OAKVILLE, ONTARIO--(Marketwired - March 26, 2014) - BENEV Capital Inc. (TSX VENTURE:BEV.H) (the "Company" or "BCI") today announced its financial results for the year ended December 31, 2013 and the results for the fourth quarter 2013. There was no revenue for either the year or the quarter as the Company's operating facility was closed from the beginning of the year until the completion of its sale on May 31, 2013. Net loss for the year was $3.6 million and the loss per share was $0.09 on a fully diluted basis. Net loss for the quarter was $0.5 million and the loss per share was $0.01 on a fully diluted basis.
A more detailed discussion is available in the Management Discussion and Analysis available on http://media3.marketwire.com/docs/BENEVMDAQ413.pdf and Audited Consolidated Financial Statements for the years ended December 31, 2013 and 2012 available on http://media3.marketwire.com/docs/BENEVACFSYE13.pdf.
This report may contain forward-looking information that is subject to risks, uncertainties and assumptions. Such information represents our current views based on information as at the date of issuing this report. We do not intend to update this information and disclaim any legal obligation to the contrary.
Forward Looking Statements
Certain statements contained in this press release and in certain documents incorporated herein by reference may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "confident", "plan" and "intends" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events, performance, or achievements of BENEV Capital Inc. to differ materially from those anticipated or implied in such forward-looking statements. BENEV Capital Inc. believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct. Given these uncertainties, readers are cautioned that forward-looking statements included in, or incorporated by reference into, this press release are not guarantees of future performance, and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date of this press release. BENEV Capital Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.
In formulating the forward-looking statements contained herein, management has assumed that business and economic conditions affecting BENEV Capital Inc. will continue substantially in the ordinary course, including without limitation with respect to general industry conditions, general levels of economic activity, regulations (including those regarding importation of hazardous materials), and that there will be no unplanned material changes in its facilities, equipment, or customer or employee relations. These assumptions, although considered reasonable by management at the time of preparation, may prove to be incorrect.
All of the forward-looking statements made in this Press Release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, BENEV Capital Inc.
About BENEV Capital Inc.
BENEV Capital Inc. is a merchant bank. For information, please visit the BENEV Capital Inc. website at: www.benevcapital.com.
| BENEV CAPITAL INC. | |||||||
| Consolidated Statements of Financial Position | |||||||
| (Expressed in Canadian dollars) | |||||||
| December 31, | December 31, | ||||||
| 2013 | 2012 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 68,999,809 | $ | 63,856,221 | |||
| Restricted cash | 12,042 | 513,052 | |||||
| Amounts receivable | 392,598 | 1,645,903 | |||||
| Deferred costs | - | 40,224 | |||||
| Prepaid expenses and other | 137,340 | 488,780 | |||||
| 69,541,789 | 66,544,180 | ||||||
| Property, plant and equipment | - | 7,243,868 | |||||
| Assets under finance lease | - | 186,534 | |||||
| $ | 69,541,789 | $ | 73,974,582 | ||||
| Liabilities and Shareholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued liabilities | $ | 407,074 | $ | 1,974,460 | |||
| Current tax liabilities | 57,881 | 144,134 | |||||
| Provisions | 615,112 | 125,974 | |||||
| Current portion of long-term liability | 79,000 | 79,000 | |||||
| Current portion of finance lease obligations | - | 32,642 | |||||
| 1,159,067 | 2,356,210 | ||||||
| Long-term liability | 574,057 | 658,881 | |||||
| Shareholders' equity: | |||||||
| Share capital | 97,155,600 | 96,969,879 | |||||
| Contributed surplus | 8,664,249 | 8,414,394 | |||||
| Accumulated deficit | (38,011,244 | ) | (34,424,782 | ) | |||
| Total equity | 67,808,665 | 70,959,491 | |||||
| $ | 69,541,789 | $ | 73,974,582 | ||||
These consolidated financial statements do not include accompanying notes. A complete set of audited consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BENEVACFSYE13.pdf.
| BENEV CAPITAL INC. | |||||||||||||
| Consolidated Statements of Operations and Comprehensive (Loss) Income | |||||||||||||
| (Expressed in Canadian dollars) | |||||||||||||
| (Unaudited) | |||||||||||||
| Three months ended | Twelve months ended | ||||||||||||
| December 31, | December 31, | ||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||
| Sales | $ | - | $ | 7,832,055 | $ | - | $ | 28,298,586 | |||||
| Expenses: | |||||||||||||
| Operating costs | - | 4,184,907 | 466,718 | 13,394,457 | |||||||||
| Administration and business development | 742,594 | 1,224,797 | 3,464,239 | 4,797,498 | |||||||||
| Amortization | 3,491 | 208,920 | 140,847 | 805,823 | |||||||||
| Impairment loss | 36,439 | 1,224,005 | 36,439 | 1,224,005 | |||||||||
| Loss on disposal of assets held for sale | - | - | 559,674 | 57,334 | |||||||||
| 782,524 | 6,842,629 | 4,667,917 | 20,279,117 | ||||||||||
| Operating (loss) income | (782,524 | ) | 989,426 | (4,667,917 | ) | 8,019,469 | |||||||
| Results from operating activities | |||||||||||||
| Finance income | 262,047 | 232,027 | 1,000,983 | 1,192,436 | |||||||||
| Finance costs | (2,681 | ) | (5,306 | ) | (15,028 | ) | (83,708 | ) | |||||
| Net finance income | 259,366 | 226,721 | 985,955 | 1,108,728 | |||||||||
| (Loss) income before income taxes | (523,158 | ) | 1,216,147 | (3,681,962 | ) | 9,128,197 | |||||||
| Income taxes (recovery): | |||||||||||||
| Current | - | - | (95,500 | ) | (172,000 | ) | |||||||
| Future | - | 610,000 | - | - | |||||||||
| - | 610,000 | (95,500 | ) | (172,000 | ) | ||||||||
| Net (loss) income for the period being comprehensive (loss) income | $ | (523,158 | ) | $ | 606,147 | $ | (3,586,462 | ) | $ | 9,300,197 | |||
| (Loss) earnings per share | |||||||||||||
| Basic | $ | (0.01 | ) | $ | 0.02 | (0.09 | ) | $ | 0.24 | ||||
| Diluted | (0.01 | ) | 0.02 | (0.09 | ) | 0.24 | |||||||
These consolidated financial statements do not include accompanying notes. A complete set of audited consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BENEVACFSYE13.pdf.
