Out Wednesday afternoon
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: INTERNATIONAL PROPERTIES GROUP LTD.
TSE SYMBOL: IPX
JUNE 2, 1999
International Properties Group Announces 2nd Quarter
Results - Best Financial Quarter of it's History
CALGARY, ALBERTA--International Properties Group Ltd. ("IPG")
today reported financial results for the three months ended April
30, 1999 recording record growth in earnings and cash flow per
share.
For the three months ended April 30, 1999 revenue was $39.6
million, net earnings were $2.1 million; and cash flow from
operations was $3.5 million. Earnings per share were $0.06 while
cash flow per share was $0.11, representing 100 percent and 83
percent increases, respectively, over the prior year.
For the six-month period ended April 30th, 1999 the financial
highlights were as follows:
/T/
Percent Increase over
Prior Year
Revenue $68.9 million 104 percent
Cash Flow from Operations $ 6.0 million 96 percent
Earnings $ 3.1 million 94 percent
Earnings per Share $0.09 80 percent
Cash Flow per Share $0.18 80 percent
/T/
Shareholder's equity was $44.3 million a 16 percent increase over
the prior year.
"We are confident that with today's reported financial results our
1999 business plan can achieve our forecasted year end results of
$0.32 cash flow per share", said Phillip J. Carroll, Chief
Executive Officer.
"Our Condominium Conversion and Sales Division is experiencing
sales at a record breaking pace with sales of $56 million dollars
in six months in projects in Kitchener, London and Ottawa,
Ontario, Edmonton, and Calgary, Alberta, and Scottsdale, Arizona.
The sales results can be attributed to three major factors:
- the current demand by investors for alternative investments
outside the stock market;
- our expanded and well-trained sales force; and
- our growing proprietary list of investors who are purchasing
additional investment properties, and providing a strong new
referral base."
This quarter's rise in earnings and cash flow per share were
positively impacted by the Fort McMurray portfolio sale of 229
units for $11.4 million dollars which contributed $2.5 million
dollars in pretax profits. The acquisition and property
management team executed the business plan of buying an under
valued asset in an emerging market and enhancing the value of the
property through extensive renovations. During IPG's ownership,
the net operating income of the property was substantially
increased resulting in the increased sales price of the property.
The Revenue Property Division contributed $12.5 million in revenue
over the six-month period, a 69 percent increase over the prior
year. The results indicate the effectiveness of the 1998
acquisition program and increases in performance of the
properties.
The acquisition team purchased a total of 410 units in three
properties in Ontario and one property in Alberta over the last
ninety days. These properties represent additional inventory for
our Condominium Conversion and Sales Division.
Phillip J. Carroll, Chief Executive Officer is pleased to report
that all divisions of the company are producing excellent
financial results due to the hard and diligent work of the senior
management. This quarter's financial results are positive steps
to a continued growth story.
Second quarter results will be discussed by David E. Steele,
President and Allan H. Penner, Executive Vice President by
conference call on June 3rd at 11:00AM EDT. You are invited to
participate on this call by dialing 1-800-348-6433. To reserve
your connection, please RSVP to Mike Skrypnek by phone: (403)
270-1206, or email: ipxinfo@ipg.ca.
IPG is an integrated real estate Corporation that focuses
primarily on multi-family real estate in carefully selected North
American markets. IPG has two operating divisions: the Revenue
Property Division and the Condominium Conversion and Sales
Division. IPG's Corporate Office is located in Calgary, Alberta
with sales offices in Vancouver, Edmonton, Toronto, Ottawa and
Scottsdale, AZ. The Corporation is listed on The Toronto Stock
Exchange under the trading symbol "IPX".
/T/
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Consolidated Financial Summary
($000's - except per share amounts)
For the six months ended April 30, 1999 1998 Change
----------------------------------------------------------------
Revenue 68,912 33,768 104
percent
Operating expenses 63,095 30,816 105
percent
Operating earnings before taxes 5,817 2,952 98
percent
Net earnings 3,141 1,620 94
percent
Cash flow from operations 5,990 3,051 96
percent
Earnings per share $0.09 $0.05 80
percent
Cash flow per share $0.18 $0.10 80
percent
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