Pinetree Capital Ltd. Announces Unaudited Financial Results For The Three And Nine Months Ended September 30, 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:
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 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
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