Business
Royal Gold Reports Increased Net Income and Free Cash Flow for Third Quarter of Fiscal 2007
Royal Gold Reports Increased Net Income and Free Cash Flow for Third Quarter of Fiscal 2007.
About this update from Red Lake Gold Inc
[{"type":"text","content":"\n\n\n\n- Net Income Increases 75% on Per Share Basis\n\n- Free Cash Flow* Increases 144%\n\n\nDENVER, MAY 3 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; Toronto: RGL), the\nleading publicly-traded precious metals royalty company, today announced\nfiscal third quarter 2007 net income of $3.4 million, or $0.14 per basic\nshare, on royalty revenue of $11.2 million. This compares to net income for\nthe third quarter of fiscal 2006 of $1.8 million, or $0.08 per basic share, on\nroyalty revenue of $5.8 million.\n\n\nNet income for the nine-month period ended March 31, 2007, was $14.0\nmillion, or $0.59 per basic share, on royalty revenue of $34.0 million. This\ncompares to net income of $7.8 million, or $0.34 per basic share, for the\nnine-month period ended March 31, 2006, on royalty revenue of $20.2 million.\n\n\nFree cash flow for the quarter was approximately $8.3 million, accounting\nfor 74% of revenues. This compares to free cash flow for the third quarter of\nfiscal 2006 of approximately $3.4 million or 59% of revenues. For the\nnine-month period ended March 31, 2007, free cash flow was approximately $26.6\nmillion, or 78% of revenues, compared with free cash flow for the same period\nended March 31, 2006, of approximately $14.0 million, or 69% of revenues.\n\n\nAs of March 31, 2007, the Company had a working capital surplus of $22.8\nmillion. Current assets were $28.5 million (including $19.2 million in cash)\ncompared to current liabilities of $5.7 million resulting in a current ratio\nof 5 to 1.\n\n\nDuring the third fiscal quarter, we determined that the partnership that\nowns the NVR1 royalty at Pipeline, and in which Royal Gold holds a 31.6%\neconomic interest, should have been previously consolidated in our financial\nstatements under the rules for consolidating variable interest entities.\nTherefore, we have consolidated the partnership resulting in an increase in\nreported revenue and assets, offset by minority interest expense and\nliability, There was no impact to net income, earnings per share, free cash\nflow or shareholders' equity. (See Schedule A).\n\n\nAlso, during the quarter, the Company announced the proposed acquisition\nof Battle Mountain Gold Exploration Corporation. Definitive merger agreement\ndocuments were signed on April 17, 2007, and the transaction is expected to\nclose subject to Battle Mountain shar...