Carma Corporation - Improving Markets Boost 2nd Quarter Results.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. 6, 1999-- Summarized financial information was as follows:
Six Months Three Months
Ended Ended
June 30 June 30
--------------- ---------------
1999 1998 1999 1998
--------------- ---------------
(thousands except per share data)
Revenue $50,940 $61,980 $31,272 $29,708
Net Income $11,329 $15,398 $7,517 $7,767
Cash Flow From Operations
per Share $0.31 $0.41 $0.21 $0.21
Net Income per Share $0.26 $0.35 $0.17 $0.18
Financial Review ---------------- Carma's (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 )(ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :CVP)financial results in the 2nd quarter of 1999 showed significant improvement over the first quarter as improving commodity prices led to increased consumer confidence in its Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. markets and the Company realized on the sale of certain non-core assets. Net income for the three months ended June June: see month. 30, 1999 was close to double the first quarter results. Net income for the six months ended June 30, 1999 was $11.3 million or 26 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 $15.4 million or 35 cents per share in 1998. Cash flow generated from operations totalled $13.3 million or 31 cents per share for the first half of 1999 compared with $17.8 million or 41 cents per share in 1998. Operations Review ----------------- The Company's lot sales and house closing for the first six months of 1999 were as follows:
1999 1998
---------- ----------
Lots Homes Lots Homes
Calgary 371 118 541 146
Edmonton 160 - 180 -
---- ---- ---- ----
531 118 721 146
==== ==== ==== ====
In Calgary, most of the decrease in unit volumes was experienced in the first quarter of the year, and markets are rebounding on the strength of higher oil prices and a return to a more balanced supply of housing inventory. While a return to the record market conditions of 1998 is unlikely, improvements in the oil and gas industry will boost consumer confidence, which should bode bode 1 v. bod·ed, bod·ing, bodes v.tr. 1. To be an omen of: heavy seas that boded trouble for small craft. 2. well for housing markets for the remainder of the year. In addition to the improvement in commodity prices, the 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 economy also continues to benefit from major projects in the forestry forestry, the management of forest lands for wood, water, wildlife, forage, and recreation. Because the major economic importance of the forest lies in wood and wood products, forestry has been chiefly concerned with timber management, especially reforestation, and oil and gas industries in Northern Alberta Norhern Alberta is a region located in the Canadian province of Alberta. Its primary industry is oil and gas, with large heavy oil reserves being exploited at the Athabasca Oil Sands and Wabasca Area in the east of the region. . Forecasters predict that economic growth in Edmonton will rank among the highest in the country over the next two years and housing markets should benefit from this growth. Carma is continuing the construction of Tallyn's Reach, its first community in 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. . Sales are anticipated to begin in the fourth quarter of 1999. The Denver housing market continues to be very strong with starts to date up 2.5% over 1998's record year. Outlook ------- Market conditions in Carma's Alberta markets improved in the second quarter of 1999. While 1999 lot sales volumes will likely not match 1998, Carma is optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the market improvement in Alberta will continue for the remainder of the year which, together with initial sales in Denver, should result in a good last half of 1999.
CARMA CORPORATION
CONSOLIDATED BALANCE SHEET
As at June 30, 1999
(Unaudited)
June 30, December 30,
1999 1998
------------ ------------
($000's) ($000's)
ASSETS
Real estate for development
and sale 185,538 172,384
Income producing properties 21,762 15,385
Receivables 55,415 76,516
Cash and other 10,340 5,889
------------ ------------
273,055 270,174
============ ============
LIABILITIES
Secured debt 48,990 29,143
Loans payable 23,842 45,824
Bank indebtedness 6,120 15,996
Accounts payable and provisions 32,138 27,985
------------ ------------
111,090 118,948
------------ ------------
SHAREHOLDERS' EQUITY 161,965 151,226
------------ ------------
273,055 270,174
============ ============
CARMA CORPORATION
CONSOLIDATED STATEMENT OF INCOME
For the six months June 30, 1999
(Unaudited)
June 30, June 30,
1999 1998
-------- --------
($000's) ($000's)
REVENUE
Community development 45,757 56,488
Rental 1,228 2,001
Interest and other 3,955 3,491
Non-core 1,189 620
-------- --------
50,940 61,980
-------- --------
EXPENSES
Community development 32,610 39,160
Rental 547 907
Interest 836 911
General and administrative 3,601 3,246
-------- --------
37,594 44,224
-------- --------
CASH FLOW FROM OPERATIONS 13,346 17,756
Depreciation and amortization 297 400
Income and capital taxes 1,720 1,958
-------- --------
NET INCOME 11,329 15,398
======== ========
Cash flow from operations per Common Share $ 0.31 $ 0.41
Net income per Common Share $ 0.26 $ 0.35
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
For the six months ended June 30, 1999
(Unaudited)
June 30, June 30,
1999 1998
-------- --------
($000's) ($000's)
Balance, beginning of period 116,858 84,773
Net income 11,329 15,398
-------- --------
Balance, end of period 128,187 100,171
======== ========
CARMA CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOW
For the six months ended June 30, 1999
(Unaudited)
June 30, June 30,
1999 1998
-------- --------
($000's) ($000's)
Inflows (Outflows)
Cash flow from operations 13,346 17,756
Costs recovered from real estate sales 32,610 39,160
Development of real estate (40,630) (41,414)
Operating assets and liabilities 6,849 (7,121)
-------- --------
12,175 8,381
-------- --------
Financing activities
Bank indebtedness (9,876) (66)
Secured debt 19,847 6,648
Loans payable (21,982) (11,601)
Common shares 5 266
-------- --------
(12,006) (4,753)
-------- --------
Investing activities
Note receivable 16,036 (1,305)
Real estate acquisitions (5,185) (7,756)
Development of income producing properties (6,884) (447)
-------- --------
(3,967) (9,508)
-------- --------
Net change in cash 4,136 (8,880)
Cash, beginning of period 4,562 11,684
-------- --------
Cash, end of period 8,698 5,804
-------- --------
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