Humboldt Capital Corporation

Humboldt Capital Corporation

April 22, 2013 19:12 ET

Humboldt Reports Results for the Year Ended December 31, 2012

CALGARY, ALBERTA--(Marketwired - April 22, 2013) - Humboldt Capital Corporation (TSX VENTURE:HMB)

2012 was a difficult year for Humboldt, due to a protracted period of weak commodity prices resulting in a steady erosion of the value of many of the Company's stock holdings. Despite this negative trend, the liquidity provided by the sale of two of its most successful holdings resulted in satisfactory year end results.

Humboldt recorded a net gain of $4.2 million on the sale of investments and ended the year with cash reserves of $5.7 million. Since year end, liquidity was increased to $6.8 million and will provide the Company with financial flexibility for new investments during this period of weak stock prices in commodity related entities. During the year Humboldt reported a reduction in the unrealized value of its investment portfolio of $11.7 and a loss of $2.8 million on the exchange of its $7.34 million debenture in Diaz for Diaz common shares. As a result Humboldt reported a loss of $10.8 million, or $0.91 per share for the year ended December 31, 2012.

The Company's net asset value at December 31, 2012 was $33.3 million, or $2.77 per share compared to $44.1 million or $3.64 per share a year earlier.

Humboldt is optimistic that the US economy will continue to steadily expand. Growth should continue until a major increase of 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 $6.8 million, which will allow it to weather any significant 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.

Finally, the Company plans to slow its pace of re-investment in commodity stocks until the trends in commodity pricing become clearer.

Humboldt Financial Statements and Management's Discussion and Analysis for the year ended December 31, 2012 have been filed on SEDAR and can be found on Humboldt's website at

Year ended December 31,
(Thousands, except per share amounts) 2012 2011 2010
Net gain on sale of investments $ 4,208 $ 3,198 $ 3,485
Unrealized increase (decrease) in investment value $ (11,664 ) $ (22,421 ) $ 16,195
Earnings (Loss) and comprehensive earnings (Loss) for the period $ (10,842 ) $ (18,488 ) $ 15,967
Earnings (Loss) per share, diluted $ (0.91 ) $ (1.54 ) $ 1.32
Share capital $ 2,060 $ 2,064 $ 2,015
Retained earnings $ 30,634 $ 41,476 $ 59,964
Shareholders' equity $ 33,338 $ 44,123 $ 62,605
Cash and cash equivalents $ 5,663 $ 2,125 $ 6,497
Shares outstanding 11,932 11,957 12,008
Net asset value per share, diluted $ 2.77 $ 3.64 $ 5.01

ADVISORY: information regarding possible events, conditions or results of operations of the Company that is based upon assumptions about future economic conditions and courses of action and which is inherently uncertain., All information other than statements of historical fact may be forward-looking information Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the expectations reflected in the forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking without limitation, risks that the economic conditions As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive.

The forward looking statements contained in this press release are made as of the date hereof and Humboldt undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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.

Contact Information

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

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