OAKVILLE, ONTARIO -- (Marketwire) -- 03/22/13 -- BENEV Capital Inc. (TSX: BEV) (the "Company" or "BCI") today announced its financial results for the year ended December 31, 2012 and the results for the fourth quarter 2012. Revenue for the year was $28.3 million, pre-tax income was $9.1 million, after-tax income was $9.3 million and earnings per share was $0.24 on a fully diluted basis. Revenue for the quarter was $7.8 million, pre-tax income was $1.2 million, after-tax income was $0.6 million and earnings per share was $0.02 on a fully diluted basis.
As previously announced on March 7, 2013, the Company has entered into a binding purchase and sale agreement to sell its Saint Ambroise, Quebec waste treatment plant and related assets and liabilities for $10 million, $8 million in cash at closing plus an earn out which could be as high as $2 million or more, contingent on a specific potential new contract being entered into within three years from the date of signing of the purchase agreement (which is by no means certain). In addition, the purchase price will be adjusted for working capital at closing, and for certain new soil contracts received between signing and closing. Closing is expected in the second quarter of 2013. As at March 15, 2013, the Company's cash position was approximately $64 million.
A more detailed discussion is available in the Management Discussion and Analysis available on http://media3.marketwire.com/docs/BENEVMDAQ412.pdf and Audited Consolidated Financial Statements for the years ended December 31, 2012 and 2011 available on http://media3.marketwire.com/docs/BENEVACFSYE12.pdf.
This report may contain forward-looking information that is subject to risks, uncertainties and assumptions. Such information represents our current views based on information as at the date of issuing this report. We do not intend to update this information and disclaim any legal obligation to the contrary.
Forward-Looking Statements
Certain statements contained in this press release and in certain documents incorporated herein by reference may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "confident", "plan" and "intends" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events, performance, or achievements of BENEV Capital Inc. to differ materially from those anticipated or implied in such forward-looking statements. BENEV Capital Inc. believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct. Given these uncertainties, readers are cautioned that forward-looking statements included in, or incorporated by reference into, this press release are not guarantees of future performance, and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date of this press release. BENEV Capital Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.
In formulating the forward-looking statements contained herein, management has assumed that business and economic conditions affecting BENEV Capital Inc. will continue substantially in the ordinary course, including without limitation with respect to general industry conditions, general levels of economic activity, regulations (including those regarding importation of hazardous materials), and that there will be no unplanned material changes in its facilities, equipment, or customer or employee relations. These assumptions, although considered reasonable by management at the time of preparation, may prove to be incorrect.
All of the forward-looking statements made in this Press Release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, BENEV Capital Inc.
About BENEV Capital Inc.
BENEV Capital Inc. is a North American leader in high temperature treatment services for the treatment of contaminated soil and has provided thermal solutions to contamination problems throughout Canada and the U.S. BENEV Capital Inc.'s technology provides for the safe, economical and permanent solution to contaminated soil. Independent testing has consistently proven that the technology operates well within the most stringent criteria in North America. For information, please visit the BENEV Capital Inc. website at: www.benevcapital.com.
BENEV CAPITAL INC.
Consolidated Statement of Financial Position
(Expressed in Canadian dollars)
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December 31, December 31,
2012 2011
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Assets
Current assets:
Cash and cash equivalents (note 4) $ 63,856,221 $ 58,720,802
Restricted cash (note 4) 513,052 1,515,105
Amounts receivable (note 5) 1,645,903 92,023
Holdback receivable (note 6) - 300,000
Deferred costs 40,224 3,163,009
Prepaid expenses and other 488,780 374,043
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66,544,180 64,164,982
Property, plant and equipment (note 7) 7,243,868 8,774,826
Assets under finance lease (note 8) 186,534 491,040
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$ 73,974,582 $ 73,430,848
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities (note 10) $ 1,974,460 $ 1,714,370
Current tax liabilities 144,134 333,000
Deferred revenue (note 11) - 9,438,669
Provisions (note 12) 125,974 139,551
Current portion of long-term
liabilities (note 13) 79,000 79,000
Current portion of finance lease
obligations (note 14) 32,642 122,565
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2,356,210 11,827,155
Long-term liabilities (note 13) 658,881 731,193
Long-term portion of finance lease
obligations (note 14) - 32,642
Shareholders' equity:
Share capital (note 15) 96,969,879 96,969,879
Contributed surplus (note 16) 8,414,394 4,873,827
Share purchase warrants (note 17) - 2,721,131
Accumulated deficit (34,424,782) (43,724,979)
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Total equity 70,959,491 60,839,858
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$ 73,974,582 $ 73,430,848
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Continuing operations (note 1)
Contingencies (note 30)
Subsequent events (notes 1 and 30)
These consolidated financial statements do not include accompanying notes. A complete set of audited consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BENEVACFSYE12.pdf.
