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Press release from Marketwire

BENEV Capital Inc. ("BCI") Reports Fourth Quarter and 2012 Year End Results

Friday, March 22, 2013

BENEV Capital Inc. ("BCI") Reports Fourth Quarter and 2012 Year End Results15:21 EDT Friday, March 22, 2013OAKVILLE, ONTARIO--(Marketwire - March 22, 2013) - BENEV Capital Inc. (TSX:BEV) (the "Company" or "BCI") today announced its financial results for the year ended December 31, 2012 and the results for the fourth quarter 2012. Revenue for the year was $28.3 million, pre-tax income was $9.1 million, after-tax income was $9.3 million and earnings per share was $0.24 on a fully diluted basis. Revenue for the quarter was $7.8 million, pre-tax income was $1.2 million, after-tax income was $0.6 million and earnings per share was $0.02 on a fully diluted basis.As previously announced on March 7, 2013, the Company has entered into a binding purchase and sale agreement to sell its Saint Ambroise, Quebec waste treatment plant and related assets and liabilities for $10 million, $8 million in cash at closing plus an earn out which could be as high as $2 million or more, contingent on a specific potential new contract being entered into within three years from the date of signing of the purchase agreement (which is by no means certain). In addition, the purchase price will be adjusted for working capital at closing, and for certain new soil contracts received between signing and closing. Closing is expected in the second quarter of 2013. As at March 15, 2013, the Company's cash position was approximately $64 million.A more detailed discussion is available in the Management Discussion and Analysis available on http://media3.marketwire.com/docs/BENEVMDAQ412.pdf and Audited Consolidated Financial Statements for the years ended December 31, 2012 and 2011 available on http://media3.marketwire.com/docs/BENEVACFSYE12.pdf.This report may contain forward-looking information that is subject to risks, uncertainties and assumptions. Such information represents our current views based on information as at the date of issuing this report. We do not intend to update this information and disclaim any legal obligation to the contrary.Forward-Looking StatementsCertain statements contained in this press release and in certain documents incorporated herein by reference may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "confident", "plan" and "intends" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events, performance, or achievements of BENEV Capital Inc. to differ materially from those anticipated or implied in such forward-looking statements. BENEV Capital Inc. believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct. Given these uncertainties, readers are cautioned that forward-looking statements included in, or incorporated by reference into, this press release are not guarantees of future performance, and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date of this press release. BENEV Capital Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.In formulating the forward-looking statements contained herein, management has assumed that business and economic conditions affecting BENEV Capital Inc. will continue substantially in the ordinary course, including without limitation with respect to general industry conditions, general levels of economic activity, regulations (including those regarding importation of hazardous materials), and that there will be no unplanned material changes in its facilities, equipment, or customer or employee relations. These assumptions, although considered reasonable by management at the time of preparation, may prove to be incorrect.All of the forward-looking statements made in this Press Release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, BENEV Capital Inc.About BENEV Capital Inc.BENEV Capital Inc. is a North American leader in high temperature treatment services for the treatment of contaminated soil and has provided thermal solutions to contamination problems throughout Canada and the U.S. BENEV Capital Inc.'s technology provides for the safe, economical and permanent solution to contaminated soil. Independent testing has consistently proven that the technology operates well within the most stringent criteria in North America. For information, please visit the BENEV Capital Inc. website at: www.benevcapital.com.BENEV CAPITAL INC.Consolidated Statement of Financial Position(Expressed in Canadian dollars)December 31,December 31,20122011AssetsCurrent assets:Cash and cash equivalents (note 4)$63,856,221$58,720,802Restricted cash (note 4)513,0521,515,105Amounts receivable (note 5)1,645,90392,023Holdback receivable (note 6)-300,000Deferred costs40,2243,163,009Prepaid expenses and other488,780374,04366,544,18064,164,982Property, plant and equipment (note 7)7,243,8688,774,826Assets under finance lease (note 8)186,534491,040$73,974,582$73,430,848Liabilities and Shareholders' EquityCurrent liabilities:Accounts payable and accrued liabilities (note 10)$1,974,460$1,714,370Current tax liabilities144,134333,000Deferred revenue (note 11)-9,438,669Provisions (note 12)125,974139,551Current portion of long-term liabilities (note 13)79,00079,000Current portion of finance lease obligations (note 14)32,642122,5652,356,21011,827,155Long-term liabilities (note 13)658,881731,193Long-term portion of finance lease obligations (note 14)-32,642Shareholders' equity:Share capital (note 15)96,969,87996,969,879Contributed surplus (note 16)8,414,3944,873,827Share purchase warrants (note 17)-2,721,131Accumulated deficit(34,424,782)(43,724,979)Total equity70,959,49160,839,858$73,974,582$73,430,848Continuing operations (note 1)Contingencies (note 30)Subsequent events (notes 1 and 30)These consolidated financial statements do not include accompanying notes. A complete set of audited consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BENEVACFSYE12.pdf.BENEV CAPITAL INC.Consolidated Statements of Operations and Comprehensive Income (Loss)(Expressed in Canadian dollars)(Unaudited)Three months endedTwelve months endedDecember 31,December 31,2012201120122011Sales$7,832,055$-$28,298,586$-Expenses:Operating costs4,184,907430,71213,394,4571,571,890Administration and business development1,224,7971,066,9604,797,4985,349,069Management/board restructuring costs---2,501,440Amortization208,920221,828805,823882,971Impairment loss1,224,005-1,224,005-Loss on disposal of assets held for sale--57,33418,2866,842,6291,719,50020,279,11710,323,656Results from operating activities989,426(1,719,500)8,019,469(10,323,656)Results from operating activitiesFinance income232,027200,6251,192,436918,309Finance costs(5,306)(78,659)(83,708)(151,815)Net finance income (costs)226,721121,9661,108,728766,494Income (loss) before income taxes1,216,147(1,597,534)9,128,197(9,557,162)Income taxes (recovery):Current-(18,789)172,000(247,564)Future610,000---610,000(18,789)172,000(247,564)Net income for the period being comprehensive income (loss)$606,147$(1,578,745)$9,300,197$(9,309,598)Earnings (loss) per common shareBasic$0.02$(0.04)$0.24$(0.24)Diluted0.02(0.04)0.24(0.24)These consolidated financial statements do not include accompanying notes. A complete set of audited consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BENEVACFSYE12.pdf.BENEV CAPITAL INC.Consolidated Statement of Changes in Equity(Expressed in Canadian dollars)For the year ended December 31Share capitalContributed surplusShare purchase warrantsAccumulated deficitTotal equityBalance at January 1, 2011$93,364,040$4,846,334$2,721,131$(32,164,000)$68,767,505Comprehensive loss for the period---(9,309,598)(9,309,598)Equity-based compensation-482,008--482,008Conversion from equity-settled to cash-settled stock option plan (note 16)-(791,617)-(2,251,381)(3,042,998)Conversion from cash-settled to equity-settled stock option plan (note 16)-407,111--407,111Share options exercised3,605,839(70,009)--3,535,830Balance at December 31, 201196,969,8794,873,8272,721,131(43,724,979)60,839,858Comprehensive income for the period---9,300,1979,300,197Equity-based compensation (note 16)-819,436--819,436Expiry of share purchase warrants-2,721,131(2,721,131)--Balance at December 31, 2012$96,969,879$8,414,394$-$(34,424,782)$70,959,491These consolidated financial statements do not include accompanying notes. A complete set of audited consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BENEVACFSYE12.pdf.BENEV CAPITAL INC.Consolidated Statements of Cash Flows(Expressed in Canadian dollars)For the year ended December 31 2012 2011Cash flows provided by (used in) operating activities:Net income (loss) for the period$9,300,197$(9,309,598)Adjustments for:Amortization805,823882,971Impairment loss1,224,005-Foreign exchange gains related to U.S. Department of Justice accrual-(5,300)Unwinding of discount on provision6,68875,045Share-based compensation819,436626,953Income tax recovery(172,000)(247,564)Loss on disposal of assets held for sale57,33418,286Gain on sale of property, plant and equipment(2,311)(1,671)Changes in non-cash working capital items:Amounts receivable(1,553,880)229,883Holdback receivable-(300,000)Prepaid expenses and other(114,737)187,358Deferred costs3,122,785(2,501,084)Accounts payable and accrued liabilities502,756(931,003)Provisions(13,577)(556,276)Deferred revenue(9,438,669)6,993,300Current tax liabilities(16,866)(3,398)Repayment of long-term liabilities(79,000)(2,231,379)Net cash provided by (used in) operating activities4,447,984(7,073,477)Cash flows from investing activities:Proceeds from sale of property, plant and equipment29,3074,250Proceeds from sale of assets held for sale-1,834,356Acquisition of property, plant and equipment(221,360)(105,677)Change in restricted cash1,002,053(1,504,456)Net cash provided by investing activities810,000228,473Cash flows from financing activities:Proceeds from exercise of share options-755,000Payment of finance lease liabilities(122,565)(182,837)Net cash (used in) provided by financing activities(122,565)572,163Net increase (decrease) in cash and cash equivalents5,135,419(6,272,841)Cash and cash equivalents at beginning of period58,720,80264,993,643Cash and cash equivalents at end of period$63,856,221$58,720,802These consolidated financial statements do not include accompanying notes. A complete set of audited consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BENEVACFSYE12.pdf.FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: BENEV Capital Inc.Lawrence HaberPresident and CEO(905) 339-1540 Ext. 202www.benevcapital.com