TORONTO, ON / ACCESSWIRE / February 26, 2021 / Pinetree Capital Ltd. (TSX:PNP) ("Pinetree" or the "Company") today announced its financial results for the year ended December 31, 2020. All financial information provided in this press release is unaudited and all figures are in $'000 except per share amounts and shares outstanding.
Financial Results for the three months and year ended December 31, 2020
The following information should be read in conjunction with our annual audited Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards ("IFRS") and our annual Management Discussion and Analysis for the year ended December 31, 2020, which can be found on SEDAR at www.sedar.com.
Selected Financial Information
| As at December 31, 2020 | As at December 31, 2019 | |||||||
Total assets | $ | 19,484 | $ | 18,227 | ||||
Total liabilities | 383 | 329 | ||||||
Book Value | 19,101 | 17,898 | ||||||
Shares outstanding | 9,045,198 | 9,045,198 | ||||||
Book Value per share (BVPS) | $ | 2.11 | $ | 1.98 | ||||
Shares Outstanding | Book Value (BV)1 | OpEx1 (excluding F/X gain/loss)2 | Book Value per share - (BVPS)1 | Quarterly OpEx as percentage BV1 | |
$'000s | $'000s | $ | % | ||
Dec-31-20 | 9,045,198 | 19,101 | 109 | 2.11 | 0.6 |
Sep-30-20 | 9,045,198 | 16,493 | 106 | 1.82 | 0.6 |
Jun-30-20 | 9,045,198 | 15,399 | 121 | 1.70 | 0.8 |
Mar-31-20 | 9,045,198 | 15,540 | 117 | 1.72 | 0.8 |
Dec-31-19 | 9,045,198 | 17,898 | 155 | 1.98 | 0.9 |
Sep-30-19 | 9,045,198 | 17,295 | 80 | 1.91 | 0.5 |
Jun-30-19 | 9,045,198 | 17,350 | 118 | 1.92 | 0.7 |
Mar-31-19 | 9,045,198 | 17,106 | 119 | 1.89 | 0.7 |
1 Refer to "Use of Non-IFRS Financial Measures"
Shares Outstanding and Book Value amounts are as at the Quarter End date
Operating Expenses amounts are for the Three months ending the Quarter End date
2 Operating Expenses do not include Foreign Exchange gain (loss) on financial assets other than investments
As at December 31, 2020, Pinetree's BVPS was $2.11 as compared to $1.98 as at December 31, 2019, representing an increase of $0.13 or 6.6%. The increase was primarily attributable to net investment gains, net dispositions in the investment portfolio, and other income from dividends and interest which out-paced the Company's expenses during the period.
As at December 31, 2020, the Company held investments at fair value totaling $16,493, which represented 86% of book value. This compares to investments at fair value of $10,105 representing 56% of book value as at December 31, 2019.
During the period ended December 31, 2020, the Company continued to take a disciplined approach to capital allocation and OpEx control. OpEx for the twelve months ended December 31, 2020 was $453 which corresponds to 2.4% of book value as at December 31, 2020. This compares to OpEx of $474 for the twelve months ended December 31, 2019 which corresponds to 2.6% of book value as at December 31, 2019. Since expenses fluctuate from quarter to quarter, management monitors costs on a trailing twelve month basis.
Three months ended December 31, | Year ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
Net investment gains | 2,691 | 696 | 1,374 | 2,137 | ||||||||||||
Other income | 63 | 96 | 304 | 352 | ||||||||||||
Total expenses | (146 | ) | (189 | ) | (475 | ) | (571 | ) | ||||||||
Net income | 2,608 | 603 | 1,203 | 1,918 | ||||||||||||
Earnings per share - basic & fully diluted | 0.29 | 0.07 | 0.13 | 0.21 | ||||||||||||
The net investment gains for the three months ended December 31, 2020 were $2,691 (three months ended December 31, 2019 - $696) as a result of net realized gains on investments and net change in unrealized gains.
For the three months ended December 31, 2020, other income totalled $63 as compared to other income of $96 for the three months ended December 31, 2020. Other income is comprised of interest and dividend income.
Capital Update
Over the past three years, Pinetree has invested an increasing portion of its cash resources in new investments. As outlined above, the fair market value of investments as a percentage of Book Value has increased from 56% to 86% between December 31, 2018 and 2020. This resulted in Pinetree having $2,970 of available cash resources as of year-end.
The Company continued to make investments between the end of the financial year and the date of this release. As at February 24, 2020, Pinetree had approximately $1,482 in cash resources. Accordingly, in order for the Company to complete additional portfolio investments in the future, it will likely require additional equity and/or debt capital. As such, the Company may complete one or more equity and/or debt financing transactions during the next 3 to 6 months. Such financing transactions, if consummated, are most likely to be completed on a prospectus-exempt basis. No assurance can be given that any such equity or debt financing transactions will occur on this anticipated timeline or at all.
Forward Looking Statements
Certain statements herein may be "forward looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Pinetree or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Pinetree assumes no obligation, except as required by law, to update any forward-looking statements to reflect new events or circumstances.
Non-IFRS Measures, Non-GAAP Measures
BVPS (book value per share) as a measure of the performance of the Company as a whole. Book value is the shareholders' equity at the date of the statement of financial position, otherwise calculated as the total assets minus the total liabilities. Book Value is divided by the total number of common shares outstanding as at a specific date to give BVPS. Book Value and BVPS do not have any standardized meaning according to IFRS and therefore may not be comparable to similar measures presented by other companies. These amounts are not performance measures as defined under IFRS and should not be considered either in isolation of, or as a substitute for, net earnings prepared in accordance with IFRS.
About Pinetree Capital Ltd.
Pinetree is a value-oriented investment and merchant banking company focused on the technology sector. Pinetree's common shares are listed on the TSX under the symbol "PNP".
For further information:
John Bouffard
Chief Financial Officer
416-941-9600 x 200
jbouffard@pinetreecapital.com
www.pinetreecapital.com
SOURCE: Pinetree Capital Ltd.
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