Counsel Corporation
TSX : CXS

Counsel Corporation

March 24, 2008 07:30 ET

Counsel Corporation Announces 2007 Fiscal Year Results

TORONTO, ONTARIO--(Marketwire - March 24, 2008) - Counsel Corporation (TSX:CXS) today reported its financial results for the year ended December 31, 2007. All amounts are stated in Canadian dollars.

The Company had net income of $13.5 million or $0.29 per share basic, $0.22 per share diluted, for the year ended December 31, 2007, compared with net income of $4.1 million, or $0.09 per share, basic and diluted, for the year ended December 31, 2006. Income from continuing operations was $11.9 million, or $0.26 per share basic, $0.19 per share diluted, for the year ended December 31, 2007, compared with a loss of $4.5 million, or $0.10 per share, basic and diluted, for the year ended December 31, 2006.

For the year ended December 31, 2007, the Company's consolidated revenue from continuing operations was $49.3 million, an increase of 82% from $27.1 million in 2006. The increase in revenue is attributable to the acquisition of a case goods business, Fleetwood Fine Furniture, and three income producing properties in the first half of 2006, and the acquisitions of Yorkgate Mall and 575 Park Road North in April and October of 2007, respectively, as well as $6.0 million of fees earned for constructing and leasing new space at two properties under management.

"We are extremely pleased with the progress made in building Counsel during 2007 and look forward to even greater success in 2008," said Allan Silber, Chairman and CEO of Counsel.

The Company's Management's Discussion and Analysis and Financial Statements for the year ended December 31, 2007 have been filed and are available on SEDAR (www.sedar.com).

About Counsel Corporation

Counsel Corporation (TSX:CXS) is an international asset management firm that actively partners with businesses to achieve shared success and to unlock value through leveraging our relationships, our access to capital and our strategic market experience. For further information, please visit Counsel's website at www.counselcorp.com.

Forward-Looking Statements

The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts, which address Counsel Corporation's expectations, should be considered as forward-looking statements. Such statements are based on knowledge of the environment in which Counsel Corporation currently operates, but because of the factors listed herein, as well as other factors beyond Counsel Corporation's control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, obtaining necessary approvals and other risks detailed from time to time in the Company's securities and other regulatory filings.



Counsel Corporation
Consolidated Statements of Operations
(in thousands of Cdn Dollars, except per share amounts)


Year ended December 31,
2007 2006
$ $
-----------------

Revenues
Case goods 32,533 21,751
Real estate 16,786 5,354
Patent licensing - -
-----------------
49,319 27,105
-----------------

Operating costs and expenses
Case goods (exclusive of depreciation
and amortization shown below) 24,853 15,212
Real estate (exclusive of depreciation and
amortization shown below) 6,575 2,948
Selling, general and administrative 6,794 10,769
Depreciation and amortization 3,991 2,657
-----------------

42,213 31,586
-----------------

Operating income(loss) before undernoted items 7,106 (4,481)

Other income and losses
Gain(loss) on sale of short-term investments, net of
write-downs (205) 490
Earnings from equity-accounted portfolio investments 1,007 -
Other (303) 767
-----------------

Income(loss) before the undernoted 7,605 (3,224)

Interest income 528 1,639
Interest expense (6,721) (5,256)
-----------------

Income(loss) before income taxes, non-controlling
interest and discontinued operations 1,412 (6,841)

Income tax recovery (10,918) (2,893)
Non-controlling interest 398 539
-----------------
Income(loss) from continuing operations 11,932 (4,487)

Income from discontinued operations 1,536 8,611
-----------------

Net income 13,468 4,124
-----------------
-----------------

Basic net income(loss) per share:
Continuing operations 0.26 (0.10)
Discontinued operations 0.03 0.19
-----------------

Basic net income per share 0.29 0.09
-----------------
-----------------

Weighted average number of common shares
outstanding (in thousands) - basic 46,650 47,060

Diluted net income(loss) per share:
Continuing operations 0.19 (0.10)
Discontinued operations 0.03 0.19
-----------------

Diluted net income per share 0.22 0.09
-----------------
-----------------

Weighted average number of common shares
outstanding (in thousands) - diluted 58,874 47,060

The notes contained in the Company's audited consolidated financial
statements are an integral part of these condensed consolidated financial
statements.



Counsel Corporation
Consolidated Balance Sheets
(in thousands of Cdn Dollars)

December 31, December 31,
2007 2006
$ $
---------------------------

Assets

Current assets
Cash and cash equivalents 6,357 5,615
Short-term investments 977 5,718
Accounts receivable (net of allowance for
doubtful accounts of $97; 2006 - $0) 3,735 5,251
Inventories 1,863 1,427
Prepaid expenses and deposits 4,777 1,479
Future income tax assets 8,402 -
Assets of discontinued operations 2,268 15,831
---------------------------
28,379 35,321

Long-term assets
Income producing properties, net 74,624 41,499
Properties under development 919 -
Property, plant and equipment, net 3,051 2,871
Portfolio investments 6,548 5,355
Intangible assets, net 3,853 2,918
Goodwill 26,035 24,555
Other assets 2,001 792
Assets of discontinued operations 12,665 13,374
---------------------------

158,075 126,685
---------------------------
---------------------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities 10,015 7,524
Customer deposits 7,174 1,756
Income taxes payable 184 156
Future income tax liabilities - 240
Current portion of mortgages and loans payable 4,895 6,173
Liabilities of discontinued operations 15,543 31,250
---------------------------
37,811 47,099

Long-term liabilities
Mortgages and loans payable 66,607 44,719
Convertible preferred shares 16,780 18,192
Intangible liabilities 1,225 1,053
Future income tax liabilities 7,856 11,071
Liabilities of discontinued operations 34,454 35,817
---------------------------
164,733 157,951

Non-controlling interest 19,440 11,645

Shareholders' equity (deficiency) (26,098) (42,911)
---------------------------

158,075 126,685
---------------------------
---------------------------

The notes contained in the Company's audited consolidated financial
statements are an integral part of these condensed consolidated financial
statements.


Contact Information

  • Counsel Corporation
    Stephen Weintraub
    Executive Vice President, Secretary & CFO
    (416) 866-3058
    Website: www.counselcorp.com