TDZ Holdings Inc.

May 17, 2006 15:58 ET

TDZ Holdings Inc.-First Quarter Results

TORONTO, ONTARIO--(CCNMatthews - May 17, 2006) - TDZ HOLDINGS INC., today announced its results for the three months ended March 31, 2006.

Overview

The Company was formed on April 28, 1999 upon amalgamation. The Company has a 33% direct equity interest in Nualt Enterprises Inc. ("Nualt"), the parent company for the former Construction Technology Business carried on by Aluma Enterprises Inc. ("Aluma") and its subsidiaries, and the principal holding company for the former Residential Real Estate Business. The Residential Real Estate Business was sold in 2004. The Construction Technology Business was sold July 29, 2005. The Company's investment in Nualt has been pledged to Nualt's principal lenders to secure limited recourse guarantee obligations.

Summary of results

Net income for the three months ended March 31, 2006 was $5,000 ($0.00 per share) on revenues of $9,000 as compared to a net loss of $5,000 ($0.00 per share) on revenues of $1,000 for the three months ended March 31, 2005.

Cash provided by operations was $4,000 ($0.00 per share) during the three months ended March 31, 2006 as compared to cash used in operations of $18,000 ($0.00 per share) during the three months ended March 31, 2005.

Sale of the Construction Technology Business

The sale of substantially all of Aluma's assets occurred on July 29, 2005. Substantially all of the net proceeds from the sale will be applied to repay indebtedness of Nualt, which had been guaranteed by the Company pursuant to its limited recourse guarantee.

The Company had purchased certain indebtedness of Nualt (the "Nualt Debt") for a purchase price to be determined by the amounts that are received by the Company as a result of the existing distribution percentage applicable to this debt (the "Purchase Price"). The Purchase Price was satisfied by the payment of $100 plus an obligation to pay any and all amounts received by the Company in respect of the distribution percentage applicable to this debt.

During 2005, the Company received $1,567,000 on account of the Nualt Debt in excess of the Purchase Price. The balance payable in respect of the Purchase Price, if any, cannot be predicted at this time as such amounts are dependent upon various closing and post closing adjustments which are to be made over a period of two years from the date of sale July 29, 2005. Accordingly, no accrual for these amounts has been recorded in these financial statements.

Contact Information

  • TDZ Holdings Inc.
    Mr. Harvey Fruitman
    Executive Vice President, Secretary,
    and Chief Financial Officer
    (416) 661-9290