Dundee Corporation

Dundee Corporation

March 30, 2005 23:32 ET

Dundee Corporation Reports Q4 and 2004 Year End Financial Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DUNDEE CORPORATION

TSX SYMBOL: DBC.SV.A

MARCH 30, 2005 - 23:32 ET

Dundee Corporation Reports Q4 and 2004 Year End
Financial Results

TORONTO, ONTARIO--(CCNMatthews - March 30, 2005) - Dundee Corporation
(TSX:DBC.SV.A) reported its financial results for the three months and
the year ended December 31, 2004. A summary of these results, including
a statement of cash flows and a statement of financial condition is
attached.

The audited consolidated financial statements along with Management's
Discussion and Analysis of the 2004 results will be filed on March 31,
2005. Interested parties may access these statements at such time at
www.sedar.com or www.dundeecorporation.com.

Dundee Corporation is a holding company dedicated to wealth management,
real estate and resources.



DUNDEE CORPORATION
CONSOLIDATED BALANCE SHEETS

As at December 31, 2004 and 2003

(expressed in thousands of Canadian dollars)

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December 31, December 31,
2004 2003
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(Restated)

ASSETS
Cash and cash equivalents $ 175,498 $ 148,658
Brokerage securities owned 16,788 24,978
Accounts receivable 168,266 170,682
Client accounts receivable 282,284 354,347
Corporate investments 344,297 324,867
Deferred sales commissions 109,912 85,309
Capital and other assets 197,873 160,625
Goodwill and other intangible assets 452,734 465,135
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TOTAL ASSETS $ 1,747,652 $ 1,734,601
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LIABILITIES
Bank indebtedness $ 361 $ 21,181
Accounts payable and accrued liabilities 165,597 186,276
Brokerage securities sold short 7,061 3,966
Client deposits and related liabilities 273,311 336,126
Income taxes payable 20,515 13,827
Corporate debt 255,639 295,622
Future income tax liabilities 73,360 38,552
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795,844 895,550
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NON CONTROLLING INTEREST 293,798 245,818
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SHAREHOLDERS' EQUITY
Share capital
Common shares 290,220 288,740
Contributed surplus 2,253 987
Retained earnings 367,604 304,758
Foreign currency translation adjustment (2,067) (1,252)
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658,010 593,233
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TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 1,747,652 $ 1,734,601
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DUNDEE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS

For the three months and the years ended December 31, 2004 and 2003

(expressed in thousands of Canadian dollars, except per
share amounts)
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Three months Year
2004 2003 2004 2003
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(Restated) (Restated)

REVENUE
Management and administration
fees $ 68,820 $ 73,558 $238,805 $195,220
Redemption fees 2,783 2,477 10,580 10,515
Financial services 77,533 45,063 328,549 149,263
Real estate revenue 32,781 47,845 169,954 77,761
Oil and gas sales, net of
royalties 203 2,157 4,499 11,360
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182,120 171,100 752,387 444,119
Investment income 6,160 12,593 69,900 44,545
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188,280 183,693 822,287 488,664
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EXPENSES
Selling, general and
administrative 64,765 51,277 232,390 153,061
Variable compensation 54,983 23,841 229,809 82,144
Trailer fees 11,787 9,868 42,784 33,448
Operating costs, real estate 17,847 30,351 119,759 58,990
Operating costs, oil and gas
properties 43 436 1,237 4,452
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149,425 115,773 625,979 332,095
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OPERATING EARNINGS BEFORE
INTEREST, TAXES AND OTHER NON
CASH ITEMS 38,855 67,920 196,308 156,569
Amortization of deferred sales
commissions 9,479 10,719 35,863 42,404
Depreciation, depletion and
amortization 2,856 2,439 12,397 9,112
Interest expense 4,075 4,453 14,613 15,931
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OPERATING EARNINGS 22,445 50,309 133,435 89,122
Share of earnings (loss) of
equity accounted investees 1,571 (298) 13,939 8,836
Dilution gain 2,377 34,012 639 32,700
Investment provision (4,198) (4,655) (7,537) (4,655)

Income taxes
Current (3,845) (15,634) (19,904) (19,335)
Future (4,984) 1,511 (32,206) 2,945
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(8,829) (14,123) (52,110) (16,390)

Non controlling interest (2,994) (5,100) (22,533) (8,603)
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NET EARNINGS BEFORE EXTRAORDINARY
ITEM 10,372 60,145 65,833 101,010
Extraordinary gain - 19,951 - 19,951
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NET EARNINGS FOR THE PERIOD $ 10,372 $ 80,096 $ 65,833 $120,961
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EARNINGS PER SHARE

