Longview Capital Partners Incorporated
FRANKFURT : L6V
TSX : LV

Longview Capital Partners Incorporated

November 17, 2008 17:23 ET

Longview Capital Partners Posts Loss of $36.2 Million After-Tax in Q308

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2008) - Longview Capital Partners Incorporated (TSX:LV)(FRANKFURT:L6V) announces its financial results for the three months ended September 30, 2008. A net loss of $36.2 million or $0.32 per share (basic) was recorded for the three month period ended September 30, 2008 versus a net loss of $11.6 million or $0.10 per share (basic) for the same period in 2007. At September 30, 2008 the Company held investments with a fair value of $23.0 million, or $0.20 per share compared to $105.6 million at December 31, 2007.

Longview Capital Partners recorded realized gains on disposal of investments of $4.3 million and unrealized investment losses of $53.2 million in the third quarter ended September 30, 2008 compared to realized investment gains of $2.5 million and unrealized investment losses of $18.4 million in the third quarter of 2007. Net cash generated from investing activities was $740,000 compared to cash generated of $2.3 million in the same period of 2007. Longview Capital Partners' investment portfolio at September 30, 2008 included 31 public companies and 17 private companies.

"The TSX Venture Exchange declined over 46% in the third quarter, in the face of the global financial crisis," said Damien Reynolds, founder, Chairman and CEO of Longview Capital Partners, "this is more than twice the quarterly decline following the Bre-X scandal in 1997. The TSX-V has now fallen more than 76% since its peak in May 2007." John Icke, President and Chief Operating Officer of Longview Capital, added, "Longview has taken significant writedowns on its portfolio of private companies to reflect the severely-depressed market conditions. Additionally, we have continued our program of operating cost reductions in light of deteriorating confidence in the junior resource markets. This prudent and necessary strategy is designed to conserve capital and enable us to support some of our key investments."

Longview Capital Partners will hold a conference call on Tuesday November 18, 2008, to discuss:

- Financial results for the third quarter ended September 30, 2008

- Recent changes in the ownership structure, as announced November 12, 2008

- The Company's optimistic outlook for the future

Mr Damien Reynolds, Chairman and CEO, Mr. John Icke, Chief Operating Officer and Mr. Roger Foster, interim Chief Financial Officer, will host the call.

Date: Tuesday, November 18, 2008

Time: 11:00 AM Eastern Standard Time

Dial In Number: 416-849-4292 or toll free 866-334-3876

Webcast: http://www.investorcalendar.com/IC/CEPage.asp?ID=137952

At the end of the presentation, there will be a question and answer session. Questions can be submitted in advance to info@longviewcp.com.

About Longview Capital Partners

Longview Capital Partners is an investment company creating long-term shareholder value by capitalizing on early stage opportunities in the natural resource sector, and having the resultant earnings growth recognized in its share price. Longview Capital Partners first began trading on September 5, 2005 and graduated to the TSX senior Exchange on September 24, 2007 under the same symbol "LV".

Attached are the Consolidated Balance Sheet, Statement of Operations and Retained Earnings, and Statement of Cash Flows for the three and nine months ended September 30, 2008 and 2007. Readers are referred to the notes and management discussion and analysis that are an integral part of these financial statements, which can be found on the SEDAR website at www.sedar.com or on our website at www.longviewcp.com.

For more information on Longview Capital Partners Incorporated, please contact Investor Relations at (604) 681-5755 or visit our website at www.longviewcp.com.

Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. Such statements are based on numerous assumptions and are subject to all the risks and uncertainties inherent in the Company's business, including risks related to mineral exploration and development. Consequently, actual results may vary materially from those described in the forward-looking statements.



LONGVIEW CAPITAL PARTNERS INCORPORATED
CONSOLIDATED BALANCE SHEETS
AS AT SEPTEMBER 30, 2008 AND DECEMBER 31, 2007

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September 30, December 31,
2008 2007
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ASSETS

Investments (Notes 3 and 4) $ 22,961,040 $ 105,625,222
Cash and cash equivalents 1,179,030 183,602
Accounts receivable (Note 10(b)) 970,623 458,065
Due from related parties (Note 10(f)) 4,557,826 -
Deposits and prepaid expenses 181,989 156,949
Future tax assets (Note 6) 7,184,142 -
Income taxes recoverable - 3,617,522
Fixed assets (Note 5) 280,655 305,268
---------------------------------
$ 37,315,305 $ 110,346,628
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LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities

Accounts payable and accrued
liabilities (Note 10(b)) 999,019 2,999,055
Income taxes liabilities 3,130,798 -
Future tax liabilities (Note 6) - 19,530,341
---------------------------------
4,129,817 22,529,396
---------------------------------

Shareholders' equity

Share capital (Note 7) 38,723,547 37,773,549
Contributed surplus (Note 7) 8,456,917 8,118,533
Retained earnings (deficit) (13,994,976) 41,925,150
---------------------------------
33,185,488 87,817,232
---------------------------------
$ 37,315,305 $ 110,346,628
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Commitments (Note 11)
Measurement uncertainty - Investments (Note 2)

On behalf of the Board:

"Hein Poulus" Director "Ron Shorr" Director


LONGVIEW CAPITAL PARTNERS INCORPORATED
STATEMENTS OF OPERATIONS, COMPREHENSIVE INCOME AND RETAINED EARNINGS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(Unaudited)

