CLEARLINK'R' Reports 3rd Quarter Fiscal 2006 Results.MISSISSAUGA, Ontario For the First Nation, see . Mississauga (pronounced: [ˌmɪsɪˈsɑgə] listen -- CLEARLINK Capital Corporation (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CNK CNK Crash Nitro Kart (Playstation 2 video game) CNK Coated Natural Kraft (MeadWestvaco paperboard) CNK Compute Node Kernel CNK Cryptonet Key ) today reported results for its third quarter of operations in Fiscal 2006. Operating performance in the third quarter of Fiscal 2006 continued to reflect profitable, stable operations but at a level constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by market factors and conditions specific to CLEARLINK. Net income for the third quarter of Fiscal 2006 was $1.6 million or $0.18 per share, the same net income and per share value as was achieved in Q3 of Fiscal 2005. All per share values are 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. . On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, net income was $4.6 million or $0.52 per share equal to the $4.6 million or $0.52 per share earned in the corresponding period last year. The year-over-year shortfalls in lease income were offset by increased investment income and expense reductions. On a rolling 12 month basis, net income was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $6.2 million or $0.70 per share. Gross margin in the leasing area was $3.1 million in the quarter and $9.0 million on a year-to-date basis, a reduction from the $3.4 million and $10.8 million earned in the respective periods last year. The primary components of the reduction are the impacts of a much smaller income-generating portfolio net of continued high residual Residual See:Residual value performance. The owned lease portfolio, on a year-over-year basis has declined on average by 26% to approximately $195 million with a corresponding reduction to run rate. Residual realizations on a year-to-date basis were 159% on $6.5 million of residuals Residuals (1) Part of stock returns not explained by the explanatory variable (the market index return). Residuals measure the impact of firm-specific events during a particular period. . This compares with a 141% realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. rate on $12.2 million of expiries in the first nine months of last year. Period income from month-to-month month-to-month adj. referring to a tenancy in which the tenant pays monthly rent and has no lease, and the tenancy can be terminated by the landlord at any time on thirty-days notice. (See: tenancy, landlord and tenant) renewals continues to be strong. Gross margin in the equipment trading area was $672,000 in the quarter and approximately $2.1 million year-to-date down from the $832,000 earned in the third quarter of Fiscal 2005 and $2.3 million achieved year-to-date last year. The trading group continues to achieve somewhat lower margins on similar volume levels, a function of customer specific activities. Investment income generated in the quarter was $943,000 and approximately $3.1 million year-to-date, as compared with $958,000 and $2.3 million earned in the respective periods last year. The investment portfolio was $40.2 million at December December: see month. 31, 2005, approximately 20% greater on average than last year's equivalent value. Investment income in the prior year's quarter reflected significant disposal gains. The Corporation is also announcing that it will pay a dividend of $0.10 per common share, payable April 14, 2006 to the shareholders of record on March 31, 2006. No Issuer bid activity occurred in the quarter. On a year-to-date basis, 17,600 shares have been purchased for cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. at an average cost of $10.00 per share. Net book value on a fully diluted basis was $12.48 as at December 31, 2005. As previously announced and outlined in Subsequent Event Note 11 to the Financial Statements, the Corporation has made a strategic decision to exit the leasing business through a sale of the majority of the leasing portfolio and related infrastructure to ICON Capital Corp. This sale is subject to regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and shareholder approvals and is anticipated to close prior to March 31, 2006. This will be the near term focus of the Corporation. CLEARLINK Capital Corporation is an innovative financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. provider and equipment trading organization. Based in Mississauga, Ontario, CLEARLINK operates throughout 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. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .CLEARLINK(R) is a trademark of CLEARLINK Capital Corporation.
