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 | ||||||||||
($ in thousands, except per share amounts) | Three months ended | |||||||||
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. | |||||||||||
Three months ended | |||||||||||
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. | |||||||||||||
As of March 31, | As of | ||||||||||||
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, | 6 | 6 | |||||||||||
Common stock, $0.01 par value, authorized 300,000,000 shares; issued | 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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