Royal Oak Ventures Inc.
CNSX : ROV
CNSX : ROV.B

August 28, 2012 18:08 ET

Royal Oak Announces Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 28, 2012) - Royal Oak Ventures Inc. (CNSX:ROV)(CNSX:ROV.B) ("Royal Oak" or the "company") reported net income of $0.1 million or $nil per common share for the quarter ended June 30, 2012 compared to a net loss of $0.1 million or $nil per common share in the corresponding period in 2011. The increase in net income in comparison to the prior year is primarily the result of a higher amount of investment income generated on the company's investment portfolio and a reduction of operating costs.

The company recorded a comprehensive loss of $0.3 million for the quarter ended June 30, 2012 compared with a loss of $0.7 million in the comparative quarter in 2011. Comprehensive loss in the current quarter consisted of net income of $0.1 million (2011 - net loss of $0.1 million) and other comprehensive loss of $0.4 million (2011 - $0.6 million).

The company recorded pre-tax unrealized losses of $0.5 million in other comprehensive loss in the current quarter (2011 - $0.7 million), as a result of a decrease in the fair value of the company's marketable securities portfolio.

In July of 2012, the company completed the listing of its common voting and non-voting shares on the CNSX under the symbols "ROV" and "ROV.B" respectively.

STATEMENTS OF OPERATIONS

Three months ended June 30 Six months ended June 30
(Thousands, except per share amounts) 2012 2011 2012 2011
Revenue
Interest and dividend income $ 241 $ 225 $ 462 $ 445
Expenses
General, administrative and other 97 261 156 380
144 (36 ) 306 65
Foreign currency revaluation 27 11 68 9
Income (loss) before income taxes 171 (25 ) 374 74
Deferred income tax (expense) recovery (61 ) (65 ) 25 9
Net income (loss) $ 110 $ (90 ) $ 399 $ 83
Net income per share $ $ $ $

CHANGES IN NET BOOK VALUE

The net book value per common share as at June 30, 2012 was $0.20. The information in the following table shows the changes in net book value for the three and six months ended June 30, 2012 and 2011.

Three months ended June 30 Six months ended June 30
2012 2011 2012 2011
(Unaudited)
(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) $ 33,821 $ 0.21 $ 35,092 $ 0.21 $ 32,927 $ 0.20 $ 34,212 $ 0.21
Net income (loss) 110 (90 ) 399 83
Other comprehensive (loss) income (431 ) (0.01 ) (592 ) 174 115
Comprehensive (loss) income (321 ) (0.01 ) (682 ) 573 198
Net book value, end of period(2) $ 33,500 $ 0.20 $ 34,410 $ 0.21 $ 33,500 $ 0.20 $ 34,410 $ 0.21
(1) As at June 30, 2012 and December 31, 2011 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) 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, 2012 and December 31, 2011.

(Thousands, except per share amounts) June 30,
2012
December 31,
2011
Assets
Current assets
Cash and cash equivalents $ 8,532 $ 7,742
Marketable securities 21,409 21,162
Accounts receivable 128 134
Loans receivable 3,988 4,007
$ 34,057 $ 33,045
Liabilities and equity
Current liabilities
Accounts payable and accrued liabilities $ 557 $ 118
Equity 33,500 32,927
$ 34,057 $ 33,045
Net book value per share (1,2) $ 0.20 $ 0.20
(1) As at June 30, 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