CLEARLINK CAPITAL CORPORATION
Consolidated Balance Sheets
(in thousands of dollars)
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December 31, March 31,
2005 2005
ASSETS (Unaudited) (Audited)
------------- ------------
CASH $ 22,629 $ 22,206
MARKETABLE SECURITIES 40,209 41,731
LEASES, NET 195,362 243,111
EQUIPMENT HELD FOR LEASING OR SALE 2,795 3,319
RECEIVABLES, NET OF ALLOWANCES 12,253 18,054
LONG-TERM TAXES RECOVERABLE 14,000 14,000
CAPITAL ASSETS 803 1,600
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$ 288,051 $ 344,021
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------------- ------------
LIABILITIES
DEBT $ 114,193 $ 147,419
ACCOUNTS PAYABLE AND ACCRUED CHARGES 46,830 70,125
FUTURE INCOME TAX LIABILITIES 16,663 15,731
------------- ------------
177,686 233,275
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SHAREHOLDERS' EQUITY
SHARE CAPITAL 48,002 48,098
FOREIGN CURRENCY TRANSLATION ADJUSTMENT (4,328) (2,207)
RETAINED EARNINGS 66,691 64,855
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110,365 110,746
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$ 288,051 $ 344,021
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CLEARLINK CAPITAL CORPORATION
Consolidated Statements of Operations and Retained Earnings
(in thousands of dollars except per share data)
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Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
December December December December
31, 2005 31, 2004 31, 2005 31, 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ ----------- ----------- -----------
REVENUE
LEASING $ 20,706 $ 21,785 $ 51,390 $ 63,276
EQUIPMENT TRADING 8,413 9,664 24,738 24,984
INVESTMENT 943 958 3,134 2,291
------------ ----------- ----------- -----------
30,062 32,407 79,262 90,551
------------ ----------- ----------- -----------
EXPENSES
LEASING - AMORTIZATION
AND OTHER COSTS 15,906 15,684 37,422 43,271
INTEREST 1,663 2,729 4,957 9,232
EQUIPMENT TRADING 7,741 8,832 22,677 22,640
------------ ----------- ----------- -----------
25,310 27,245 65,056 75,143
------------ ----------- ----------- -----------
GROSS MARGIN 4,752 5,162 14,206 15,408
SELLING, GENERAL
AND ADMINISTRATION 2,447 2,815 7,484 8,495
------------ ----------- ----------- -----------
NET INCOME FROM
OPERATIONS 2,305 2,347 6,722 6,913
PROVISION FOR
INCOME TAXES 738 774 2,151 2,281
------------ ----------- ----------- -----------
NET INCOME FOR
THE PERIOD $ 1,567 $ 1,573 $ 4,571 $ 4,632
RETAINED EARNINGS,
BEGINNING OF PERIOD 66,008 77,368 64,855 76,144
DIVIDENDS (884) (894) (2,655) (2,690)
PREMIUM ON CANCELATION
OF SHARES - (179) (80) (218)
------------ ----------- ----------- -----------
RETAINED EARNINGS,
END OF PERIOD $ 66,691 $ 77,868 $ 66,691 $ 77,868
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
EARNINGS PER
COMMON SHARE
BASIC $ 0.18 $ 0.18 $ 0.52 $ 0.52
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
FULLY DILUTED $ 0.18 $ 0.18 $ 0.52 $ 0.52
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
SHARES OUTSTANDING
BASIC 8,846,260 8,952,977 8,850,493 8,963,887
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
FULLY DILUTED 8,846,260 8,952,977 8,850,493 8,965,667
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
CLEARLINK CAPITAL CORPORATION
Consolidated Statements of Cash Flows
(in thousands of dollars)
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Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
December December December December
31, 2005 31, 2004 31, 2005 31, 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ ----------- ----------- -----------
NET INFLOW (OUTFLOW)
OF CASH RELATED
TO THE FOLLOWING
ACTIVITIES
OPERATING
NET INCOME FOR
THE PERIOD $ 1,567 $ 1,573 $ 4,571 $ 4,632
ITEMS NOT
AFFECTING CASH
AMORTIZATION OF
LEASING AND
OTHER ASSETS 4,730 5,290 12,863 16,135
GAIN ON SALE OF
LEASING ASSETS (889) (1,211) (2,373) (3,031)
INTEREST ACCRUED
AND OTHER ITEMS
RELATED TO
MARKETABLE
SECURITIES 161 139 659 163
FUTURE INCOME TAX
EXPENSE 421 119 1,064 737
------------ ----------- ----------- -----------
5,990 5,910 16,784 18,636
NET DECREASE (INCREASE)
IN EQUIPMENT HELD FOR
LEASING OR SALE,
RECEIVABLES, ACCOUNTS
PAYABLE AND
ACCRUED CHARGES 6,539 3,313 (17,515) (21,895)
DECREASE IN LONG-TERM
TAXES RECOVERABLE - - - 6,300
------------ ----------- ----------- -----------
12,529 9,223 (731) 3,041
------------ ----------- ----------- -----------
FINANCING
INCREASE IN DEBT 16,239 23,154 45,985 48,171
REPAYMENT OF DEBT (15,366) (30,270) (77,042) (90,877)
REPURCHASE OF
SHARES, NET - (428) (176) (160)
DIVIDENDS PAID (885) (899) (2,657) (1,796)
------------ ----------- ----------- -----------
(12) (8,443) (33,890) (44,662)
------------ ----------- ----------- -----------
INVESTING
ADDITIONS AND
INVESTMENTS
IN LEASES (18,326) (18,592) (63,455) (59,788)
REDUCTIONS AND
DISPOSALS OF
LEASES 21,658 28,197 98,590 102,213
(ADDITIONS TO)
DISPOSALS OF
MARKETABLE
SECURITIES, NET (2,007) 4,774 863 359
ADDITIONS TO OTHER
ASSETS, NET (66) (14) (186) (114)
------------ ----------- ----------- -----------
