Proventure Income Fund Announces Results for First Quarter Of 2012
Symbol: PVT.UN (TSX-V)
CALGARY, May 28, 2012 /CNW/ - Proventure Income Fund (the "Fund") is pleased to report its financial results for the three month period ended March 31, 2012.
Highlights for the quarter
On January 5, 2012 the Fund sold certain real estate assets to a related party, Cervus Equipment Corporation ("Cervus") with a carrying value of $25.2 million. This represented approximately 70% of the real estate assets of the Fund. The sales price for the real estate assets was $26.3 million and was paid to the Fund through an assumption of mortgages of $11.5 million, cash of $13.3 million and a reduction of $1.5 million in the advances owing to Cervus by the Fund.
In addition, on January 23, 2012, the Fund paid a special cash distribution in the amount of $1.70 per unit to the Unitholders of record on January 17, 2012. The aggregate amount of the dividend was $13.3 million.
Overall Performance for the Quarter
The Fund reported a profit of $1.1 million or $0.14 per basic unit when compared to a profit of $361 thousand or $0.05 per basic unit for 2011. In addition, our EBITDA (see "Non-IFRS Financial Measures") increased slightly to $1.3 million from $1.1 million for the three month period when compared to 2011. The increase in profit was provided from a gain on sale of investment properties to Cervus of $1.1 million.
Selected Quarterly Information | |||
$ thousands, except per unit amounts | March 31, 2012 | March 31, 2011 | |
Rental income | 3,388 | 837 | |
Profit for the three month period | 328 | 361 | |
Per unit - Basic | 0.04 | 0.05 | |
Cash provided by operating activities | (310) | 435 | |
Per unit - basic | (0.04) | 0.06 | |
Distributions declared to Unitholders | 13,346 | 382 | |
Per unit | 1.70 | 0.05 | |
EBITDA2 | 1,312 | 1,060 | |
Per Unit - basic | 0.17 | 0.14 | |
Weighted average units outstanding | |||
Basic | 7,850 | 7,648 | |
Diluted | 7,850 | 9,751 | |
Actual units outstanding | 7,850 | 7,648 | |
Total assets | 10,995 | 53,949 | |
Total long-term liabilities | 6,940 | 30,210 | |
Unitholders' equity | 765 | 23,739 | |
Net book value per unit - diluted | 0.10 | 2.43 | |
Note: (1) These financial measures are identified and defined under the section "Non-IFRS Financial Measures" |
The Non-IFRS measures indentified in this Press Release do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and are therefore unlikely to be comparable to similar measures presented by other issuers. These non-IFRS measures are more fully defined and discussed, together with reconciliation to the most directly related IFRS measure in the MD&A of the Fund on the results of operations for the three month period ended March 31, 2011.
Copies of Proventure Income Fund's unaudited financial statements and related MD&A are available on the SEDAR website at www.sedar.com.
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2 These financial measures are identified and defined under the section "Non-IFRS Financial Measures".
Proventure Income Fund is an open-ended mutual fund trust established on December 31, 2005 under laws of the Province of Alberta. The Fund is in the commercial property development business. The units of Proventure Income Fund are listed on the TSX Venture Exchange and trade under the symbol "PVT.UN".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Peter Lacey - President & CEO
Telephone: (403) 567-0339 Ext: 245
Fax: 403 567-0497
Email: [email protected]
Randy Muth - Chief Financial Officer
Telephone: (403) 567-0339 Ext: 244
Fax: 403 567-0497
Email: [email protected]
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