TSX: PNP     Last: 3.77     Change: -0.04
TSX: PNP     Last: 3.77     Change: -0.04

Pinetree Capital Ltd Announces Unaudited Financial Results for the Period Ended June 30, 2019

TORONTO, ONTARIO (August 8, 2019) – Pinetree Capital Ltd. (TSX:PNP) (“Pinetree” or the “Company”) today announced its financial results for the three and six months ended June 30, 2019. 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, 2019

The following information should be read in conjunction with 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, 2018, which can be found on SEDAR at www.sedar.com.

Selected Financial Information

  Three months ended
June 30,
Six months ended
June 30,
  2019 2018 2019 2018
Net investment gains 308 303 1,549 669
Other income 88 69 120 121
Total expenses 152 86 299 170
Net income for the period 244 286 1,370 620
Earnings per share –
    basic & fully diluted
0.03 0.03 0.15 0.07

The net investment gains for the three months ended June 30, 2019 was $308 (three months ended June 30, 2018 – net investment gains of $303) as a result of a net change in unrealized gains and net realized losses on investments as described below.

For the three months ended June 30, 2019, the Company had $2,414 net realized losses on disposal of investments as compared to net realized losses of $1,121 for the three months ended June 30, 2018. The realized losses were primarily from legacy investments with little or no value, partially offset by realized gains from new investments.

For the three months ended June 30, 2019, the Company had a net change in unrealized gains on investments of $2,722 as compared to $1,424 for the three months ended June 30, 2018. The net change in unrealized gains were from the reversal of previously recognized net unrealized losses on the disposition of investments and the net write-up to market on the Company’s investments.

For the three months ended June 30, 2019, other income totalled $88 as compared to other income of $69 for the three months ended June 30, 2018. Other income is comprised of interest and dividend income.

  As at June 30, 2019 As at December 31, 2018
Total assets 17,656 16,375
Total liabilities 306 395
Net asset value 17,350 15,980
Shares outstanding 9,045,198 9,045,198
Net asset value per share – basic* $1.92 $1.77

As at June 30, 2019, the Company held investments at fair value totaling $9,850 as compared to $8,969 as at December 31, 2018, a 10% increase, attributable to purchases in the investment portfolio and net investment gains during the six months ended June 30, 2019.

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

Net Asset
Value (NAV)

(excluding F/X g(l))
NAV per
share –
per NAV1
    $'000s $'000s $ %
Jun-30-19 9,045,198 17,350 118 1.92 0.7
Mar-31-19 9,045,198 17,106 119 1.89 0.7
Dec-31-18 9,045,198 15,980 103 1.77 0.6
Sept-30-18 9,045,198 16,326 171 1.80 1.0
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

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
2 Operating Expenses do not include Foreign Exchange gain (loss) on financial assets other than investments

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 company focused on the technology sector. Pinetree’s common shares are listed on the Toronto Stock Exchange (TSX) under the symbol “PNP”

For further information:
John Bouffard
Chief Financial Officer

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