Plazacorp announces first quarter financial results
May 22, 2007
HALIFAX, May 22 /CNW/ - Plazacorp Retail Properties Ltd. (PLZ:TSX Venture) today announced its results for the first quarter ended March 31, 2007. Michael Zakuta, Plazacorp's President and CEO, said, "We are very pleased with our financial results for the first quarter ended March 31, 2007. The addition of sixteen (16) new properties over the last twelve (12) months and the resulting financial performance is a strong confirmation of our business strategy and our ability to source, lease, develop, finance and operate retail real estate in Atlantic Canada, Quebec and Ontario." The Corporation reported funds from operations ("FFO") of $0.065 per share ($0.062 per share diluted) for the three months ended March 31, 2007, representing an increase of 35% over the $0.048 per share ($0.045 per share diluted) for the three months ended April 30, 2006. During the three months ended March 31, 2007, the Corporation grew its portfolio by 4 properties from an interest in 74 properties with total assets of $230 million to 78 properties with total assets of $233 million. Subsequent to March 31, 2007 two additional properties were added to the Company's portfolio for a total of 80 properties. Earnings before interest, income taxes, depreciation and amortization (EBITDA) was $5.7 million for the three months ended March 31, 2007, an increase of $1.2 million (27%) as compared to $4.5 million for the quarter ended April 30, 2006. The Company has changed the prior year's fiscal year end for financial reporting purpose from October 31 to December 31, 2006. As a result the interim consolidated financial statements comparative figures and related financial summaries will be for period ends that are different then for the current period being reported upon. Plazacorp's Summary of FFO for the 3 months ended March 31, 2007, compared to the 3 months ended April 30, 2006 including the results of discontinued operations are presented below:------------------------------------------------------------------------- (000's - except per share amounts) March 31, April 30, For the Three Months Ended 2007 2006 ------------------------------------------------------------------------- Total revenues $ 9,734 $ 8,080 ----------------------- ----------------------- Basic earnings (loss) per share $ 0.072 $ (0.001) ----------------------- ----------------------- Diluted earnings (loss) per share $ 0.066 $ (0.001) ----------------------- ----------------------- Net income (loss) $ 3,064 $ (58) Gain on disposal of income producing properties (2,786) - Income tax expense (recovery) 259 (70) Income tax expense included in income from discontinued operations 28 41 Amortization 2,095 1,955 Amortization included in income from discontinued operations 85 124 Non-controlling interests 80 17 Financing costs 2,769 2,382 Financing costs included in income from discontinued operations 115 159 ----------------------- Earnings before interest, taxes, depreciation and amortization (EBITDA) 5,709 4,550 Less: Financing costs (2,884) (2,541) Current income tax expense (recovery) 2 (35) Non-cash debenture interest 21 20 Equity accounting and non-controlling interests adjustments to FFO (66) (75) Corporate amortization (8) (11) ----------------------- Basic FFO 2,774 1,908 Interest on dilutive convertible debentures 109 191 ----------------------- Diluted FFO $ 2,883 $ 2,099 ----------------------- ----------------------- Basic weighted average shares outstanding 42,766 39,703 ----------------------- ----------------------- Basic FFO per share $ 0.065 $ 0.048 ----------------------- ----------------------- Diluted shares outstanding per consolidated financial statements 48,052 40,144 Diluted (antidilutive) effect of convertible debentures (1,250) 6,074 ----------------------- Total diluted weighted average shares outstanding 46,802 46,218 ----------------------- ----------------------- Diluted FFO per share $ 0.062 $ 0.045 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Diluted FFO exclude the impact of convertible debentures not dilutive to earnings (see note 16c of the consolidated financial statements March 31, 2007)A copy of Plazacorp's quarterly report can be found on the Corporation's web site at www.plaza.ca and can be found on www.sedar.com Plazacorp Retail Properties Ltd. is an owner of shopping malls and strip plazas throughout Atlantic Canada, Quebec and Ontario. Plazacorp owns interests in 80 properties comprising 4.0 million square feet of retail real estate. CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION This news release contains forward looking statements relating to our operations and the environment in which we operate, which are based on our expectations, estimates, forecasts and projections. These statements are not future guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward looking statements. Readers, therefore, should not place undue reliance on any such forward looking statements. Further, a forward looking statement speaks only as of the date on which such statement is made. We undertake no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. %SEDAR: 00012014E
For further information:
For further information: Earl Brewer, Chairman or Kim Sharpe, Director of Business Development, (506) 451-1826; on Plazacorp, visit our website at www.plaza.ca