Toronto, Ontario--(Newsfile Corp. - May 30, 2012) - GC-Global Capital Corp. ("Global Capital") (TSX-V: GDE.A) is pleased to announce its financial results for the first quarter ending March 31, 2012.
Overall First Quarter Performance
Total revenue for the quarter ended March 31, 2012 was $117,932 compared to $961,730 for the same period in 2011.
Interest and dividend income decreased from $135,566 to $88,688 in 2012. The expected trend is for interest and dividend income is to remain constant or increase in subsequent years. Structuring fees and bonuses decreased significantly from $75,948 to $8,787 in 2012. The Company charges interest and a structuring fee or a bonus on its bridge loan financings. Bonuses can be in the form of cash, shares in companies, warrants or other compensation. The expected trend is for structuring fees to be consistent with the current year.
The sale of investments and securities have resulted in GC recording a realized gain of $15,355 for the quarter as compared to a realized gain of $685,922 in the same quarter in2011. The amount includes a gain of $15,355 from available for sale investments and no change in the sale of fair value through profit or loss investments (2011 – gain of $140,940 from available for sale investments and $544,982 from fair value through profit or loss investments). The current year gain is primarily due to the sale of publicly traded investments.
The net profit for the quarter ended March 31, 2012 was $101,745 (2010 – $370,242) and net comprehensive profit was $224,681 (2010 – $340,234). The bulk of the gain from the following non-cash, valuation related sources may not be realized in the future: $294,273 due to unrealized gains on fair value through profit or loss investments (2011 – gain of $Nil. Net gain per share was $0.01 (2011 – $0.02) . Excluding the income statement item noted above, the adjusted net loss before tax per share was $0.01 (2010 – profit of $0.02) . In 2012, the management team is focusing on reversing the impact of non-cash, valuation sources where possible. Efforts to reverse these non-cash expenses will focus on: 1) recovering capital from legacy bridge loans which have been written down, 2) identifying opportunities to reduce the provision for loan losses, 3) improving the valuation of equity investments through working with management to drive net profit, 4) capturing improvements in the United States real estate market.
As at March 31, 2012 GC’s net assets were valued at $11.2 million or $0.58 per share compared to $10.5 million or $0.58 per share as at December 31, 2011. The $0.7 million dollar change in net assets is a combination of $0.4 million in new shares issued, $0.2 million in net profit (mostly due to the valuation of equity and property investments and unrealized gains on fair value through profit or loss investments) and $0.1 million in other comprehensive profit. The share buybacks through the Company’s Normal Course Issuer Bid (“NCIB”) were minimal in the first quarter of 2012.
A full set of unaudited financial statements and related notes have been filed on SEDAR.
About GC-Global Capital Corp.
Global Capital is a merchant bank, which provides bridge loan services, to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology. For further information, please contact Jason G. Ewart at (416) 488-7760 or visit Global Capital’s website at www.gcglobalcapital.ca.
Forward-Looking Information
These materials include certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Other than statement of historical fact, all statements in this material, including, without limitation, statements regarding fair values of marketable securities, investments, bridge loans, convertible debentures, estimated asset retirement obligations, and future plans and objectives of the Company, are forward-looking statements that involve various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of these materials. Important factors that could cause actual results to differ materially from the Company's expectations include, without limitation, the level of bridge loans completed, the nature and credit quality of the collateral security, the sufficiency of cost estimates for remaining reclamation obligations as well as those factors discussed in the Company's documents filed from time to time with the TSX Venture Exchange, Canadian securities regulators and other regulatory authorities. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Source: Fountain Asset Corp.