Jannock Properties Limited Reports September 30, 2004 Results and $0.60 Distribution to Shareholders.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 -- Jannock Properties Limited (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:JPL (language) JPL - JAM Programming Language. .UN) - today reported net earnings of $9,204,000 ($0.25 per share) for the Third Quarter of 2004 compared with earnings of $341,000 ($0.01 per share) for the same period in 2003. The improvement this year was primarily due to the gain on the sale of the 221-acre Britannia Bri·tan·nia n. 1. A female personification of Great Britain or the British Empire. 2. also britannia Britannia metal. Road property in Mississauga Mississauga (mĭsĭsaw`gə), city (1991 pop. 463,388), S Ont., Canada, 12 mi (20 km) W of Toronto on Lake Ontario. A residential suburb of Toronto and a growing transportation and industrial center, it is one of Canada's fastest-growing to Orlando Orlando, city, United States Orlando (ôrlăn`dō), city (1990 pop. 164,693), seat of Orange co., central Fla., in a lake region; inc. 1875. In a citrus fruit and farm area, it is one of the world's most visited vacation spots. Corporation for $22,000,000. For the nine months to September September: see month. 30, 2004, net earnings were $10,482,000 ($0.29 per share) compared with a loss of $785,000 ($0.02 per share) for the same period last year. The Board of Directors has approved a cash distribution equivalent to $0.60 per unit to be paid to shareholders on December December: see month. 14, 2004. Real Estate Sales in the Third Quarter mainly consisted of $22,000,000 for the Britannia site. An agreement to sell the remaining 25 acres of saleable sale·a·ble adj. Variant of salable. saleable or US salable Adjective fit for selling or capable of being sold saleability or US land in Burlington Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. for $2,200,000 was completed in November November: see month. 2004. Included in the purchase price is a three year vendor mortgage for $1,870,000. A conditional agreement has been made to sell the remaining 78 acre and 223 acre parcels in Milton Milton, town (1990 pop. 25,725), Norfolk co., E Mass., a residential suburb of Boston, on the Neponset River; settled 1636, set off from Dorchester and inc. 1662. Granite quarries are nearby. for $2,700,000. This agreement cannot be completed until all outstanding conditions have been met. Mortgages receivable currently being held amount to $7,650,000 that will be received over the next three years. Ontario Municipal Board The Ontario Municipal Board (OMB) is an independent adjudicative tribunal that provides a public forum for resolving disagreements relating to community planning, governance issues and other matters in the province of Ontario, Canada, as provided for under the ruling As previously announced, the Ontario Municipal Board (OMB OMB abbr. Office of Management and Budget Noun 1. OMB - the executive agency that advises the President on the federal budget Office of Management and Budget ) has required the Company to provide security for costs SECURITY FOR COSTS, practice. In some courts there is a rule that when the plaintiff resides abroad he shall give security for costs, and until that has been done, when demanded, he cannot proceed in his action. 2. in connection with the recent OMB hearing on the rezoning of the Britannia site. Pending the outcome of proceedings to determine whether costs, if any are to be awarded to any parties, the Company has provided letters of credit totaling $3,625,000. The OMB has confirmed that costs will not be awarded in connection with the portions of the original hearing that related to the issues of the economic viability of the Britannia site. The OMB is expected to hear the claims for the awarding of costs in Spring 2005. Supporting materials in respect of the outstanding cost claims have not yet been filed. The Company does not believe there is any merit in these claims and intends to defend itself 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. . Cash Flows from (used in) Operations Cash generated by operating activities in the Third Quarter of this year amounted to $23,073,000 compared with $8,152,000 that was generated in the same period last year. Cash and cash equivalents at September 30, 2004 amounted to $23,080,000. Jancor Companies, Inc. Operating results in the Third Quarter continued to be below last year's levels, primarily due to lower shipments of vinyl vinyl /vi·nyl/ (vi´nil) the univalent group CH2dbondCH—. vinyl chloride a vinyl group to which an atom of chlorine is attached; the monomer which polymerizes to polyvinyl chloride; it is toxic windows and higher resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing costs. Unaudited financial information for Jancor shows that earnings before interest, taxes, depreciation and amortizations Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. in the balance of the year. In 2003, EBITDA at Jancor for the full year was US$26.9 million. Senior debt levels at Jancor at September 30, 2004 were US$14 million and are expected to show further reductions in the Fourth Quarter. Corporate Items The Board of Directors has approved a cash distribution equivalent to $0.60 per unit through the redemption of 60 of the 150 Class A Special shares that are currently included in each unit. This distribution will be paid on December 14, 2004 to the unit holders of record as at the close of business on November 30, 2004. The ex-redemption date for trading of the Units will be November 26, 2004 and each Unit will then consist of 90 Class A Special shares and one Class B Special share. Under the terms of the agreement when the assets were transferred to Jannock Properties in March 2000, security for $1,500,000 is to be provided to Jannock Limited (now Vicwest Corporation) to cover any potential environmental liabilities for the Britannia site that may arise during the next three years. The Company is not aware of any liabilities for environmental issues at this site and expects to use a letter of credit to meet this requirement. The mandate for the Company is to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose its assets in a manner that maximizes value and distributes the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). realized from those assets to shareholders in a timely fashion. The Company's common shares are listed on the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. (trading symbol Trading symbol See: Ticker symbol : JPL.UN). 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. contained in this news release involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Factors that could cause such differences include local real estate markets, zoning applications, changes in interest rates and general economic conditions. In addition there are risk factors described from time to time in the reports and disclosure documents filed by Jannock Properties Limited with Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. and U.S. securities regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. and commissions. NOTICE The accompanying interim unaudited financial statements have not been reviewed by the Company's auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together .
