Longview Capital Partners Posts Loss of $3.9 Million After-Tax in Q208: Financial News

Longview Capital Partners Posts Loss of $3.9 Million After-Tax in Q208
Monday August 18, 2008 3:41 pm ET

VANCOUVER, BC--(MARKET WIRE)--Aug 18, 2008 -- Longview Capital Partners Incorporated (Toronto:LV.TO - News) (Frankfurt:L6V.F - News) announces its financial results for the three months ended June 30, 2008. A net loss of $3.9 million or $0.04 per share was recorded for the three month period ended June 30, 2008 versus a net loss of $17.1 million or $0.16 per share (basic) for the same period in 2007. At June 30, 2008 the Company held investments with a fair value of $72.6 million, or $0.66 per share compared to $105.6 million at December 31, 2007.

Longview Capital Partners recorded realized gains on disposal of investments of $3.5 million and unrealized investment losses of $8.1 million in the second quarter ended June 30, 2008 compared to realized investment gains of $0.9 million and unrealized investment losses of $20.7 million in the second quarter of 2007. Net cash generated from investing activities was $2.3 million compared to cash used of $1.3 million in the same period of 2007. Longview Capital Partners' investment portfolio at June 30, 2008 included 35 public companies and 18 private companies.

"Longview Capital Partners continues to make progress adjusting to current market conditions," said Damien Reynolds, founder, Chairman and CEO of Longview Capital Partners. John Icke, President and Chief Operating Officer of Longview Capital, added, "Longview continued to lower operating costs in the second quarter and is aligning its operational and investment programs to reflect the current depressed market conditions. In the second quarter we have made a number of strategic decisions to support our current investment portfolio to ensure progress in their development continues."

Longview Capital Partners will hold a conference call on Tuesday, August 19, 2008, to discuss financial results for the second quarter ended June 30, 2008. Mr. John Icke, Chief Operating Officer, and Mr. Roger Foster, interim Chief Financial Officer, will host the call.

 
Date:             Tuesday, August 19, 2008
Time:             10:00 AM Eastern Standard Time
Dial In Number:   416-849-4292 or toll free 866-334-3876
Webcast:          http://www.investorcalendar.com/IC/CEPage.asp?ID=133293

At the end of the presentation, there will be a question and answer session. Questions can be submitted in advance to info@longviewcp.com.

About Longview Capital Partners

Longview Capital Partners is an investment company creating long-term shareholder value by capitalizing on early stage opportunities in the natural resource sector, and having the resultant earnings growth recognized in its share price. Longview Capital Partners first began trading on September 5, 2005 and graduated to the TSX senior Exchange on September 24, 2007 under the same symbol "LV".

Attached are the Consolidated Balance Sheet, Statement of Operations and Retained Earnings, and Statement of Cash Flows for the three months ended June 30, 2008 and 2007. Readers are referred to the notes and management discussion and analysis that are an integral part of these financial statements, which can be found on the SEDAR website at www.sedar.com or on our website at www.longviewcp.com.

For more information on Longview Capital Partners Incorporated, please contact Investor Relations at (604) 681-5755 or visit our website at www.longviewcp.com.

Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. Such statements are based on numerous assumptions and are subject to all the risks and uncertainties inherent in the Company's business, including risks related to mineral exploration and development. Consequently, actual results may vary materially from those described in the forward-looking statements.

 
LONGVIEW CAPITAL PARTNERS INCORPORATED
CONSOLIDATED BALANCE SHEETS
AS AT JUNE 30, 2008 AND DECEMBER 31, 2007
(Unaudited)




                                 June 30, 2008            December 31, 2007
ASSETS

Investments (Notes 3 and 4)      $   72,602,551             $  105,625,222
Cash and cash equivalents               568,461                    183,602
Accounts receivable (Note 11)           942,152                    458,065
Due from related parties (Note 11(f)) 2,432,499                          -
Deposits and prepaid expenses           206,532                    156,949
Income taxes recoverable              1,538,972                  3,617,522
Fixed assets (Note 5)                   299,199                    305,268
                                     -------------------------------------
                                 $   78,590,366             $  110,346,628
LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities

Due to brokers (Note 6)           $   1,064,014             $            -
Accounts payable and accrued
liabilities (Note 11)                   616,994                  2,999,055
Future tax liabilities (Note 7)       7,589,678                 19,530,341
                                    --------------------------------------
                                      9,270,686                 22,529,396
                                    --------------------------------------
Shareholders' equity

Share capital (Note 8)               38,723,547                 37,773,549
Contributed surplus (Note 8)          8,393,295                  8,118,533
Retained earnings                    22,202,838                 41,925,150
                                  -----------------------------------------
                                     69,319,680                 87,817,232
                                  ----------------------------------------
                                 $   78,590,366             $  110,346,628
===========================================================================
Commitments (Note 12)
Measurement uncertainty - Investments (Note 2)


On behalf of the Board:


Signed "Damien Reynolds" Director     Signed "Hein Poulus"   Director





LONGVIEW CAPITAL PARTNERS INCORPORATED
STATEMENTS OF OPERATIONS, COMPREHENSIVE INCOME AND RETAINED EARNINGS
FOR THE THREE MONTHS ENDED JUNE 30, 2008 AND 2007
(Unaudited)


