Royal Oak Ventures Inc.

May 30, 2012 17:13 ET

Royal Oak Announces First Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 30, 2012) - Royal Oak Ventures Inc. ("Royal Oak" or the "company") recorded comprehensive income of $0.9 million for the three months ended March 31, 2012 consistent with the comparative quarter in 2011. Comprehensive income in the current quarter consisted of net income of $0.3 million (2011 - $0.2 million) and other comprehensive income of $0.6 million (2011 - $0.7 million).

The company reported net income of $0.3 million or $nil per common share for the three months ended March 31, 2012 compared to net income of $0.2 million or $nil per common share in the corresponding period in 2011. The increase in net income in comparison to the prior year is the result of a reduction of operation costs and higher foreign currency revaluation gains recorded on the company's investment portfolio.

The company recorded pre-tax unrealized gains of $0.7 million in other comprehensive income in the current quarter (2011 - $0.8 million), as a result of an increase 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. Upon approval, the company's common voting and non-voting shares will be relisted and admitted to trading.

STATEMENTS OF OPERATIONS
Three months ended March 31
(Thousands, except per share amounts) 2012 2011
Revenue
Interest and dividend income $ 221 $ 220
Expenses
General, administrative and other 59 119
162 101
Foreign currency revaluation 41 (2)
Income before income taxes 203 99
Deferred income tax recovery 86 74
Net income $ 289 $ 173
Net income per share $ - $ -
CHANGES IN NET BOOK VALUE
The net book value of the company's common shares as at March 31, 2012 was $0.21 per share. The information in the following table shows the changes in net book value for the three months ended March 31, 2012 and 2011.
Three months ended March 31
2012 2011
(Thousands, except per share amounts) Total Per
Share
(1)(2)
Total Per
Share
(1)(2)
Net book value, beginning of period (3) $ 32,927 $ 0.20 $ 34,212 $ 0.21
Net income 289 - 173 -
Other comprehensive income 605 0.01 707 0.01
Comprehensive income 894 0.01 880 0.01
Net book value, end of period (3) $ 33,821 $ 0.21 $ 35,092 $ 0.22
(1) As at March 31, 2012 and 2011 and December 31, 2011 and 2010 the company was capitalized with 3,157,189 common voting shares and 159,339,267 non-voting shares, which are referred to collectively as "common shares"
(2) As at March 31, 2012 and 2011 and December 31, 2011 and 2010 there were 162,496,456 common shares issued and outstanding
(3) 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 March 31, 2012 and December 31, 2011.
(Thousands, except per share amounts) March 31,
2012
December 31,
2011
Assets
Current assets
Cash and cash equivalents $ 8,047 $ 7,742
Marketable securities 21,662 21,162
Accounts receivable 357 134
Loans receivable 3,912 4,007
$ 33,978 $ 33,045
Liabilities and equity
Current liabilities
Accounts payable and accrued liabilities $ 157 $ 118
Equity 33,821 32,927
$ 33,978 $ 33,045
Net book value per share (1,2) $ 0.21 $ 0.20
(1) As at March 31, 2012 and 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