TORONTO, April 29 /CNW/ - SWEF TERRAWINDS RESOURCES CORP. (the
"Company") announces it has filed with Canadian securities regulators
its annual financial statements and Management's Discussion and
Analysis ("MD&A") for the year ended December 31, 2010. 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.
Results of Operations
Net loss for the year ended December 31, 2010 was $7.2 million compared
to a net loss of $3.4 million for the same period in fiscal 2009. The
decrease in net loss of $3.8 million is due primarily to $8.9 million
of tax indemnity payment expenses that occurred in 2010 compared to
$4.4 million in 2009. The effect of this increase is partially offset
by an increase in future income taxes recoverable and lower
administrative expenses for the Company as its operations reduce in
Interest income for the year ended December 31, 2010 was $0.05 million
compared to $0.1 million for the same period in fiscal 2009. The
decrease of $0.05 million is due to persistent low interest rates
through much of 2010 and less cash on hand to invest during fiscal 2010
compared to the same period in fiscal 2009.
Administrative costs for the year ended December 31, 2010 were $0.5
million compared to $0.9 million for the same period in fiscal 2009.
The decrease of $0.4 million is attributable to higher professional
fees, director fees, and an accrual for a claim related to the
Interwind restructuring in 2009.
Future income tax recovery for the year ended December 31, 2010 was $2.1
million, compared to a recovery of $1.7 million for the same period in
fiscal 2009. The future income tax recovery for the year ended December
31, 2010 arises due to the tax indemnity claims made in the period. The
recovery position in 2010 increased by $0.4 million due to the higher
number of claims made in 2010 when compared to 2009.
Forward Looking Statements
Certain statements contained in this Press Release constitute forward
looking statements within the meaning of the Securities Act (Ontario)
regarding the future performance of the Company based on assumptions
the management of the Company considered reasonable at the time it was
prepared as at April 29, 2011. All forward-looking statements are
inherently uncertain and actual results may differ materially from the
assumptions, estimates or expectations reflected or contained in the
forward looking statements. We consider the assumptions on which these
forward looking statements are based to be reasonable, but caution the
reader that these assumptions regarding future events, many of which
are beyond our control, may ultimately prove to be incorrect. These
forward looking statements involve a number of risks, uncertainties and
assumptions, including the risk of future tax assessments, litigation
or other unanticipated expenses.
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, except as required by law. These risks may
cause the actual results, performance or achievements of the
Partnership to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. These cautionary statements expressly
qualify all forward looking statements attributable to the Company.
For further information:
W. Judson Martin, Chairman SWEF Terrawinds Resources Corp. firstname.lastname@example.org