST abbr. electroshock therapy (9:15am MST See micro systems technology. ) in which Sam Kolias, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , and other senior executives will speak to Company's fiscal 2001 first quarter results. The dial-in numbers for the conference call are: 416-620-2405 (within Toronto) or 1-888-209-3799 (outside Toronto). Presentation materials will be made available on the INVESTOR section of our website (www.bwalk.com) prior to the call. The Company will also have of a webcast of the conference call in which participants will be able to listen to the call and view our slide presentation simultaneously over the Internet. To access the webcast please visit http://investor.bwalk.com/reports/r2001/01_1.htm at least 15 minutes prior to the call. This page will provide information on software needed and system requirements To be used efficiently, all computer software needs certain hardware components or other software resources to be present on a computer system. These pre-requisites are known as (computer) system requirements and are often used as a guideline as opposed to an absolute rule. . A live audiocast will also be available at http://www.newswire.ca/webcast/. An audio recording of the teleconference will be available approximately one hour after the call until 11:59pm EST on May 30, 2001. It can be accessed it by dialing 416-626-4100 and using the reservation number 18603364. An audio archive will also be available on our Investor site (http://investor.bwalk.com) two hours after the conference call until June 22, 2001. About the Company Boardwalk Equities Inc. is a customer oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. , technologically advanced real estate company specializing in the acquisition and management of multi-family residential Multi-family residential is a classification of housing where multiple separate housing units are contained within one building. The most common form is an apartment building. Many intentional communities incorporate multi-family residences, such as in cohousing projects. projects throughout Canada. Boardwalk owns or has contracted to acquire over 25,000 units representing over 21 million net rentable square feet making it the largest owner and operator in Canada. Boardwalk is listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. and the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. and trades under the symbol "BEI". Suite Systems Inc. (SSI) is a fully digital telecommunications company See telecom company. for the 21st century. It will be the first North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. company to deliver voice, data, and video in one bundled service over a fiber optic network. In addition to phone, digital TV, video on demand, and high speed Internet access See how to access the Internet. , SSI will also eventually be an Application Service Provider (ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). ) and provide e-commerce services. Suite Systems is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Boardwalk Equities. For more information about Boardwalk Equities Inc. visit our website at www.bwalk.com. For additional information about Suite Systems Inc. visit its website is www.suitesystems.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. "Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Except for the historical information contained herein, this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding Company and property performance, and is based on the Company's current expectations and judgment. Actual results could vary materially depending on risks and uncertainties inherent to general and local real estate conditions, competitive factors specific to markets in which Boardwalk operates, legislative or other regulatory decisions, future interest rate levels or capital markets conditions. The Company assumes no liability to update this information. For more details, please refer to the Company's SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review filings, including its most recent Annual Report and Annual Information form.
Financial Information
Consolidated Balance Sheets
(Thousands of dollars) March 31, 2001 December 31, 2000
(Unaudited) (Audited)
Assets
Revenue producing properties $ 1,354,409 $ 1,325,715
Properties held for development
and resale 6,378 6,692
Mortgages & accounts receivable 21,461 17,230
Other assets 14,904 14,637
Deferred financing costs 32,178 31,460
Technology initiative 34,141 27,045
Cash and short term investments 18,785 21,055
-------------- --------------
$ 1,482,256 $ 1,443,834
-------------- --------------
-------------- --------------
Liabilities
Mortgages payable $ 1,056,382 1,034,444
Accounts payable and accrued
liabilities 22,799 24,795
Refundable security deposits
and other 9,634 9,953
Capital lease obligations 9,967 8,404
Future income taxes 72,568 64,864
-------------- --------------
$ 1,171,350 $ 1,142,460
-------------- --------------
Shareholders' Equity
Share capital 260,738 253,586
Retained earnings 50,168 47,788
-------------- --------------
310,906 301,374
-------------- --------------
$ 1,482,256 $ 1,443,834
-------------- --------------
-------------- --------------
Consolidated Statement of Earnings - For the three months ended
(Thousands of dollars, except per share amounts) (Unaudited)
March 31 February 29
2001 2000
(restated Note 2)
Revenue
Rental income $ 49,970 $ 46,230
Sales - properties held for
development and resale 18,009 1,898
---------- ----------
67,979 48,128
---------- ----------
