CPVC Financial Corporation
TSX VENTURE : LHB

November 29, 2007 17:41 ET

CPVC Financial Corporation Releases Third Quarter Financial Statements

MONTREAL, QUEBEC--(Marketwire - Nov. 29, 2007) - CPVC Financial Corporation (TSX VENTURE:LHB) ("CPVC Financial" or the "Company") today released its unaudited financial statements for the third quarter ended September 30, 2007.

Revenues in the third quarter totaled $2,193,630 compared to $1,988 last year. During the first nine months of the 2007 fiscal year CPVC Financial had revenues of $2,535,783 compared to $7,704 in the same period last year.

The net income for the third quarter ended September 30, 2007 was $1,489,782 or $0.019 per share compared to a loss of $44,729 last year. During the first nine months of 2007 the Corporation had net income of $1,647,354 or $0.021 per share compared to a loss of $125,046 in the same period last year.

The following is an overview of the activities of the Corporation during the third quarter ended September 30, 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 $1,000,249 and an unrealized gain of $845,737;

- Interest, royalty and bonus income totalled $230,144 compared to $1,988 in the same period last year;

- The fair value of the Company's investment portfolio as at September 30, 2007 totalled $6,333,904 compared to $3,302,141 as at December 31, 2006, a 91.81% increase;

- Total assets grew from $3,631,686 as at December 31, 2006 to $6,463,940 at the end of the third quarter, an increase of 77.99%;

- Book value per share at the end of the third quarter was $0.063 compared to $0.044 at December 31, 2006, an increase of 43.18% and compared to $.025 per share as at September 30, 2006, a 152.0% increase;

- The Company, through its normal course issuer bid, purchased and cancelled 1,995,664 of its common shares during the quarter at a total cost of $181,988.

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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Income Statement September 30, 2007 September 30, 2006
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Revenues $2,193,630 $1,988
Net income (loss) $1,489,782 ($44,729)
Per share - basic $ 0.0192 ($0.0017)
Weighted average shares outstanding
- basic 77,421,947 26,996,380
Per share - diluted $ 0.0185 ($0.0017)
Weighted average shares outstanding
- diluted 80,471,131 26,996,380
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SUMMARY OF CASH FLOW INFORMATION

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Cash Flows September 30, 2007 September 30, 2006
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Cash from operating activities $336,680 ($9,974)
Cash from investing activities ($216,597) ($428,716)
Cash from financing activities ($213,988) $ 0
Increase (decrease) in cash ($93,905) ($438,690)
Cash - beginning of quarter $186,465 $655,245
Cash - end of quarter $ 92,560 $216,555
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SUMMARY OF BALANCE SHEET INFORMATION

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Balance Sheet September 30, 2007 December 31, 2006
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Cash and cash equivalents $ 92,560 $ 304,924
Total Assets $6,463,940 $3,631,686
Total Liabilities $1,690,166 $ 171,985
Share capital $6,575,676 $6,921,647
Total Shareholders' Equity $4,773,774 $3,459,701
Total Liabilities & Shareholders' Equity $6,463,940 $3,631,686
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The Company's September 30, 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