Grandfield Pacific Inc. releases second quarter financial results

YELLOWKNIFE, Dec. 23 /CNW/ - Grandfield Pacific Inc. today released the financial results for the second quarter ended October 31, 2009 .

For the three months ended October 31, 2009

Net income for the three-month period ended October 31, 2009 , was a loss of $91,118 as compared to a net loss for the same quarter ending in 2008 of $84,349 .

Loss from operations before other income and income tax for the quarter ended October 31, 2009 , was $99,994 as compared to a loss of $106,275 for the comparative quarter ended in 2008. The reduction in loss from operations is primarily a result of a decrease in Administration expenses, in particular utilities expense.

For the six months ended October 31, 2009

Net income for the six month period ended October 31, 2009 , was a loss of $147,890 as compared to a loss of $5,375 for the same period ending in 2008.

Income for the six month period ended October 31, 2008 includes a gain on the sale of a rental home, previously used for housing hotel employees in Yellowknife, of $142,221 .

Loss from operations before other income and gain on sale of land and building for the six month period ended October 31, 2009 , was $180,116 as compared to a loss of $177,210 for the comparative period ended in 2008. The increase in loss from operations is primarily a result of a decrease in room revenue to $293,912 from $357,159 for the same period ended in 2008. The decrease in room revenue is a result of decreased business from local travel in Yellowknife and a reduction of corporate business in the Yellowknife Hotel, most of this decrease was realized in the first quarter of the year.

    
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                                                 For the three months ending:
    Summary of Financial information     Notes      31-Oct-09      31-Oct-08
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                                                        $              $

    Total revenue                          1          162,950        171,345

    Net income/(loss)                                 (91,118)       (84,349)

    Basic/diluted loss per share                 (0.01)/(0.01)  (0.01)/(0.01)
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                                                   For the six months ending:
    Summary of Financial information     Notes      31-Oct-09      31-Oct-08
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                                                        $              $
    Total revenue                          1          311,767        376,773

    Net income/(loss)                                (147,890)        (5,375)

    Basic/diluted loss per share                 (0.02)/(0.02)  (0.00)/(0.00)
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    Notes:
    (1) Includes hotel revenue, management fees, interest and other income -
        does not include gain on sale of rental property
    

LIQUIDITY

At current date, the lender for the first mortgage registered on the Discovery Inn Hotel and Property has demanded payment in full at maturity, December 19, 2009 . The Company has not been successful in its attempt to obtain refinancing from other lenders, we have informed the current lender of the Company's inability to repay the mortgage at maturity and we are waiting for a response from the lender. At this time management is uncertain of the outcome if the current lender does not grant an extension or renegotiate the debt. As of October 31, 2009 , the balance of this mortgage is $1,487,694 plus accrued contingent interest of $770,754 . The security for this mortgage is the Discovery Inn Hotel and property and related business assets.

Additional information of the financial results of the Company is filed on System for Electronic Document Analysis and Retrieval ("SEDAR") and can be accessed electronically at www.sedar.com.

Grandfield Pacific Inc., through its operating subsidiaries, maintains ownership interests in and operates a hotel in Canada . The Company's offices are based in Yellowknife, Northwest Territories, Vancouver , British Columbia and Hong Kong .

%SEDAR: 00002312E

For further information: Sam Mark, President and Chief Executive Officer, Email: [email protected]