INTERIM BALANCE SHEET
(in thousands of Canadian dollars)
SEPTEMBER 30 DECEMBER 31
2004 2003
----------------------------
(unaudited)
ASSETS
Land under development $ 3,207 $ 3,531
Land held for development - 7,057
Mortgages receivable (note 3) 7,650 6,256
Future income taxes - 5,185
Other assets 111 93
Cash and cash equivalents 23,080 1,020
Restricted cash held in trust - 1,043
----------------------------
$ 34,048 $ 24,185
----------------------------
LIABILITIES
Accounts payable and accrued liabilities
(note 4) $ 573 $ 887
Deposits on land sales - 1,056
Income taxes payable 32 -
Future income taxes 719 -
----------------------------
$ 1,324 $ 1,943
----------------------------
SHAREHOLDERS' EQUITY
Capital stock (note 6) $ 53,401 $ 53,401
Contributed surplus 6,868 6,868
Deficit (27,545) (38,027)
----------------------------
$ 32,724 $ 22,242
----------------------------
----------------------------
$ 34,048 $ 24,185
----------------------------
INTERIM STATEMENT OF OPERATIONS AND DEFICIT
(in thousands of Canadian dollars, except per share amounts)
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30 ENDED SEPTEMBER 30
2004 2003 2004 2003
------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
Land sales (note 2) $ 22,097 $ 5,435 $ 25,140 $ 5,442
Cost of sales 7,725 4,746 8,572 4,746
Provisions for
loss in value - - - 817
------------------------------------------------
Gross profit/(loss) 14,372 689 16,568 (121)
Interest and other
income 132 8 361 28
General and
administrative expenses (124) (147) (542) (1,105)
------------------------------------------------
Income/(loss) before
income taxes 14,380 550 16,387 (1,198)
Income taxes provided/
(recovered) (note 5)
- current 1 4 1 14
- future 5,175 205 5,904 (427)
------------------------------------------------
Net earnings/(loss)
for the period $ 9,204 $ 341 $ 10,482 $ (785)
------------------------------------------------
Deficit - Beginning
of period $ (36,749) $ (39,534) $ (38,027) $ (38,408)
Deficit - End
of period $ (27,545) $ (39,193) $ (27,545) $ (39,193)
Net earnings/
(loss) per share $ 0.25 $ 0.01 $ 0.29 $ (0.02)
INTERIM STATEMENT OF CASH FLOWS
(in thousands of Canadian dollars)
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30 ENDED SEPTEMBER 30
2004 2003 2004 2003
------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
CASH PROVIDED BY
(USED IN)
OPERATING ACTIVITIES
Cash receipts
Receipts on sales
of land $ 22,084 $ 3,893 $ 22,724 $ 3,900
Collection of
mortgages receivable 1,248 4,869 1,248 4,869
Interest and other
income received 81 8 89 28
Deposits received on
land sales - 8 9 697
Cash payments
Real estate commissions (301) (174) (301) (174)
Deposit refunded - - (1,052) -
(Expenditures)/recoveries
on land development 52 (72) (917) (2,270)
Income taxes (paid)/
refunded 14 (2) 13 (15)
Payments of general and
administrative and other (105) (330) (796) (923)
Interest paid - (48) - (124)
------------------------------------------------
23,073 8,152 21,017 5,988
------------------------------------------------
INVESTING ACTIVITIES
Restricted cash held
in trust - (9) 1,043 (24)
------------------------------------------------
- (9) 1,043 (24)
------------------------------------------------
FINANCING ACTIVITIES
Bank loan - (4,435) - (2,180)
------------------------------------------------
- (4,435) - (2,180)
------------------------------------------------
------------------------------------------------
INCREASE IN CASH AND
CASH EQUIVALENTS 23,073 3,708 22,060 3,784
------------------------------------------------
CASH AND CASH EQUIVALENTS
- BEGINNING OF PERIOD $ 7 $ 98 $ 1,020 $ 22
CASH AND CASH EQUIVALENTS
- END OF PERIOD $ 23,080 $ 3,806 $ 23,080 $ 3,806
NOTES TO INTERIM FINANCIAL STATEMENTS
(In thousands of dollars, unaudited)
1. Summary of significant accounting policies These interim unaudited financial statements have been prepared 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 Canadian 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 for interim financial statements 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 disclosures contained in these unaudited interim financial statements do not include all disclosures required for annual financial statements. They have been prepared using the same accounting policies as set out in Note 2 to the financial statements for the year ended December 31, 2003 and should be read in conjunction with those financial statements. 