Bramalea completes progitable year.TORONTO--(BUSINESS WIRE)--Dec. 15, 1994--Bramalea Inc. today announced its audited financial results for the year with earnings for the twelve month period ending October October: see month. 31, 1994 totalling $10.3 million versus a loss of $90.6 million in 1993. Net earnings for the fourth quarter were $5.1 million versus a loss of $16.7 million in 1993. Earnings per share for 1994 amounted to 22 cents versus a loss per share of $4.39 in 1993. Revenues totaled $760.8 million for the fiscal year ended October 31, 1994 compared to revenues of $766.3 million the previous year. The small decline in revenues is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the loss of revenue of $36.8 million for the year due to the sale of rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. properties. This decline was substantially offset by an increase in housing and land inventory sales and by an increase in revenues generated from retained rental properties. 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 for the year was a positive $35.6 million versus a negative cash flow of $23.5 million in 1993. Cash flow from operations per share was $0.74 as compared to a negative cash flow per share of $1.14 at October 31, 1993. Cash flow from operations for the fourth quarter increased to $11.5 million or $0.24 per share versus $1.1 million or $.03 in the last quarter of 1993. Closings of home sales climbed 18% to 1,055 units at October 31, 1994, compared to 895 closings one year ago. Gross profit from housing and land operations for the year was $46.3 million versus $3.9 million in fiscal 1993. The improvement in profitability was primarily due to an increase in the number of housing units closed, an increase in profit margins and the sale of a greater number of residential lots. Bramalea expanded its home-building operations this year in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, and in the greater Toronto area The Greater Toronto Area (widely abbreviated as the GTA) is the most populous metropolitan area in Canada. The GTA is a provincial planning area with a population of 5,555,912 at the 2006 Canadian Census. and entered new markets in Texas and Ohio. Long term debt decreased a further $252.6 million for the year from the balance at October 31, 1993, primarily due to asset dispositions. The Company has reduced debt approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.5 billion since October 31, 1992 through the conversion of debt to equity, and through repayments from asset dispositions. Total asset book value at October 31, 1994 was $4.0 billion with long term debt of $3.2 billion. "Bramalea's gradual The Gradual (Latin: graduale, sometimes called the Grail) is a chant in the extraordinary form of the Roman Catholic Mass, sung after the reading or singing of the Epistle and before the Alleluia, or, during penitential seasons, before the Tract. return to profitability is consistent with the Plan," said Marvin G. Marshall Marshall. 1 City (1990 pop. 12,711), seat of Saline co., N central Mo.; inc. 1839. In a large farm area, it is a processing center for grain, eggs, meat, and dairy products. Marshall is the seat of Missouri Valley College. , President and chief Executive Officer. "While the Company is stronger after one full year of profitability, management remains focused on raising needed working capital as well as equity to meet the Plan and to fund new growth opportunities." In connection with obtaining new equity, the Company is also having discussions with certain lenders to redefine Verb 1. redefine - give a new or different definition to; "She redefined his duties" define, delimit, delimitate, delineate, specify - determine the essential quality of 2. current loan arrangements, including the quantification quan·ti·fy tr.v. quan·ti·fied, quan·ti·fy·ing, quan·ti·fies 1. To determine or express the quantity of. 2. and settlement of the potential shortfalls that may exist between the value of underlying security and debt owing. Bramalea Inc. is a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. real estate company which owns and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. manages more than 36 million, square feet of commercial property, including prime retail office, residential rental properties and hotel assets in 46 well-established markets throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . Bramalea is also a major builder of quality homes in the greater Toronto area and in Southern California, with new home-building projects opened this year in Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. and Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. . -0-
BRAMALEA INC.
