Toronto, Ontario -- Parkit Enterprise Inc. (TSXV: PKT) ("Parkit", "Company" or the "Corporation"), an industrial real estate growth vehicle and parking platform, is pleased to report its fourth quarter and fiscal financial results for the year ended October 31, 2020.
Steven Scott, Chairman, commented: "Parkit continues its transition into an industrial real estate growth vehicle with the purchase of 5600 Finch Ave East and 4390 Paletta Court, and 5610 Finch Ave East scheduled to close in March 2021. In addition, our recent $94 million bought deal and non-brokered private placements set us up well for acquisitions in 2021 and beyond."
2020 Full Year Audited and Quarterly Results of Legacy Parking Business were Impacted by COVID-19
COVID-19 negatively impacted parking operations in the Company's joint ventures starting in the second half of March 2020. While the impact of COVID-19 is expected to be temporary, it is difficult to estimate the nature, timing, and extent of the business and economic impact on the Company's future financial performance.
In Q4 2020, the Company recorded a non-cash loss of $3,453,710 (Q4 2019 - $283,103 profit) as its share in the losses from joint ventures, as a result of the pandemic. The loss includes an adjustment of $3,100,858 to the book value of the joint ventures as an impairment based on accounting rules and appraised values. The current appraised values take into account the effects of COVID-19 and are lower than the pre-pandemic valuations. The Company believes the valuations will recover as the effects of the pandemic diminish.
The Company's share of profit (loss) from associate was adjusted to take a loss on the value of the contingent receivable as the estimated payout would be lower based on the revised appraised value of one of its joint venture's properties. The appraised value of the property is lower due to the effects of COVID-19, however, the Company expects these values to recover as the effects of the pandemic diminish.
The Company reported a net loss of $4,356,009 for the quarter (net loss of $152,778 in 2019) and a net loss of $5,327,509 for the year (net loss of $879,382 for 2019).
A summary of the operating and financial results from our legacy parking business are as follows:
|Three months ended
October 31, 2020
|Three months ended
October 31, 2019
|Share of profit (loss) from joint ventures||(3,453,710||)||283,103||(4,061,621||)||646,365|
|Share of profit (loss) from associate||(600,891||)||(7,716||)||(600,891||)||26,420|
|Parking services revenue||$||-||$||30,010||$||-||$||70,010|
|Parking services operating expenses||-||(9,967||)||-||(47,690||)|
|General and administrative expenses||(126,202||)||(229,658||)||(594,574||)||(1,060,619||)|
|Foreign exchange gain (loss)||(13,467||)||2,730||16,904||(11,322||)|
|Income (loss) before tax||(4,158,572||)||104,942||(5,093,972||)||(225,922||)|
|Income tax expense||(197,437||)||(257,720||)||(233,537||)||(653,460||)|
|Net (loss) for the period||$||(4,356,009||)||$||(152,778||)||$||(5,327,509||)||$||(879,382||)|
Subsequent to Year End
Subsequent to year end, Parkit shifted its strategy to focus on the acquisition of industrial real estate in Canada and has acquired two Greater Toronto Area ("GTA") assets with a third under contract scheduled to close in March 2021.
In addition, Parkit raised $94 million through private placements between December 29, 2020 and February 17, 2021 which the Company plans to use for acquisitions in 2021 and beyond.
Parkit's industrial real estate strategy is to own and operate a portfolio of strategically located industrial properties across key markets in Canada, with a focus on the GTA+, Ottawa and Montreal. The Company is committed to:
- owning and operating a premium portfolio of industrial and parking assets with strong operating fundamentals
- focusing resources to long-term cash flow and net asset value growth
- maximizing the value of industrial and parking assets through expansion and innovative asset management
- ensuring the Company follows progressive environmental, social and governance policies
For comprehensive disclosure of Parkit's performance for the year ended October 31, 2020 and its financial position as at such date, please see Parkit's Consolidated Financial Statements and Management's Discussion and Analysis for the year ended October 31, 2020 filed on SEDAR at www.sedar.com.
About Parkit Enterprise Inc.
Parkit is an industrial real estate platform focused on the acquisition, growth and management of strategically located industrial properties across key markets in Canada, with a focus on the Greater Toronto Area+ ("GTA+"), Ottawa and Montreal, to complement its parking assets across the United States.
For further information, contact the Company:
Neither the 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.
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budgets", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", "may" or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this press release contains forward-looking information in relation to: the use of proceeds from the Company's recently completed private placements, the Company's plans to complete further acquisitions in 2021 and beyond and the impact of COVID-19 on the Company's business and its impact on property valuations. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. These risks, uncertainties, and factors may include, but are not limited to general business uncertainties, and in particular uncertainties relating to the impact and duration of COVID-19 on future financial performance. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what impacts they will have on the Company. A description of additional risk factors that may cause actual results to differ materially from forward looking information can be found in Parkit's disclosure documents on the SEDAR website at www.sedar.com. Although Parkit 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. Accordingly, readers should not place undue reliance on forward-looking information. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking information contained in this press release is expressly qualified by this cautionary statement. The forward-looking information contained in this press release represents the expectations of Parkit as of the date of this press release and, accordingly, are subject to change after such date. However, Parkit expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.