Jannock Properties Limited (TSX VENTURE: JPL.UN) today reported
income of $95,000 for the Third Quarter of 2010 under the
liquidation accounting principles that it is now applying.
Net Income
The net income of $95,000 in the Third Quarter of this year
resulted entirely from income tax recoveries from prior period
losses. This compares with a loss of $260,000 in the Third Quarter
of 2009 when the Corporation provided for expenses that were to be
incurred in its expected dissolution.
Net income of $25,000 for the nine months to September 30, 2010
reflects income tax recoveries of $111,000 less accruals of $86,000
for additional costs that will be incurred as a result of the delay
in completing the dissolution of the Corporation. In the comparable
period in 2009, the Corporation had a net loss of $376,000
primarily reflecting general and administrative expenses.
Cash Flows
Cash used in the Third Quarter of this year amounted to $39,000
compared with a usage of cash of $38,000 in the same period last
year.
-- Cash receipts for the Third Quarter this year were $16,000 for a
recovery of income taxes. In the Third Quarter of 2009 cash receipts
were $16,000 of which income tax recoveries were $14,000.
-- Cash payments for the Third Quarter this year were $55,000 for
dissolution costs that had previously been accrued. In the same period
last year cash payments were $54,000 for administrative costs.
Cash generated in the nine months to September 30, 2010 amounted
to $86,000 compared with a usage of cash of $232,000 in the same
period last year.
-- Cash receipts for the period were $235,000 comprised of $219,000 for a
recovery of development costs and $16,000 for a recovery of income
taxes. In the same period in 2009 cash receipts were $23,000 of income
tax recoveries and $18,000 of interest.
-- Cash payments for the period were $149,000 for dissolution costs. In the
same period last year cash payments were $273,000 for administrative
costs.
Capital Structure
The number of Class B Common Shares outstanding is 35,631,932.
Currently there are 55 Class A Special Shares that are associated
with each Class B Common Share. The combination of one Class B
Common Share and 55 Class A Special Shares is listed as a unit on
the TSX Venture Exchange (trading symbol: JPL.UN).
Voluntary Dissolution
The voluntary dissolution has continued to be held up by delays
in the processing of the Corporation's income tax returns.
An income tax recovery of $52,000 was received in October for
federal income taxes on the Corporation's losses through May 31,
2010. An additional $43,000 recovery of Ontario income taxes for
2009 and May 31, 2010 was received in November. The Corporation
should now be able to proceed with requesting the required consents
and income tax clearances from the Canada Revenue Agency.
Corporate Items
Currently the Corporation's only significant assets are its cash
in the bank and outstanding income tax recoveries. The estimated
net cash balance after the receipt of the outstanding income tax
recoveries and the payment of remaining liabilities is equivalent
to approximately 5.7 cents per unit.
Forward-looking statements contained in this news release
involve risks and uncertainties that could cause actual results to
differ materially from those contemplated by such statements.
Factors that could cause such differences include local real estate
markets, zoning applications, changes in interest rates and general
economic conditions. In addition there are risk factors described
from time to time in the reports and disclosure documents filed by
Jannock Properties Limited with Canadian and U.S. securities
regulatory agencies and commissions.
NOTICE
The accompanying interim unaudited financial statements have not
been reviewed by the Company's auditors.
