BENEV Capital Inc.
TSX VENTURE : BEV.H

BENEV Capital Inc.

March 26, 2014 11:04 ET

BENEV Capital Inc. ("BCI") Reports Fourth Quarter and 2013 Year End Results

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.

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