Carma Corporation - Cash Flow from Operations Increases 11%.Business Editors CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Alberta--(BUSINESS WIRE)--Aug. 2, 2000 Carma Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CVP CVP central venous pressure. CVP abbr. central venous pressure CVP central venous pressure. CVP Central venous pressure, see there .A) Summarized financial information was as follows: Six months ended June 30 (thousands except per share data) 2000 1999 Revenue 57,786 50,940 Cash Flow from Operations 14,777 13,346 Cash Flow from Operations per share 0.34 0.31 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 increased 11% over the same six-month period last year. Housing starts in Carma's three geographic areas of operation are at levels similar to last year with each market differing slightly in terms of the single-family sin·gle-fam·i·ly adj. Relating to or being a dwelling designed for one family only: a single-family home; single-family occupancy. and multi-family mix. Revenues for the first half of 2000 were $57.8 million compared with $50.9 million last year. The increase is primarily due to increased sales of $3.8 million in the Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. market. Cash flow from operations was $14.8 million or 34 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with $13.3 million or 31 cents per share last year. The new accounting standard which requires all companies to record a full tax charge in the income statement, regardless of whether or not they are taxable, was adopted by Carma as of January January: see month. 1, 2000. As Carma has tax losses available in both US 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 , this resulted in an increased tax charge recorded in the income statement but no change to cash flow from operations. Brookfield Brookfield. 1 Village (1990 pop. 18,876), Cook co., NE Ill., a residential suburb of Chicago; inc. 1893. The noted Chicago Zoological Park (Brookfield Zoo) is there. 2 City (1990 pop. 35,184), Waukesha co., SE Wis. Offer for Carma Shares On July July: see month. 24, 2000 Brookfield Properties Brookfield Properties Corporation TSX: BPO NYSE: BPO is a Toronto-based North American commercial real estate company. Brookfield Asset Management owns 50% of its outstanding common shares. Corporation made an offer to acquire all of the common shares of Carma not presently held by Brookfield. The offer is for $5.75 in cash or one Brookfield share for each 3.75 Carma shares. Brookfield currently owns 84% of Carma's outstanding shares. Carma has formed a special committee of its Board to consider the proposed transaction and will be issuing press releases to update shareholders during this process. Operations Review Single-family starts in Calgary for the first six months increased 14% over the same period last year, while multi-family starts are down 7% which should help the over-supply in this market segment. The economic environment is very good in Calgary, however the new housing market has been somewhat 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 the sizeable price variance The materials price variance (Vmp) is computed as follows: Vmp = (Actual Unit Cost - Standard Unit Cost) * Actual Quantity Purchased or Vmp = (Actual Quantity Purchased * Actual Unit Cost) - (Actual Quantity Purchased * Standard Unit Cost). between new and used homes. Recent indications are that this price gap may be starting to narrow. In Edmonton Edmonton (ĕd`məntən), city (1991 pop. 616,741), provincial capital, central Alta., Canada, on the North Saskatchewan River. The center of the largest metropolitan area in Alberta, Edmonton, known as the "Gateway to the North," is located , while both single and multi-family starts are up slightly over last year, they are not reflecting the increase that was anticipated given that it was predicted that Edmonton would have one of the strongest growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. of any major city in Canada in 2000. Resales, however, have experienced the best first half ever and the price gap between new and used is narrowing which augers well for new home demand. Servicing has commenced in our new project of Summerside Summerside, town (1991 pop. 7,474), SW Prince Edward Island, Canada, on Bedeque Bay, an arm of Northumberland Strait. The Island's second largest city, it is a tourist center and port. Potatoes, dairy products, and oysters are produced in the region. , a 600 acre residential community featuring Edmonton's first fresh water lake as its 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. . Showhome construction will begin in November November: see month. with a grand opening in June June: see month. , 2001. In Denver, while single family starts are down 10%, overall starts are up 14%. Starts in Aurora Aurora, cities, United States Aurora (ərôr`ə, ô–). 