Business
Royal Gold Reports Third Quarter Fiscal 2006 Results
Royal Gold Reports Third Quarter Fiscal 2006 Results.
About this update from Red Lake Gold Inc
[{"type":"text","content":"\n\n\n\n\nDENVER, May 4 /CNW/ -- Royal Gold, Inc.\n(Nasdaq: RGLD; TSX: RGL), the leading publicly-traded precious metals royalty\ncompany, today announced fiscal third quarter 2006 net income of $1.8 million,\nor $0.08 per basic share, on royalty revenue of $5.8 million. This compares\nto net income for the third quarter of fiscal 2005 of $2.7 million, or\n$0.13 per basic share, on royalty revenue of approximately $5.9 million.\nNet income for the nine-month period ended March 31, 2006, was $7.8\nmillion, or $0.34 per basic share, on royalty revenue of $20.2 million. This\ncompares to net income of $7.8 million, or $0.38 per basic share, for the\nnine-month period ended March 31, 2005, on royalty revenue of $17.8 million.\nIncluded in the three and nine-month reporting periods were expenses of\napproximately $696,000, or $0.02 per basic share, net of tax, and\napproximately $2.0 million, or $0.06 per basic share, net of tax,\nrespectively, for non-cash stock compensation related to the Company's equity\ncompensation plans. These non-cash compensation expenses have been allocated\namong cost of operations, general and administrative, and exploration and\nbusiness development in the Company's consolidated statements of operations\nand comprehensive income. In the prior three- and nine-month periods for\nfiscal 2005, non-cash stock compensation expense was approximately $43,000 and\n$162,000, respectively.\nFree cash flow for the third fiscal quarter of 2006 was approximately\n$3.4 million, or 59% of revenues. For the nine-month period ended\nMarch 31, 2006, free cash flow was approximately $14.0 million, or 69% of\nrevenues. The Company defines free cash flow, a non-GAAP financial measure,\nas operating income plus depreciation, depletion and amortization, non-cash\ncharges and any impairment of mining assets (see, Schedule A-Reconciliation).\nAt March 31, 2006, the Company had a working capital surplus of\napproximately $81.3 million. Current assets were $85.5 million (including\n$80.0 million in cash) compared to current liabilities of $4.2 million\nresulting in a current ratio of 20 to 1. The Company has no debt.\nStanley Dempsey, Chairman and CEO, commented, \"Our third quarter results\nwere lower than the prior comparable period primarily due to a decline in the\nlevel of production at Pipeline, stock compensation expense, an...