| BENEV CAPITAL INC. | |||||||||||||||||
| Consolidated Statements of Changes in Equity | |||||||||||||||||
| (Expressed in Canadian dollars) | |||||||||||||||||
| For the years ended December 31 | |||||||||||||||||
| Share capital |
Contributed surplus |
Share purchase warrants |
Accumulated deficit |
Total equity |
|||||||||||||
| Balance at December 31, 2011 | $ | 96,969,879 | $ | 4,873,827 | $ | 2,721,131 | $ | (43,724,979 | ) | $ | 60,839,858 | ||||||
| Comprehensive income for the period | - | - | - | 9,300,197 | 9,300,197 | ||||||||||||
| Share-based compensation | - | 819,436 | - | - | 819,436 | ||||||||||||
| Expiry of share purchase warrants | - | 2,721,131 | (2,721,131 | ) | - | - | |||||||||||
| Balance at December 31, 2012 | 96,969,879 | 8,414,394 | - | (34,424,782 | ) | 70,959,491 | |||||||||||
| Comprehensive loss for the period | - | - | - | (3,586,462 | ) | (3,586,462 | ) | ||||||||||
| Share-based compensation | - | 413,236 | - | - | 413,236 | ||||||||||||
| Shares options exercised | 185,781 | (163,381 | ) | - | - | 22,400 | |||||||||||
| Balance at December 31, 2013 | $ | 97,155,660 | $ | 8,664,249 | $ | - | $ | (38,011,244 | ) | $ | 67,808,665 | ||||||
These consolidated financial statements do not include accompanying notes. A complete set of audited consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BENEVACFSYE13.pdf.
| BENEV CAPITAL INC. | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (Expressed in Canadian dollars) | ||||||||
| For the years ended December 31 | ||||||||
| 2013 | 2012 | |||||||
| Cash flows provided by (used in) operating activities: | ||||||||
| Net (loss) income for the period | $ | (3,586,462 | ) | $ | 9,300,197 | |||
| Adjustments for: | ||||||||
| Amortization | 140,847 | 805,823 | ||||||
| Impairment loss | 36,439 | 1,224,005 | ||||||
| Unwinding of discount on provision | (5,824 | ) | 6,688 | |||||
| Share-based compensation | 413,236 | 819,436 | ||||||
| Income tax recovery | (95,500 | ) | (172,000 | ) | ||||
| Loss on disposal of assets held for sale | 302,174 | 57,334 | ||||||
| Gain on sale of property, plant and equipment | - | (2,311 | ) | |||||
| Changes in non-cash working capital items: | ||||||||
| Amounts receivable | 1,253,305 | (1,553,880 | ) | |||||
| Prepaid expenses and other | 351,440 | (114,737 | ) | |||||
| Deferred costs | 40,224 | 3,122,785 | ||||||
| Accounts payable and accrued liabilities | (1,656,293 | ) | 502,756 | |||||
| Provisions | 489,138 | (13,577 | ) | |||||
| Deferred revenue | - | (9,438,669 | ) | |||||
| Current tax liabilities | 9,247 | (16,866 | ) | |||||
| Repayment of long-term liabilities | (79,000 | ) | (79,000 | ) | ||||
| Net cash (used in) provided by operating activities | (2,387,029 | ) | 4,447,984 | |||||
| Cash flows from investing activities: | ||||||||
| Net proceeds on disposal of assets held for sale | 7,062,949 | - | ||||||
| Acquisition of property, plant and equipment | (23,100 | ) | (221,360 | ) | ||||
| Change in restricted cash | 501,010 | 1,002,053 | ||||||
| Proceeds from sale of property, plant and equipment | - | 29,307 | ||||||
| Net cash provided by investing activities | 7,540,859 | 810,000 | ||||||
| Cash flows from financing activities: | ||||||||
| Proceeds from exercise of share options | 22,400 | - | ||||||
| Payment of finance lease liabilities | (32,642 | ) | (122,565 | ) | ||||
| Net cash used in financing activities | (10,242 | ) | (122,565 | ) | ||||
| Net increase in cash and cash equivalents | 5,143,588 | 5,135,419 | ||||||
| Cash and cash equivalents at beginning of period | 63,856,221 | 58,720,802 | ||||||
| Cash and cash equivalents at end of period | $ | 68,999,809 | $ | 63,856,221 | ||||
These consolidated financial statements do not include accompanying notes. A complete set of audited consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BENEVACFSYE13.pdf.
Contact Information:
Sean Morrison
President and CEO
(604)-685-0201
www.benevcapital.com