1 City (1990 pop. 222,103), Adams and Arapahoe counties, N central Colo., a growing suburb on the east side of Denver; inc. 1903. , where Carma's Tallyn's Reach is located, are up 49% and should continue to improve as growth in this area is expected to out-perform the overall Denver marketplace. The Denver Home Builders Parade parade of finery; most notable ones in New York and Atlantic City on Easter Sunday. [Pop. Culture: Misc.] See : Easter PARADE - PARallel Applicative Database Engine. opened in Tallyn's Reach on July 29, 2000 and is expected to attract 150,000 people over an eight-week period to view the show homes ranging in value from US$0.9 million to US$1.7 million. This provides tremendous exposure to Tallyn's Reach in its first year of operation. The Company's lot sales and housing occupancies in the first six months of 2000 were as follows:
2000 1999
Lots Homes Lots Homes
Calgary 391 109 371 118
Edmonton 130 160
Denver 49
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570 109 531 118
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Outlook From an operating perspective Carma continues to perform well in each of its markets. However, until the Brookfield offer was made we continued, along with the few remaining publicly traded real estate companies in Canada, to suffer from a stock market that was disinterested Free from bias, prejudice, or partiality. A disinterested witness is one who has no interest in the case at bar, or matter in issue, and is legally competent to give testimony. in land and housing companies. The results of the Brookfield offer should be announced before the end of the third quarter.
CARMA CORPORATION
CONSOLIDATED BALANCE SHEET
As at June 30, 2000
(unaudited)
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June 30, December 30,
(Thousands $) 2000 1999
---------------------------------------------------------------
ASSETS
Real Estate For Development and Sale 202,798 200,139
Income Producing Properties 21,954 21,389
Receivables 77,282 66,675
Other Assets 14,761 1,873
Cash 9,058 3,500
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325,853 293,576
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LIABILITIES
Secured Debt 77,162 72,054
Bank Indebtedness 12,849 6,695
Accounts Payable and Other Liabilities 35,958 34,664
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125,969 113,413
SHAREHOLDERS' EQUITY 199,884 180,163
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325,853 293,576
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CARMA CORPORATION
CONSOLIDATED STATEMENT OF INCOME
For the period ended June 30, 2000 (unaudited)
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June 30, June 30,
(Thousands $) 2000 1999
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REVENUE
Community Development 52,969 45,757
Rental 2,223 1,228
Interest and Other 2,594 3,955
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57,786 50,940
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EXPENSES
Community Development 36,770 32,610
Rental 717 547
Interest and Other 1,198 836
General and Administrative 4,324 3,601
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43,009 37,594
CASH FLOW FROM OPERATIONS 14,777 13,346
Depreciation and Amortization 570 297
Income and Capital Taxes 6,036 1,720
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NET INCOME 8,171 11,329
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Cash Flow From Operations Per Common Share $0.34 $0.31
Net Income per Common Share $0.19 $0.26
CARMA CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOW
For the period ended June 30, 2000 (unaudited)
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June 30, June 30,
(Thousands $) 2000 1999
---------------------------------------------------------------
Inflows (Outflows)
Cash Flow From Operations 14,777 13,346
Costs Recovered From Real Estate Sales 36,770 32,610
Development of Real Estate (29,780) (40,630)
Operating Assets and Liabilities (10,363) 6,849
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11,404 12,175
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Financing Activities
Bank Indebtedness 6,154 (9,876)
Secured Debt 5,108 19,847
Loans Payable - (21,982)
Common Shares (3,587) 5
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7,675 (12,006)
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Investing Activities
Note Receivable (2,981) 16,036
Real Estate Acquisitions (9,649) (5,185)
Development of Income Producing
Properties (891) (6,884)
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(13,521) 3,967
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Net Change in Cash 5,558 4,136
Cash, Beginning of Period 3,500 4,562
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Cash, End of Period 9,058 8,698
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