TDZ Holdings Inc.

August 16, 2007 12:11 ET

TDZ Holdings Inc.: Results for the Six Months Ended June 30, 2007

TORONTO, ONTARIO--(Marketwire - Aug. 16, 2007) - TDZ HOLDINGS INC., today announced its results for the six months ended June 30, 2007.

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 in 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 six months ended June 30, 2007 was $4,000 ($0.00 per share) on revenues of $50,000 as compared to a net loss of $27,000 ($0.00 per share) on revenues of $25,000 for the six months ended June 30, 2006.

Net increase in cash was $3,000 ($0.00 per share) during the six months ended June 30, 2007 as compared to a net decrease in cash of $12,000 ($0.00 per share) during the six months ended June 30, 2006.

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. In 2006 the Nualt Debt was sold by the Company for the amounts received in respect of the Nualt Debt less $100.

During 2006, the Company received $697,000 on account of the Nualt Debt in excess of the Purchase Price. No amount has been received by the Company in 2007 to date. 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. Accordingly, no accrual for these amounts has been recorded in these financial statements.

Contact Information

  • TDZ Holdings Inc.
    Mr. Elvio DelZotto
    President
    (416) 661-9290