1,259 14,365 35,812 42,670
------------ ----------- ----------- -----------
EFFECT OF EXCHANGE
RATE CHANGES (200) (1,345) (768) (1,342)
------------ ----------- ----------- -----------
NET CASH INFLOW
(OUTFLOW) 13,576 13,800 423 (293)
CASH, BEGINNING
OF PERIOD 9,053 6,543 22,206 20,636
------------ ----------- ----------- -----------
CASH, END OF PERIOD $ 22,629 $ 20,343 $ 22,629 $ 20,343
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
SUPPLEMENTAL CASH
FLOW DATA:
CASH PAID
(RECOVERED)
DURING THE
YEAR FOR:
INTEREST $ 1,841 $ 2,908 $ 5,511 $ 9,722
INCOME TAXES $ (373) $ 497 $ 937 $ 15,265
CLEARLINK Capital Corporation
Notes to the Consolidated Financial Statements
December 31, 2005
(all dollar amounts are in thousands)
1. BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES These financial statements should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the 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 included in the Corporation's Annual Report for 2005 which provides information necessary or useful to understanding the Corporation's businesses and financial statement presentation. In particular, the Corporation's significant accounting policies and practices were presented in Note 2 to the Consolidated Financial Statements. The quarterly financial statements are unaudited. Financial information in the Third Quarter Report reflects any adjustments that are, in the opinion of management, necessary to a fair presentation of the financial position of the Corporation and the results of its operations and cash flows for the interim periods, 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 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). ") in 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 . The results reported in these financial statements should not be regarded as necessarily indicative indicative: see mood. of results that may be expected for the entire year. 2. CASH The Corporation's banking facilities operate under the terms of a cash concentration agreement and are presented on a net basis. No bank credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities are currently in existence. The Corporation maintains a margin account with its investment dealer secured by the marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has .
3. MARKETABLE SECURITIES
Marketable securities are as follows:
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December 31, March 31,
2005 2005
---------------------------------------------------------------------
Publicly-traded debt instruments $ 20,348 $ 24,632
Publicly-traded income trusts and
energy partnership units 13,917 8,542
Bridge loan fund 5,417 8,030
Other public instruments 527 527
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$ 40,209 $ 41,731
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The purchase price discount or premium on debt instruments is amortized to income to generate a constant return on the investments to maturity. The quoted market value of the publicly traded portfolio approximates $36,800 (March 31, 2005 - $34,400). The fair value of the bridge loan fund instruments is assumed to approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. their carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. as they generally involve variable rates that reprice frequently. 4. LEASES
The Corporation's investment in leases is comprised of the following:
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December 31, March 31,
2005 2005
---------------------------------------------------------------------
Equipment on operating leases:
Computer and other equipment at cost
less accumulated amortization of
$37,546 (March 31, 2005 - $36,979) $ 39,596 $ 34,520
Net investment in finance and
sales-type leases (net of unearned
interest income of $14,801)
(March 31, 2005- $19,642) 155,766 208,591
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$ 195,362 $ 243,111
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Estimated residual values Residual value Usually refers to the value of a lessor's property at the time the lease expires. residual value The price at which a fixed asset is expected to be sold at the end of its useful life. at December 31, 2005 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the lease portfolio amounted to $21,625 (March 31, 2005 - $25,561). Anticipated 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. and residual payments based on existing lease terms are as follows:
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12 months ending December 31, Rent Residual Total
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2006 $ 75,919 $ 8,143 $ 84,062
2007 49,770 6,908 56,678
2008 20,645 5,622 26,267
2009 9,268 455 9,723
2010 and beyond 22,436 497 22,933
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$ 178,038 $ 21,625 $ 199,663
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Leases are presented net of $1,102 (March 31, 2005 - $1,403) in
residual reserves.
