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CAMDEV CORPORATION REPORTS RESULTS FOR YEAR ENDED JANUARY 31, 1992

CAMDEV CORPORATION REPORTS RESULTS FOR YEAR ENDED JANUARY 31, 1992
 TORONTO, June 5 /PRNewswire/ -- Camdev Corporation (Toronto Stock Exchange: CVO; The Montreal Exchange: CVO) today reported its financial results for the fiscal year ended Jan. 31, 1992.
 Camdev stated that the financial results for the current and prior periods are not indicative of future performance nor comparable year to year. The magnitude of the reported profit is due principally to two factors. The first is the effect of concluding the plans of reorganization of the corporation's former U.S. subsidiaries, which resulted in an adjustment to the corporation's investment on its balance sheet to reflect the resolution of the corporation's ownership interests in those subsidiaries and the release from significant potential claims.
 The second factor is the Canadian restructuring, which included a significant capital reorganization involving the extinguishment of a substantial amount of debt and the disposition of real estate.
 Camdev Corporation reported operating profit of C$96 million. Operating profits have been strongly influenced by the effects of restructuring and are not indicative of expected results in future periods because of the reduction in the corporation's holdings of real estate.
 Net profit, prior to items related to the Canadian and U.S. reorganizations, was C$134 million. The profit of C$134 million is greater than operating profit of C$96 million due to the inclusion of net gains of C$259 million arising from the sale of rental properties. After taking into account the effect of all restructuring transactions, the corporation's net profit was C$2.47 billion.
 The reported net profit of C$2.47 billion should be viewed in light of: C$1.87 billion in net income resulting from the reversal of losses and release from potential claims in connection with the former U.S. subsidiaries; a net gain of C$462 million on the extinguishment of debt resulting from the Canadian reorganization; and net profit from real estate activities of C$134 million.
 The year ending Jan. 31, 1993 will be the corporation's first full year for which the financial results will reflect the corporation's performance after completion of its restructuring.
 "As we began the current fiscal year," said Stanley H. Hartt, chairman, president, and chief executive officer, "Camdev's assets were valued at C$644 million and liabilities at C$500 million. For the first time in several years, there is positive equity in the corporation. By prudent management of our assets, we hope to improve their attractiveness in the rental market, to gain more favorable rental yields and, ultimately, a recognition of enhanced capital value. This can only occur over time, with a return of confidence in real estate markets and in the corporation."
 Camdev stated that its balance sheet as at Jan. 31, 1992 is presented on a "fresh start" basis, which provides for the remaining deficit and contributed surplus to be set at zero, capital stock to be stated at C$144 million, and fair market values to be assigned to individual assets and liabilities.
 The corporation stated that it continues to pursue the completion of its debt-reduction program through the sale of real estate assets which are not integral to its operations. Completion of this debt-reduction program, however, has been delayed by the difficulty in concluding real estate sales at acceptable prices in the current market.
 Camdev Corporation is a Canadian, publicly held owner and manager of commercial real estate properties, which include more than 3.1 million square feet of commercial and retail rentable space of which approximately 2.3 million square feet is located in the Ottawa, Ontario region.
 CAMDEV CORPORATION
 Balance Sheet As at Jan. 31, 1992
 After Giving Effect to Reorganization
 (in millions of Canadian dollars)
 ASSETS
 Rental properties $ 460
 Land held for sale or development 44
 Amounts receivable 36
 Investment in Ralphs Supermarkets, Inc. 87
 Other assets 17
 TOTAL ASSETS $ 644
 LIABILITIES AND SHAREHOLDERS' EQUITY
 LIABILITIES
 Debt $ 473
 Accounts payable and accrued liabilities 27
 TOTAL LIABILITIES $ 500
 SHAREHOLDERS' EQUITY
 Capital stock 144
 Commitments, contingencies and subsequent events
 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 644
 CAMDEV CORPORATION
 Statements of Operations And Deficit
 (in millions of Canadian dollars)
 Year ended Jan. 31: 1992 1991 1990
 REVENUE
 Rental $ 139 188 190
 Sale of land 67 68 44
 Total 206 256 234
 EXPENSES
 Rental 58 64 64
 Sale of land 48 57 27
 Selling, general and administrative 4 3 4
 Total 110 124 95
 Total 96 132 139
 Financing (168) (19) (148)
 Depreciation and amortization (9) (11) (13)
 Corporate expenses (16) (18) (36)
 Gain on sale of rental properties 259 56 85
 Provision for loss on real estate
 properties (25) (109) -
 Total 137 (169) 27
 Income taxes 3 (97) 15
 Net profit (loss) before the
 items noted below 134 (72) 12
 Net profit (loss) from investments
 in U.S. subsidiaries 1,874 (426) (1,912)
 Net gain from extinguishment
 of debt 462 - -
 Net loss from discontinued
 real estate assets - (27) (121)
 Net profit (loss) 2,470 (525) (2,021)
 Deficit - beginning of year (2,807) (2,270) (227)
 Dividends:
 Preference (12) (12) (18)
 Ordinary - - (4)
 Restatement of deficit on
 reorganization 349 - -
 Deficit - end of year $ - (2,807) (2,270)
 CAMDEV CORPORATION
 Consolidated Statements of Changes in Financial Position
 (in millions of Canadian dollars)
 Year ended Jan. 31: 1992 1991 1990
 OPERATING ACTIVITIES
 Net profit (loss) $2,470 (525) (2,021)
 Add (deduct):
 Net profit or loss from
 investments in U.S.