                            Three Months Ended         Six Months Ended
                          June 30,      June 30,     June 30,     June 30,
                            2008          2007         2008         2007
REVENUES
 Gain on disposal
of investments, net    $ 3,491,852     $ 943,939   $ 9,326,615 $ 4,247,516
 Unrealized (loss)
gain on investments, net(8,160,994)  (20,708,084)  (36,762,310) 14,562,023
 Interest and
rental income              141,660        82,923       214,154     152,740
 Other income
(Note 11(a iii))           749,276       881,617     1,595,590   1,355,477
                        --------------------------------------------------
                        (3,778,206)  (18,799,605)  (25,625,951) 20,317,756
                        --------------------------------------------------
EXPENSES
 General and
Administrative           1,595,378     4,834,736     3,297,231   6,600,145
 Depreciation               19,469        17,881        37,986      32,616
 Foreign exchange
(gain) loss                    488       405,348        (1,223)    601,742
 Interest expense           20,073        24,796        36,860      26,674
 Stock-based compensation
(Notes 8 and 9)            105,637       671,426       274,762   1,580,478
 Direct investment
investigation costs        197,602     1,096,303       380,828   1,255,859
                        -------------------------------------------------
                         1,938,647     7,050,490     4,026,444  10,097,514
                         -------------------------------------------------
(Loss) income before
income taxes            (5,716,853)  (25,850,095)  (29,652,395) 10,220,242
 Provision for income
taxes (Note 7)           1,761,923     8,691,317     9,930,083  (2,906,239)
                         -------------------------------------------------
Net (loss) income and
comprehensive income
for the period          (3,954,930)  (17,158,778) (19,722,312)   7,314,003
Retained earnings,
beginning of period,
as previously reported  26,157,768    57,326,559   41,925,150   35,869,507
Change in accounting
(Note 3)                         -             -            -   (3,015,729)
                        ---------------------------------------------------
Retained earnings,
beginning of period,
as adjusted             26,157,768     57,326,559  41,925,150   32,853,778
                        ---------------------------------------------------
Retained earnings,
end of period        $  22,202,838   $ 40,167,781 $22,202,838  $40,167,781
===========================================================================
Basic earnings per
Share                $       (0.04)  $     (0.16) $     (0.18) $      0.07
===========================================================================
Diluted earnings
per share            $       (0.04)  $     (0.16) $     (0.18) $      0.06
==========================================================================
Weighted average number of common shares outstanding (Note 2)
 Basic                 109,518,348   107,395,847  109,422,823   104,559,813
 Diluted               109,518,348   107,395,847  109,422,823   115,611,508
===========================================================================

LONGVIEW CAPITAL PARTNERS INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2008 AND 2007
(Unaudited)


                         Three Months Ended             Six Months Ended
                        June 30,     June 30,         June 30,     June 30,
                          2008         2007             2008         2007
---------------------------------------------------------------------------
CASH FLOWS FROM (USED IN)
OPERATING ACTIVITIES
 Net income for
the period          $  (3,954,930) $(17,158,778) $(19,722,312) $ 7,314,003
 Items not affecting cash:
 Gain on disposal
of investments, net    (3,491,852)     (943,939)   (9,326,615)  (4,247,516)
 Unrealized loss/(gain)
on investments, net     8,160,994    20,708,084    36,762,310  (14,562,023)
 Provision/(recovery) for
income taxes - future  (2,464,144)   (7,167,431)  (11,940,663)   3,870,773
 Shares issued in
exchange for accrued
liabilities                     -     1,750,000             -    1,750,000
 Stock-based
Compensation              105,637       671,426       274,762    1,580,478
 Depreciation              19,469        17,881        37,986       32,616

Changes in non-cash
working capital items:


 Decrease in accounts
receivable and decrease
in income taxes recoverable(33,260) (2,375,436)     (818,036)   (2,448,562)
 Decrease/(increase)
in deposits and prepaid
expenses                   (15,457)     12,338      (107,119)       21,196
 Increase/(decrease)
in accounts payable and
accrued liabilities     (2,428,911)    433,452    (2,344,527)     (580,712)
 Increase/(decrease)
in income taxes payable          -  (2,922,567)            -    (2,363,215)
                        ---------------------------------------------------
Net cash used in
operating activities    (4,102,454) (6,974,970)   (7,184,214)   (9,632,962)
                        ---------------------------------------------------

CASH FLOWS FROM (USED IN)
INVESTING ACTIVITIES
 Purchase of
Investments             (8,989,595)(20,425,505)  (13,394,730)  (26,628,132)
 Proceeds from disposal
of investments          11,342,906  19,136,232    18,981,707    28,058,478
 Purchase of
fixed assets               (16,485)    (19,230)      (31,916)      (99,592)
                        ---------------------------------------------------
Net cash from
investing activities     2,336,826  (1,308,503)     5,555,061    1,330,754
                        ---------------------------------------------------

CASH FLOWS FROM (USED IN)
FINANCING ACTIVITIES
 Increase/(decrease)
in due to brokers        (186,003)    1,653,457     1,064,014     1,583,510
 Shares and warrants
issued for cash                 -             -             -     2,999,999
 Proceeds from
exercise of options             -       164,575             -       213,500
 Proceeds from
exercise of warrants            -     2,581,481             -     3,707,020
Changes in non-cash
financing items:
 Shares issued as bonus   949,998             -       949,998             -
                       ----------------------------------------------------
Net cash from
financing activities      763,995     4,399,513     2,014,012     8,504,029
                       ----------------------------------------------------

Increase in cash and
cash equivalents
during the period      (1,001,633)   (3,883,960)      384,859       201,821





Cash and cash
equivalents, beginning
of period              1,570,094     6,890,333        183,602     2,804,552
                      -----------------------------------------------------
Cash and cash
equivalents, end
of period             $  568,461  $  3,006,373     $  568,461  $  3,006,373
===========================================================================

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