Royal Oak Ventures Inc.

April 25, 2012 14:20 ET

Royal Oak Announces 2011 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 25, 2012) - Royal Oak Ventures Inc. ("Royal Oak" or the "company") recorded a comprehensive loss of $1.3 million for the year ended December 31, 2011 compared to comprehensive income of $5.5 million in the prior year. The current year comprehensive loss consisted of net loss of $0.6 million (2010 - net income of $5.8 million) and other comprehensive loss of $0.6 million (2010 - $0.3 million) which was primarily the result of a $0.7 million unrealized loss on the company's marketable securities which are recorded at fair value in other comprehensive income, and other investment losses of $1.0 million in net income.

The company reported a net loss of $0.6 million or $nil per common share for the year ended December 31, 2011 compared to net income of $5.8 million or $0.04 per common share in 2010. Net loss in the current year included an impairment of $1.0 million (2010 - $2.1 million) on certain of the securities in the portfolio. Net income in the prior year included a $4.9 million disposition gain as well as a $1.7 million special distribution received on one of the portfolio investments.

The company recorded a pre-tax unrealized loss of $0.7 million in other comprehensive loss in the current year (2010 - $0.3 million), as a result of a decrease in the fair value of the company's marketable securities portfolio.

The company is seeking approval of the listing application for its common voting and non-voting shares. Pending approval, the company's common voting and non-voting shares will be relisted and admitted to trading.

STATEMENTS OF OPERATIONS
For the years ended December 31
Thousands, except per share amounts
2011 2010
Revenue
Investment income
Interest and dividend income $ 889 $ 2,938
Other investment (loss) income (1,033 ) 3,764
(144 ) 6,702
Expenses
General, administrative and other 561 571
Interest expense - 535
561 1,106
(705 ) 5,596
Foreign currency revaluation 137 256
(Loss) income before income taxes (568 ) 5,852
Deferred income tax expense (78 ) (47 )
Net (loss) income $ (646 ) $ 5,805
Net income per share $ - $ 0.04
CHANGES IN NET BOOK VALUE
The net book value of the company's common shares as at December 31, 2011 was $0.20 per share. The information in the following table shows the changes in net book value for the years ended December 31, 2011 and 2010.
2011 2010
For the years ended December 31
Thousands, except per share amounts
Total Per
Share (1)
Total Per
Share (1)
Net book value, beginning of period (2) $ 34,212 $ 0.21 $ 28,684 $ 0.18
Net (loss) income (646 ) - 5,805 0.04
Other comprehensive loss (639 ) (0.01 ) (277 ) (0.01 )
Comprehensive (loss) income (1,285 ) (0.01 ) 5,528 0.03
Net book value, end of period (2) $ 32,927 $ 0.20 $ 34,212 $ 0.21
(1) As at December 31, 2011 there were 162,496,456 common shares issued and outstanding
(2) Net book value is a non-IFRS measure
STATEMENTS OF FINANCIAL POSITION
The information in the following table has been extracted from the company's statements of financial position as at December 31, 2011 and 2010.
Thousands (except per share amounts) 2011 2010
Assets
Current assets
Cash and cash equivalents $ 7,742 $ 9,038
Marketable securities 21,162 22,541
Accounts receivable 134 320
Loans receivable 4,007 3,915
$ 33,045 $ 35,814
Liabilities and equity
Current liabilities
Accounts payable and accrued liabilities $ 118 $ 1,602
Equity 32,927 34,212
$ 33,045 $ 35,814
Net book value per share (1,2) $ 0.20 $ 0.21
(1) As at December 31, 2011 there were 162,496,456 common shares issued and outstanding
(2) Net book value is a non-IFRS measure

Contact Information

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