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Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
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REVENUES

Gain on disposal
of investments,
net $ 4,316,658 $ 2,467,747 $ 13,643,273 $ 6,715,263
Unrealized
(loss) gain on
investments,
net (53,215,897) (18,390,910) (89,978,206) (3,828,887)
Interest and
rental income 123,715 78,282 337,869 231,021
Other income
(Note 10
(a iii)) 1,081,745 1,299,815 2,677,336 2,655,293
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(47,693,779) (14,545,066) (73,319,728) 5,772,690
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EXPENSES

General and
administrative 1,988,127 1,825,639 5,285,358 8,425,781
Depreciation 19,855 19,427 57,841 52,044
Foreign exchange
(gain) loss (1,971) 490,176 (3,192) 1,091,918
Interest expense 25,206 26,734 62,067 53,409
Stock-based
compensation
(Notes 7 and 8) 63,622 113,580 338,384 1,694,059
Direct investment
investigation
costs 167,871 492,455 548,699 1,748,314
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2,262,710 2,968,011 6,289,157 13,065,525
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Loss before
income taxes (49,956,489) (17,513,077) (79,608,885) (7,292,835)

Provision for
income taxes
(Note 6) 13,758,676 5,929,736 23,688,759 3,023,497
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Net loss and
comprehensive
income for
the period (36,197,813) (11,583,341) (55,920,126) (4,269,338)
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Retained earnings,
beginning of
period, as
previously
reported 26,157,768 40,167,781 41,925,150 35,869,507

Change in
accounting
(Note 3) - - - (3,015,729)
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Retained earnings
(deficit),
beginning of
period, as
adjusted 26,157,768 40,167,781 41,925,150 32,853,778
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Retained earnings,
end of period $ (10,040,045) $ 28,584,440 $ (13,994,976) $ 28,584,440
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Basic earnings
per share $ (0.32) $ (0.10) $ (0.50) $ (0.04)
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Diluted earnings
per share $ (0.32) $ (0.10) $ (0.50) $ (0.04)
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Weighted average
number of common
shares outstanding
(Note 2)
Basic 112,846,859 112,045,027 110,746,063 106,086,359
Diluted 112,846,859 112,045,027 110,746,063 106,086,359
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LONGVIEW CAPITAL PARTNERS INCORPORATED CONSOLIDATED STATEMENTS OF
CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(Unaudited)

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Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
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CASH FLOWS FROM
(USED IN)
OPERATING
ACTIVITIES
Net income for
the period $ (36,197,813) (11,583,341) $ (55,920,126) (4,269,338)
Items not
affecting cash:
Gain on disposal
of investments,
net (4,316,658) (2,467,747) (13,643,273) (6,715,263)
Unrealized
loss/(gain) on
investments,
net 53,215,897 18,390,910 89,978,206 3,828,887
Provision/
(recovery) for
income taxes-
future (14,773,820) (6,230,987) (26,714,482) (2,360,214)
Shares issued
in exchange
for accrued
liabilities - - - 1,750,000
Stock-based
compensation 63,622 113,580 338,384 1,694,059
Depreciation 19,855 19,427 57,841 52,043

Changes in
non-cash working
capital items:
Decrease in
accounts
receivable and
decrease in
income taxes
recoverable 2,495,972 (518,559) 1,677,936 (2,967,120)
Decrease/
(increase) in
deposits and
prepaid
expenses 82,078 (50,138) (25,040) (28,943)
Increase/
(decrease) in
accounts payable
and accrued
liabilities 382,025 (377,207) (1,962,502) (957,920)
Increase/
(decrease) in
income taxes
payable (37,536) - (37,536) (2,363,215)
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Net cash used
in operating
activities 933,622 (2,704,062) (6,250,592) (12,337,024)
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CASH FLOWS FROM
(USED IN)
INVESTING
ACTIVITIES
Purchase of
investments (8,061,823) (14,810,801) (21,239,551) (41,508,997)
Proceeds from
disposal of
investments 8,979,166 17,361,346 27,960,873 45,419,824
Deferred costs (175,071) (273,340) (392,073) (203,277)
Purchase of
fixed assets (1,311) (25,368) (33,227) (124,959)
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Net cash from
investing
activities 740,961 2,251,837 6,296,022 3,582,591
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CASH FLOWS FROM
(USED IN)
FINANCING
ACTIVITIES
Increase/
(decrease)
in due to
brokers (1,064,014) - - -
Shares and
warrants
issued for
cash - - - 3,000,000
Proceeds from
exercise of
options - 47,500 - 261,000
Proceeds from
exercise of
warrants - - - 3,707,019
Changes in
non-cash
financing items:
Shares issued
as bonus - - 949,998 -
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Net cash from
financing
activities (1,064,014) 47,500 949,998 6,968,019
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Increase/
(decrease) in
cash and cash
equivalents
during the
period 610,569 (404,725) 995,428 (1,786,414)

Cash and cash
equivalents,
beginning of
period 568,461 1,352,916 183,602 2,734,605
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Cash and cash
equivalents,
end of period $ 1,179,030 $ 948,191 $ 1,179,030 $ 948,191
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Contact Information

  • Longview Capital Partners Incorporated
    Investor Relations
    (604) 681-5755
    Website: www.longviewcp.com