CONSOLIDATED BALANCE SHEETS
AS AT OCTOBER 31
1994 1993
------------------------
(in thousands)
-------------------------
ASSETS
Rental properties $2,970,900 3,129,700
Land 633,600 688,300
Housing 126,500 132,700
Loans receivable and investments 191,400 219,600
Other 91,900 102,000
-------------------------
$4,014,300 4,272,300
=========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term debt
$3,183,800 3,436,400
Accounts payable 214,800 232,700
Shareholders' equity 615,700 603,200
-------------------------
$4,014,300 4,272,300
=========================
See Accompanying Notes
BRAMALEA LIMITED
CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended Year ended
October 31 October 31
-----------------------------------------------------------------
1994 1993 1994 1993
-----------------------------------------------------------------
(in thousands, except per share amounts)
-----------------------------------------------------------------
RENTAL OPERATIONS
Revenues:
Retained properties $104,800 99,300 $395,200 375,900
Properties sold 400 11,300 23,800 60,600
Management fees 2,800 2,300 9,600 7,400
-----------------------------------------------------------------
108,000 2,300 428,600 443,900
Operating and maintenance
expenses 39,700 41,400 154,200 155,200
Property taxes 15,000 17,500 66,500 74,200
-----------------------------------------------------------------
Gross profit from rental
operations (note 2) 53,300 54,000 207,900 214,500
-----------------------------------------------------------------
REAL ESTATE SALES
Housing and land
inventory sales 147,900 140,600 332,200 322,400
Cost of housing and
land inventory sales 128,100 139,400 285,900 318,500
-----------------------------------------------------------------
Gross profit from real
estate sales 19,800 1,200 46,300 3,900
-----------------------------------------------------------------
TOTAL GROSS PROFIT 73,100 55,200 254,200 218,400
Interest expense (note 3) 46,500 42,000 174,700 202,400
General and administrative
expense 11,300 9,000 37,900 33,800
Depreciation expense 6,400 10,000 25,300 42,800
Other 2,300 2,300 1,200 1,900
-----------------------------------------------------------------
6,600 (8,100) 15,100 (62,500)
Loss from asset dispositions
and settlement of claims - (8,000) - 25,600
-----------------------------------------------------------------
EARNINGS (LOSS)
BEFORE TAXES 6,600 (16,100) 15,100 (88,100)
Income and large
corporation taxes 1,500 600 4,800 2,500
-----------------------------------------------------------------
EARNINGS (LOSS)
FOR THE YEAR $ 5,100 (16,700) $10,300 (90,600)
-----------------------------------------------------------------
EARNINGS (LOSS) PER
COMMON SHARE (note 4) $ .11 (.50) $ .22 (4.39)
=================================================================
See accompanying notes.
BRAMALEA INC.
CONSOLIDATED STATEMENTS OF CASH FLOW FROM OPERATIONS
Three months ended Year ended
October 31 October 31
-----------------------------------------------------------------
1994 1993 1994 1993
-----------------------------------------------------------------
(in thousands, except per share amounts)
-----------------------------------------------------------------
EARNINGS (LOSS)
FOR THE YEAR $ 5,100 (16,700) $10,300 (90,600)
Items not involving
an outlay of cash:
Deferred income taxes - (200) - (1,300)
Depreciation expense 6,400 10,000 25,300 42,800
Loss from asset
dispositions and
settlement of claims - 8,000 - 25,600
-----------------------------------------------------------------
CASH FLOW FROM OPERATIONS $11,500 1,100 $35,600 (23,500)
=================================================================
CASH FLOW FROM OPERATIONS
PER COMMON SHARE $ .24 .03 $ .74 (1.14)
=================================================================
See accompanying notes.
BRAMALEA INC.
CONSOLIDATED STATEMENTS OF CHANGES IN CASH RESOURCES
YEAR ENDED OCTOBER 31
1994 1993
------------------------------------------------------------
Operating Financing Investing
act- act- act-
ivities ivities ivities Total Total
------------------------------------------------------------
(in thousands)
OPERATIONS
Gross profit $254,200 - 6,200 260,400 230,200
Property taxes
repaid and
capitalized - (7,700) (16,200) (23,900) (43,200)
Interest ex-
pensed, de-
ferred and
capitalized (174,700) 37,600 (48,000) (185,100) (205,500)
General and ad-
ministrative
expense (37,900) - - (37,900) (33,800)
Other (1,200) - - (1,200) (1,900)
Large corp-
oration
taxes (4,800) - - (4,800) (3,800)
---------
35,600
ASSETS
Rental prop-
erty capital
expenditures,
development
and acquis-
ition - - (122,500) (122,500) (54,900)
Land devel-
opment and
acquisitions - - (50,000) (50,000) (19,300)
Recovery of
costs through
housing and
land inven-
tory sales 285,900 - - 285,900 318,500
Housing con-
struction (152,600) - - (152,600) (147,600)
Transfer of
land and cap-
italized char-
ges to hous-
ing (92,300) - 92,300 - -
Proceeds from
asset dispo-
sitions - - 300,900 300,900 612,800
Other - (2,000) 24,100 22,100 49,000
LIABILITIES
Long-term debt
assumed on rental
property aqui-
sition - 55,800 - 55,800 -
Conversion of
long-term debt
to common shares - (1,800) - (1,800) (677,900)
Long-term debt
repaid on dis-
postion of
assets - (238,900) - (238,900) (491,100)
Repayment of
long-term
debt, net (83,600) (13,500) - (96,800) (120,500)
Mortgage in-
stalment
payments - (33,500) - (33,500) (15,100)
Other - 11,900 - 11,900 (49,600)
SHAREHOLDERS' EQUITY
Issue of common
shares on con-
version of pre-
ference shares,
debt and set-
tlement of
claims - 2,100 - 2,100 725,800
Conversion of
preference
shares to
common
shares - - - - 725,800
Issue of common
shares under em-
ployee option
plan - 100 - 100 -
------------------------------------------------
NET CHANGE IN
UNRESTRICTED
CASH $(7,000) (189,600) 186,000 (9,800) 28,900
================================================
See accompanying notes.
