Royal Oak Ventures Inc.

November 28, 2011 17:25 ET

Royal Oak Announces Third Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2011) - Royal Oak Ventures Inc. ("Royal Oak" or the "company") recorded a comprehensive loss of $1.1 million for the quarter ended September 30, 2011, which consists of net income and other comprehensive loss, compared to comprehensive income of $4.1 million in the same period in the prior year. The current period loss was primarily the result of a $1.2 million unrealized loss on the company's marketable securities, which are recorded at fair value.

The company reported net income of $0.1 million or $nil per common share for the quarter ended September 30, 2011 compared to $6.1 million or $0.04 per common share in the corresponding period of 2010. Net income in the current quarter decreased compared to the same period in the prior year which 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 an unrealized loss of $1.2 million in other comprehensive loss during the three months ended September 30, 2011 (2010 - $2.0 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
Three months ended September 30
Nine months ended September 30
Thousands, except per share amounts 2011 2010 2011 2010
Revenue
Investment income
Interest and dividend income $ 217 $ 1,999 $ 662 $ 2,796
Disposition gains and other income - 4,933 - 4,933
217 6,932 662 7,729
Expenses
General and administrative expense 76 332 456 704
Interest expense - 179 - 535
76 511 456 1,239
141 6,421 206 6,490
Foreign currency revaluation 129 (47 ) 138 252
Income before income taxes 270 6,374 344 6,742
Deferred income tax expense (173 ) (260 ) (164 ) (199 )
Net income $ 97 $ 6,114 $ 180 $ 6,543
Net income per share $ - $ 0.04 $ - $ 0.04
Changes in Net Book Value
The net book value of the company's common shares as at September 30, 2011 was $0.20 per share. The information in the following table shows the changes in net book value for the three and nine months ended September 30, 2011 and 2010.
Three months ended
September 30
Nine months ended
September 30
2011 2010 2011 2010
Thousands, except per share amounts Total Per
Share (1)
Total Per
Share (1)
Total Per
Share (1)
Total Per
Share (1)
Net book value, beginning of period (2)
$

34,410

$

0.21

$

29,497

$

0.18

$

34,212

$

0.21


$

28,684

$

0.17

Net income 97 - 6,114 0.04 180 - 6,543 0.05
Other comprehensive loss (1,164 ) (0.01 ) (1,987 ) (0.01 ) (1,049 ) (0.01 ) (1,603 ) (0.01 )
Comprehensive (loss) income (1,067 ) (0.01 ) 4,127 0.03 (869 ) (0.01 ) 4,940 0.04
Net book value, end of period (2) $ 33,343 $ 0.20 $ 33,624 $ 0.21 $ 33,343 $ 0.20 $ 33,624 $ 0.21
(1) As at September 30, 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 September 30, 2011 and December 31, 2010.
(Unaudited)
September 30 December 31
Thousands 2011 2010
Assets
Current Assets
Cash and cash equivalents $ 7,537 $ 9,038
Marketable securities 21,927 22,541
Accounts receivable 275 320
29,739 31,899
Non-current assets
Loans receivable 4,117 3,915
$ 33,856 $ 35,814
Liabilities and equity
Current liabilities
Accounts payable and accrued liabilities $ 513 $ 1,602
Shareholders' Equity 33,343 34,212
$ 33,856 $ 35,814
Net book value per share(1)(2) $ 0.20 $ 0.21
(1) Net book value is a non-IFRS measure
(2) As at September 30, 2011 there were 162,496,456 common shares issued and outstanding

Contact Information

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