Counsel RB Capital Reports 2013 Q1 Operating Results and Updates on Ongoing Corporate Progress

Counsel RB Capital Reports 2013 Q1 Operating Results and Updates on Ongoing Corporate Progress

WHITE PLAINS, N.Y. & TORONTO--(BUSINESS WIRE)-- Counsel RB Capital Inc. (OTCQB: CRBN) (the "Company"), a leader in distressed and surplus capital asset transactions, today reported financial results for the first quarter ended March 31, 2013 as summarized below.

Summary Financial Data
(unaudited)

($ in thousands, except per share amounts)

Three months ended
March 31,

2013

2012

Total asset liquidation revenue(1)

$

1,392

$

3,034

Earnings of equity accounted asset liquidation investments(2)

802

1,069

Operating income (loss)

(905

)

799

Net income (loss)

(647

)

390

Earnings (loss) per diluted common share

$

(0.02

)

$

0.01

(1) Represents revenue generated from activities where Counsel RB acted in a principal capacity or had majority interest in a transaction.


(2) Represents equity income from activities where Counsel RB acted as a member of a syndicate in a transaction.

2013 Q1 Summary:

  • The Company's operating loss was approximately $905,000, compared to operating income of $799,000 in the 2012 period.

  • Combined asset liquidation revenue and earnings of equity accounted asset liquidation investments (pre-tax) was approximately $2.2 million, compared to $4.1 million in the prior year period.

  • Patent licensing revenue related to the settlement of a patent infringement lawsuit was $200,000.

  • SG&A expenditures, including expenses paid to related parties, were $2.6 million, versus $1.7 million. The increase primarily reflects higher compensation expense related to Heritage Global Partners (HGP), a leading auction and asset advisory firm that was acquired late in the first quarter of 2012, as well as expenses related to HGP's European expansion.

  • Total operating costs and expenses were relatively flat at $3.3 million, largely due to an approximate $1.2 million decrease in asset liquidation costs, which offset the aforementioned SG&A rise.

  • Net loss for the period was approximately $647,000, or a loss of $0.02 per diluted common share.

Counsel RB Capital Co-CEO Adam Reich stated, "Counsel RB continues to be a leading resource for existing and potential new clients requiring a one-stop solution for a wide array of capital asset solutions. In order to achieve our objectives we have continued to strengthen our organization's core competencies domestically, and we also expanded the Company's operations internationally during the second half of 2012. Looking ahead, we remain focused on further growing Counsel RB's principal and fee-based revenue opportunities."

About Counsel RB Capital (www.counselrb.com)

Counsel RB Capital Inc. (OTCQB: CRBN) is a value-driven, innovative leader in monetizing surplus capital assets. The Company specializes in acquiring turnkey manufacturing facilities, surplus industrial machinery and equipment, industrial inventories, accounts receivable portfolios and related intellectual property. Our subsidiary, Heritage Global Partners, Inc. (www.hgpauction.com), is a global leader in auction, asset advisory and appraisal services.

Forward-Looking Statements

The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts, which address the Company's expectations, should be considered as forward-looking statements. Such statements are based on knowledge of the environment in which the Company currently operates, but because of the factors listed herein, as well as other factors beyond the Company's control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, obtaining necessary approvals and other risks detailed from time to time in the Company's securities and other regulatory filings.

-financial tables follow-

COUNSEL RB CAPITAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
(unaudited)
(in thousands of US dollars, except share and per share amounts)

Three months ended
March 31,

2013

2012

Revenue:

Asset liquidation

Asset sales

$

446

$

1,850

Commissions and other

946

1,184

Total asset liquidation revenue

1,392

3,034

Patent licensing

200

--

Total revenue

1,592

3,034

Operating costs and expenses:

Asset liquidation

356

1,533

Inventory maintenance

74

3

Patent licensing and maintenance

150

26

Selling, general and administrative

2,394

1,582

Expenses paid to related parties

204

157

Depreciation and amortization

121

3

Total operating costs and expenses

3,299

3,304

(1,707

)

(270

)

Earnings of equity accounted asset liquidation investments

802

1,069

Operating income (loss)

(905

)

799

Other income (expenses):

Other income

--

10

Interest expense - total third and related party

(95

)

(59

)

Total other income (expenses)

(95

)

(49

)

Income (loss) before undernoted

(1,000

)

750

Income tax expense (recovery)

(353

)

313

Earnings (loss) of other equity accounted investments (net of $0 tax)

--

(47

)

Net income (loss)

(647

)

390

Other comprehensive loss:

Currency translation adjustment

(7

)

--

Comprehensive income (loss)

$

(654

)

$

390

Weighted average common shares outstanding - basic (in thousands)

28,945

27,484

Weighted average common shares outstanding - diluted (in thousands)

28,945

27,844

Earnings (loss) per share - basic

$

(0.02

)

$

0.01

Earnings (loss) per share - diluted

$

(0.02

)

$

0.01

The notes contained in our Quarterly Report on Form 10-Q are an integral part of these condensed consolidated financial statements.

-balance sheets follow-

COUNSEL RB CAPITAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands of US dollars, except share and per share amounts)

As of

March 31,
2013

As of
December 31,
2012

ASSETS

Current assets:

Cash and cash equivalents

$

1,

230

$

4,

314

Amounts receivable (net of allowance for doubtful accounts of $0; 2012 - $0)

1,

315

1,

068

Receivable from a related party

2,

224

2,

929

Deposits

334

1,

481

Inventory - equipment

510

820

Other current assets

283

312

Income taxes recoverable

119

70

Deferred income tax assets

1,

949

1,

956

Total current assets

7,

964

12,

950

Non-current assets:

Inventory - real estate

6,

078

6,

078

Asset liquidation investments

2,

901

3,

618

Investments

1,

729

2,

426

Property, plant and equipment, net

49

52

Intangible assets, net

5,

150

5,

263

Goodwill

5,

301

5,

301

Deferred income tax assets

25,

955

25,

622

Total assets

$

55,

127

$

61,

310

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

3,

349

$

4,

415

Debt payable to third parties

6,

260

10,

883

Total liabilities

9,

609

15,

298

Commitments and contingencies

Equity:

Preferred stock, $10.00 par value, authorized 10,000,000 shares; issued

and outstanding 592 Class N shares at March 31, 2013 and December 31, 2012,
liquidation preference of $592 at March 31, 2013 and December 31, 2012

6

6

Common stock, $0.01 par value, authorized 300,000,000 shares; issued
and outstanding 28,945,228 shares at March 31, 2013 and December 31, 2012

290

290

Additional paid-in capital

283,

441

283,

281

Accumulated deficit

(238,

205

)

(237,

558

)

Accumulated other comprehensive loss

(14

)

(7

)

Total equity

45,

518

46,

012

Total liabilities and equity

$

55,

127

$

61,

310

The notes contained in our Quarterly Report on Form 10-Q are an integral part of these condensed consolidated financial statements.



Counsel RB Capital Inc.
Stephen A. Weintraub, 416-866-3058
Executive Vice President, Secretary & CFO
sweintraub@counselrb.com
or
JCIR
Robert Rinderman or Jennifer Neuman
212-835-8500
Investor Relations/Corporate Communications
CRBN@jcir.com

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS:

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