Revenue Properties Company Limited - Third Quarter Results.TORONTO--(BUSINESS WIRE)--Nov. 11, 1997--For the three months ended September 30, 1997, cash flow from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the ("FFO FFO See: Funds from operations ") amounted to $5,280,000 or 8 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. as compared to $3,654,000 or 6 cents per share for the same period in 1996 - an increase of 45%. For the nine months ended September 30, 1997 FFO increased 8.5% to $11,286,000 or 17 cents per share, from the comparable period in 1996. The Company believes that FFO, rather than net income, is a more meaningful indicator of financial performance for public real estate companies. "We are very pleased with these financial results", said Louis Forbes, Chief Financial Officer, "as they reflect substantial progress since the beginning of the year. Our improvement in cash flow, quarter to quarter is very impressive, and should be a harbinger har·bin·ger n. One that indicates or foreshadows what is to come; a forerunner. tr.v. har·bin·gered, har·bin·ger·ing, har·bin·gers To signal the approach of; presage. of our results for the balance of this year and 1998." Gross profits from rental operations totalled $18,422,000, an increase of 29% over the same quarter in 1996. On a quarter to quarter basis gross profit increased by over 10%. Income from continuing operations for the quarter ended September 30, 1997 totalled $417,000 as compared with a loss of $644,000 for the same period in 1996. For the nine month period, income from continuing operations totalled $583,000 as compared with $792,000 in the previous year. Operating results for the balance of 1997 should continue to improve. Net income for the quarter was $417,000 before a previously announced one-time charge resulting from the issuance of capital stock in August by our subsidiary, Pan Pacific Retail Properties, Inc. ("PNP"). This charge includes two non-cash components, $19,475,000 representing dilution in the subsidiary, and $978,000 representing the write-off of unamortized loan placement costs for loans repaid out of the proceeds of the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. . The calculation of the dilution loss was based upon the IPO price of U.S. $19.50 per share. At recent trading prices Trading price The price at which a security is currently selling. of U.S. $21.50 - $22.00 per share the Company would have recorded a profit. As a result of this non-recurring non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. , the Company reported a net loss for the quarter of $20,668,000. There was no comparable charge recorded during 1996. The completion of the IPO had a substantial impact on the Company's ratio of long term debt to shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. , decreasing it to 1.15 to 1.0 at September 30 from 3.33 to 1.0 at June 30. Equally important, our total interest coverage ratio increased to 1.49 times for the third quarter, from 1.3 times in the second quarter of 1997. During the third quarter, the Company through PNP, acquired two additional shopping centres in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Nevada; Rainbow Promenade promenade Public place where people walk (or, in the past, rode) at leisure for pleasure, exercise, or display. Promenades are pedestrian avenues pleasingly landscaped or commanding a view, often located along waterfronts and in parks. Vehicular traffic may or may not be restricted. and Green Valley Shopping Center 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 . These acquisitions had a combined purchase price of $65,600,000 and total 359,000 square feet. On September 26, 1997 the Province of Ontario announced that the Company, together with its joint venture partner, Anchor Gaming, had been selected to operate six permanent full-time and one part-time/seasonal charity gaming clubs. Our joint venture is working diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d on final site selection and development plans in order to open these facilities as soon as possible. In August of 1997 the State of Nevada approved the Company's application for a non-restricted gaming license in the State of Nevada, the only Canadian company presently licensed and one of only three foreign companies so licensed. We anticipate announcing gaming investments in Nevada in the near future. The Company recently registered a plan of subdivision for the 298 lot second phase of our Guelph Eastview development. This phase has been sold to the same builders who recently built phase 1. The installation of underground services is nearing completion and building permits should be available for this phase prior to year end. In order to protect two of the Company's significant assets, its Nevada gaming license and its investment in PNP, the Board of Directors recently adopted a shareholder rights plan. The following table summarizes the consolidated financial results of the Company:
($000's except per
share amounts)
Three months ended Nine months ended
September 30 September 30
1997 1996 1997 1996
------ ------ ------ ------
Cash flow $5,280 $3,654 $11,286 $10,427
- per share 0.08 0.06 0.17 0.16
Income(loss) from continuing
operations before
non-operating item 417 (644) 583 792
- per share (0.00) (0.01) (0.02) 0.01
Net income (loss)
- per share (0.32) (0.01) (0.34) 0.05
Total revenues 31,574 25,104 87,978 80,614
RPC (Remote Procedure Call) A programming interface that allows one program to use the services of another program in a remote machine. The calling program sends a message and data to the remote program, which is executed, and results are passed back to the calling , an Ontario based public real estate company, is engaged in the acquisition and ownership of income-producing properties in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. , and presently owns and operates 42 properties in 20 communities. RPC also has an emerging gaming business. CONTACT: Revenue Properties Company Limited, Toronto Louis M. Forbes or Paul W. Hellen Tel: 416/963-8100 Fax: 416/963-8512 e-mail: rpc@istar.ca http://www.revprop.com |
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