Pinetree Capital Ltd. Announces Unaudited Financial Results For The Three And Nine Months Ended September 30, 2009
November 11, 2009
During the third quarter, Pinetree generated net income of $63.8 million, as compared to a net loss of $210.9 million for the same quarter last year. The net income was primarily from net investment gains of $69.5 million in the quarter, comprised mainly of $74.2 million in unrealized gains on investments partially offset by realized losses on dispositions of investments of $5.4 million. Earnings per share were $0.48, as compared to loss per share of $1.63 in the three months ended September 30, 2008.
For the nine months ended September 30, 2009, Pinetree generated net income of $137.1 million, as compared to a net loss of $262.5 million in the same period last year. The net income in the nine month period was primarily from net investment gains of $169.5 million, comprised mainly of $201.2 million in unrealized gains on investments partially offset by realized losses on dispositions of investments of $32.1 million. Earnings per share were $1.04 in the nine months ended September 30, 2009, as compared to a loss per share of $2.21 in the nine months ended September 30, 2008.
The composition of Pinetree’s investment portfolio (accounted for at fair value) by sector as at September 30, 2009, as compared to December 31, 2008, is outlined in the following table:
|September 30, 2009||December 31, 2008|
|Sector||($’000)||% of Total||($’000)||% of Total|
|Oil & Gas||22,391||7.4||10,066||7.5|
|Potash, Lithium and Rare Earths||25,522||8.5||3,658||2.7|
|Energy Related Technology||5,248||1.7||2,366||1.8|
As at September 30, 2009, total investments at fair value stood at $301.3 million, as compared to $134.0 million as at December 31, 2008, while the total number of investments decreased to 408 from 427 as at the end of the last year. Three hundred and sixty-three of the investments or 88.9% (December 31, 2008 – 87.5%), were in the resource sector, consistent with Pinetree’s primary investment strategy.
Net asset value per share increased to $2.39 as at September 30, 2009, from $1.33 as at December 31, 2008.
“The third quarter was a very strong one for Pinetree, continuing the performance of our portfolio in the first half of our fiscal year, said Sheldon Inwentash, Chairman and CEO of Pinetree. “The previous market decline has provided us with many excellent investment opportunities, and we are generally very excited about the medium and long term prospects for the resource sectors in which we focus.”
Pinetree Capital Ltd. ("Pinetree") was incorporated under the laws of the
For more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com
Use of Non-GAAP Measures
“Net asset value per share” is a non-GAAP measure defined as shareholders’ equity divided by the total number of common shares of Pinetree outstanding. The term net asset value per share does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies. We believe that the measure provides information useful to our shareholders in understanding our performance, facilitates the comparison of the quarterly and year-end results of our ongoing operations and provides a meaningful measure to evaluate our business relative to that of our peers.
Larry Goldberg, C.A.
Executive Vice President and Chief Financial Officer
Pinetree Capital Ltd.
130 King Street West, Suite 2500
Toronto, Ontario, Canada, M5X 1A9
Web Site: www.pinetreecapital.com