TriNorth Capital Inc.
TSX : TRT

TriNorth Capital Inc.

November 09, 2006 16:19 ET

TriNorth Capital Announces Third Quarter 2006 Results

TORONTO, ONTARIO--(CCNMatthews - Nov. 9, 2006) - TriNorth Capital Inc. (TSX:TRT) today reported a net loss of $333,000 ($0.02 per share) for the three months ended September 30, 2006 compared with a net loss of $206,000 ($0.01 per share) for the same period in 2005. The 2005 results reflected primarily the amortization of the purchase price discrepancy in respect of its equity-accounted investees of $134,000 per quarter. General and administrative expenses for the third quarter of 2006 were $322,000 (2005: $156,000), which included $177,000 of start-up costs for two new businesses. Gain on sale of marketable securities was $4,000 (2005: $22,000), and a write-down of $132,000 was recorded against the carrying value of a publicly-traded investment.

For the nine months ended September 30, 2006, TriNorth reported a net loss of $718,000 ($0.04 per share) compared with a net loss of $444,000 ($0.02 per share) for the same period in 2005. The 2005 results reflected primarily the amortization of the purchase price discrepancy in respect of its equity-accounted investees of $402,000. The purchase price discrepancy was fully amortized by the end of 2005. General and administrative expenses for the first nine months of 2006 were $805,000 (2005: $477,000), which included $301,000 of start-up costs for two new businesses. Gain on sale of marketable securities was $39,000 (2005: $315,000), and a write-down of $132,000 was recorded against the carrying value of a publicly-traded investment

Revenue, comprised of interest and other income, for the third quarter was $41,000 compared with $27,000 for the same period last year, and for the first nine months of 2006 was $104,000 compared with $93,000 for the same period in 2005.

At September 30, 2006, TriNorth had $3,426,000 in cash and marketable securities (at quoted market value, a non-GAAP measure) and $1,750,000 (at book value) in investments in privately-held and publicly-traded technology-based businesses.

TriNorth's privately-held investee, Business.ca, recorded a profit of $106,000 in the third quarter as a result of the investment in new technology platforms made in earlier periods and decreased spending on additional technology platforms in the period. The Company's other privately-held investee, VFM Interactive ("VFM"), continued to pursue its growth strategy in the third quarter, recording increased revenues and an expanding customer base that reflect the ongoing shift to online travel sales.

During the second quarter, TriNorth launched two new businesses - China Resolve and Asian MobileLink.

China Resolve, a wholly-owned subsidiary of the Company, is focussed on the recovery of distressed debt and assets in China. During the third quarter the Company assessed opportunities to acquire non-performing loan portfolios in China but no transactions were completed due to the poor quality of the portfolios reviewed.

Asian MobileLink (AML), a division of the Company, distributes content (such as games, ringtones and wallpaper) for mobile phones in Asia and North America. AML's activities in the third quarter focused on the completion of the software platform that will be the foundation of its content distribution business and on the addition of games to its content library.

TriNorth's unaudited financial statements for the three months and nine months ended September 30, 2006 and the related Management's Discussion and Analysis can be accessed electronically at www.sedar.com.

TriNorth Capital Inc. is a Canadian-based investment company that has investments in privately-held and publicly-traded high growth potential companies, cash resources and substantial tax losses to shelter future income and investment gains.

For more details about TriNorth and its investments please visit its website at www.trinorthcapital.com.

This release contains forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct, and such forward looking statements should not be unduly relied upon. These statements speak only as of the date of this release, and are subject to a number of risks and uncertainties, including the factors discussed in the Company's current and previous filings with the Canadian securities regulatory authorities. Actual results could differ materially from these forward-looking statements.

Contact Information

  • TriNorth Capital Inc.
    John Pennal
    President & Chief Executive Officer
    (416) 956-4926
    Website: www.trinorthcapital.com