StorageVault Canada Inc. Releases Financial Results for the Fiscal Quarter
STORAGEVAULT CANADA INC. (“StorageVault”) (TSX VENTURE:SVI) is pleased to report results for the fiscal quarter ended March 31, 2012. Highlights for the fiscal quarter are presented below. All financial figures are unaudited and in Canadian dollars unless otherwise noted. For further information on the results for the fiscal quarter, please see StorageVault’s unaudited interim financial statements and management’s discussion and analysis for the three months ended March 31, 2012 filed on the SEDAR website at www.sedar.com on May 25, 2012; as well as the audited annual financial statements for the fiscal year ended December 31, 2011. The March 31, 2012 unaudited interim financial statements are prepared and reported in accordance with International Financial Reporting Standards (“IFRS”). Highlights of the Fiscal Quarter:
- Revenue from storage and related services increased by $128,514 to $787,263 representing a 19.5% increase compared to the same period last year.
- Net operating income from properties (a non-IFRS measure) increased by $89,118 to $404,656 representing a 28.2% increase compared to the same period last year.
- Cash flow as measured by Funds from Operations (a non-IFRS measure) increased by $55,474 to $97,801 representing a 131.1% increase compared to the same period last year. Subsequent to the end of the fiscal quarter:
- On April 11, 2012 StorageVault announced the acquisition of 2.16 acres of undeveloped land in Saskatoon, SK. The acquisition was conducted through a Court approved sales process with the transfer of title being conveyed to StorageVault on April 9, 2012. The aggregate purchase price was $480,000 (subject to customary adjustments) and was paid for by $360,000 of bank mortgage financing and the remainder in cash. StorageVault’s intention is to use this land for an expanded PUPS operation in Saskatoon and to develop fixed on-site storage using PUPS storage units.
- On April 30, 2012 StorageVault completed the acquisition from an arm’s length vendor of all of the assets and business of Space Place Self Storage (South), a self-storage facility located in Calgary, AB. The aggregate purchase price was $3,000,000. After standard customary closing adjustments and property transfer taxes, the purchase price was comprised of cash deposits totaling $100,000, a final cash payment of $635,623, and mortgage financing of $2,250,000. The self-storage facility has over 400 rental units with approximately 35,000 square feet of rentable self- storage space together with outdoor spaces for storage of vehicles. The total size of the site is approximately 1.50 acres. StorageVault intends to develop and operate a PUPS portable storage business in Calgary in conjunction with the acquisition of this facility.
- On April 24, 2012, StorageVault announced that it entered into a credit agreement (the “Credit Agreement”) with Bank of Montreal (“BMO”), pursuant to which BMO has agreed to make available to the Corporation credit facilities in the amount of up to $24 million. Such credit facilities are comprised of: (i) a $20 million revolving credit facility for re-financing of existing term debt and for future acquisition of self-storage facilities; (ii) a $2 million revolving credit facility for expansion of PUPS portable storage facilities; (iii) a $1 million revolving credit facility for the purchase of equipment associated with the operation of PUPS; and (iv) a treasury risk management facility subject to a limit of $1 million. Financing under the terms of the Credit Agreement is subject to a number of customary and usual conditions for this type of transaction, including but not limited to: (i) satisfactory completion of loan, security and account documentation, and lender due diligence; (ii) satisfactory compliance by StorageVault with financial and non-financial covenants normally applicable to transactions of this nature; and (iii) compliance by StorageVault with all material laws, including environmental regulations. There is no assurance that StorageVault will be able to satisfy all terms and conditions of the Credit Agreement that are required in order to be eligible to drawdown funds under the credit facilities. Furthermore, even if StorageVault does satisfy such terms and conditions, there is no assurance that StorageVault will take advantage of the credit facilities under the Credit Agreement and drawdown any funds.
