Mr. Richard Homburg, Chairman and CEO is pleased to report that Homburg Invest Inc. has released the June 30, 2005 financial results prepared under both Canadian Generally Accepted Accounting Principles (CDN. GAAP) and International Financial Reporting Standards (IFRS).
The results noted reflect the most profitable quarter in the Company's history based on IFRS and CDN GAAP reporting and the property revenue and property net operating income reflect only one month of the completed European acquisitions which occurred on June 1, 2005. The Company is now poised to grow significantly under its strategic plan to expand its revenue base while at the same time take advantage of development opportunities in Canada, Europe and the United States. The operating results are summarized as follows under IFRS and CDN GAAP.
IFRS net earnings for the second quarter of 2005 were $3.8 million or $0.06 per share compared to $783 thousand in the second quarter of 2004 or $0.02 per share. For the six-month period ended June 30, 2005, net earnings are $6.1 million or $0.10 per share compared to $2.0 million or $0.04 per share in 2004. The effect on net earnings is directly related to the sale of the Vintage Towers in the second quarter which contributed $4.5 million to earnings before income taxes. The actual gain realized was $14.1 million of which $9.6 million had previously been recorded as "unrealized valuation charges" in prior period financial statements. Against this gain unusual expenses incurred in the second quarter included $1.1 million in stock option compensation and a $0.6 million interest swap expense recorded on a Derivative instrument on the debt on the Bochum, Germany property. While none of this $1.7 million in expenses resulted in a cash outlay to the Company, they directly impact earnings in the quarter and year to date results.
Funds from operations for the second quarter of 2005 was $1.8 million or $0.03 per share compared to funds from operations of $1.0 million in 2004 or $0.02 per share. The stability of cash flow year over year is very evident in the real estate operations. Our major European portfolio which was acquired in June 2005 for $498 million will positively impact future cash flows and earnings when they come on stream over the next four quarters. The Company's total assets at June 30, 2005 were $831.4 million for IFRS purposes, up from $387.7 million at December 31, 2004.
CDN GAAP net earnings for the second quarter of 2005 were $9.6 million or $0.14 per share compared to $163 thousand in the second quarter of 2004 or $0.01 per share. For the six-month period ended June 30, 2005, net earnings are $10.1 million or $0.16 per share compared to $822 thousand or $0.02 per share in 2004. The effect on net earnings is directly related to the sale of the Vintage Towers in the second quarter which contributed $14.1 million to earnings before income taxes. Against this gain unusual expenses incurred in the second quarter included $1.1 million in stock option compensation, the recognition of an impairment of a US property in the amount of $1.0 million and a $0.6 million interest swap adjustment to market expense recorded on a Derivative instrument on the debt on the Bochum, Germany property. While none of this $2.7 million in expenses resulted in a cash outlay to the Company, they directly impact earnings in the quarter and year to date results.
Funds from operations for the second quarter of 2005 was $1.3 million or $0.02 per share compared to funds from operations of $1.3 million in 2004 or $0.03 per share. The stability of cash flow year over year is very evident in the real estate operations. Our major European portfolio which was acquired in June 2005 for $498 million will positively impact future cash flows and earnings when they come on stream over the next four quarters. The Company's total assets at June 30, 2005 were $788.2 million for CDN GAAP purposes, up from $340.5 million at December 31, 2004.
Source: Homburg Invest