Interim Balance Sheet
(in thousands of Canadian dollars)
September 30 December 31
2010 2009
------------------------------
(unaudited)
---------------
Assets
Cash and cash equivalents $ 2,021 $ 1,935
Income taxes recoverable $ 95 $ -
Other assets - 219
------------------------------
$ 2,116 $ 2,154
------------------------------
Liabilities
Accounts payable and accrued liabilities $ 64 $ 127
------------------------------
Shareholders' Equity
Capital stock (note 3) $ 19,551 $ 19,551
Contributed surplus 6,868 6,868
Deficit (24,367) (24,392)
------------------------------
$ 2,052 $ 2,027
------------------------------
$ 2,116 $ 2,154
------------------------------
Interim Statement of Income, Comprehensive Income and Deficit
(in thousands of Canadian dollars, except per share amount)
Three Months Nine Months
Ended September 30 Ended September 30
------------------------------------------------
2010 2009 2010 2009
------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue
Interest income $ - $ 2 $ - $ 18
Expenses
Dissolution costs - - (86) -
General and administrative - (197) - (388)
Foreign exchange gains - - - 2
------------------------------------------------
Income/(loss) before income
taxes - (195) (86) (368)
Income tax provision
(recovery) (95) 65 (111) 8
------------------------------------------------
Net income (loss) and
comprehensive income (loss)
for the period $ 95 $ (260) $ 25 $ (376)
Deficit - beginning of
period $ (24,462) $ (24,293) $ (24,392) $ (24,177)
------------------------------------------------
Deficit - end of period $ (24,367) $ (24,553) $ (24,367) $ (24,553)
------------------------------------------------
Basic and diluted earnings
(loss) per share $ 0.00 $ (0.01) $ 0.00 $ (0.01)
Interim Statement of Cash Flows
(in thousands of Canadian dollars)
Three Months Nine Months
Ended September 30 Ended September 30
------------------------------------------------
2010 2009 2010 2009
------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
Cash provided by (used in)
Operating activities
Cash receipts
Recovery of prior years
cost of sales $ - $ - $ 219 $ -
Income tax recoveries 16 14 16 23
Interest received - 2 - 18
Cash payments
Other payments (55) (54) (149) (273)
------------------------------------------------
Total operating activities (39) (38) 86 (232)
------------------------------------------------
Increase (decrease) in cash
equivalents (39) (38) 86 (232)
Cash and cash equivalents -
beginning of period $ 2,060 $ 5,619 $ 1,935 $ 5,813
------------------------------------------------
Cash and cash equivalents -
end of period $ 2,021 $ 5,581 $ 2,021 $ 5,581
------------------------------------------------
------------------------------------------------
NOTES TO INTERIM FINANCIAL STATEMENTS
(unaudited)
1. Summary of significant accounting policies
The Company has presented on a liquidation basis the balance
sheet as at September 30, 2010, and the operating income and cash
flows for the three months and nine months ended September 30,
2010.
The disclosures contained in these unaudited interim financial
statements do not include all disclosures required for annual
financial statements. They have been prepared using the same
accounting policies as set out in Note 2 to the financial
statements for the year ended December 31, 2009 and should be read
in conjunction with those financial statements.
2. Income taxes
The income taxes recoveries of $111,000 in the nine months to
September 30, 2010 were for federal and Ontario income taxes on
losses incurred in 2009 and through part of 2010. The Corporation
received federal income tax recoveries of $16,000 in August,
$52,000 in October and $43,000 in November.
The provisions in the nine months to September 30, 2009 resulted
from the elimination of tax assets relating to that years loss as
there was no certainty that any amounts would be recovered.
3. Capital Stock
The Company's capital stock consists of Class A special shares
and Class B common shares. The Class A special shares are
transferable with and only with the associated Class B common
shares and trade as one unit (JPL.UN). There have been no changes
to the shares outstanding during the three months to September 30,
2010
Number of shares
---------------------------------
Class B Common Class A special Amount
----------------------------------------------
Issued and outstanding at
September 30, 2010, and at
December 31, 2009. 35,631,932 1,959,756,260 $19,551,000
4. Capital Management
The Corporation's remaining assets are its cash balances and
outstanding income tax recoveries. Shareholders at the Annual
General and Special Meeting on May 14, 2009 approved a voluntary
dissolution of the Corporation and its eventual delisting from the
TSX-V exchange. The Corporation is actively working to complete the
dissolution as soon as possible.
Contacts: Jannock Properties Limited Brian Jamieson (905)
821-4464 bjamie@jannockproperties.com
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