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CAMDEV CORPORATION REPORTS THIRD QUARTER RESULTS

 TORONTO, Dec. 10 /PRNewswire/ -- Camdev Corporation today announced its third quarter financial results.
 The corporation reported a significant improvement in its cash flow from operations for the nine months ended Oct. 31, 1993. Cash flow was $3.1 million compared to a deficiency of $1.1 million for the same period last year, an improvement of $4.2 million.
 Camdev reported revenues of $64.5 million for the period compared to $64.8 million for the same period last year. Rental revenue slipped $4.8 million to $55.2 million primarily reflecting lower rental rates during the retrofit of certain properties in Ottawa while revenue from the sale of land held for sale or development nearly doubled to $9.4 million.
 The corporation's expenses in the first nine months of this year declined $6.2 million from the same period last year to $65.3 million. This improvement is attributable mainly to lower financing expenses, due largely to the continuing decline in short term interest rates.
 As a result, for the first nine months of 1993 the net loss, after provision for income taxes, declined to $1.5 million compared to a loss of $7.5 million for the comparable period in 1992. This results in a loss of $0.23 per common share compared to a loss of $1.18 in the prior year.
 The corporation's property management expertise continues to provide further income opportunities through additional third party management contracts. Since the last quarter, the corporation has obtained two additional property management contracts in Ontario, thereby expanding its portfolio to 800,000 square feet.
 "Its plan to concentrate on the management of our retained assets and liabilities has produced the desired results," said Stanley H. Hartt, chairman, president and chief executive officer. "We are looking to new strategic opportunities to expand the number of properties under our management to provide upside for our shareholders."
 Camdev Corporation is a Canadian, publicly held owner, developer and manager of commercial real estate properties, which include more than 4.0 million square feet of commercial and retail space, of which approximately 2.7 million square feet is located in the National Capital Region. The corporation's common shares are listed on the Toronto and Montreal stock exchanges (Symbol: CVO).
 Report to Shareholders
 For the nine months ended Oct. 31, 1993, our financial results continue to reflect a steady improvement over the previous year. The net loss incurred by the corporation in the first three quarters of t ? fiscal year declined to $1.5 million compared to a net loss of $7.5 million a year earlier. This improvement results in a loss of $0.23 per common share compared to a loss of $1.18 in the prior year.
 Rental revenues for the nine months ended Oct. 31, 1993, were $55.2 million compared to $60.0 million in the same period last year. This decline was anticipated and relates largely to the interim rental rate levels in properties undergoing retrofit, the effects of lease amendments for Galleria London, as well as the vacancy of the Pinecrest office building earlier in the year. Year over year revenue from the sale of land in the current period nearly doubled to $9.4 million reflecting the sale of the Kanata shopping center site. Rental expenses were $25.8 million compared to $26.1 million a year earlier.
 Financing expenses were $22.9 million compared to $29.3 million for the comparable period last year reflecting the effects of renegotiated debt agreements and of lower borrowing costs on the Corporation's floating rate debt which helped to mitigate the impact of decreased rental income levels.
 Cash flow from operations was $3.1 million compared to a deficiency of $1.1 million last year. This improvement reflects the net effect of decreased financing costs, higher profit from the sale of land offset in part by lower rental operating profit. In the current reporting period, cash increased by $1.4 million compared to the $10.6 million decrease reported in the prior comparable period. Improved cash flow from operations, recovery of amounts due from Federated Stores, Inc., and collection of notes receivable have enabled the corporation to fund its operations and maintain adequate liquidity.
