Royal Oak Ventures Inc.

August 23, 2013 16:52 ET

Royal Oak Announces Second Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 23, 2013) - Royal Oak Ventures Inc. ("Royal Oak" or the "company") recorded net income of $132 thousand ($nil per share) for the three months ended June 30, 2013, an increase of 20% over the $110 thousand ($nil per share) recorded in the same period in 2012. The increase in net income was primarily the result of higher general and administration costs in the prior year as a result of costs incurred to complete the re-listing of the company.

The company classifies securities within its investment portfolio as available-for-sale financial instruments and accordingly records unrealized change in the fair value of these investments in other comprehensive income. The company recorded a pre-tax unrealized loss of $256 thousand during the period (2012 - $492 thousand) as a result of a decrease in the fair value of the company's securities. This resulted in the company recording a comprehensive loss of $90 thousand in quarter (2012 - $321 thousand comprehensive loss).

Net income and comprehensive income for the six months ended June 30, 2013 were $357 thousand (2012 - $399 thousand) and $416 thousand (2012 - $573 thousand) respectively.

STATEMENTS OF OPERATIONS

Three months ended June 30 Six months ended June 30
(CDN$ Thousands, except per share amounts) 2013 2012 2013 2012
Revenue
Interest and dividend income $ 232 $ 241 $ 437 $ 462
Expenses
General, administrative and other 70 97 140 156
162 144 297 306
Foreign currency revaluation 4 27 51 68
Income before income taxes 166 171 348 374
Deferred income tax (expense) recovery (34 ) (61 ) 9 25
Net income $ 132 $ 110 $ 357 $ 399
Net income per share $ $ $ 0.01 $

CHANGES IN NET BOOK VALUE

The net book value of the company's common shares as at June 30, 2013 was $0.22 per share. The information in the following table shows the changes in net book value for the three and six months ended June 30, 2013 and 2012.

Three months ended June 30 Six months ended June 30
2013 2012 2013 2012
(CDN $ Thousands, except per share amounts) Total Per Share(1 ) Total Per Share Total Per Share(1 ) Total Per Share
Net book value, beginning of period (2) $ 35,031 $ 0.22 $ 33,821 $ 0.21 $ 34,525 $ 0.21 $ 32,927 $ 0.20
Net income 132 - 110 - 357 0.01 399 -
Other comprehensive (loss) income (222 ) - (431 ) (0.01 ) 59 - 174 -
Comprehensive (loss) income (90 ) - (321 ) (0.01 ) 416 0.01 573 -
Net book value, end of period(2) $ 34,941 $ 0.22 $ 33,500 $ 0.20 $ 34,941 $ 0.22 $ 33,500 $ 0.20
(1) The company is capitalized with 162,496,456 shares, consisting of 3,157,189 common shares and 159,339,267 non-voting shares, which are referred to collectively as "shares"
(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 June 30, 2013 and December 31, 2012.

(CDN$ Thousands, except per share amounts) June 30, 2013 December 31, 2012
Assets
Current assets
Cash and cash equivalents $ 10,969 $ 10,669
Securities 20,895 19,988
Accounts receivable 120 251
Loans 3,712 3,703
$ 35,696 $ 34,611
Liabilities and equity
Current liabilities
Accounts payable and accrued liabilities $ 755 $ 86
Equity 34,941 34,525
$ 35,696 $ 34,611
Net book value per share (1,2) $ 0.22 $ 0.21
(1) As at June 30, 2013 and December 31, 2012 there were 162,496,456 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