BEIJING, CHINA -- (Marketwired) -- 05/10/13 -- Mountain China Resorts (Holding) Limited (TSX VENTURE: MCG) ("MCR" or the "Company") today reported its financial results for the fiscal year ended December 31, 2012. MCR reports its results in Canadian Dollars.
Total revenue and the net results were from resort operations with no real estate sales revenue during the Reporting Period. For the year ended December 31, 2012, the Company generated revenues from resort operations of $9.45 million and a net loss of $17.85 million or $0.06 per share compared to $6.66 million and a net loss of $42.66 million or $0.21 per share. Resort Operations EBITDA from continuing operations for the 2012 year were $2.54 million compared to negative $0.8 million in the 2011 year.
Resort operations expenses from continuing operations totaled $8.08 million for the year ended December 31, 2012 compared to $6.43 million in 2011. Operations expenses within the resorts are mainly attributable to snow making, grooming, staffing, fuel and utilities, which also include the G&A expenses relating to the resort's senior management, marketing and sales, information technology, insurance and accounting.
Corporate general and administrative expenses ("G&A expenses") totaled $1.51 million for the year ended December 31, 2012 compared to $1.46 million in 2011. This amount mainly comprised executive employee costs, public company costs, and corporate information technology costs.
Depreciation and amortization expense from continuing operations totaled $11.18 million for the year ended December 31, 2012 compared to $12.38 million in 2011.
The Group incurred financing cost of $8 million for the year ended December 31, 2012 from continuing operations compared to $7.41 million in 2011. Financing costs were mainly related to the loan interest, and also included bank administrative fees, and service charges.
Cash and cash equivalents totaled $14.08 million and working capital was negative $60.66 million as at December 31, 2012.
Operations Sun Mountain Yabuli
The 2012-2013 MCR's Sun Mountain Yabuli Resort winter season operations commenced on November 24, 2012 and closed on March 24, 2013. The 2011-2012 winter season operations commenced on November 26, 2011 and closed on March 25, 2012. The revenue of Sun Mountain Yabuli Resort operation comprises mainly by mountain operation, beverage, skiing-related services and hotel lodging. Skiing-related services includes rental of ski equipment, goggles, lockers, gloves, etc, sales of ski equipment and skiing training services offered in the ski school. It also includes the mountain operation which is using the facilities built in the mountain, such as sight-seeing trams, snow tubing and alpine. Revenue from the Yabuli Resort for the year ended December 31, 2012 was $9.45 million versus $6.66 million in 2011.
Sun Mountain Yabuli - Real Estate Development
At the end of Fiscal 2010, the Company had finished working on the exterior decoration of the 55 villas of which three were completed with interior finishing. At this time of the reporting date, certain construction is still needed on the exterior grounds to complete lighting, roads and utility connections. Management expected to be able to begin selling the villas and use the proceeds to complete the construction. As of December 31, 2012 the Company had not been successful in selling any of the villas. Management is of the opinion that in order to complete sales it is necessary to first complete the exterior construction. Management estimates these additional construction costs to be $4,486 and has plans to commence construction in the summer of 2013.
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