(April 19 – 10:20 ET) – Strategic Value Corporation is reporting its financial results for the three month period ended March 31. Total Revenues of $23.8 million for the three-month period generated net earnings of $0.7 million, or $0.03 per share fully diluted.
Cash flow from operations amounted to $6.8 million for the three-month period, or $0.31 per share fully diluted. During this period, SVC says it expensed $1.1 million in relation to the proposed acquisition by SVC of Nova Bancorp Group (Canada) Ltd. as announced on March 10, 2000.
Amortization of goodwill has increased by 137% over the same period last year as a result of the acquisition of O’Donnell Investment Management Corp. in June 1999. O’Donnell is being amortized over a period of 20 years.
The two principal shareholders of SVC, Mark S. Bonham and Investec Group Ltd., have signed lock-up agreements to sell their equity ownership positions in SVC to Nova. The board of directors of SVC, on the advice of an independent committee of directors who received a fairness opinion from BMO Nesbitt Burns Inc., has determined to recommend that SVC shareholders should vote in favour of the plan. The special meeting of shareholders is scheduled to occur on a date prior to May 31, 2000.
-IE Staff