Correction From Source Re: Carma Records Third Consecutive Year of 20%+ ROE.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)--Feb. 11, 2000 (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.) NOTE TO EDITORS: Correction from source to the Carma Corporation February February: see month. 11, 2000 Press Release. Last two sentences of Operations Review section to read as follows: &uot;This growth, which is expected to continue, bodes well for our Tallyn's Reach project in southeast 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. which recorded its first 39 sales in the last quarter of 1999. This level is expected to increase to over 170 units in 2000.&uot; The corrected version follows in its entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. . Carma Records Third Consecutive Year of 20%+ ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it.
Summarized financial information was as follows:
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Year Ended December 30 1999 1998
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(thousands except per share data)
Revenue $129,430 $140,468
Cash Flow from Operations $35,801 $36,481
Net Income $30,229 $32,085
Cash Flow From Operations per Share $0.82 $0.83
Net Income per Share $0.69 $0.73
Cash Return on Equity 24% 31%
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Financial Review For the third consecutive year Carma reported over 20% cash return on equity. Despite single family housing starts in Carma's major market of Calgary being down 29% from 1998's record year, Carma's cash flows and net income in 1999 approximated 1998 levels. Achievement of this was largely due to the diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. into Denver, Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. in 1997 and the disposition of non-strategic assets and redeployment re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. of funds into higher yielding assets. 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 was $35.8 million or 82 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 $36.5 million or 83 cents per share in 1998. Net income was $30.2 million or 69 cents per share on revenues of $129.4 million. This compares to net income of $32.1 million or 73 cents per share on revenues of $140.5 million in 1998. Carma ended 1999 in a strong financial position, poised to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. opportunities in a business which continues to be starved starve v. starved, starv·ing, starves v.intr. 1. To suffer or die from extreme or prolonged lack of food. 2. Informal To be hungry. 3. To suffer from deprivation. for capital. With book equity of $180 million, and the Company's well positioned raw land holdings having an average cost base of only $15,000 per acre, continued improvements in net income and cash flow are anticipated. The three cities The Three Cities is a collective description of the three fortified cities of Cospicua, Vittoriosa, and Senglea on the Island of Malta, which are enclosed by the massive line of fortification created by the Knights of St John, the Cottonera Lines. where Carma currently operates, Calgary, 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 and Denver are all projecting above-average growth and rank very high 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. in terms of housing activity in relation to population. Operations Review
The Company achieved the following lot sales and house closings
in 1999:
1999 1998
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Lots Homes Lots Homes
Calgary 903 274 1,168 302
Edmonton 344 - 378 -
Denver 39 -
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1,286 274 1,546 302
Less Partner's Interest (59) - (49) -
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1,227 274 1,497 302
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As anticipated, the Calgary market experienced a decline in housing starts in 1999 compared with a record year in 1998. Despite this, 1999 housing starts were well above the previous ten year average. The improvements in commodity prices during 1999, especially oil prices which more than doubled from US $12 where they started in 1999, have renewed consumer confidence in the marketplace. Continued economic diversification into hi-tech hi-tech adj. Variant of high-tech. hi-tech Adjective using sophisticated, esp. electronic, technology Adj. 1. , distribution and other industries helped Calgary to report 18,000 new jobs last year. Although housing prices have increased over the last several years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time land and housing industry's innovation in community planning and house design have helped maintain housing affordability relative to other major North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. cities. The Economist magazine recently recognized this and other factors, by naming Calgary the most affordable major city in North America and one of the most affordable in the world. In Edmonton, total housing starts were up 9% over 1998 with all of the increase in multi-family housing. Job creation increased to 16,000 new jobs in 1999, an increase of 9,000 over 1998, largely as a result of increased activity in the 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. mega projects which continue to benefit from higher commodity prices. The Conference Board of Canada The Conference Board of Canada is a not-for-profit Canadian organization dedicated to researching and analyzing economic trends, as well as organizational performance and public policy issues. recently predicted Edmonton will lead 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 in 2000 with a 4% growth rate. In Denver, the market exceeded expectations with single family housing starts up 7% over 1998. This followed an increase of 11% in 1998. The Denver economy continues to prosper with ongoing expansion and job creation in the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , cable and software development industries. This growth, which is expected to continue, bodes well for our Tallyn's Reach project in southeast Denver which recorded its first 89 sales in the last quarter of 1999. This level is expected to increase to over 170 units in 2000. Outlook Carma is well positioned with a strategic land base in Calgary and Edmonton. In Denver, additional land for a further master planned community Noun 1. planned community - a residential district that is planned for a certain class of residents residential area, residential district, community - a district where people live; occupied primarily by private residences will be acquired in 2000 in order to achieve critical mass in that operation. In each of these markets prospects for Carma remain extremely positive. Above average growth and job creation is expected. This should assist in stimulating housing demand. CARMA CORPORATION 7315 - 8th Street NE CALGARY, Alberta T2E 8A2
CARMA CORPORATION
CONSOLIDATED BALANCE SHEET
As at December 30, 1999
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December 30, December 30,
(Thousands $) 1999 1998
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ASSETS
Real Estate For Development and Sale 200,139 178,289
Income Producing Properties 21,389 9,480
Receivables 66,675 76,516
Cash and Other 5,373 5,889
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293,576 270,174
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LIABILITIES
Secured Debt 72,054 29,143
Loans Payable - 45,824
Bank Indebtedness 6,695 15,996
Accounts Payable and Other Liabilities 34,664 27,985
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113,413 118,948
SHAREHOLDERS' EQUITY 180,163 151,226
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293,576 270,174
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CARMA CORPORATION CONSOLIDATED STATEMENT OF INCOME For the year
ended December 30, 1999
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December 30, December 30,
(Thousands $) 1999 1998
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REVENUE
Community Development 119,798 130,809
Rental 3,663 3,066
Interest and Other 5,969 6,593
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129,430 140,468
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EXPENSES
Community Development 83,380 95,509
Rental 1,900 1,119
Interest and Other 825 917
General and Administrative 7,524 6,442
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93,629 103,987
CASH FLOW FROM OPERATIONS 35,801 36,481
Depreciation and Amortization 728 685
Income and Capital Taxes 4,844 3,711
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NET INCOME 30,229 32,085
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Cash Flow From Operations Per
Common Share $ 0.82 $ 0.83
Net Income per Common Share $ 0.69 $ 0.73
CARMA CORPORATION CONSOLIDATED STATEMENT OF CASH FLOW For the
year ended December 30, 1999
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December 30, December 30,
(Thousands $) 1999 1998
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Inflows (Outflows)
Cash Flow From Operations 35,801 36,481
Costs Recovered From Real Estate Sales 82,034 104,719
Development of Real Estate (91,033) (112,065)
Operating Assets and Liabilities (11,020) (17,968)
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15,782 11,167
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Financing Activities
Bank Indebtedness (9,301) 2,732
Secured Debt 32,911 3,862
Loans Payable (45,825) (23,592)
Common Shares 21 (1,141)
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(22,194) (18,139)
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Investing Activities
Note Receivable 25,262 19,551
Real Estate Acquisitions (7,695) (18,991)
Real Estate Disposals -
Development of Income
Producing Properties (12,217) (710)
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5,350 (150)
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Net Change in Cash (1,062) (7,122)
Cash, Beginning of Year 4,562 11,684
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Cash, End of Year 3,500 4,562
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