VANCOUVER, March 1, 2019 /CNW/ - Parkit Enterprise Inc.
("Parkit" or the "Company") (TSXV: PKT; OTCQX: PKTEF)
has recently filed its audited financial statements and management
discussion and analysis for the year ended October 31, 2018 (the "Annual Filings") on SEDAR
(www.sedar.com). The financial highlights for the fiscal year
include the following:
- Full Year Revenue of $6,656,898
versus 2017 Full Year Revenue of $1,566,176, comprised of parking services
revenue, fee income, profit from joint ventures and profit from
associate.
- 2018 Full Year Net Income of $3,448,040 versus 2017 Full Year Net Income of
$457,298.
- 2018 diluted earnings per share of $0.11 versus 2017 diluted earnings per share of
$0.01.
- Book value increased for the quarter by $3,132,714 from $17,725,469 to $20,858,183.
- Book value per share increased for the quarter from
$0.55 per share to $0.64 per share.
- Cash represents approximately $0.06 per share.
- Sale of Terra Park in June 2018:
OP Holdings JV LLC (the "Joint Venture") sold Terra Park, its parking facility located in
Jacksonville, Florida.
Terra Park was bought by the Joint
Venture in 2015 for US$6.4 million
(consisting of an equity investment of US$2.4 million) and was sold for US$6.83 million plus an additional sum of
US$750,000 paid in equal monthly
installments over one year. When including the income received from
the property over the investment period, the sale represented a
levered IRR of approximately 24% to the Joint Venture.
- Sale of Expresso Parking in October
2018: OP Holdings JV LLC sold Expresso Parking, its parking
facility located at the Oakland
International Airport in California. Expresso was bought by the Joint
Venture in 2015 for approximately US$19.2
million (consisting of an equity investment of US$7 million) and was sold for approximately
US$36.1 million. When including the
income received from the property over the period of the
investment, the sale represented a levered IRR of approximately 42%
to the Joint Venture.
- As a result of the above noted sales, the Company announced the
completion of its 15% IRR hurdle within OP Holdings JV LLC. Due to
the fulfillment of the 15% IRR hurdle, cash flows from future sales
and refinances within the Joint Venture will flow to PAVe, an
entity in which Parkit has an 82.83% interest, until PAVe has
received a 15% IRR.
"We are pleased with the progress that we are making in
realizing what we believe is the true book value of the Company,"
stated David Delaney, Parkit's
Executive Chairman. "Through further selective asset
monetization, we believe that we will realize unencumbered cash
within our company that is substantially in excess of the current
share price. Simultaneously, we are exploring options for
acquisitions that will have a positive impact on both a book value
per share basis and a free cash flow per share basis."
For more information on the Joint Venture and the priority of
future payments, please refer to the OP Holdings JV, LLC limited
liability company agreement posted to the Company's SEDAR profile
on April 23,
2018.
For further information on the Company please see the Company's
financial statements and related management's discussion and
analysis for the year ended October 31,
2017 and the nine month period ended July 31, 2018 available under the Company's
profile on www.sedar.com.
About PARKIT
Parkit Enterprise Inc. is engaged in the acquisition,
optimization and asset management of income producing parking
facilities across the United
States and Canada. The
Company's shares are listed on TSX-V (Symbol: PKT) and on the OTCQX
(Symbol: PKTEF).
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Certain statements contained in this news release constitute
forward-looking information under applicable securities law. These
statements relate to future events or future performance, including
statements as to: the Company's belief regarding anticipated
distributions from the Joint Venture. Such statements are not
guarantees of future performance and actual results or developments
may differ materially from those expressed in, or implied by, this
forward-looking information. Factors that could cause actual
results to differ materially from those in forward-looking
statements include such matters as the operations of the Joint
Venture and its ability to complete asset sales and refinancings.
Any forward-looking statements are expressly qualified in their
entirety by this cautionary statement. The information contained
herein is stated as of the current date and subject to change after
that date and the Company does not undertake any obligation to
update publicly or to revise any of the forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required by applicable securities laws. .
NON-GAAP FINANCIAL MEASURES
This release contains a non-GAAP financial measure. The
definition and calculation of this non-GAAP financial measure may
differ from the definitions and methodologies used by other
companies and, accordingly, may not be comparable. The non-GAAP
financial measure referred to below should not be considered an
alternative to net income as an indication of our performance. In
addition, this non-GAAP financial measure does not represent cash
generated from operating activities in accordance with GAAP and
therefore should not be considered as an alternative measure of
liquidity or as indicative of cash available to fund cash
needs.
Levered Internal Rate of Return ("IRR") is calculated as the
internal rate of return on the Joint Venture's equity investment in
the property considering the timing and amounts of capital
contributions paid, and all distributions received.
Management believes that the levered IRR achieved during the
period a property is owned by the Joint Venture is useful because
it is one indication of the gross value created by the Joint
Venture's acquisition, management and ultimate sale of a property,
before the impact of Joint Venture's overhead and taxes. However,
leveraged IRR is not a substitute for net income as a measure of
our performance.
The levered IRR achieved on the property as cited in this
release should not be viewed as an indication of the gross value
created with respect to other properties owned by the Joint
Venture, and the Company does not represent that the Joint Venture
will achieve similar levered IRRs upon the disposition of other
properties. The levered IRR cited in this press release is
from the perspective of the Joint Venture, in which the Company has
an economic interest.
Under GAAP, the Company recognizes its investment in the Joint
Venture using the equity method whereby the carrying value of the
investment is adjusted for the Company's share of the profit and
loss of the Joint Venture, and decreased for any distributions
received by the Joint Venture. All amounts reported by the
Company from the Joint Venture are translated into Canadian
dollars. The gain on the disposition of the property will
have an impact on the amount reported by the Company for its share
of the GAAP net profit from the Joint Venture.
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SOURCE Parkit Enterprise Inc.