5. ASSETS UNDER MANAGEMENT
Total assets under management are as follows:
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December 31, March 31,
2005 2005
---------------------------------------------------------------------
Owned assets (Note 4) $ 195,362 $ 243,111
Syndicated assets 50,961 99,864
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$ 246,323 $ 342,975
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Syndicated assets are financial assets which are brokered directly to
investors for cash. The Corporation continues to administer these
assets on behalf of the investors.
6. CAPITAL ASSETS
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December 31, March 31,
2005 2005
---------------------------------------------------------------------
Cost $ 6,389 $ 6,256
Accumulated amortization (5,586) (4,656)
---------------------------------------------------------------------
$ 803 $ 1,600
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7. DEBT
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December 31, March 31,
2005 2005
---------------------------------------------------------------------
Promissory notes and loans bearing
interest, at varying rates $ 114,193 $ 147,419
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Promissory notes and loans are non-recourse to the Corporation and
are secured by lease receivables, contracts and underlying equipment.
8. SHARE CAPITAL
Common Shares
Number of Shares Amount
---------------------------------------------------------------------
Balance as at March 31, 2004 8,945,460 $ 48,454
---------------------------------------------------------------------
Issued shares 50,000 363
Purchased for cancellation (131,600) (719)
---------------------------------------------------------------------
Balance as at March 31, 2005 8,863,860 48,098
---------------------------------------------------------------------
Issued shares - -
Purchased for cancellation (17,600) (96)
---------------------------------------------------------------------
Balance as at December 31, 2005 8,846,260 $ 48,002
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9. CONTINGENCIES Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. AND COMMITMENTS Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. In November November: see month. , the Corporation received approximately $8.9 million plus applicable taxes in settlement of its litigation with the City of 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 . This value will repay in full all outstanding receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed recorded in the Corporation's books along with any future rent obligations, included in the lease portfolio. Further, the payment also includes an estimate for the end of the term equipment value and an amount for arrears A sum of money that has not been paid or has only been paid in part at the time it is due. A person who is "in arrears" is behind in payments due and thus has outstanding debts or liabilities. interest which were booked directly to the litigation reserve to offset legal costs. With this exception, there has been no significant change in the status of litigation matters in the quarter. Detailed information is outlined in Note 14(a) to the 2005 Consolidated Financial Statements, updated in the Fiscal 2006 quarterly reports. The Corporation has established a liability for litigation matters representing the estimated costs to the Corporation of settling all remaining litigation in a reasonable manner applying principles consistent with those established in earlier settlements. The liability was increased in Fiscal 2005 to reflect revised expectations. Current year settlements were within the financial parameters of the reserves established last year. Should any settlement discussion prove unsuccessful, the Corporation intends to vigorously vig·or·ous adj. 1. Strong, energetic, and active in mind or body; robust. See Synonyms at healthy. 2. Marked by or done with force and energy. See Synonyms at active. defend these actions on the basis that the lease documents entered into are clear and complete and create binding obligations. Should the Corporation be unsuccessful in its defense or settlement of one or more of these legal actions, there could be a materially adverse effect on the Corporation's financial position and future operations. Income Tax Reassessment Reassessment The process of re-determining the value of property or land for tax purposes. Notes: Property is usually reassessed on an annual basis. You may request a "reassessment" if you disagree with your assessment. A detailed review of the federal and provincial Provincial has several meanings and may refer to:
GAAR Gates of the Arctic National Park and Preserve (US National Park Service) ruling in favour Favor or favour (see spelling differences) may be
r'ĭspr d`əns), study of the nature and the origin and development of law. for the Corporation. Detailed negotiations
with CCRA CCRA Canada Customs and Revenue AgencyCCRA Common Criteria Recognition Arrangement CCRA Campus Computer Resellers Alliance CCRA Certified Clinical Research Associate CCRA Commercial Credit Reference Agency CCRA California Court Reporters Association have yet to commence. 10. SEGMENTED INFORMATION The Corporation derives substantially all of its revenues from the sale and lease of technology equipment and related products. The Corporation operates in three significant geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. segments:
CANADA U.S.
