Loss-making Comfor Management Services of Burns Lake, B.C., plans to roll companies together, sell off assets, reduce staff
BURNS LAKE, B.C.
May 20, 2009
(Lakes District News)
– As recently reported in the May 6, 2009 edition of the Lakes District News Comfor Management Services Ltd. (CMSL) and its subsidiaries are running at a loss.
According to Lianne Olsen, president of CMSL the loss is due to the recent economic downturn.
For the 10 months ended March 31, 2009 a consolidated loss of $1.39 million was recorded by the entire group of Comfor companies.
According to Olson, “This $1.39 million loss represents the combined losses of all companies in the ComFor group for the period June 1, 2008 to March 31, 2009.
Lakes District News is now able to report the individual losses of the company’s flying under the CMSL banner.
Comfor Management Services Ltd. reported a year to date loss as of March 31, 2009 of $90,672, while Burns Lake Community Forest Limited (BLComfor) reported a year to date loss of $605,258.
Lakes Communications Inc. also reported a significant loss of $244,003 as did Endako River Timber Ltd. with a loss adding up to $446,521.
“Probably 90 per cent of the loss at Endako River Timber is accumulated amortization [devaluation of equipment] and not a cash loss,” notes Olsen.
Sheraton Holdings also reported a loss of $4,239.
“Due to the losses being recorded in the year end to May 31, 2009 we don’t anticipate paying any income tax in any of the companies this year, and in fact expect to apply our losses against taxes paid in the previous years to obtain a claw back refund.
We don’t know the exact amount of the refund yet, as the fiscal year is not complete,” stated Olsen.
Olsen, with regards to the reported retained earnings of $9.2 million held by the Comfor group noted, “At the beginning of the year, the Comfor group has consolidated retained earnings of $9.2 million as was shown on the consolidated balance sheet. The losses have reduced retained earnings to 7.8 million, which is the $1.39 million dollar loss shown on the consolidated income statement for the year to date. This however, should not be confused as money that is ‘available’ to the company. The corporate group’s consolidated assets total $12.9 million, but only $3.1 million is actual cash. The remainder of the assets are not liquid [easily converted to cash], she commented.
Will all companies under the Comfor banner reporting, in some cases significant losses the recent announcement by Olsen that the Comfor group are planning to roll companies together, sell off assets and reduce the amount of staff will, according to Olsen allow the company to claw back to a break even position in the near future.