TriNorth Capital Inc. - Third Quarter Results - 1999
Toronto, Ontario--
The results of operations for TriNorth Capital Inc. for the three
and nine month periods ended September 30, 1999 reflect the sale
of the Company's 80% interest in Guilin Tire Company which was
approved by shareholders in the second quarter.
For the nine months ended September 30, 1999, TriNorth had net
income of $ 7,555,785 ($ 0.48 per share) compared with a loss of
$ 2,485,757 ($ 0.09 per share) in the same period in 1998. The
net income includes an extraordinary gain of $ 8,012,205 recorded
in the second quarter on the sale of the Company's interest in
the Guilin Tire Company. The loss before this extraordinary item
for the nine months ended September 30, 1999 was $ 456,420.
At September 30, 1999, the Company had cash on hand of $ 3.0
million.
Financial Summary
-----------------
Three months Nine months
ended ended
September 30 September 30
1999 1998 1999 1998
---- ---- ---- ----
Revenue $139,820 $15,474,348 $143,296 $39,065,040
Income (loss)
before undernoted 86,886 (651,135) (456,420) (2,930,817)
Gain on sale of
Guilin Tire Company - - 8,012,205 -
Net income (loss) 86,886 (571,548) 7,555,785 (2,485,757)
Earnings (loss)
per share $0.006 $(0.02) $0.48 $(0.09)
Shares
outstanding 15,653,817 27,607,817 15,653,817 27,607,817
Recent Corporate Developments
Shareholders approved the sale of the Company's 80% interest in
the Guilin Tire Company at the meeting of shareholders held on
June 18, 1999. The Company has received US$ 2.3 million of the
total price of US$ 10 million. As announced on November 9, 1999
the Company has agreed with the purchaser, Guilin South Rubber
Group Corporation, to a revised payment schedule for the
outstanding balance of US$ 7.7 million under which TriNorth is to
be paid US$ 500,000 immediately (these funds have now been
received), US$ 2.5 million by December 31, 1999, US$ 2.3 million
by March 31, 2000 and US$ 2.4 million by June 30, 2000. Guilin
South Rubber Group Corporation owns three tire and rubber
manufacturing facilities in Guilin, including the Guilin Tire
Company.
The Company's priority is to collect the balance of the proceeds
from the sale of its interest in the Guilin Tire Company. The
Company is also reviewing new business ventures in Canada that
will provide opportunities to restore shareholder value.
For further information, please contact:
John D. Pennal
President and Chief Executive Officer
Telephone: (416) 956-4926
Facsimile: (416) 956-4930
E-Mail: info@trinorthcapital.com |
