SWEF TERRAWINDS RESOURCES CORP. Files Third Quarter Financial Results
TORONTO, Nov. 29 /CNW/ - SWEF TERRAWINDS RESOURCES CORP. (the "Company") today has filed with Canadian securities regulators its interim financial statements and Management's Discussion and Analysis ("MD&A") for the three and nine month periods ended September 30, 2010 and 2009. These documents will be available at www.sedar.com and www.sweflp.com.
On January 16, 2008, March 10, 2008, April 29, 2008, August 29, 2008, November 13, 2008, December 1, 2008, March 26, 2009 and July 24, 2009 management provided instructions to shareholders regarding the process for submitting tax indemnity claims and the status of the claims process. Distributions of the funds held in trust by the Agent have commenced as the relevant taxation authorities have begun providing individual reassessments for the 2005 tax year allowing shareholders to make their tax indemnity claims. Further information is available at www.sweflp.com and www.terida.com/paymentagent.
Results of Operations
Three Month Comparison
Net loss for the three month period ended September 30, 2010 was $1.3 million compared to a net loss of $1.8 million for the same period in fiscal 2009. The decrease in net loss of $0.5 million is due primarily to fewer tax indemnity payments (and smaller related future income tax recoveries) in the third quarter of 2010 compared to the third quarter of 2009.
Interest income for the three month periods ended September 30, 2010 and 2009 was insignificant due to low prevailing interest rates in both periods.
Administrative costs for the three month period ended September 30, 2010 were insignificant compared to $0.3 million for the same period in fiscal 2009. The decrease of $0.3 million is due primarily to the fact that the third quarter of 2010 contains a $145 thousand recovery related to the settlement with Interwind Corp. ("Interwind"), and the third quarter of 2009 contains an accrual for exposure related to creditors seeking repayment from the Company as a result of Interwind's financial difficulties.
Capital tax expense for the three month periods ended September 30, 2010 and 2009 was insignificant due to the minimal taxable capital of the Company.
Future income tax recovery for the three month period ended September 30, 2010 was $0.3 million, compared to recovery of $0.7 million for the same period in fiscal 2009. The decrease of $0.4 million is due to the lower amount of tax indemnity payments made in the third quarter of 2010 compared to the third quarter of 2009.
Nine Month Comparison
Net loss for the nine month period ended September 30, 2010 was $5.8 million compared to a net loss of $3.1 million for the same period in fiscal 2009. The increase in net loss of $2.7 million is due primarily to higher tax indemnity payments (and higher related future income tax recoveries) in the first nine months of 2010 compared to the same period in 2009.
Interest income for the nine month periods ended September 30, 2010 and 2009 was insignificant due to low prevailing interest rates in both periods.
Administrative costs for the nine month period ended September 30, 2010 were $0.3 million compared to $0.6 million for the same period in fiscal 2009. The decrease of $0.2 million is due primarily to the fact that the third quarter of 2010 contains a $145 thousand recovery related to the settlement with Interwind, and the third quarter of 2009 contains an accrual for exposure related to creditors seeking repayment from the Company as a result of Interwind's financial difficulties.
Capital tax expense for the nine month periods ended September 30, 2010 and 2009 was insignificant due to the minimal taxable capital of the Company.
Future income tax recovery for the nine month period ended September 30, 2010 was $1.6 million, compared to recovery of $1.1 million for the same period in fiscal 2009. The increase of $0.5 million is due to the higher amount of tax indemnity payments made in the first nine months of 2010 compared to the same period in 2009.
For further information:
W. Judson Martin, Chairman SWEF Terrawinds Resources Corp. [email protected]
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