2. Land sales The Company's accounting policy is to not record land sales until all material conditions have been fulfilled ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. and the Company has received cash deposits of at least 15% of the purchase price. Land sales are reported net of the imputed Attributed vicariously. In the legal sense, the term imputed is used to describe an action, fact, or quality, the knowledge of which is charged to an individual based upon the actions of another for whom the individual is responsible rather than on the individual's discount arising from interest free periods granted on mortgages receivable. The nature of land development does not allow for a consistent year-to-year or period-to-period volume of land sales and the results are not, therefore, an indication of sales that may be experienced in the rest of the year. The revenue is generated by specific projects as the marketplace dictates and buyers become available. During the period ended September 30, 2004, there were land sales of $22,000, $3,028 and $93 to three purchasers (September 30, 2003 included land sales of $3,450, $1,512, $261 and $210 to four purchasers). There were minor sales of quarry Quarry Cerynean stag captured by Hercules as third Labor. [Gk. and Rom. Myth.: Hall, 149] Cretan bull savage bull caught by Hercules as seventh Labor. [Gk. materials during this period in both 2004 and 2003. 3. Mortgages receivable At September 30, 2004, mortgages receivable of $7,650 (December 31, 2003 - $6,256) included $5,170 due in December 2005 and $2,480 due in April 2007. 4. Accounts payable and accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. At September 30, 2004, an amount of $542 (December 31, 2003 - $603) is included for costs expected to be incurred on land that has been sold. 5. Income taxes The following table reconciles income taxes calculated at the current Canadian federal and provincial tax rates with the Company's income tax expense.
Nine months ended
-------------------
September 30, 2004 September 30, 2003
-----------------------------------------
Earnings/(loss) before
income taxes $ 16,387 $(1,198)
-----------------------------------------
Expected income taxes/(recovery) $ 5,919 $ (438)
Large corporations tax and other (14) 25
-----------------------------------------
Total $ 5,905 $(413)
-----------------------------------------
6. Capital Stock The Company's capital stock consists of Class A special shares and Class B common shares. The Class A special shares are transferable with and only with the associated Class B common shares and trade as one unit (JPL.UN). Accordingly, the Company's earnings per share has been calculated using the number of Class B common shares outstanding of 35,631,932. 7. Commitments and 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. At September 30, 2004, the Company had provided municipalities with letters of credit amounting to $481 (December 31, 2003 - $1,361) in support of its obligations to complete servicing requirements in connection with the development of its properties. The Ontario Municipal Board (OMB) has required the Company to provide security for costs in connection with the recent OMB hearing on the rezoning of the Britannia site. Pending the outcome of proceedings to determine whether costs, if any are to be awarded to any parties, the Company provided letters of credit totaling $3,625,000 in November 2004. The OMB has confirmed that costs will not be awarded in connection with the portions of the original hearing that related to the issues of the economic viability of the Britannia site. The OMB is expected to hear the claims for the awarding of costs in Spring 2005. Supporting materials in respect of the outstanding cost claims have not yet been filed. The Company does not believe there is any merit in these claims and intends to defend itself vigorously. No provisions have been made by the Company in its operating results for these claims. A security for $1,500,000 is to be provided to Jannock Limited (now Vicwest Corporation) to cover any potential environmental liabilities for the Britannia site that may arise during the next three years. The Company is not aware of any liabilities for environmental issues at this site and expects to use a letter of credit to meet this requirement. Jannock Properties Limited (TSX VENTURE:JPL.UN) |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion