TORONTO, ONTARIO, May 14, 2010 (Marketwire) -- Counsel Corporation ("Counsel" or the "Company") (TSX:CXS) today reported its financial results for the three months ended March 31, 2010. All amounts are stated in Canadian dollars, unless noted.
Highlights of 2010:-- In February 2010, Counsel's Case Goods subsidiary, Fleetwood Fine
Furniture ("Fleetwood"), arranged new equity financing of $2.5 million
from a third party investor for 25% of the outstanding units of
Fleetwood. As a result, Counsel's ownership of Fleetwood has been
reduced from approximately 95% to approximately 71%. The proceeds from
the capital raise have been used to fund the transition of Fleetwood's
manufacturing capacity to Asia, as well as for working capital and
general corporate purposes.-- In April 2010, the Company sold its 20% ownership interest in six income
producing properties in Brockville, Ontario for proceeds of
approximately $1.4 million.-- In April 2010, Counsel RB Capital LLC ("Counsel RB"), Counsel's asset
liquidation subsidiary, as part of a consortium, completed the sale of
the former Aleris Aluminum manufacturing facility in Trois-Rivieres,
Quebec to an overseas purchaser for approximately US$25 million. Counsel
RB and its partners purchased the Aleris Aluminum assets in November
2009. Counsel RB's interest in the transaction has yielded a gain of
approximately US$2.1 million after expenses.
The Company had a first quarter loss from continuing operations of $2.5 million, or $0.04 per share, basic and diluted, compared with a loss of $4.0 million, or $0.09 per share, basic and diluted, for the three months ended March 31, 2009. Including discontinued operations, the Company had a net loss of $2.4 million, or $0.04 per share, basic and diluted, for the three months ended March 31, 2010, compared with a net loss of $3.9 million, or $0.09 per share, basic and diluted, for the three months ended March 31, 2009.
"The achievements of our Counsel RB Capital operations and our Polaroid investment, along with a strengthening real estate market, put Counsel Corporation in an excellent position for success in 2010" said Allan Silber, Chairman and CEO of Counsel Corporation.
The Company's Management's Discussion and Analysis and Financial Statements for the three months ended March 31, 2010 have been filed and are available on SEDAR (www.sedar.com).
About Counsel Corporation
Counsel Corporation (TSX:CXS) is a private equity investor and alternative asset manager that actively partners with businesses to achieve shared success and to unlock value through leveraging its relationships, access to capital and strategic market experience. For further information, please visit Counsel's website at www.counselcorp.com.
Forward-Looking Statements
The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts, which address Counsel Corporation's expectations, should be considered as forward-looking statements. Such statements are based on knowledge of the environment in which Counsel Corporation currently operates, but because of the factors listed herein, as well as other factors beyond Counsel Corporation's control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, obtaining necessary approvals and other risks detailed from time to time in the Company's securities and other regulatory filings.
Counsel Corporation
Consolidated Statements of Operations
(in thousands of Cdn Dollars, except per share amounts)
(Unaudited)Three months ended March 31,
2010 2009
$ $
------------------------------Revenues 13,155 8,256
------------------------------Expenses (exclusive of depreciation,
amortization and interest expense shown
below) and other (income)losses
Operating costs 9,429 6,013
Selling, general and administrative expense 3,375 2,640
Foreign exchange (gain) loss (39) 1,464
(Gain) loss on short-term investments (97) (158)
Other - (182)
------------------------------
12,668 9,777
------------------------------Income(loss) before depreciation,
amortization, interest expense, income taxes,
and discontinued operations 487 (1,521)Depreciation and amortization 957 986
Interest expense 1,392 1,552
------------------------------
Loss before income taxes and discontinued
operations (1,862) (4,059)Income tax provision 80 11
------------------------------
Loss from continuing operations (1,942) (4,070)Income from discontinued operations 192 84
------------------------------Net loss (1,750) (3,986)
Net income(loss) attributable to non-
controlling interest 654 (109)
------------------------------Net loss attributable to controlling interest (2,404) (3,877)
------------------------------
------------------------------Basic and diluted net income(loss) per share:
Continuing operations (0.04) (0.09)
Discontinued operations 0.00 0.00
------------------------------Basic and diluted net income(loss) per share (0.04) (0.09)
------------------------------
------------------------------Weighted average number of common shares
outstanding (in thousands) - basic and diluted 61,820 44,755The notes contained in the Company's interim consolidated financial
statements are an integral part of these condensed consolidated financial
statements.Counsel Corporation
Consolidated Balance Sheets
(in thousands of Cdn Dollars)
(Unaudited)March 31, December 31,
2010 2009
$ $
------------------------------Assets
Current assets
Cash and cash equivalents 10,284 8,048
Short-term investments 1,147 1,519
Accounts receivable (net of allowance for
doubtful accounts of $123; 2009 - $129) 5,508 5,303
Inventories 10,647 6,734
Prepaid expenses and deposits 2,182 2,428
Future income tax assets 678 766
Assets of discontinued operations 13,391 1,125
------------------------------
43,837 25,923Long-term assets
Income producing properties, net 88,541 100,721
Properties under development 7,094 6,800
Property, plant and equipment, net 1,987 2,042
Portfolio investments 27,102 28,737
Intangible assets, net 2,699 3,033
Goodwill 26,303 26,058
Tenant related costs and other assets 6,191 5,951
------------------------------203,754 199,265
------------------------------
------------------------------Liabilities
Current liabilities
Accounts payable and accrued liabilities 13,600 13,480
Customer deposits 6,055 4,911
Income taxes payable 33 44
Future income tax liabilities 57 58
Current portion of mortgages and loans
payable 18,244 16,876
Convertible preferred shares 11,538 11,538
Liabilities of discontinued operations 8,021 273
------------------------------
57,548 47,180
Long-term liabilities
Mortgages and loans payable 73,781 81,809
Intangible liabilities 487 571
Future income tax liabilities 1,391 1,405
------------------------------
133,207 130,965Shareholders' equity 70,547 68,300
------------------------------203,754 199,265
------------------------------
------------------------------The notes contained in the Company's interim consolidated financial
statements are an integral part of these condensed consolidated financial
statements.
