Counsel Corporation Announces 2002 Second Quarter Results.Business Editors TORONTO--(BUSINESS WIRE)--Aug. 23, 2002 Counsel Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CXSN)(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CXS CXS Coherent X-Ray Scattering ) today reported its financial results for the second quarter of 2002. Counsel's results for the quarter and six months ended June June: see month. 30, 2002 reflect the significant impact of its entry into the communications sector through its acquisition of a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in I-Link (bus, standard) I-Link - Sony's name for High Performance Serial Bus. Incorporated in March 2001 and the acquisition of the retail long distance "10-10-XXX" dial-around business of WorldxChange at the beginning of June 2001. For the quarter ended June 30, 2002, Counsel's consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues grew by 33% to US$32.9 million from US$24.8 million in the second quarter of 2001. Consolidated revenues were US$68.4 million for the six months ended June 30, 2002, up 85% from US$36.9 million in the first six months of 2001. This significant growth in revenues is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the Company's communications operations. The net loss in the second quarter of 2002 was US$11.2 million or US$0.54 per share, basic and 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. , compared with a net loss of US$25.3 million or US$1.12 per share, basic and diluted, in the second quarter of 2001. The consolidated net loss for the six months ended June 30, 2002 was US$4.9 million or US$0.29 per share, basic and diluted, compared with a net loss of US$26.5 million or US$1.21 per share, basic and diluted, for last year's first six months. Operations showed a significant improvement on a quarter-over-quarter basis with the loss from operations before interest, taxes, depreciation and amortization declining to US$3.1 million in the second quarter of 2002 from a loss of US$5.0 million in the first quarter of 2002. Counsel's dial-around segment had its first profitable quarter in the second quarter of 2002 with earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
For the six months ended June 30, 2002, cash and cash equivalents increased by US$8.9 million, reflecting gains on the sale of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments. Allan Allan can refer to:
"Our communications acquisitions also include important technological assets," added Mr. Silber. "I-Link has several patented technologies that are integral components of the Voice over Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. ("VoIP") services market and that have been successfully deployed and commercially proven. With the recent issuance of a key VoIP patent for its Voice Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Transmission System, I-Link plans to further leverage these patents. The latest patent validates I-Link's VoIP technology, confirms its VoIP expertise and reinforces the foundational role I-Link technology has played in the evolving VoIP market." About Counsel Corporation Counsel Corporation (TSE:CXS)(NASDAQ:CXSN) is a dynamic, diversified company diversified company A company engaged in varied business operations not directly related to one another. A diversified company is less likely to suffer either a collapse or a spectacular gain in earnings compared with a firm concentrating its operations in a focused on acquiring and building businesses using its financial and operational expertise in three specific sectors: communications, real estate and seniors living. Counsel's communications platform, Counsel Springwell Communications LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , is focused on building upon its existing communications investments, I-Link Inc. and WorldxChange Corp., through organic growth and by acquiring substantial additional customer revenues. I-Link (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :ILNK.OB)(www.i-link.com) is an enhanced Internet Protocol voice and data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. service provider, and WorldxChange (www.worldxchange.com) is an international and domestic long distance service provider. Counsel's real estate platform has a focused strategy of investing in and developing income-producing commercial properties, primarily retail shopping centers shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into . Counsel's seniors living platform owns five retirement homes 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 and three nursing homes in 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 leases seven nursing homes in Canada. For further information, visit Counsel's website at www.counselcorp.com. This news release may include statements that constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , usually containing the words "believe," "estimate," "project," "expects," or similar expressions. These statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. or changes after the date of this document.
Counsel Corporation
Consolidated Balance Sheets
(In 000's of US$)
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June 30 December 31
2002 2001
(Unaudited) (Audited)
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Assets $ $
Current assets
Cash and cash equivalents 33,878 24,934
Short-term investments 5,809 8,932
Accounts receivable (less
allowance for doubtful
accounts of $975 ; 2001-
$2,198) 15,164 20,448
Income taxes recoverable 2,331 2,202
Future income tax asset 188 970
Other assets 9,959 7,022
Assets of discontinued
operations 967 4,883
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68,296 69,391
Long-term assets
Other assets 15,446 15,852
Property, plant and
equipment 37,408 43,006
Goodwill and intangible
assets 9,617 15,621
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130,767 143,870
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Liabilities
Current liabilities
Accounts payable 5,584 11,689
Accrued liabilities 22,362 26,512
Deferred revenue 945 2,563
Mortgages and loans
payable 9,006 10,508
Capital leases 3,277 3,034
Liabilities of
discontinued operations 1,047 2,395
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42,221 56,701
Long-term liabilities
Deferred revenue 480 768
Mortgages and loans
payable 15,098 14,690
Capital leases 5,422 6,986
Convertible debentures
payable 3,664 4,801
Future income tax
liabilities 33,630 23,282
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100,515 107,228
Non-controlling interest - 148
Shareholders' Equity 30,252 36,494
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130,767 143,870
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Counsel Corporation
Consolidated Statements of Operations
(In 000's of US$, except per share amounts)
(Unaudited)
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For the three months For the six months
ended June 30 ended June 30
2002 2001 2002 2001
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$ $ $ $
Revenues
Communication
services 22,306 13,045 46,680 14,674
Communication
technology
licensing 887 1,420 2,468 1,890
Seniors living
services 7,997 7,946 15,710 15,662
Sale of
medical
products 1,010 923 2,072 1,841
Other 659 1,419 1,434 2,848
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32,859 24,753 68,364 36,915
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Cost of revenues
Communication
services 14,156 13,716 29,862 15,970
Sale of
medical
products 579 573 1,229 1,091
Other - 417 258 494
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14,735 14,706 31,349 17,555
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Operating expenses
Selling,
general and
administrative 19,602 17,163 41,540 29,528
Provision for
doubtful
accounts 1,136 1,279 2,640 1,369
Depreciation
and
amortization 3,223 3,585 6,465 4,883
Research and
development 480 669 911 1,000
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24,441 22,696 51,556 36,780
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Operating loss (6,317) (12,649) (14,541) (17,420)
Gain on sale
of short term
investments 879 2,172 27,500 10,899
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Earnings
(loss) before
undernoted (5,438) (10,477) 12,959 (6,521)
Equity in
losses of
significantly
influenced
corporations - (2,536) - (4,821)
Other gains 629 - 629 -
Impairment of
property,
plant and
equipment (1,863) - (1,863) -
Write-down of
investments (2,655) (8,869) (2,791) (8,869)
Interest
expense (1,023) (1,374) (1,967) (2,144)
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Earnings
(loss) before
taxes and
non-controlling
interest (10,350) (23,256) 6,967 (22,355)
Provision for
income taxes 478 2,953 11,494 5,430
Non-controlling
interest 5 (930) (84) (1,255)
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Loss from
continuing
operations (10,833) (25,279) (4,443) (26,530)
Discontinued
operations (410) - (410) -
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Net loss (11,243) (25,279) (4,853) (26,530)
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Basic and
diluted loss
per share
Loss from
continuing
operations (0.52) (1.12) (0.27) (1.21)
Loss from
discontinued
operations (0.02) - (0.02) -
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Net loss (0.54) (1.12) (0.29) (1.21)
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Weighted
average number
of common
shares 22,362 23,182 22,362 23,182
outstanding
(000s)
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