Royal Oak Ventures Inc.

Brookfield Asset Management Inc.
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Brookfield Asset Management Inc.

June 16, 2011 19:49 ET

Royal Oak Announces 2010 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2011) - Royal Oak Ventures Inc. ("Royal Oak" or "the company") recorded comprehensive income, which consists of net income and other comprehensive income, of $6.9 million for the year ended December 31, 2010, an increase of $36.4 million over the prior year comprehensive loss of $29.5 million. This increased the company's net book value by $0.04 per common share or 22%.

The company reported net income of $7.5 million or $0.05 per common share for the year ended December 31, 2010 compared to a net loss of $35.0 million or a loss of $0.21 per common share in the prior year. Net income for the current year included investment gains of $5.2 million (2009 – $nil) primarily from the sale of certain securities. Net income in the prior year included $18.1 million of investment losses relating to impairments of securities in the investment portfolio and a $20.2 million expense as a result of the derecognition of the future tax asset.

The company recorded an unrealized loss of $0.6 million during 2010 (2009 – gain of $5.6 million) in other comprehensive loss. The current year loss is the result of the release of $3.8 million of unrealized gains from other comprehensive income to net income on the disposition of a security, partially offset by an increase in the fair value of the remaining investments in the portfolio.

Statements of Operations
Years ended December 31
(Thousands, except per share amounts)20102009
Revenue
Investment income$2,938$2,896
Investment gains (losses) and other income5,150(18,112)
8,088(15,216)
Expenses
General, administrative and other5711,434
Interest expense5357,764
1,1069,198
6,982(24,414)
Foreign currency revaluation6129,543
Income (loss) before income taxes7,594(14,871)
Future income tax expense(96)(20,162)
Net income (loss)$7,498$(35,033)
Net income (loss) per share$0.05$(0.21)
(1) Prior year results have been restated
Change in Net Book Value
As at December 31
20102009
(Thousands, except per share amounts)TotalPer ShareTotalPer Share
Net book value, beginning of year$28,684$0.18$58,166$0.36
Net income (loss)7,4980.05(35,033)(0.21)
Other comprehensive (loss) income(584)(0.01)5,5510.03
Comprehensive income (loss)6,9140.04(29,482)(0.18)
Net book value, end of year$35,598$0.22$28,684$0.18
(1) Prior year results have been restated
Balance Sheets
As at December 31
(Thousands)20102009
Assets
Current Asset
Cash and cash equivalents$9,038$1,637
Marketable securities22,54130,109
Accounts receivable320554
31,89932,300
Loans receivable3,9154,235
$35,814$36,535
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued liabilities$216$2,960
Short-term debt4,891
2167,851
Shareholders' equity35,59828,684
$35,814$36,535
(1) Prior year results have been restated

The Company is currently up to date on all outstanding filings. The Company is taking steps to remove the cease trade order issued on the previously listed shares and is seeking a new listing on the TSX Venture Exchange.

The company has restated the comparative financial statements to reflect the correct valuation of the securities portfolio and the corresponding tax impact. The impact on the December 31, 2009 financial statements was a $1.9 million decrease in the carrying value of the company's marketable securities and a corresponding decrease in accumulated other comprehensive income of $1.6 million and net income of $0.3 million.

The company will refile on SEDAR, the CEO and CFO Certifications of Annual Filings for the year ended December 31, 2009 as well as the CEO and CFO Certifications of Interim Filing's for the periods ended March 31, 2010, June 30, 2010 and September 30, 2010.

Contact Information

  • Royal Oak Ventures Inc.
    Derek E. Gorgi
    Vice-President Finance
    (416) 363-9491