Tricon Announces Fourth Quarter 2011 Results and Declares Quarterly Dividend

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES./

TORONTO, March 15, 2012 /CNW/ - Tricon Capital Group Inc. (TSX: TCN) ("Tricon" or the "Company") today announced its results for the year and the fourth quarter ended December 31, 2011. Financial Statements and Management's Discussion and Analysis are available on the Tricon website at www.triconcapital.com and have been filed on SEDAR. Results are prepared in accordance with International Financial Reporting Standards ("IFRS"), except as disclosed in Note 2 below, and are presented in Canadian dollars rounded to the nearest thousand.

Highlights:

• Assets Under Management ("AUM") have continued to grow throughout the course of 2011 and were approximately $944,000,000 at December 31, 2011 - an increase of over $90,000,000 since the end of 2010.
• A final close for Canadian fund Tricon XII is expected by the end of Q1 2012; subject to finalization of closing documentation, the expectation is that total fund commitments will be approximately $185,000,000. An initial close for U.S. distressed fund Tricon XI with a large institutional investor is anticipated for Q2 2012
• Net income for 2011 was $544,000 ($0.03 per share) versus a loss of $8,469,000 in 2010 (a loss of $0.61 per share). Net Income for the quarter was $255,000, a $251,000 decrease from Q4 2010 ($0.01 per share in Q4 2011 vs. $0.03 per share in Q4 2010).
• Adjusted Base Revenues for the quarter increased by $360,000 from Q4 2010 to $3,023,000, primarily as a result of General Partner Distributions from Tricon XII.   For the full year, Adjusted Base Revenues of $11,435,000 were nearly $1,000,000 higher than 2010.
• Adjusted Base EBITDA decreased from $1,294,000 in Q4 2010 to $1,202,000 in Q4 2011.  For the full year Adjusted Base EBITDA was $4,678,000 (2010: $5,133,000).  These declines were primarily the result of Investment Losses related to Tricon's share of the formation costs for Tricon XII. These losses, which occur in the early years of a fund's life, along with the previously anticipated reduction in Performance Fees, resulted in a decrease in Adjusted EBITDA from $1,623,000 in Q4 2010 to $1,202,000 in Q4 2011 and from $6,184,000 for full-year 2010 to $4,833,000 in full-year 2011.
• A quarterly dividend of 6 cents per share was declared on March 14, 2012 to shareholders of record on March 31, 2012 and will be payable on April 13, 2012.

"We continue to move closer to a first close for Tricon XI, our new U.S. distressed fund, and anticipate a full roll-out of our U.S. fundraising program over the upcoming quarter" said David Berman, Chairman and Chief Executive Officer. "We also have spent a significant time over the past quarter sourcing new investment opportunities in Texas, namely Houston and Dallas, markets which boast very strong underlying demographics and are well positioned to lead the United States out of the economic downturn."

Selected Financial Summary
				At Dec. 31 2011	At Dec. 31 2010
Assets Under Management				$943,807,000	$852,636,000
	Three Months Ended Dec. 31			Twelve Months Ended Dec 31
	2011	2010		2011	2010
Adjusted Base Revenue	$3,023,000	$2,663,000		$11,435,000	$10,476,000
Net Income (Loss) ^(1)	$255,000	$506,000		$544,000	($8,469,000)
Adjusted Base EBITDA ^(2)	$1,202,000	$1,294,000		$4,678,000	$5,133,000
Adjusted EBITDA ^(2)	$1,202,000	$1,623,000		$4,833,000	$6,184,000
Adjusted Net Income ^(2)	$608,000	$910,000		$2,539,000	$3,038,000
Net Income (Loss) - Per Share	$0.01	$0.03		$0.03	($0.61)
Adjusted Net Income - Per Share ^(2)	$0.03	$0.05		$0.14	$0.22
Shares Outstanding	18,237,404	18,240,871		18,240,004	13,891,829

Notes:	(1)	Net Income includes several Non-Recurring and Non-Cash items, including a significant LTIP accrual as mandated by IFRS.   Please see MD&A for additional detail.
	(2)	Tricon measures the success of its business by employing several key performance indicators which are not recognized under IFRS, including AUM, Adjusted Base EBITDA, Adjusted EBITDA and Adjusted Net Income. These indicators should not be considered an alternative to IFRS financial measures such as Net Income. Non-IFRS financial measures do not have standardized definitions prescribed by IFRS and are therefore unlikely to be comparable with other issuers or companies. Refer to our Management & Discussion Analysis for a reconciliation of the Non-IFRS measures to the closest comparable IFRS measures.

Conference Call and Webcast

Management will host a conference call at 10 a.m. ET on March 15, 2012, to discuss the results. Please call 416-800-1066 or 1-866-212-4491. The conference call will also be accessible via webcast at www.triconcapital.com (go to Investor Information - Events). A replay of the conference call will be available until midnight March 22, 2012.  To access the replay, call 1-866-583-1035, followed by passcode 7925580#.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events and financial and operating results and projections of the Company, including statements regarding future plans, objectives or economic performance that involve risks and uncertainties. Forward-looking information and statements are based on management's expectations, intentions and assumptions.  If unknown risks arise, or if any of the assumptions underlying the forward-looking statements prove incorrect, actual results may differ materially from management expectations as projected in such forward-looking statements. Examples of such risks include, but are not limited to, the risks disclosed in the Company's final prospectus dated May 14, 2010, as available at www.sedar.com and the risks described in the Company's continuous disclosure materials from time-to-time.  The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

About Tricon Capital Group Inc.

Founded in 1988, Tricon is one of North America's pre-eminent asset managers focused on the residential real estate development industry with approximately $1 billion of assets under management. Tricon participates in the development of residential properties in Canada and the United States by acting as the manager of limited partnerships that provide financing, typically in the form of participating loans, to developers, with a specific focus on residential land development, single-family homebuilding, multi-family construction and retail developed in conjunction with residential projects. Since inception, Tricon has invested in approximately 150 transactions for development projects valued at roughly $10 billion. More information about Tricon is available at www.triconcapital.com.

 

 

June Alikhan
Chief Financial Officer
Tel: [phone]
Email: [email protected]

Gary Berman
President
Tel: [phone]
Email: [email protected]