Basic earnings per share
Earnings before extraordinary
gain $ 0.41 $ 2.40 $ 2.61 $ 4.01
Net earnings $ 0.41 $ 3.19 $ 2.61 $ 4.80


Diluted earnings per share
Earnings before extraordinary
gain $ 0.39 $ 2.34 $ 2.49 $ 3.97
Net earnings $ 0.39 $ 3.12 $ 2.49 $ 4.75
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DUNDEE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three months and the years ended December 31, 2004 and 2003

(expressed in thousands of Canadian dollars)
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Three months Year
2004 2003 2004 2003
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(Restated) (Restated)


CASH FLOWS FROM OPERATING
ACTIVITIES:
Net earnings for the period $ 10,372 $ 80,096 $ 65,833 $120,961
Non cash items in earnings:
Depreciation, depletion and
amortization 12,335 13,158 48,260 51,516
Net investment gains (3,831) (10,506) (64,191) (39,101)
Net gains from real estate assets - (7,758) - (7,758)
Share of unremitted equity
(earnings) loss (1,571) 298 (13,939) (8,836)
Dilution gain (2,377) (34,012) (639) (32,700)
Investment provision 4,198 4,655 7,537 4,655
Future income taxes 4,984 (1,511) 32,206 (2,945)
Extraordinary gain - (19,951) - (19,951)
Non controlling interest 2,994 5,100 22,533 8,603
Other 1,309 1,751 6,966 2,746
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28,413 31,320 104,566 77,190
Changes in:
Accounts receivable (23,212) (33,173) 6,032 (34,944)
Accounts payable and accrued
liabilities 19,890 30,163 (13,597) 33,201
Bank indebtedness (12,239) 16,864 (20,820) 13,807
Income taxes payable 4,559 14,193 5,773 12,271
Brokerage securities owned and
sold short, net 9,700 (8,056) 11,285 (10,698)
Client accounts receivable, net
of client deposits and related
liabilities (4,430) (22,112) 9,248 (48,201)
Development of land, housing and
condominium inventory (25,743) (360) (7,447) (7,516)
Other real estate working
capital 34,858 - (4,590) -
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CASH PROVIDED FROM OPERATING
ACTIVITIES 31,796 28,839 90,450 35,110
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CASH FLOWS FROM INVESTING
ACTIVITIES:
Proceeds from dispositions of
portfolio investments 37,259 26,594 104,031 137,434
Acquisitions of portfolio
investments (4,497) (4,143) (42,481) (20,592)
Cash disbursed in business
combinations (19,458)(159,145) (20,458) (158,167)
Sales commissions incurred on
distribution of mutual funds (17,322) (11,635) (60,466) (37,654)
Acquisition of shares in
subsidiary - - (2,690) (3,251)
Acquisition of land held for
development (6,619) (20,928) (19,637) (10,505)
Investment in real estate revenue
properties (972) (1,005) (972) (1,005)
Proceeds on dispositions of real
estate investments - 8,040 - 8,040
Other (5,054) (3,107) (19,741) (8,746)
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CASH USED IN INVESTING
ACTIVITIES (16,663)(165,329) (62,414) (94,446)
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CASH FLOWS FROM FINANCING
ACTIVITIES:
(Decrease) increase in corporate
debt (25,734) 45,789 (49,681) 3,224
Increase (decrease) in real
estate debt 14,422 (7,648) 14,999 (7,648)
Issuance of Class A subordinate
shares, net of issue costs 307 1,079 2,327 1,640
Acquisition of Class A
subordinate shares for
cancellation - - (1,675) (4,694)
Issuance of shares in
subsidiaries to non controlling
interest 5,443 94,437 42,483 96,554
Acquisition of shares in
subsidiary for cancellation - - (7,855) -
Dividends paid by subsidiaries to
non controlling shareholders (446) (137) (1,794) (549)
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CASH (USED IN) PROVIDED FROM
FINANCING ACTIVITIES (6,008) 133,520 (1,196) 88,527
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NET INCREASE (DECREASE) IN CASH
DURING THE PERIOD 9,125 (2,970) 26,840 29,191
Cash and cash equivalents,
beginning of period 166,373 151,628 148,658 119,467
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CASH AND CASH EQUIVALENTS,
END OF PERIOD $175,498 $148,658 $175,498 $148,658
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Cash flows from operating
activities include the following:

Interest paid $ 4,820 $ 5,379 $ 15,358 $ 16,857
Taxes paid $ 2,269 $ 2,690 $ 21,826 $ 9,757
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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Dundee Corporation
    Ned Goodman
    Chief Executive Officer
    (416) 365-5665
    or
    Dundee Corporation
    Joanne Ferstman
    Chief Financial Officer
    (416) 365-5010