Expenses
Revenue producing properties:
Operating Expenses 5,967 5,375
Utilities 10,092 6,237
Utility Rebate (3,265) -
Property taxes 4,810 4,378
Cost of sales - properties held
for development and resale 10,525 1,718
Administration 3,883 4,586
Financing costs 16,687 15,395
Amortization 12,454 2,680
---------- ----------
61,153 40,369
---------- ----------
Operating earnings before income taxes 6,826 7,759
---------- ----------
Large corporations taxes 754 614
Future income taxes 1,194 3,787
---------- ----------
Net earnings $ 4,878 $ 3,358
---------- ----------
---------- ----------
Earnings per share - Basic and
fully diluted $ 0.10 $ 0.07
---------- ----------
---------- ----------
Consolidated Statement of Retained Earnings
(Thousands of dollars, except per share amounts) (Unaudited)
March 31 February 29
2001 2000
(restated Note 2)
Retained earnings, as previously
stated $ 47,788 $ 32,726
Adjustment for retroactive
adoption of future income taxes
(note 2) - (1,070)
----------- -----------
Retained earnings, beginning of
period as restated 47,788 31,656
Net earnings 4,878 3,358
Dividends paid (2,496) -
Premium on share repurchases (2) -
----------- -----------
Retained earnings, end of period $ 50,168 $ 35,014
----------- -----------
----------- -----------
Consolidated Statement of Cash Flows- For the three months ended
(Thousands of dollars, except per share amounts) (Unaudited)
March 31 February 29
2001 2000
(restated Note 2)
Cash flow obtained from (applied to):
Operating activities
Net income $ 4,878 $ 3,358
Future income taxes 1,194 3,787
Amortization 12,454 2,680
---------- ----------
Funds from operations 18,526 9,825
Net change in operating working
capital (6,815) 2,745
Net change in property held for
development 9,694 1,135
---------- ----------
Total operating cash flows 2,879 3,880
---------- ----------
Financing activities
Issue of common shares (net of
issue costs) 39 47
Stock repurchase program (5) (3,473)
Dividends paid (2,496) -
Financing of revenue producing
properties 32,638 36,121
Repayment of debt on revenue
producing properties (24,754) (7,625)
Capital lease payments (286) -
Deferred financing costs (1,063) (572)
---------- ----------
4,073 24,498
---------- ----------
Investing activities
Purchases of revenue producing
properties net of debt on
acquisitions of $14,055 (2000 -
$22,783) and shares issued of
$7,116 (2000 - $nil) (6,738) (18,057)
Project improvements to revenue
producing properties (15,763) (21,360)
Technology initiative (5,247) -
---------- ----------
(27,748) (39,417)
---------- ----------
Decrease in cash balance during the
period (2,270) (1,214)
Cash and cash equivalents
(indebtedness), beginning of period 21,055 (2,730)
---------- ----------
Cash and cash equivalents
(indebtedness), end of period $ 18,785 $ (3,944)
---------- ----------
---------- ----------
Funds from operations per share,
basic and fully diluted $ 0.37 $ 0.20
---------- ----------
---------- ----------
Taxes Paid $ 609 $ 409
---------- ----------
---------- ----------
Interest Paid $ 16,393 $ 14,917
---------- ----------
---------- ----------
Notes to Financial Statements For the Three Months Ended March 31, 2001 Note 1 - Basis of Presentation These unaudited interim consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge have been prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Canadian generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") and are consistent with those used in the audited consolidated financial statements as at and for the seven months ended December 31, 2000, except for the adoption of a new Canadian New Canadian Noun Canad a recent immigrant to Canada Institute of Public Real Estate Companies ("CIPREC CIPREC Conversational & Interactive Project Evaluation & Control ") requirement. The new standard requires the use of a funds from operations ("FFO") calculation, versus the traditional cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses calculation. As a result of this change, the Corporation will now calculate funds from operations per share instead of cash flow per share. Prior period figures have been restated. The interim financial statements should be read in conjunction with the audited financial statements. As a result of the Corporation changing its year end from May 31 to December 31, comparative figures for the quarter are February 29, 2000. Due to seasonality, the operating results for the three months ended March 31, 2001 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2001. Note 2 - Changes in Accounting Policy Effective June 1, 2000, the Corporation adopted the liability method of accounting for income taxes as recommended by the Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants (CICA) is the umbrella body for the Chartered Accountant profession in Canada and Bermuda. Membership of the CICA totals 70,000 Chartered Accountants and 8,500 students. ("CICA CICA Competition In Contracting Act of 1984 (USA) CICA Canadian Institute of Chartered Accountants CICA Competition In Contracting Act CICA Criminal Injuries Compensation Authority (UK) "). Under the liability method, the Corporation records future income taxes for the effect of any difference between the accounting and income tax basis of an asset or liability. The Corporation retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin adopted the CICA recommendations. The following table illustrates the change on the income statement and opening retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. for the three months ended February 29, 2000.