 subsidiaries (1,874) 426 1,912
 Net gain from extinguishment
 of debt (462) - -
 Net loss from discontinued
 real estate assets - 27 121
 Gain on sale of rental properties (259) (56) (85)
 Provision for loss on real estate
 properties 25 109 -
 Depreciation and amortization 9 11 13
 Amortization of financing costs 5 13 6
 Deferred income taxes 3 (97) 15
 Total (83) (92) (39)
 Net changes in changes in non-cash
 balances related to operations:
 Amounts receivable 14 (6) (2)
 Amounts payable and accrued
 liabilities 15 106 -
 CASH PROVIDED BY (APPLIED TO)
 OPERATING ACTIVITIES (54) 8 (41)
 FINANCING ACTIVITIES
 Debt issued and renegotiated 56 78 723
 Debt issue cost (3) (4) (24)
 Debt repaid (1,068) (217) (256)
 CASH PROVIDED BY (APPLIED TO)
 FINANCING ACTIVITIES (1,015) (143) 443
 INVESTMENT ACTIVITIES
 Real estate development and
 acquisition 14 67 219
 Proceeds from sale of rental
 properties (1,023) (117) (196)
 Costs recovered from sale
 of land (43) (49) (11)
 Notes receivable (39) (20) (5)
 Investments - 29 360
 Other 21 29 50
 Discontinued real estate assets - (40) (47)
 CASH APPLIED TO (PROVIDED BY)
 INVESTMENT ACTIVITIES (1,070) (101) 370
 Dividends - - 15
 Increase (decrease) in cash
 during period 1 (34) 17
 CASH - BEGINNING OF PERIOD 13 47 30
 CASH - END OF PERIOD $ 14 13 47
 Cash comprises cash and short-term deposits, and is net of bank overdrafts and revolving operating facilities.
 CAMDEV CORPORATION
 Balance Sheet As at Jan.31, 1991
 (in millions of Canadian dollars)
 ASSETS
 CURRENT ASSETS
 Cash and short-term deposits $ 13
 Accounts receivable 36
 TOTAL CURRENT ASSETS 49
 Real estate 1,151
 Notes receivable 53
 Other assets 16
 TOTAL ASSETS $ 1,269
 LIABILITIES AND SHAREHOLDERS' DEFICIENCY
 CURRENT LIABILITIES
 Accounts payable and accrued liabilities $ 145
 Short-term debt 1,017
 Convertible subordinated debentures 548
 TOTAL CURRENT LIABILITIES 1,710
 Long-term debt 609
 Total 2,319
 Excess of losses over investments in subsidiaries 1,338
 Deferred income taxes 96
 SHAREHOLDERS' DEFICIENCY
 Preference shares 140
 Ordinary shares 213
 Deficit (2,807)
 Foreign currency translation adjustment (30)
 TOTAL SHAREHOLDERS' DEFICIENCY (2,484)
 TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIENCY $1,269
 -0- 6/5/92
 /CONTACT: Richard W. Wertheim of Wertheim Howe & Company Inc., 416-594-1600 (Office); 416-276-6612 (Home), for Camdev/
 (CVO.) CO: Camdev Corporation ST: Ontario IN: SU: ERN


TQ -- NY047 -- 7517 06/05/92 14:49 EDT
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Date:Jun 5, 1992
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