TDZ Holdings Inc.

April 15, 2009 11:24 ET

TDZ Holdings Inc.-Results for the Year Ended December 31, 2008

TORONTO, ONTARIO--(Marketwire - April 15, 2009) - TDZ HOLDINGS INC., today announced its results for the year ended December 31, 2008.

Overview

The Company was formed on April 28, 1999 upon amalgamation. As at December 31, 2008 the predecessor company's minority security holders are entitled to receive an additional 356,045 common shares of the Company. Securities not returned for exchange by April 28, 2009 shall cease to represent a right or claim of any kind on the common shares of the Company, and shall be deemed to be surrendered to the Company.

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 year ended December 31, 2008 was $345,000 ($0.01 per share) on revenues of $79,000 as compared to a net income of $49,000 ($0.00 per share) on revenues of $106,000 for the year ended December 31, 2007. The net income for 2008 includes a $317,000 non-recurring gain on disposition pursuant to the Company's entitlement on the sale of the Construction Technology Business.

Net increase in cash was $345,000 ($0.01 per share) during the year ended December 31, 2008 as compared to a net increase in cash of $48,000 ($0.00 per share) during the year ended December 31, 2007.

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.

During 2008, the Company received $317,000 (2007 - $nil, 2006 - $697,000, 2005 - $1,567,000). The balance payable pursuant to its entitlement on this sale, if any, cannot be predicted at this time as such amounts are dependent upon various closing and post closing adjustments which were to be made over a period of two years from the date of sale July 29, 2005. Efforts and discussions are ongoing. 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