TORONTO, ONTARIO -- (Marketwire) -- 05/31/10 -- Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX VENTURE: UFC) (the "Company"), confirmed today that the Company has filed interim financial results for the three month period ended March 31, 2010.
For the three month period ended March 31, 2010, the Company reported net earnings of $29,389 on revenues of $811,458 compared with net earnings of $173,623 on revenue of $982,423 for the corresponding period in 2009. The decrease in rental revenue was due to a reversal of an accounting accrual estimate for a tenant recovery related to a commercial tenant at one of the Company's properties.
Amortization costs increased during the three month period ended March 31, 2010, to $170,157 from $163,355 for the corresponding period ended March 31, 2009. Administrative costs increased to $80,463 during the three month period ended March 31, 2010, from $68,131 for the corresponding period ended March 31, 2009.
Rental expenses in the three month period ended March 31, 2010 decreased to $273,214 compared to $311,717 for the corresponding period in 2009. This decrease was a result of cost savings activities in place at all locations.
Assets decreased by $56,303 to $30,123,457 for the three month period ended March 31, 2010, compared to an increase of $2,135 to $30,964,768 for the corresponding period ended March 31, 2009. The decrease was mainly due to an increase in accumulated amortization and a decrease in other assets. The increase in assets during the corresponding period in 2009 was the result of the acquisition of appliances.
The following table highlights selected financial information for the Company's past eight quarters:
---------------------------------------------------------------------------- Net Income Net Income Net Income Per Share Per Share Quarter ended Revenue (Loss) (Basic) (Diluted)(1) ---------------------------------------------------------------------------- March 31, 2010 $811,458 $29,389 0.001 0.001 ---------------------------------------------------------------------------- December 31, 2009 $632,680 ($504,207) (0.010) 0.002 ---------------------------------------------------------------------------- September 30, 2009 $992,444 $88,766 0.002 0.002 ---------------------------------------------------------------------------- June 30, 2009 $808,288 ($53,015) (0.001) - ---------------------------------------------------------------------------- March 31, 2009 $982,423 $173,623 0.005 0.003 ---------------------------------------------------------------------------- December 31, 2008 $988,053 $1,090,667 0.020 0.017 ---------------------------------------------------------------------------- September 30, 2008 $781,872 ($6,851) (0.000) - ---------------------------------------------------------------------------- June 30, 2008 $819,012 ($157,212) (0.004) - ----------------------------------------------------------------------------
Notes:
(1) Fully-diluted Net Income per Share figures have not been presented as certain of the results would have been anti-dilutive for certain Quarters.
Results from operations for the three month period ended March 31, 2010 are as follows:
---------------------------------------------------------------------------- ---------------------------------------------------------------------------- 3 Months Ended 3 Months ended March 31, 2010 March 31, 2009 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net Earning (Loss) Before Income Taxes $52,096 $230,655 Adjust for: ---------------------------------------------------------------------------- Interest Income ($12,216) ($44,572) ---------------------------------------------------------------------------- Amortization, income producing properties $151,157 $126,238 ---------------------------------------------------------------------------- Amortization value of in-place leases $10,206 $28,405 ---------------------------------------------------------------------------- Amortization of tenant relationships $4,526 $5,714 ---------------------------------------------------------------------------- Amortization of above market leases $16,174 $17,505 ---------------------------------------------------------------------------- Amortization of below market leases ($11,906) ($14,507) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Funds From Operations (FFO) $210,037 $349,438 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
For the three month period ended March 31, 2010, the Company reported Funds from Operations ("FFO") of $210,037 on Net Earnings before Income Taxes of $52,096 as compared with FFO of $349,438 on Net Earnings before Income Taxes of $230,655 for the three month period ended March 31, 2009. The decrease in FFO is attributable to an accounting accrual reflected during the three month period ended March 31, 2009.
FFO is a non-GAAP performance measure used by the Company to improve the understanding of operating results for the investing public. FFO is not a measure recognized under Canadian generally accepted accounting principles ("GAAP") and does not have a standardized meaning prescribed by GAAP. Therefore, FFO may not be comparable to similar measures presented by other issuers. However, the Company presents its FFO in accordance with the Real Property Association of Canada (REALpac) White Paper on Funds from Operations published on November 30, 2004 and revised in February, 2007.
FFO, or any other non-GAAP performance measure, is not intended to represent operating profits for the period or from a property. Furthermore, it should not be viewed as an alternative to net income, cash flow from operating activities or similar measures of financial performance calculated in accordance with GAAP.
For comprehensive disclosure of the Company's performance for the three months ended March 31, 2010 and its financial position as at such date, reference should be made to: (i) the Company's consolidated financial statements as at for the three month period ended March 31, 2010 and the notes thereto; and (ii) management's discussion and analysis of financial condition as at, and results of operations for the period ended, March 31, 2010, which have been filed with applicable securities regulators on SEDAR at www.sedar.com.
Urbanfund Corp. is a Toronto-based real estate development and operating company. Urbanfund Corp. is a TSX Venture exchange listed real estate company based in Toronto. The Company's common shares trade under the symbol UFC on the TSX Venture Exchange. Urbanfund's focus is to identify, evaluate and invest in real estate or real estate related projects. The Company's assets are located in Belleville, London and Toronto, Ontario. The Company's strategy going forward remains committed to seek accretive real estate or real estate-related opportunities.
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements, which reflect Management's expectations regarding the Company's growth, results of operations, performance and business prospects and opportunities.
Statements about the Company's future plans and intentions, results, levels of activity, cash flow from operations, performance, goals or achievements or other future events constitute forward-looking statements. Wherever possible, words such as "may," "will," "should," "could," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect Management's current beliefs and are based on information currently available to management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: general economic and market segment conditions, interest rates, costs outside of the Company's control such as Real Estate Taxes and utilities, the ability of tenants to satisfy their contractual rent obligations and any unforeseen repair, maintenance or replacement of the Company's assets. More detailed assessment of the risks that could cause actual results to materially differ than current expectations is contained in the "Risks and Uncertainties" section of the Company's most recent Management's Discussion and Analysis.
The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.
Contacts:
Urbanfund Corp.
Mitchell Cohen
President & CEO
(416) 703-1877 x225
