Dundee Corporation Reports Second Quarter 2013 Financial Results
August 12 2013 - 5:06PM
Marketwired
Dundee Corporation (TSX:DC.A)(TSX:DC.PR.B)(TSX:DC.PR.C) (the
"Corporation") is reporting its financial results as at and for the
three and six months ended June 30, 2013. The Corporation's
unaudited condensed interim consolidated financial statements,
along with the accompanying management's discussion and analysis
have been filed on the System for Electronic Document Analysis and
Retrieval ("SEDAR") and may be viewed under the Corporation's
profile at www.sedar.com or the Corporation's website at
www.dundeecorp.com.
COMPLETION OF DISTRIBUTION OF DUNDEE REALTY CORPORATION
On May 30, 2013, the Corporation completed a restructuring,
through a tax efficient plan of arrangement (the "Arrangement")
that effectively distributed the majority of its ownership in
Dundee Realty Corporation ("Dundee Realty") to its shareholders,
through the creation of a new public entity, DREAM Unlimited Corp.
("DREAM"). The Arrangement was accounted for as a distribution of
all of the underlying assets of Dundee Realty, resulting in the
inclusion in current period net earnings of a $599.4 million gain.
In addition to the gain, the Corporation has classified the
operating results of Dundee Realty prior to completion of the
Arrangement as discontinued operations. As part of the Arrangement,
the Corporation retained a 29% interest in DREAM, which leaves it
with a 20% effective interest in Dundee Realty, compared with the
70% it owned prior to the Arrangement.
CHANGES IN ACCOUNTING GUIDELINES - EARLY IMPLEMENTATION OF IFRS
9
In concert with the completion of the Arrangement, the
Corporation early adopted International Financial Reporting
Standard ("IFRS") 9. Under this standard, the Corporation's
portfolio of investments and other financial instruments will
generally be measured at fair value, with changes in fair value
being recognized in net earnings. Under the application of previous
accounting guidelines, changes in fair value were recorded in other
comprehensive income, other than decreases in value of financial
assets that were deemed to be other-than temporary. The
implementation of IFRS 9 will cause significant volatility to the
Corporation's earnings on a period-over-period basis.
FINANCIAL HIGHLIGHTS
-- Net earnings attributable to owners of the Corporation during the second
quarter of 2013, inclusive of the gain on the distribution of Dundee
Realty and less the loss from continuing operations as outlined below,
were $541.6 million or $9.97 per share.
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Three months ended Three months ended
June 30, 2013 June 30, 2012
(in millions of dollars, other
than per share amounts) Amounts Per Share Amounts Per Share
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Earnings from discontinued
operations $ 610.9 $ 11.29 $ 21.9 $ 0.40
Loss from continuing operations $ (69.3) $ (1.32) $ (133.6) $ (2.47)
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Net earnings attributable to
owners of Dundee Corporation $ 541.6 $ 9.97 $ (111.7) $ (2.07)
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-- Net Earnings from Continuing Operations - During the three months ended
June 30, 2013, the Corporation incurred a loss from continuing
operations attributable to owners of Dundee Corporation of $69.3
million, or a loss of $1.32 per share. This compares with a loss from
continuing operations attributable to owners of Dundee Corporation of
$133.6 million, or $2.47 per share incurred in the second quarter of the
prior year. Net earnings include unrealized losses in the Corporation's
investment portfolio, reflecting changes in value as determined by
equity and credit markets. The Corporation believes that equity and
credit markets do not necessarily correctly reflect the underlying value
of certain assets, and therefore provide little analytical or predictive
value. The Corporation's investment decisions are not motivated by the
short-term impact that resulting gains or losses may have on reported
earnings in any particular reporting period.
-- Market Value of Investments - The market value of the Corporation's
portfolio of investments was $1.5 billion at June 30, 2013, including
$0.7 billion accounted for on an equity basis.
-- Fee Earning Assets under Management and Administration - Fee earning
assets under management and administration decreased to $4.1 billion at
June 30, 2013, compared with $4.9 billion at December 31, 2012.
-- Corporate Debt at June 30, 2013 was $261.7 million, of which $94.5
million was borrowed by the Corporation's operating subsidiaries,
including Dundee Energy Corporation and Blue Goose Capital Corp. This
compares with corporate debt of $99.5 million at December 31, 2012,
before debt associated with Dundee Realty.
ABOUT THE CORPORATION
Dundee Corporation is a public Canadian independent holding
company listed on the Toronto Stock Exchange ("TSX") under the
symbol "DC.A". Through its operating subsidiaries, Dundee
Corporation is engaged in diverse business activities in the areas
of its core competencies including investment advisory and
corporate finance, energy, resources, agriculture, real estate and
infrastructure. Dundee Corporation also holds, directly and
indirectly, a portfolio of investments mostly in these core focus
areas, as well as other select investments in both publicly listed
and private companies.
Contacts: Dundee Corporation Ned Goodman President and Chief
Executive Officer (416) 365-5665 Dundee Corporation Lucie Presot
Vice President and Chief Financial Officer (416) 365-5157
www.dundeecorp.com
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