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TSX: PNP     Last: 3.77     Change: -0.04

Pinetree Capital Ltd Announces Unaudited Financial Results For The Period Ended, June 30, 2018

TORONTO, ONTARIO (August 14, 2018) – Pinetree Capital Ltd. (TSX:PNP) (“Pinetree” or the “Company”) today announced its financial results for the three and six month period ended June 30, 2018.  All financial information provided in this press release is unaudited and all figures are in $’000 except per share amounts and shares outstanding.

Unaudited financial results for the period ended June 30, 2018

The following information should be read in conjunction with the our annual audited Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and our annual Management Discussion and Analysis for the year ended December 31, 2017, which can be found on SEDAR at www.sedar.com.

Selected Financial Information 

  Three months ended Six months ended
  June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
Net investment gain (loss) 303 (552) 669 (1,375)
Other income 69 - 121 595
Total expenses 86 146 170 420
Net income (loss) for the period 286 (698) 620 (1,200)
Income (loss) per share –
basic & fully diluted
0.03 (0.15) 0.07 (0.26)

The net investment gains for the three months ended June 30, 2018 was $303 (three months ended June 30, 2017 – net investment loss of $552) as a result of a net change in unrealized gains and realized losses on investments as described below.

For the three months ended June 30, 2018, the Company has $1,121 net realized losses on disposal of investments as compared to $2,467 for the three months ended June 30, 2017.

For the three months ended June 30, 2018, the Company had a net change in unrealized gains on investments of $1,424 as compared to a net change in unrealized losses of $1,915 for the three months ended June 30, 2017. 

For the three months ended June 30, 2018, other income totalled $69 as compared to $nil for the three months ended June 30, 2017. Other income is comprised of interest income of $69 (three months ended June 30, 2017 – $nil).

  As at June 30, 2018 As at December 31, 2017
Total assets 19,367 18,697
Total liabilities 442 392
Net asset value 18,925 18,305
Shares outstanding 9,045,198 9,045,198
Net asset value per share – basic* $2.09 $2.02

As at June 30, 2018, the Company held investments at fair value totaling $10,773 as compared to $9,268 as at December 31, 2017, a 16% increase, attributable to purchases in the investment portfolio and net unrealized gain on existing investments offset by net realized losses during the period ended June 30, 2018.

The following is Pinetree's NAV per share and Operating Expenses per NAV for the eight most recently completed interim financial periods:

  Shares Outstanding Net Asset Value (NAV)
Operating Expenses2
(excluding F/X g(l)) (OpEx)
NAV per share – basic1
QuarterlyOpEx per NAV1
Jun-30-18 9,045,198 18,925 121 2.09 0.6
Mar-31-18 9,045,198 18,639 139 2.06 0.7
Dec-31-17 9,045,198 18,305 195 2.02 1.1
Sep-30-17 9,045,198 18,867 209 2.09 1.1
Jun-30-17 9,045,198 18,839 130 2.08 0.7
Mar-31-17  4,522,599  10,154 246  2.25  2.4
Dec-31-16  4,522,599  10,649  311  2.35  2.9
Sep-30-16  4,522,599  11,481 265  2.54  2.3

1 Refer to “Use of Non-GAAP Financial Measures”
Shares Outstanding and Net Asset Value amounts are as at the Quarter End date
Operating Expenses amounts are for the Three months ending the Quarter End date
2Operating Expenses do not include Foreign Exchange gain (loss) on financial assets other than investments

During the six months ended June 30, 2018, the Company continued to take a disciplined approach to capital management in order to fund ongoing operations of the Company. The Quarterly operating expenses as a percentage of NAV decreased due primarily to a decrease in operating expenses.

Forward Looking Statements

Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Pinetree or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved.  A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements.  These forward-looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Pinetree assumes no obligation, except as required by law, to update any forward-looking statements to reflect new events or circumstances.

Non-IFRS Measures, Non-GAAP Measures

NAV (net asset value per share) is a non-IFRS (international financial reporting standards) measure calculated as the value of total assets less the value of total liabilities divided by the total number of common shares outstanding as at a specific date. The term NAV does not have any standardized meaning according to IFRS and therefore may not be comparable to similar measures presented by other companies.  There is no comparable IFRS measure presented in Pinetree’s consolidated financial statements and thus no applicable quantitative reconciliation for such non-IFRS financial measure.  The Company has calculated NAV consistently for many years and believes that NAV can provide information useful to its shareholders in understanding its performance and may assist in the evaluation of its business relative to that of its peers.

About Pinetree Capital Ltd.

Pinetree is a value-oriented investment and merchant banking firm focused on technology sector.  Pinetree’s common shares are listed on the Toronto Stock Exchange (TSX) under the symbol “PNP”

For further information:

Damien Leonard
Chief Executive Officer

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