CPVC Financial Corporation
TSX VENTURE : LHB

May 01, 2008 20:00 ET

CPVC Financial Corporation Releases Financial Statements of Year 2007

MONTREAL, QUEBEC--(Marketwire - May 1, 2008) - CPVC Financial Corporation (TSX VENTURE:LHB) ("CPVC Financial" or the "Company") today released its audited financial statements for the year ended December 31, 2007.

Revenues for the year 2007 totaled $3,914,629 compared to $27,415 last year. During the fourth quarter of the 2007 fiscal year CPVC Financial had revenues of $1,378,846 compared to $(23,480) in the same period last year.

The net income for the year 2007 was $2,711,897 or $0.035 per share compared to a loss of $(529,816) last year or $(0.009). During the fourth quarter of 2007 the Corporation had net income of $1,064,542 or $0.014 per share compared to a loss of $(399,623) or $(0.007) in the same period last year.

The following is an overview of the activities of the Corporation during the year ended December 31, 2007:

- The Company provided a $1,000,000 loan to Placements L.G.P.R. Inc.;

- The Company recorded a net realized gain on investments of $1,108,300 and an unrealized gain of $2,127,893;

- Interest, royalty and bonus income totalled $497,840 compared to $191,311 in the same period last year;

- The fair value of the Company's investment portfolio as at December 31, 2007 totalled $6,757,755 compared to $3,302,141 as at December 31, 2006, a 104.65% increase;

- Total assets grew from $3,631,686 as at December 31, 2006 to $7,648,507 as at December 31, 2007, an increase of 110.60%;

- Book value per share at the end of the year was $0.077 compared to $0.043 at December 31, 2006, an increase of 79.07%;

- In 2007, the Company, through its normal course issuer bid, purchased and cancelled 3,999,664 of its common shares at a total cost of $334,781.

To date, CPVC Financial has used its own capital to make investments. In the future, it is expected that the majority of investments made by CPVC Financial will no longer be made directly by the Company but will rather be made by investment limited partnerships (the "Partnerships") established and managed by CPVC Financial. CPVC Financial will contribute some of its own capital to the Partnerships as a limited partner by way of cash or contribution of existing CPVC Financial corporate investments. This approach is designed to allow CPVC Financial to increase assets under management without dilution to its shareholders while maximizing the Company's cash flows and their predictability over the long term which will ultimately allow the Company to maximize distributions to its shareholders.

In order to further increase the assets managed by CPVC Financial, the Company may also acquire managers on existing investment partnerships or the rights to manage such partnerships.



SUMMARY OF INCOME STATEMENT INFORMATION

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December 31, December 31,
Income Statement 2007 2006
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Revenues $3,914,629 $27,415
Net income (loss) $2,711,897 $(529,816)
Per share - basic $ 0.035 $(0.009)
Weighted average shares outstanding - basic 77,950,447 57,656,892
Per share - diluted $ 0.034 $(0.009)
Weighted average shares outstanding - diluted 80,999,631 57,656,892
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SUMMARY OF CASH FLOW INFORMATION

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December 31, December 31,
Cash Flows 2007 2006
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Cash from operating activities $ 162,038 $ (281,950)
Cash from investing activities $ (259,773) $(1,873,637)
Cash from financing activities $ 415,219 $ 157,150
Increase (decrease) in cash $ 317,484 $(1,998,437)
Cash - beginning of quarter $ 304,924 $ 2,303,361
Cash - end of quarter $ 622,408 $ 304,924
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SUMMARY OF BALANCE SHEET INFORMATION

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December 31, December 31,
Balance Sheet 2007 2006
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Cash and cash equivalents $ 622,408 $ 304,924
Total Assets $7,648,507 $ 3,631,686
Total Liabilities $1,810,190 $ 171,985
Share capital $6,575,676 $ 6,921,647
Total Shareholders' Equity $5,838,317 $ 3,459,701
Total Liabilities & Shareholders' Equity $7,648,507 $ 3,631,686
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The Company's December 31, 2007 financial statements may be viewed on SEDAR at www.sedar.com

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • CPVC Financial Corporation
    Alain Lambert
    President
    (514) 395-1191