Effect of Adoption -
As Restated Prior Method increase (decrease)
----------- ------------ -------------------
Amortization Expense $ 2,680 $ 2,540 $ 140
Deferred/Future Income
Tax Expense 3,787 3,482 305
Net Earnings 3,358 3,803 (445)
Retained Earnings,
beginning of period $ 31,656 $ 32,726 $ (1,070)
Effective June 1, 2000, the Corporation retroactively adopted the new CICA Handbook
This article is about reference works. For the subnotebook computer, see .
An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of and funds from operations per share are calculated using the "treasury stock" method, replacing the previous method of "imputed Attributed vicariously. In the legal sense, the term imputed is used to describe an action, fact, or quality, the knowledge of which is charged to an individual based upon the actions of another for whom the individual is responsible rather than on the individual's earnings per share". There was no effect on fully diluted earnings per share and fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. funds from operations per share for the three months ended February 29, 2000.
Note 3 - Share Capital March 31, 2001 December 31, 2000
Number Amount Number Amount
------ ------ ------ ------
Common Shares outstanding
(thousands) 49,921 $ 261,485 49,258 $ 253,586
Note 4 - Per Share Calculation The following table sets forth the computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of basic and diluted earnings per share with respect to income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the .
March 31, 2001 February 29, 2000
-------------- -----------------
Net income $ 4,878 $ 3,358
-------- --------
-------- --------
Denominator for basic earnings per
share - weighted average shares 49,908 48,843
Effect of dilutive stock options 272 363
-------- --------
Denominator for diluted earnings per
share adjusted for weighted average
shares and assumed conversion 50,180 49,206
-------- --------
-------- --------
Basic earnings per share $ 0.10 $ 0.07
Diluted earnings per share $ 0.10 $ 0.07
Note 5 - Commitments The Corporation has entered into a one year supply arrangement with a gas utility company to supply the Corporation with 80% of its natural gas needs in Alberta for the 12 month period ending April 30, 2002. The agreements provide that the gas utility company provides the commodity at $7.90 per gigajoule. The remaining 20% supply for November 2001 to March 2002 has been contracted at $6.60 per gigajoule. As disclosed in the December 31, 2000 annual report, the Corporation has entered into long-term supply arrangements with two electrical utility companies to supply the Corporation with its electrical power needs for Alberta for the next three to five years at a blended rate of approximately $0.07/kwh. The agreements provide that the Corporation purchase its power for all properties under contract for the upcoming years based on an approximation approximation /ap·prox·i·ma·tion/ (ah-prok?si-ma´shun) 1. the act or process of bringing into proximity or apposition. 2. a numerical value of limited accuracy. of the current year's demand levels. In regards to the Corporation's technology initiative, at March 31, 2001 the Corporation had remaining commitments totalling $2.0 million (December 31, 2000 - $ 4.0 million) with various suppliers with an average weighted interest rate of 10.3% (December 31, 2000 - 10.8%). Note 6 - Comparative Figures Certain comparative figures have been reclassified to conform with the current year's presentation. |
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