Humboldt Capital Corporation
TSX VENTURE : HMB

Humboldt Capital Corporation

November 30, 2013 09:00 ET

Humboldt Reports Earnings for the Nine Months Ended September 30, 2013

CALGARY, ALBERTA--(Marketwired - Nov. 30, 2013) - Humboldt Capital Corporation (TSX VENTURE:HMB)

For Q3 2013 Humboldt recorded earnings of $2.9 million or $0.25 per share and its net asset value was $25.8 million or $2.16/share, compared with $35.3 million or $2.93/share at September 30, 2012. For the nine month period Humboldt reported a loss of $7.0 million and the Company's net asset value declined from $33.3 million or $2.77/share at the beginning of the year.

Humboldt ended the period with cash reserves of $7 million. This will provide the Company with financial flexibility for new investments during this period for weak stock prices in commodity related entities.

During Q3 2013 two of Humboldt's related portfolio companies completed a significant transaction. Tuscany Energy Ltd. ("Tuscany") acquired all the outstanding shares of Diaz Resources Ltd. ("Diaz") in exchange for common shares of Tuscany. Tuscany then consolidated its common shares on the basis of one new share for every eight common shares outstanding. Humboldt holds approximately 8.0 million post consolidated shares, representing 44.3% of Tuscany's outstanding common shares. Humboldt believes the combination of the companies is a very positive development for as it will result in a larger well financed company with increased operating efficiencies and reduced overhead. Subsequent to the completion of the acquisition Tuscany has completed drilling three heavy oil development wells in the Macklin and Evesham area of Saskatchewan. The market value of Humboldt's investment in the companies has increased by $1.6 million, from June 30, 2013 to September 30, 2013.

Humboldt is optimistic that the US economy will continue to steadily expand. Growth should continue until a there is a significant increase in US interest rates.

A key element of US GDP is the housing industry, which is now growing at the most rapid pace since the last recession. This industry is capable of adding large scale employment as well as demand for various commodities to the overall economy and hence, is a key factor in our positive outlook.

Humboldt is currently in an enviable position, with a cash balance of $7.0 million, which should allow it to weather any significant new economic or stock market set back. From this position of strength Humboldt plans to continue to upgrade the quality of its holdings while reducing its portfolio diversity over the next year.

HIGHLIGHTS
Selected Quarterly Information (Unaudited)
(Thousands, except per share amounts)
For the Three Months Ended
2013 2012 2011
Sept 30 June 30 Mar. 31 Dec. 31 Sept 30 June 30 Mar. 31 Dec. 31
Gain (loss) on sale of investments $
(10,639
) $
(1,634
) $
1,199
$
(1,279
) $
(29
) $
2,217
$
3,299
$
(1,147
)
Unrealized Gain (loss) in
Investment Value $ 13,740 $ (3,228 ) $ (6,340 ) $ (1,518 ) $ 642 $ (11,415 ) $ 627 $ 3,126
Gain (loss) on debenture $ - $ - $ 1,236 $ (4,032 ) $ - $ - $ -
Other revenue $ 30 $ 23 $ 75 $ (101 ) $ 326 $ 222 $ 201 $ 207
Total revenue $ 3,131 $ (4,839 ) $ (5,066 ) $ (1,662 ) $ (3,093 ) $ (8,976 ) $ 4,127 $ 2,186
General and administrative $ 172 $ 321 $ 195 $ 226 $ 178 $ 432 $ 191 $ 133
Earnings (loss) $ 2,948 $ (5,180 ) $ (5,299 ) $ (1,922 ) $ (3,319 ) $ (9,477 ) $ 3,876 $ 2,014
per share, basic $ 0.25 $ (0.43 ) $ (0.44 ) $ (0.16 ) $ (0.28 ) $ (0.79 ) $ 0.32 $ 0.17
per share, diluted $ 0.25 $ (0.43 ) $ (0.44 ) $ (0.16 ) $ (0.28 ) $ (0.79 ) $ 0.32 $ 0.17
Selected Quarterly Information (Unaudited)
(Thousands, except per share amounts)
As at the Period Ended
2013 2012 2011
Sept. 30 June 30 Mar. 31 Dec. 31 Sept 30 June 30 Mar. 31 Dec. 31
Cash and cash equivalents $ 6,964 $ 7,271 $ 6,443 $ 5,663 $ 6,983 $ 8,510 $ 6,419 $ 2,125
Share Capital $ 2,060 $ 2,060 $ 2,060 $ 2,060 $ 2,060 $ 2,062 $ 2,062 $ 2,064
Retained earnings $ 23,103 $ 20,155 $ 25,335 $ 30,634 $ 32,556 $ 35,875 $ 45,352 $ 41,476
Net asset value $ 25,822 $ 22,871 $ 28,048 $ 33,338 $ 35,251 $ 38,566 $ 48,003 $ 44,123
per share, basic $ 2.16 $ 1.92 $ 2.35 $ 2.79 $ 2.95 $ 3.23 $ 4.01 $ 3.69
per share, diluted $ 2.16 $ 1.92 $ 2.34 $ 2.77 $ 2.93 $ 3.19 $ 3.95 $ 3.64

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements - the press release today contains "forward-looking" information. Actual results could differ materially from the conclusions, forecasts or projections in the forward-looking information. Certain material factors and assumptions were applied in drawing the conclusions or making the forecasts or projections as reflected in the forward-looking information. Additional information about the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information and the material factors or assumptions that were applied in drawing the conclusion or making the forecast or projection as reflected in the forward-looking information is contained in the press release.

Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Humboldt Capital Corporation
    R.W. Lamond
    Chairman of the Board
    (403) 269-9889
    (403) 269-9890 (FAX)

    Humboldt Capital Corporation
    C.A. (Tony) Teare
    Executive Vice President
    (403) 269-9889
    (403) 269-9890 (FAX)