Aberdeen Reports Shareholders' Equity of $0.86 Per Share and Third Quarter 2013 Financial Results
TORONTO, ONTARIO -- (Marketwire) -- 12/18/12 -- ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX: AAB) is pleased to announce that it has released its financial results for the third quarter of 2013, ended October 31, 2012. For more information please see the Company's Condensed Interim Financial Statements and Management's Discussion and Analysis ("MD&A") posted on SEDAR at www.sedar.com.
As at October 31, 2012, Aberdeen's Shareholders' Equity (or Net Asset Value, "NAV") was $73.9 million, or $0.86 per share. Aberdeen's shareholders' equity increased by $2.6 million from $71.3 million at the end of Q2 2013. The increase in shareholders' equity was due to the performance of Aberdeen's equity investment portfolio in the third quarter, which increased $3.7 million or 5.2% to $75.3 million, primarily as a result of the successful listing transaction of Premier Royalty, which triggers a conversion in the Company's Premier Royalty debenture (the "Debenture"). The converted value is reflected below under "Loans", and this asset will be moved into the Company's equity investment portfolio next quarter as the Company converted the Debenture into and now hold common stock and warrants of Premier Royalty (as set out in the Company's press release dated 10 December 2012 entitled "Aberdeen Converts Convertible Debenture Into Common Shares and Warrants of Premier Royalty Corporation" and filed on SEDAR.
In the third quarter of 2013, the stock market performance for small capitalization mining and resource stocks continued to be weak. On a year-over-year basis, Aberdeen's shareholders' equity decreased by $40.1 million. Note that the reference to shareholders' equity is similar to previous references to Net Asset Value or "NAV" by Aberdeen.
October 31, 2012 January 31, 2012 October 31, 2012
Shares
outstanding 86,272,302 86,100,139 86,872,139
$ $/Shares $ $/Shares $ $/Shares
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Cash on hand 1,118,673 0.01 7,372,118 0.09 7,384,383 0.09
Investments
Publicly
traded 31,082,470 0.360 51,916,759 0.603 59,280,908 0.682
Private 13,831,781 0.160 16,325,377 0.190 17,624,515 0.203
Non-trading
warrants
Intrinsic
value 100,650 0.001 1,915,000 0.022 2,757,980 0.032
Option
value 841,105 0.010 2,170,214 0.025 471,610 0.005
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941,755 0.011 4,085,214 0.047 3,229,590 0.037
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Portfolio
Investments 45,856,006 0.532 72,327,350 0.840 80,135,013 0.922
Loans /
Preferred
Shares 28,310,109 0.328 3,459,778 0.040 12,588,729 0.145
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Total 75,284,788 0.873 83,159,246 0.966 100,108,125 1.152
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Aberdeen reported net earnings of $3.8 million or $0.04 per basic share for the three months ended October 31, 2012 on total revenue of $6.1 million. Revenue was comprised of $5.6 million from net investment gains and $0.5 million from interest income, dividends and advisory services fees. For the three months ending October 31, 2011, Aberdeen reported net earnings of $(8.7) million or $(0.10) per share on total revenue of $(8.5) million ($(9.4) million from net investment losses, $0.7 million from royalties, $0.2 million from interest income and advisory service fees).
For the nine months ended October 31, 2012, Aberdeen reported net earnings of $(22.3) million or $(0.26) per basic share on total revenue of $(19.3) million. Revenue was comprised of $(20.9) million from net investment losses, $0.6 million in royalty revenue and $1.0 million from interest income, dividends and advisory services fees. For the nine months ending October 31, 2011, Aberdeen reported net earnings of $(20.2) million or $(0.23) per share on total revenue of $(20.7) million ($(23.0) million from net investment losses, $1.8 million from royalties, $0.5 million from interest income and advisory service fees).
On September 30, 2012, the Company made its second semi-annual dividend of one cent per share. The Company believes that the dividend policy sends a message to the market that Aberdeen's business model is sustainable and generates significant free cash flow. Aberdeen will continue to prioritize making strategic investments in early stage resource companies, while seeking to return capital to its shareholders.
Normal Course Issuer Bid ("NCIB")
During the nine months ending October 31, 2012, 727,800 common shares were purchased for cancellation at an average cost of $0.44. Subsequent to October 31, 2012, the Company has purchased an additional 277,700 common shares at an average cost of $0.32. Aberdeen expects to continue to purchase shares over the remainder of the fiscal year, depending on market conditions and other investment opportunities that may be available.
Q3 Conference Call
The Company plans to host a conference call this morning, December 18, 2012 at 10:30 AM (EST). To participate in the call please dial:
International: +1 416 340 2216
Toll Free North America: 866 226 1792
Toronto Area: 416 340 2216
To register and listen to the webcast of the call, please go to Aberdeen's website at www.aberdeeninternational.ca. A webcast play back recording will remain on the Company's website after the completion of the call.
About Aberdeen International Inc.:
Aberdeen is a publicly traded global investment and merchant banking company focused on small cap companies in the resource sector. Aberdeen will seek to acquire significant equity participation in pre-IPO and/or early stage public resource companies with undeveloped or undervalued high-quality resources. Aberdeen will focus on companies that: (i) are in need of managerial, technical and financial resources to realize their full potential; (ii) are undervalued in foreign capital markets; and/or (iii) operate in jurisdictions with moderate local political risk. Aberdeen will seek to provide value-added managerial and board advisory services to companies. The Corporation's intention will be to optimize the return on its investment over a 24 to 36 month investment time frame.
For additional information, please visit our website at www.aberdeeninternational.ca and follow us on Facebook and Twitter: AberdeenAAB.
Cautionary Notes
With respect to all statements herein relating to Premier Royalty, its business and its prospects, Aberdeen has relied solely upon the public disclosure of Premier Royalty.
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, valuations of investments, proposed transactions and investments, investment philosophy and liabilities and commitments. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; general other risks of the mining industry and investment industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Contacts:
Aberdeen International Inc.
Mike McAllister
Manager, Investor Relations
+1 416-309-2134
info@aberdeeninternational.ca
Aberdeen International Inc.
David Stein
President and Chief Executive Officer
+1 416-861-5812
dstein@aberdeeninternational.ca
www.aberdeeninternational.ca
