Pinetree Capital Ltd. Announces Unaudited Financial Results For The Three And Nine Months Ended September 30, 2014
November 12, 2014
TORONTO, Ontario (November 12, 2014) – Pinetree Capital Ltd. (“Pinetree”) (TSX: PNP) today announces its unaudited interim consolidated financial results for the three and nine months ended September 30, 2014.
For the three months ended September 30, 2014, Pinetree had a net loss of $27 million, as compared to a net profit of $13 million for the same quarter last year. Net loss for the three months ended September 30, 2014 was primarily the result of net investment loss of $22 million, comprised of $15 million in net realized losses on disposals of investments and unrealized losses on investments of $7 million. Basic loss per share was $0.13 for the three months ended September 30, 2014, as compared to basic earnings per share of $0.09 for the three months ended September 30, 2013.
For the nine months ended September 30, 2014, Pinetree had a net profit of $6 million, as compared to a net loss of $97 million for the same period last year. Net profit for the nine months ended September 30, 2014 was primarily the result of net investment gains of $19 million, comprised of $353 million in unrealized gains on investments offset by realized losses on dispositions of investments of $334 million. Basic earnings per share was $0.04 for the nine months ended September 30, 2014, as compared to basic loss per share of $0.68 for the nine months ended September 30, 2013.
As at September 30, 2014, the fair value of the Company’s total investments was $161 million, as compared to $134 million as at December 31, 2013, an increase of 20%. The composition of Pinetree’s investment portfolio by sector as at September 30, 2014 and December 31, 2013 is outlined in the following table:
|Sector||September 30, 2014||December 31, 2013|
|($’000)||% of Total||($’000)||% of Total|
|Oil and gas||13,866||8.6||16,647||12.4|
|Potash, lithium and rare earths||8,471||5.3||12,299||9.2|
|Technology and other||85,789||53.3||25,610||19.1|
Net asset value per share (“NAV”) was $0.63 as at September 30, 2014, a 3% decrease from the December 31, 2013 NAV of $0.65. (See “Use of Non-GAAP Measures” below.)
As previously announced on November 10, 2014, the Company is not in compliance with one of the debt covenants contained in the convertible debenture indenture dated May 17, 2011, between the company and Equity Financial Trust Company, as trustee, which governs Pinetree’s 10% convertible unsecured subordinated debentures due May 31, 2016 (“Debentures”) (TSX: “PNP.DB”). The debt covenant at issue prohibits the Company’s debt from exceeding 33% of the total value of its assets, as reflected on its (unaudited) consolidated balance sheet as at the last day of each month. As at October 31, 2014, Pinetree’s debt-to-assets ratio was 38.8%. Under the indenture governing its Debentures, the Company is required to cure or obtain a waiver for the default within 60 days of receiving notice of default from the trustee (which has not been received).
Pinetree Capital Ltd. ("Pinetree") was incorporated under the laws of the Province of Ontario and its shares are publicly-traded on the Toronto Stock Exchange (“TSX”) under the symbol “PNP”. Pinetree is a diversified investment and merchant banking firm focused on the small cap market. Pinetree’s investments are primarily in the following sectors: Precious Metals, Technology and Uranium. Pinetree’s investment approach is to develop a macro view of a sector, build a position consistent with the view by identifying micro-cap opportunities within that sector, and devise an exit strategy designed to maximize our relative return in light of changing fundamentals and opportunities. Pinetree is recognized as a value added partner.
Pinetree discloses an unaudited monthly net asset value per share within 15 days after each month-end. For the latest month-end net asset value per share and for more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com.
Use of Non-GAAP Measures
NAV (net asset value per share) is a non-GAAP (international financial reporting standards) measure calculated as the value of total assets less the value of total liabilities divided by the total number of common shares outstanding as at a specific date. The term NAV does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies. There is no comparable GAAP measure presented in Pinetree’s consolidated financial statements and thus no applicable quantitative reconciliation for such non-GAAP financial measure. The Company has calculated NAV consistently for many years and believes that NAV can provide information useful to its shareholders in understanding its performance, and may assist in the evaluation of its business relative to that of its peers.
|Sheldon Inwentash, CPA, CA.||Richard Patricio, LL.B.|
|Chairman & CEO||Vice President, Legal and Corporate Affairs|
|Pinetree Capital Ltd.||Pinetree Capital Ltd.|
|130 King Street West, Suite 250|
|Gerry Feldman, CPA, CA.||Toronto, Ontario, Canada, M5X 2A2|
|CFO & Vice President, Corporate Development||Phone: 416-941-9600|
|Pinetree Capital Ltd.||Email: firstname.lastname@example.org|
|Phone: 416-643-3884||Website: www.pinetreecapital.com|