Jannock Properties Limited Reports March 31, 2006 Results and $0.05 Distribution to Shareholders
Market Wire, May, 2006
Jannock Properties Limited (TSX VENTURE:JPL.UN) today reported net earnings of $8,000 ($0.00 per share) for the First Quarter of 2006 compared with earnings of $1,036,000 ($0.03 per share) for the same period in 2005.
The Board of Directors has approved a cash distribution equivalent to $0.05 per unit to be paid to shareholders on June 16, 2006.
Real Estate
With the completion of the sale of all of the remaining land in 2005, the Corporation is now concentrating its efforts on collecting the outstanding mortgages receivable. In the First Quarter of 2006, $513,000 was received as a full pay-out of a mortgage receivable, leaving a total of $3,670,000 still outstanding for properties that had previously been sold.
Cash Flows from Operations
Cash used for operating activities in the First Quarter of this year amounted to $496,000 compared with a cash provided by operating activities of $2,463,000 for the same period last year. The major differences are due to:
- Cash receipts for the First Quarter this year were $556,000 and were primarily from the collection of an outstanding mortgage receivable. This compares with $2,802,000 for the First Quarter last year, which included a land sale of $2,700,000.
- Cash payments for the First Quarter this year were $1,052,000 and included income tax installments of $918,000 which were primarily related to 2005 earnings. In the same period last year cash payments were $339,000 and included $155,000 for commissions relating to a land sale.
Jancor Companies, Inc.
Operating results in the first quarter improved significantly from last year primarily due to improved sales volumes resulting from the mild winter. Resin costs remain high but are showing some signs of softening. Debt levels have shown the normal seasonal increase.
Jancor expects to show significant improvement in its results in 2006, providing that there are not unusual weather conditions such as last year's major hurricanes.
Corporate Items
The Board of Directors has approved a cash distribution equivalent to $0.05 per unit through the redemption of 5 of the 75 Class A Special shares that are currently included in each unit. This distribution will be paid on June 16, 2006 to the unit holders of record as at the close of business on June 2, 2006. The ex-redemption date for trading of the Units will be May 31, 2006 and each Unit will then consist of 70 Class A Special shares and one Class B Special share.
As stated in the recently released 2005 Annual Report, the Corporation is making strenuous efforts to minimize its operating costs. In the First Quarter of this year administrative costs were 40% lower than in the same period last year. Although the Corporation is unlikely to maintain this performance through the balance of the year, it does demonstrate the efforts being made to control expenses.
The mandate for the Company is to dispose of its assets in a manner that maximizes value and distributes the net proceeds realized from those assets to shareholders in a timely fashion.
The Company's common shares are listed on the Canadian Venture Exchange (trading symbol:JPL.UN). Currently each Unit consists of one Class B common share and 75 Class A special shares.
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)
MARCH 31 DECEMBER 31
2006 2005
------------ -------------
(unaudited)
ASSETS
Mortgages receivable (note 3) $ 3,670 $ 4,183
Other assets 145 68
Cash and cash equivalents 4,066 4,562
------------ -------------
$ 7,881 $ 8,813
------------ -------------
LIABILITIES
Accounts payable and accrued
liabilities (note 4) $ 160 $ 186
Income taxes payable 31 947
Future income taxes 356 354
------------ -------------
$ 547 $ 1,487
------------ -------------
SHAREHOLDERS' EQUITY
Capital stock (note 6) $ 26,677 $ 26,677
Contributed surplus 6,868 6,868
Deficit (26,211) (26,219)
------------ -------------
$ 7,334 $ 7,326
------------ -------------
------------ -------------
$ 7,881 $ 8,813
------------ -------------
INTERIM STATEMENT OF OPERATIONS AND DEFICIT
(in thousands of Canadian dollars, except per share amounts)
THREE MONTHS
ENDED MARCH 31
2006 2005
------------ -------------
(unaudited) (unaudited)
Land sales (note 2) $ - $ 2,700
Cost of sales - 1,089
------------ -------------
Gross profit - 1,611
Interest and other income 97 152
General and administrative costs (85) (141)
------------ -------------
Income before income taxes 12 1,622
Income taxes provided (note 5)
- current 2 348
- future 2 238
------------ -------------
4 586
------------ -------------
Net income for the period $ 8 $ 1,036
Deficit - Beginning of period $(26,219) $(27,613)
------------ -------------
Deficit - End of period $(26,211) $(26,577)
------------ -------------
------------ -------------
Net earnings per share $ 0.00 $ 0.03
INTERIM STATEMENT OF CASH FLOWS
(in thousands of Canadian dollars)
THREE MONTHS
ENDED MARCH 31
2006 2005
------------ -------------
(unaudited) (unaudited)
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Cash receipts
Receipts on sales of land $ - $ 2,700
Collection of mortgages receivable 513 -
Interest and other income received 43 102
------------ -------------
556 2,802
------------ -------------
Cash payments
Real estate commissions - (155)
Recoveries (expenditures) on
land development (4) 14
Income taxes paid (918) -
Payments of general and
administrative and other (130) (198)
------------ -------------
(1,052) (339)
------------ -------------
------------ -------------
Total operating activities (496) 2,463
------------ -------------
------------ -------------
INCREASE/(DECREASE) IN CASH (496) 2,463
------------ -------------
CASH BEGINNING OF PERIOD $ 4,562 $ 1,904
CASH END OF PERIOD $ 4,066 $ 4,367
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