9 Months 9 Months 9 Months 9 Months
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------------------------------------------------
--------------------------------------------------
INCOME STATEMENT
LEASING
REVENUES $ 25,286 $ 33,617 $ 26,104 $ 29,659
EXPENSES 20,038 27,250 22,341 25,253
--------------------------------------------------
GROSS MARGIN 5,248 6,367 3,763 4,406
--------------------------------------------------
--------------------------------------------------
EQUIPMENT TRADING
REVENUES $ - $ - $ 14,180 $ 10,350
EXPENSES 33 - 13,297 9,687
--------------------------------------------------
GROSS MARGIN (33) - 883 663
--------------------------------------------------
--------------------------------------------------
INVESTMENT
REVENUE $ 3,134 $ 2,291 $ - $ -
--------------------------------------------------
--------------------------------------------------
TOTAL GROSS MARGIN $ 8,349 $ 8,658 $ 4,446 $ 5,069
--------------------------------------------------
--------------------------------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------------------------------------------------
BALANCE SHEET
LEASING ASSETS $ 126,049 $ 189,915 $ 69,313 $ 77,322
--------------------------------------------------
--------------------------------------------------
RECEIVABLES $ 6,587 $ 16,062 $ 3,862 $ 2,599
--------------------------------------------------
--------------------------------------------------
EQUIPMENT HELD
FOR LEASING
OR SALE $ 20 $ 80 $ 1,376 $ 2,241
--------------------------------------------------
--------------------------------------------------
MARKETABLE
SECURITIES $ 40,209 $ 33,926 $ - $ -
--------------------------------------------------
--------------------------------------------------
EUROPE TOTAL
9 Months 9 Months 9 Months 9 Months
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------------------------------------------------
--------------------------------------------------
INCOME STATEMENT
LEASING
REVENUES $ - $ - $ 51,390 $ 63,276
EXPENSES - - 42,379 52,503
--------------------------------------------------
GROSS MARGIN - - 9,011 10,773
--------------------------------------------------
--------------------------------------------------
EQUIPMENT TRADING
REVENUES $ 10,558 $ 14,634 $ 24,738 $ 24,984
EXPENSES 9,347 12,953 22,677 22,640
--------------------------------------------------
GROSS MARGIN 1,211 1,681 2,061 2,344
--------------------------------------------------
--------------------------------------------------
INVESTMENT REVENUE $ - $ - $ 3,134 $ 2,291
--------------------------------------------------
--------------------------------------------------
TOTAL GROSS MARGIN $ 1,411 $ 1,681 $ 14,206 $ 15,408
--------------------------------------------------
--------------------------------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------------------------------------------------
BALANCE SHEET
LEASING ASSETS $ - $ - $ 195,362 $ 267,237
--------------------------------------------------
--------------------------------------------------
RECEIVABLES $ 1,804 $ 3,477 $ 12,253 $ 22,138
--------------------------------------------------
--------------------------------------------------
EQUIPMENT HELD FOR
LEASING OR SALE $ 1,399 $ 2,313 $ 2,795 $ 4,634
--------------------------------------------------
--------------------------------------------------
MARKETABLE
SECURITIES $ - $ - $ 40,209 $ 33,926
--------------------------------------------------
--------------------------------------------------
11. SUBSEQUENT EVENT On January January: see month. 17, 2006, the Corporation signed a definitive agreement whereby CLEARLINK will sell its leasing business to ICON Capital Corp. The transaction is subject to regulatory approvals and approval of CLEARLINK's shareholders. It is anticipated to close prior to March 31, 2006. The transaction involves the book value sale of a substantial portion of the lease portfolio and related infrastructure and will be adjusted at closing for interim activities. Consideration will involve cash and an assumption of certain liabilities. Updated for activities to December 31, 2005, the sale transaction would involve the following assets and liabilities at their current approximate values:
Leases and Infrastructure $ 149,000
Receivables 3,000
Debt assumed (97,000)
Accounts payable Assumed (8,000)
-------------
Cash Consideration $ 47,000
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-------------
CLEARLINK Capital Corporation (TSX:CNK) |
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