BENEV CAPITAL INC.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(Expressed in Canadian dollars)
(Unaudited)
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Three months ended Twelve months ended
December 31, December 31,
2012 2011 2012 2011
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Sales $ 7,832,055 $ - $ 28,298,586 $ -
Expenses:
Operating costs 4,184,907 430,712 13,394,457 1,571,890
Administration and
business
development 1,224,797 1,066,960 4,797,498 5,349,069
Management/board
restructuring
costs - - - 2,501,440
Amortization 208,920 221,828 805,823 882,971
Impairment loss 1,224,005 - 1,224,005 -
Loss on disposal of
assets held for
sale - - 57,334 18,286
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6,842,629 1,719,500 20,279,117 10,323,656
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Results from
operating
activities 989,426 (1,719,500) 8,019,469 (10,323,656)
Results from
operating
activities
Finance income 232,027 200,625 1,192,436 918,309
Finance costs (5,306) (78,659) (83,708) (151,815)
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Net finance income
(costs) 226,721 121,966 1,108,728 766,494
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Income (loss) before
income taxes 1,216,147 (1,597,534) 9,128,197 (9,557,162)
Income taxes
(recovery):
Current - (18,789) 172,000 (247,564)
Future 610,000 - - -
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610,000 (18,789) 172,000 (247,564)
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Net income for the
period being
comprehensive
income (loss) $ 606,147 $ (1,578,745) $ 9,300,197 $ (9,309,598)
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Earnings (loss) per
common share
Basic $ 0.02 $ (0.04) $ 0.24 $ (0.24)
Diluted 0.02 (0.04) 0.24 (0.24)
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These consolidated financial statements do not include accompanying notes. A complete set of audited consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BENEVACFSYE12.pdf.
BENEV CAPITAL INC.
Consolidated Statement of Changes in Equity
(Expressed in Canadian dollars)
For the year ended December 31
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Share
Share Contributed purchase Accumulated
capital surplus warrants deficit Total equity
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Balance at
January
1, 2011 $ 93,364,040 $ 4,846,334 $ 2,721,131 $ (32,164,000) $ 68,767,505
Comprehen-
sive loss
for the
period - - - (9,309,598) (9,309,598)
Equity-
based
compen-
sation - 482,008 - - 482,008
Conversion
from
equity-
settled to
cash-
settled
stock
option
plan (note
16) - (791,617) - (2,251,381) (3,042,998)
Conversion
from cash-
settled to
equity-
settled
stock
option
plan (note
16) - 407,111 - - 407,111
Share
options
exercised 3,605,839 (70,009) - - 3,535,830
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Balance at
December
31, 2011 96,969,879 4,873,827 2,721,131 (43,724,979) 60,839,858
Comprehen-
sive
income for
the period - - - 9,300,197 9,300,197
Equity-
based
compen-
sation
(note 16) - 819,436 - - 819,436
Expiry of
share
purchase
warrants - 2,721,131 (2,721,131) - -
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Balance at
December
31, 2012 $ 96,969,879 $ 8,414,394 $ - $ (34,424,782) $ 70,959,491
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These consolidated financial statements do not include accompanying notes. A complete set of audited consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BENEVACFSYE12.pdf.
BENEV CAPITAL INC.
Consolidated Statements of Cash Flows
(Expressed in Canadian dollars)
For the year ended December 31
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2012 2011
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Cash flows provided by (used in)
operating activities:
Net income (loss) for the period $ 9,300,197 $ (9,309,598)
Adjustments for:
Amortization 805,823 882,971
Impairment loss 1,224,005 -
Foreign exchange gains related to
U.S. Department of Justice accrual - (5,300)
Unwinding of discount on provision 6,688 75,045
Share-based compensation 819,436 626,953
Income tax recovery (172,000) (247,564)
Loss on disposal of assets held for
sale 57,334 18,286
Gain on sale of property, plant and
equipment (2,311) (1,671)
Changes in non-cash working capital
items:
Amounts receivable (1,553,880) 229,883
Holdback receivable - (300,000)
Prepaid expenses and other (114,737) 187,358
Deferred costs 3,122,785 (2,501,084)
Accounts payable and accrued
liabilities 502,756 (931,003)
Provisions (13,577) (556,276)
Deferred revenue (9,438,669) 6,993,300
Current tax liabilities (16,866) (3,398)
Repayment of long-term liabilities (79,000) (2,231,379)
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Net cash provided by (used in)
operating activities 4,447,984 (7,073,477)
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Cash flows from investing activities:
Proceeds from sale of property, plant
and equipment 29,307 4,250
Proceeds from sale of assets held for
sale - 1,834,356
Acquisition of property, plant and
equipment (221,360) (105,677)
Change in restricted cash 1,002,053 (1,504,456)
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Net cash provided by investing
activities 810,000 228,473
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Cash flows from financing activities:
Proceeds from exercise of share
options - 755,000
Payment of finance lease liabilities (122,565) (182,837)
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Net cash (used in) provided by
financing activities (122,565) 572,163
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Net increase (decrease) in cash and
cash equivalents 5,135,419 (6,272,841)
Cash and cash equivalents at beginning
of period 58,720,802 64,993,643
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Cash and cash equivalents at end of
period $ 63,856,221 $ 58,720,802
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These consolidated financial statements do not include accompanying notes. A complete set of audited consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BENEVACFSYE12.pdf.
Contacts:
BENEV Capital Inc.
Lawrence Haber
President and CEO
(905) 339-1540 Ext. 202
www.benevcapital.com
