Symbol: PVT.UN (TSX-V)
CALGARY, March 26, 2012 /CNW/ - Proventure Income Fund (the "Fund") is pleased to report its financial results for the year ended December 31, 2011.
Overview of Proventure
Proventure is an "open ended" mutual trust established under the laws of the Province of Alberta. The objectives of Proventure are to provide Unitholders with cash distributions from the acquisition and operation of a portfolio of real estate properties. Proventure owns directly and indirectly, a 100% interest in its subsidiary Proventure Operating Limited Partnership (with the exception of 225 thousand Class C preferred units held by an unrelated).
Events after the Reporting Period
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 represents 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.
We reported a profit of $328 thousand or $0.04 per basic unit when compared to a profit of $1,856 thousand or $0.24 per basic unit for 2010. In addition, our EBITDA (see "Non-IFRS Financial Measures") decreased to $2,946 thousand from $4,037 thousand for the year ended 2011 when compared to 2010.
The difference in the profit reported in the year ended 2011 when compared to the year ended 2010 of $1.5 million is primarily due to an impairment on investment properties reported in 2010 of $1.7 million, gain on sale of investment properties of $329 thousand and the net change in finance costs of $2 million (net cost of $632 thousand for 2011 compared to net income of $1.4 million in 2010). In addition, income taxes of $390 thousand related to SIFT tax was recorded in 2011 when there were no income taxes in 2010.
Selected Annual Information
|$ thousands, except per unit amounts|| December 31,
| December 31,
| December 31,
|Profit for the year||328||1,856||1,061|
|Per unit - Basic||0.04||0.24||0.15|
|Per unit - Diluted||0.04||0.19||0.15|
|Cash provided by (used in) operating activities||1,743||1,615||1,822|
|Per unit - basic||0.0.22||0.21||0.26|
|Distributions declared to Unitholders||11,452||4,048||1,352|
|Per Unit - basic||0.38||0.53||0.43|
|Weighted average units outstanding|
|Actual units outstanding||7,851||7,638||7,116|
|Total long-term liabilities||6,468||18,351||33,770|
|Net book value per unit - diluted||1.67||2.03||0.77|
The Non-IFRS measures identified 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 year ended December 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.
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 and leases real estate to Cervus Equipment Corporation. The units of Proventure Income Fund are
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.
1The December 31, 2009 selected annual data was prepared using previously used Canadian Generally Accepted Accounting Principles.
For further information:
Peter Lacey - President & CEO
Telephone: (403) 567-2098
Fax: (403) 567-2151
Email: [email protected]
Randy Muth - Chief Financial Officer
Telephone: (403) 567-2097
Fax: (403) 567-2152
Email: [email protected]