All amounts are stated in Canadian dollars.
Terra Firma Capital Corporation (TSX VENTURE:TII) ("Terra Firma" or the
"Company"), a real estate finance company, today released its financial results
for the three and six months ended June 30, 2013.
SECOND QUARTER 2013 HIGHLIGHTS:
-- Total revenue is $2.0 million, an increase of $848,000 or 77%, compared
to the same period last year.
-- Total assets increased by 36% to $58.4 million from $42.8 million at
June 30, 2012.
"We are encouraged by the positive momentum we have experienced in the second
quarter. Our portfolio is growing and is providing for significant revenue
increases." commented Y. Dov Meyer, President and Chief Executive Officer. "We
have established ourselves in the marketplace as a recognizable name. We
continue to actively focus on our strategy of strengthening our brand and our
relationships with experienced real estate owners, co-lenders and investors. Our
first cycle of loan investments has reached maturity, which has enabled us to
redeploy capital and secure additional capital from investors for our pipeline
of loans. I believe that Terra Firma is well positioned to capitalize on future
growth opportunities and excited about our prospects in the market." he further
said.
Results of operations - three months ended June 30, 2013
Net income in the second quarter ended June 30, 2013 was $263,000 or $0.01 per
basic and diluted share, compared to $212,000, or $0.01 per basic and diluted
share, in the second quarter ended June 30, 2012. Net income in the three and
six months ended June 30, 2013 was impacted by internalization of the
management. General and administrative expenses for the second quarter ended
June 30, 2013 increased by $240,000 as compared to second quarter ended June 30,
2013.
Interest and fee income for the second quarter ended June 30, 2013 aggregated
$2.0 million, an increase of 77% over the $1.1 million in the same period in the
previous year, and an increase of 15% over $1.7 million in the first quarter
ended March 31, 2013.
Interest expense for the second quarter ended June 30, 2013 was $1.2 million,
compared to $503,000 for the comparative period last year and $937,000 for the
first quarter ended March 31, 2013, representing the growth of our business and
the increase in syndication capital to fund the investment activities.
The company's loan and mortgage investments increased from $32.0 million at
December 31, 2012 to $43 million at June 30, 2013, an increase of 34%. The
average interest rate in the mortgage portfolio at June 30, 2013 was 18.5%
compared to 19.9% at December 31, 2012.
The Company's Management's Discussion & Analysis and Financial Statements as at
and for the three and six months ended June 30, 2013 have been filed and are
available on SEDAR (www.sedar.com).
About Terra Firma
Terra Firma is a full service, publicly traded real estate finance company that
provides customized equity and debt solutions to the real estate industry. Our
focus is to arrange and provide financing with flexible terms to property owners
looking to improve or add to their existing real estate assets but who may be
limited by conventional bank financing, as well as to invest in quality
commercial and residential developments by proven real estate developers. Terra
Firma offers a full spectrum of real estate financing under the guidance of
strict corporate governance, clarity and transparency. For further information
please visit Terra Firma's website at www.terrafirmacapital.ca.
The TSXV has neither approved nor disapproved the contents of this press
release. The TSXV does not accept responsibility for the adequacy or accuracy of
this press release.
This Press Release contains forward-looking statements with respect matters
concerning the business, operations, strategy and financial performance of Terra
Firma. These statements generally can be identified by use of forward looking
word such as "may", "will", "expects", "estimates", "anticipates", "intends",
"believe" or "could" or the negative thereof or similar variations. The future
business, operations and performance of Terra Firma could differ materially from
those expressed or implied by such statements. Such forward-looking statements
are qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. Forward-looking statements are based on a
number of assumptions which may prove to be incorrect. Additional, important
factors that could cause actual results to differ materially from expectations
include, among other things, general economic and market factors, local real
estate conditions, competition, changes in government regulation, dependence on
tenants' financial conditions, interest rates, the availability of equity and
debt financing, environmental and tax related matters, and reliance on key
personnel. There can be no assurances that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. The cautionary statements qualify
all forward-looking statements attributable to Terra Firma and persons acting on
its behalf. Unless otherwise stated, all forward looking statements speak only
as of the date of this Press Release and Terra Firma has no obligation to update
such statements except as required by law.
Terra Firma Capital Corporation
Consolidated Statements of Income and Comprehensive Income
For the three and six months ended June 30, 2013 and 2012
(Unaudited)
----------------------------------------------------------------------------
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Three months ended Six months ended
-----------------------------------------------
June 30, June 30, June 30, June 30,
2013 2012 2013 2012
----------------------------------------------------------------------------
Revenue
Interest and fees earned $ 1,840,180 $ 1,058,182 $ 3,426,395 $ 2,024,469
Rental income 115,558 49,606 222,654 99,238
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1,955,738 1,107,788 3,649,049 2,123,707
Expenses
Property operating costs 21,238 17,513 68,853 35,051
General and administrative
expenses 372,923 133,199 740,086 260,963
Share based compensation 32,345 129,311 32,345 159,668
Interest expense 1,157,172 503,070 2,094,584 998,761
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1,583,678 783,093 2,935,868 1,454,443
Income before income taxes 372,060 324,695 713,181 669,264
Income tax provision 108,503 112,462 184,279 203,814
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Net income and comprehensive
income $ 263,557 $ 212,233 $ 528,902 $ 465,450
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Earnings per share - basic
and diluted $ 0.01 $ 0.01 $ 0.02 $ 0.02
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Terra Firma Capital Corporation
Consolidated Statements of Financial Position
As at June 30, 2013 and December 31, 2012
(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
June 30, December 31,
2013 2012
----------------------------------------------------------------------------
Assets
Cash and cash equivalents $ 4,694,541 $ 3,223,291
Amounts receivable and prepaid expenses 1,982,091 2,396,180
Loan and mortgage investments 42,952,481 31,996,731
Investment properties 7,848,487 7,834,576
Portfolio investment 950,000 950,000
----------------------------------------------------------------------------
Total assets $ 58,427,600 $ 46,400,778
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Liabilities
Accounts payable and accrued liabilities $ 1,710,805 $ 1,192,616
Provision for discontinued operations 384,245 445,957
Unearned income 213,177 16,965
Income taxes payable - 474,297
Deferred income taxes 16,232 15,602
Loans and mortgages payable 32,677,167 21,406,070
Convertible debentures 10,108,781 10,093,325
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Total liabilities 45,110,407 33,644,832
----------------------------------------------------------------------------
Shareholders' Equity
Share capital $ 10,757,405 $ 10,757,405
Contributed surplus 605,484 573,139
Retained earnings 1,954,304 1,425,402
----------------------------------------------------------------------------
Total shareholders' equity 13,317,193 12,755,946
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total liabilities and Shareholders' Equity $ 58,427,600 $ 46,400,778
----------------------------------------------------------------------------
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FOR FURTHER INFORMATION PLEASE CONTACT:
Terra Firma Capital Corporation
Dov Meyer
President and Chief Executive Officer
416.866.8986
ydmeyer@tfcc.ca
Terra Firma Capital Corporation
Mano Thiyagarajah
Chief Financial Officer
416.866.3168
mthiyagarajah@tfcc.ca
www.terrafirmacapital.ca
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