Jannock Properties Limited (TSX VENTURE: JPL.UN) today reported a
net loss of $70,000 for the Second Quarter of 2010 under the
liquidation accounting principles that it is now applying.
Net Income
The loss of $70,000 for the three months and six months to June
30, 2010 reflects accruals of $86,000 for additional costs that
will be incurred as a result of the delay in completing the
dissolution of the Corporation less an income tax refund of $16,000
received in August. In the comparable periods in 2009, the
Corporation had losses of $61,000 and $116,000 respectively
reflecting general and administrative expenses less income tax
provisions.
Cash Flows
Cash used in the Second Quarter of this year amounted to $79,000 compared
with a usage of cash of $93,000 in the same period last year.
-- Cash receipts for the Second Quarter this year were $3,000 for the
recovery of development costs that were accrued at December 31, 2009. In
the Second Quarter of 2009 cash receipts were $9,000 of income tax
recoveries and $3,000 of interest.
-- Cash payments for the Second Quarter this year were $82,000 for
dissolution costs that had previously been accrued. In the same period
last year cash payments were $105,000 for administrative costs.
Cash generated in the six months to June 30, 2010 amounted to $125,000
compared with a usage of cash of $194,000 in the same period last year.
-- Cash receipts for the period were $219,000 for the recovery of
development costs that were accrued at December 31, 2009. In the period
in 2009 cash receipts were $9,000 of income tax recoveries and $16,000
of interest.
-- Cash payments for the period were $94,000 for dissolution costs that had
previously been accrued. In the same period last year cash payments were
$219,000 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
An income tax recovery was received in August 2010 for federal
income taxes on 2009 expenditures that were included in the
December 31, 2009 results. A potential recovery of Ontario taxes
has not yet been received. The Corporation is working with the
Canada Revenue Agency to resolve issues on income tax recoveries
relating to its 2010 expenditures and to obtaining required income
tax clearances.
Corporate Items
Currently the Corporation's only significant asset is its cash
in the bank. The estimated net cash balance after the payment of
remaining liabilities is equivalent to approximately 5.5 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)
June 30 December 31
2010 2009
----------- -----------
(unaudited)
-----------
Assets
Cash and cash equivalents $ 2,060 $ 1,935
Other assets 16 219
----------- -----------
$ 2,076 $ 2,154
----------- -----------
Liabilities
Accounts payable and accrued liabilities $ 119 $ 127
Shareholders' Equity
Capital stock (note 3) $ 19,551 $ 19,551
Contributed surplus 6,868 6,868
Deficit (24,462) (24,392)
----------- -----------
$ 1,957 $ 2,027
----------- -----------
----------- -----------
$ 2,076 $ 2,154
----------- -----------
Interim Statement of Income, Comprehensive Income and deficit
(in thousands of Canadian dollars, except per share amount)
Three Months Six Months
Ended June 30 Ended June 30
------------------------ ------------------------
2010 2009 2010 2009
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue
Interest income $ - $ 3 $ - $ 16
Expenses
Dissolution costs (86) - (86) -
General and
administrative - (93) - (191)
Foreign exchange gains - 2 - 2
----------- ----------- ----------- -----------
Income/(loss) before
income taxes (86) (88) (86) (173)
Income tax provision
(recovery) (16) (27) (16) (57)
----------- ----------- ----------- -----------
Net income (loss) and
comprehensive income
(loss) for the period $ (70) $ (61) $ (70) $ (116)
----------- ----------- ----------- -----------
Deficit - beginning of
period $ (24,392) $ (24,232) $ (24,392) $ (24,177)
Deficit - end of period $ (24,462) $ (24,293) $ (24,462) $ (24,293)
Basic and diluted
earnings (loss) per
share $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Interim Statement of Cash Flows
(in thousands of Canadian dollars)
Three Months Six Months
Ended June 30 Ended June 30
-------------------------- --------------------------
2010 2009 2010 2009
------------ ------------ ------------ ------------
(unaudited) (unaudited) (unaudited) (unaudited)
Cash provided by
(used in)
Operating activities
Cash receipts
Income tax
recoveries $ 3 $ 9 $ 219 $ 9
Interest received - 3 - 16
Cash payments
Other payments (82) (105) (94) (219)
------------ ------------ ------------ ------------
Total operating
activities (79) (93) 125 (194)
------------ ------------ ------------ ------------
Increase (decrease)
in cash equivalents (79) (93) 125 (194)
------------ ------------ ------------ ------------
Cash and cash
equivalents -
beginning of period $ 2,139 $ 5,712 $ 1,935 $ 5,813
Cash and cash
equivalents - end of
period $ 2,060 $ 5,619 $ 2,060 $ 5,619
NOTES TO INTERIM FINANCIAL STATEMENTS
(unaudited - in thousands of dollars)
1. Summary of significant accounting policies
The Company has presented on a liquidation basis the balance
sheet as at June 30, 2010, and the operating income and cash flows
for the three months and six months ended June 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 recovery of $16,000 in the six months to June
30, 2010 was received in August for federal income taxes on 2009
expenditures that were included in the December 31, 2009 results. A
potential recovery of $6,000 for Ontario taxes has not yet been
received. The Corporation is working with the Canada Revenue Agency
to resolve issues on income tax recoveries relating to 2010
expenditures and to obtaining required income tax clearances.
The provisions in the six months to June 30, 2009 were at the
current federal and provincial tax rates on the losses that had
been incurred during that period.
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 June 30,
2010
Number of shares
-----------------------------------------
Class B Common Class A special Amount
-----------------------------------------
Issued and outstanding at March
31, 2010 35,631,932 1,959,756,260 19,551
4. Capital Management
The Corporation's remaining assets are almost entirely its cash
balances. 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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