Business
Labrador Iron Ore Royalty Corporation - Results for the Second Quarter Ended June 30, 2011
TORONTO, Aug. 9, 2011 /CNW/ - Labrador Iron Ore Royalty Corporation ("LIORC") (TSX: LIF.UN) a...
About this update from Labrador Iron Ore Royalty Corporation
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Aug. 9, 2011 /CNW/ - Labrador Iron Ore Royalty Corporation\n (\"LIORC\") (TSX: LIF.UN) announced the results of its operations for the\n second quarter ended June 30, 2011.\n\n\nOn July 1, 2011 the 2-for-1 split of the stapled units approved by the\n unitholders on May 30, 2011, became effective. The stapled units\n started trading on a split basis on the Toronto Stock Exchange on June\n 28, 2011. Accordingly, all per unit figures in this report are based on\n 64 million units outstanding rather than the 32 million in previous\n statements, with all prior per unit figures being restated.\n\n\nRoyalty income for the second quarter of 2011 amounted to $37.8 million\n as compared to $52.1 million for the second quarter of 2010. The\n unitholder's cash flow from operating activities after adjustments for\n changes in amounts receivable, accounts payable and income taxes\n payable (adjusted cash flow) for the second quarter was $23.0 million\n or $0.36 per unit as compared to $30.5 million or $0.48 per unit for\n the same period in 2010.  Net income was $48.2 million or $0.75 per\n unit compared to $69.3 million or $1.08 per unit for the same period in\n 2010. Equity earnings from IOC amounted to $30.4 million or $0.48 per\n unit as compared to $46.7 million or $0.73 per unit in 2010. Had the\n price adjustments which occurred in the second quarter of 2010 and\n related to the first quarter not been included, 2010 royalty income\n would have been reduced by $10.4 million or $0.33 per unit and equity\n earnings from IOC by $14.2 million or $0.44 per unit. Without the\n inclusion of these amounts, second quarter of 2010 net income would\n have been $0.84 per unit and adjusted cash flow $0.38 per unit.\n\n\nPrior to the July 1, 2010 conversion of Labrador Iron Ore Royalty\n Corporation (\"LIORC\") from an income trust, the net income of the\n unitholders was the same as the trust's net income. Since the\n unitholders now own the $248 million LIORC subordinated notes directly,\n the net income of the unitholders consists of the net income of LIORC\n plus the interest paid on the LIORC subordinated notes. Thus all net\n income, adjusted cash flow and per unit figures referred to in this\n report use the totals according to the financial statements plus (where\n applicable) the $7,488,000 ($0.117 per stapled unit)...