BRAMALEA INC.
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
OCTOBER 31, 1994
1. The Company operates under a Plan of Compromise or
Arrangement (the "Plan") until March 22, 1998. The consolidated
financial statements have been prepared on the basis of accounting
principles which contemplate the continuity of operations and
realization of assets and discharge of liabilities in the ordinary
course of business and in accordance with the Plan. The Company is
currently having discussions with potential investors to obtain new
equity for working capital and funding of growth opportunities. In
connection with obtaining this new equity, the Company is also having
discussions with certain lenders to redefine current loan
arrangements, including the quantification and settlement of the
potential shortfalls that may exist between the value of underlying
security and debt owing. These consolidated financial statements do
not give effect to the adjustments to the carrying value of assets
and liabilities and to the reported revenues and expenses that would
be necessary should the Company be unable to obtain sufficient new
equity or interim financing for anticipated working capital
requirements or otherwise be unable to continue to operate in the
ordinary course of business and in accordance with the Plan.
The Company's balance sheet was presented on a "fresh start"
basis as at October 31, 1993, after giving effect to a financial
reorganization. Under fresh start accounting, the Company assigned
fair values to each asset and liability, which became the new cost
basis for that asset or liability. The 1993 Consolidated Statement
of Operations, Statement of Cash Flow from Operations and Statement
of Changes in Cash Resources were not affected by the fresh start
adjustments recorded at October 31, 1993.
2. The impact of property sales on rental operations' gross
profit for the three months and year ended October 31 has been
isolated in the table below to show the results of properties
remaining in the portfolio.
-0-
Three months ended October 31 Year ended October 31
----------------------------------------------------------------- 1994 1993 (in thousands) 1994 1993 -----------------------------------------------------------------
$50,300 46,200 Retained properties $184,900 175,800
200 5,500 Properties sold 13,400 31,300
2,800 2,300 Management fees 9,600 7,400
---------------------- ------------------
$53,300 54,000 Gross profit from $207,900 214,500
====================== rental operations ==================
3. Interest expense for the three months and year ended October
31 consists of: Three months ended October 31 Year ended October 31 ----------------------------------------------------------------- 1994 1993 (in thousands) 1994 1993 -----------------------------------------------------------------
$61,100 59,800 Interest charges $232,600 288,800
incurred
13,500 14,800 Less: Interest capitalized 48,000 73,100
1,100 3,000 Interest income 9,900 13,300
----------------- ------------------
$46,500 42,000 Interest charges expensed $174,700 202,400
================= ==================
4. Earnings (loss) and cash flow from operations per common
share are calculated based on the weighted daily average number of
common shares outstanding for the three months ended October 31,
(1994 - 47,822,091); 1993 - 33,083,073) and the year ended October 31
(1994 - 47,802,982; 1993 - 20,657,827) adjusted to give retroactive
effect to the stock consolidation (1:20) August 3, 1994. The sum of
the individual quarters' earnings or cash flow from operations per
common share may not necessarily equal the years' earnings or cash
flow from operations per common share.
CONTACT: Bramalea Inc., Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing
Donald L. Fenton
Vice President, Corporate Communications
416/ 864-6322
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