 Significant progress has been achieved in retrofitting Place de Ville Tower C, Journal Towers and the Citadel Inn premises in accordance with the terms of the new leases. Lower rental revenue in the nine months ended Oct. 31, 1993, measured against the last comparable period includes interim rental rates associated with the retrofit program. Rental revenue is scheduled to increase following project completion. The resulting decline in rental operating profit has been offset by lower financing costs which have produced the net improvement in financial results compared to the previous year.
 The corporation's property management division has experienced significant growth in recent months. The portfolio of real estate under management for third parties has doubled to 800,000 square feet. Continued marketing of Camdev's property management expertise is expected to make an added contribution to the corporation's financial results as further potential growth in this activity is realized.
 CAMDEV CORPORATION
 Balance Sheets
 (in thousands of Canadian dollars)
 (unaudited)
 Oct. 31, Jan. 31,
 1993 1993
 ASSETS
 Rental properties $474,669 461,218
 Land held for sale or development 25,942 32,300
 Amounts receivable 11,431 19,791
 Investments 72,606 79,574
 Other assets 7,821 2,826
 Cash 14,687 13,247
 TOTAL ASSETS $607,156 608,956
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Liabilities
 Secured debt $451,258 457,935
 Accounts payable and
 accrued liabilities 26,684 20,341
 Total Liabilities 477,942 478,276
 Shareholders' Equity
 Capital stock 144,373 144,373
 Deficit (15,159) (13,693)
 Total Shareholders' Equity 129,214 130,680
 TOTAL LIABILITIES AND
 SHAREHOLDERS' EQUITY $607,156 608,956
 Statements of Operations
 (in thousands of Canadian dollars except per share amounts)
 (unaudited)
 For the nine months
 ended Oct. 31, 1993 1992
 Revenue
 Rental $55,165 59,984
 Sale of land and other 9,364 4,775
 Total revenue 64,529 64,759
 Expenses
 Rental 25,820 26,140
 Land - cost of sales
 and other 9,084 5,958
 Financing 22,850 29,264
 Depreciation and
 amortization 3,274 5,704
 General and administrative 4,226 4,447
 Total expenses 65,254 71,513
 Total (725) (6,754)
 Income taxes 741 747
 Net loss $(1,466) (7,501)
 Net loss per common share $(0.23) (1.18)
 Certain of the financial statements comparative figures have been reclassified to conform with the presentation for the current year.
 Statements of Changes in Financial Position
 (in thousands of Canadian dollars)
 (unaudited)
 For the nine months
 ended Oct. 31, 1993 1992
 OPERATING ACTIVITIES
 Net loss $(1,466) (7,501)
 Add (deduct):
 Depreciation and
 amortization 3,274 5,704
 Amortization of
 financing costs 1,299 654
 CASH FLOW FROM OPERATIONS 3,107 (1,143)
 Net changes in non-cash
 balances related to
 operations:
 Amounts receivable and other (5,927) (3,653)
 Accounts payable and
 accrued liabilities 3,510 1,197
 CASH PROVIDED BY (APPLIED TO)
 OPERATING ACTIVITIES 690 (3,599)
 FINANCING ACTIVITIES
 Debt issued 8,807 8,811
 Debt repaid (15,484) (15,825)
 CASH PROVIDED BY (APPLIED TO)
 FINANCING ACTIVITIES (6,677) (7,014)
 INVESTMENT ACTIVITIES
 Expenditures on rental
 properties (12,918) (9,456)
 Land held for sale or
 development (1,945) --
 Costs recovered from
 sale of land 8,303 5,900
 Notes receivable 6,656 8,830
 Investments 6,968 --
 Other 363 (5,309)
 CASH PROVIDED BY (APPLIED TO)
 INVESTMENT ACTIVITIES 7,427 (35)
 Increase (decrease)
 in cash during period 1,440 (10,648)
 Cash - beginning of period 13,247 13,941
 Cash - end of period $14,687 3,293
 Cash comprises cash and short-term deposits.
 -0- 12/10/93
 /CONTACT: Monika Quinn of Camdev Corporation, 416-365-2508/
 (CVO.)


CO: Camdev Corporation ST: Ontario IN: SU: ERN

TW -- NY073 -- 2743 12/10/93 15:53 EST
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Date:Dec 10, 1993
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