(PPI) TSX/SWX
CALGARY, Dec. 21 /CNW/ - Proprietary Industries Inc. ("PPI" or the
"Company") announced today its financial results for the year ended
September 30, 2005. The net loss for the year ended September 30, 2005 is
$2,960,485 versus a net income of $6,867,752 for the year ended September 30,
2004. This variance between the two years is primarily as a result of the
differing nature of the non-recurring items in each of these respective years,
which makes fiscal year comparisons not meaningful. In fiscal 2005, the more
significant non-recurring items were: (a) the sale of shares the Company held
in public companies which generated a net gain of $1,471,243; (b) the debt
settlement with and the deconsolidation of Newmex Minerals Inc. (as described
in the September 30, 2005 consolidated financial statements) resulting in a
net gain of $351,173; (c) take-over bid expenses of $924,826; and (d) the debt
settlement, sale and deconsolidation of the operations of the Thunder Bay golf
dome which resulted in a net loss of approximately $315,000. In fiscal 2004,
the major non-recurring items generated income in excess of $10 million.
Further information can be found in the Company's 2005 Annual Report, which
will shortly be filed on SEDAR at www.sedar.com and available to view on our
website at www.proprietaryinc.com.
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Consolidated Balance Sheets
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As at September 30 2005 2004
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Assets
Current
Cash and cash equivalents $ 13,979,830 $ 30,105,300
Short-term investments - 632,081
Accounts receivable 2,326,290 413,903
Loans and notes receivable 8,280,456 -
Inventories - 45,824
Prepaid expenses and deposits 102,741 72,881
Assets held for disposal by sale - 654,964
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24,689,317 31,924,953
Loans and notes receivable 3,030,424 1,057,277
Restricted cash deposits 5,032,371 5,000,000
Property and equipment 221,387 963,382
Investments 354,920 801,751
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$ 33,328,419 $ 39,747,363
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Liabilities
Current
Accounts payable and accrued liabilities $ 1,410,598 $ 4,701,682
Notes payable 872,019 892,489
Customer deposits - 5,155
Income taxes payable 125,310 140,396
Current portion of long-term debt - 605,200
Deferred revenue 286,447 2,022
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2,694,374 6,346,944
Non-controlling interest in subsidiaries 1,769,509 1,769,509
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4,463,883 8,116,453
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Shareholders' Equity
Share capital 142,319,358 142,319,358
Contributed surplus 15,724,319 15,530,208
Deficit (129,179,141) (126,218,656)
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28,864,536 31,630,910
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$ 33,328,419 $ 39,747,363
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Consolidated Statements of Earnings and Deficit
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For the years ended September 30 2005 2004
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Revenue
Rental $ 18,530 $ 41,023
Finance - 5,330,849
Interest 1,385,689 245,900
Gain on sale of assets 1,626,715 1,531,124
Investment and other 1,895,108 5,141,541
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4,926,042 12,290,437
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Expenses
Rental 29,698 60,693
General and administrative 7,681,035 6,580,053
Depreciation and amortization 110,169 316,875
Interest 21,148 389,232
Write-downs 175,800 3,950,050
Recoveries (594,753) (5,423,455)
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7,423,097 5,873,448
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Income (loss) before income taxes,
non-controlling interest, and
discontinued operations (2,497,055) 6,416,989
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Income taxes (recoveries) 122 (32,326)
Non-controlling interest in subsidiaries - (79,362)
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122 (111,688)
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Net income (loss) for the year from
continuing operations (2,497,177) 6,528,677
Discontinued operations, net of
income taxes (463,308) 339,075
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Net income (loss) for the year (2,960,485) 6,867,752
Deficit, beginning of year (126,218,656) (133,086,408)
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Deficit, end of year $(129,179,141) $(126,218,656)
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Earnings (loss) per share - basic $ (0.05) $ 0.12
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Earnings (loss) per share - diluted $ - $ 0.12
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Earnings (loss) per share from
continuing operations - basic $ (0.04) $ 0.11
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Earnings (loss) per share from
continuing operations - diluted $ - $ 0.11
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Weighted average number of common shares
used in computing earnings (loss) per
share, basic and diluted 59,835,356 59,835,356
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Consolidated Statements of Cash Flows
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For the years ended September 30 2005 2004
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Cash flows provided by (used in)
Operating activities
Net income (loss) $ (2,960,485) $ 6,867,752
Items not involving cash
Depreciation and amortization 110,169 1,307,561
Future income taxes recovery - (6,341)
Gain on sale of assets and investments (1,608,566) (4,697,045)
Write-downs and recoveries (106,668) 5,965,680
Non-controlling interest in subsidiaries - (79,362)
Foreign exchange loss (gain) 660,223 (572,495)
Non-cash items in other income - (5,535,726)
Imputed stock based compensation expense 194,111 -
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(3,711,216) 3,250,024
Changes in non-cash balances related to
operations (4,995,368) (6,954,698)
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(8,706,584) (3,704,674)
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Financing activities --------------- --------------
Decrease in long-term debt, net (605,200) (31,369,611)
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Repayments to related parties - (4,746,620)
Repayment of notes payable - (3,104,443)
(605,200) (39,220,674)
Investing activities
Collection of notes receivable, net 943,095 12,200,052
Loans receivable advances (11,253,013) -
Proceeds on sale of investments, net 2,722,895 1,164,079
Proceeds on sale of land, net - 4,479,031
Proceeds on disposition of property and
equipment 1,322,167 59,170
Additions to property and equipment (2,114) (57,140)
Net cash proceeds on business dispositions - 50,455,623
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(6,266,970) 68,300,815
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Effect of exchange rate changes on cash held
in foreign currency (546,716) (113,592)
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Increase (decrease) in cash and cash
equivalents (16,125,470) 25,261,875
Cash and cash equivalents, beginning of year 30,105,300 4,843,425
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Cash and cash equivalents, end of year $ 13,979,830 $ 30,105,300
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Supplementary disclosure of cash flow
information:
Interest paid $ 21,696 $ 2,100,945
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Taxes paid $ 8,554 $ 106,908
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About Proprietary:
Proprietary is based in Calgary, Alberta and listed on the Toronto and
Swiss Stock Exchanges trading under the symbol PPI. At Proprietary's request,
the Swiss listing will cease as of February 9, 2006. Proprietary is a
principal merchant bank.
Forward-looking statements:
This document contains statements about expected or anticipated future
events and financial results that are forward-looking in nature and, as a
result, are subject to certain risks and uncertainties, such as general
economic, market and business conditions, the regulatory process and actions,
technical issues, new legislation, competitive and general economic factors
and conditions, the uncertainties resulting from potential delays or changes
in plans, the occurrence of unexpected events, and the Corporation's
capability to execute and implement its future plans. Actual results may
differ materially from those projected by management. For such statements, we
claim the safe harbour for forward-looking statements within the meaning of
the Private Securities Legislation Reform Act of 1995.
The Toronto Stock Exchange and the SWX Swiss Exchange have neither
approved nor disapproved the information contained herein.
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