Burns Lake Comfor finance update

Comfor is a wholly-owned subsidiary of the Village of Burns Lake.

  • May. 13, 2015 10:00 a.m.

Village of Burns Lake’s municipally-owned corporations posted a consolidated profit of slightly more than $1.1 million for the fiscal year ended Oct. 31, 2014, down slightly from the previous year.

The village’s audited financial statements for the period ending Dec. 31, 2014 show that its municipally-owned corporation, Comfor Management Services Ltd. (Comfor), and the latter’s wholly-owned subsidiary, Burns Lake Community Forest Ltd. (BLCF), recorded comprehensive income of $1,134,659 during their 2014 fiscal year. In the previous 12-month period, the companies had comprehensive income of $1,189,819.

Gross operating revenues for the two companies were down significantly last year. In 2013, Comfor and BLCF had $7.6 million in combined revenue from operations, but those revenues dropped to $4.77 million last year – a decline of nearly $3 million. Cost of sales in 2014 totaled $3.7 million compared to $6.6 million the previous year, leaving the companies with a consolidated gross profit of $1,020,343 in 2014.

Comfor and its subsidiary earned an additional $335,209 from their investment portfolios last year, and another $41,800 from the sale of capital assets. Unrealized gains from securities during the same period totaled $121,744, though the company did record a small loss ($2,629) from discontinued operations.

The companies continue to have healthy balance sheets. At the end of the 2014 fiscal year, the companies had current assets (cash, accounts receivable, and prepaid expenses) of $2.3 million. Long term investments grew to $6,847,824 in 2014, up nearly $1.6 million from the previous year, while long-term liabilities (accrued reforestation costs) dropped by approximately $200,000, to $2.878 million.

The companies’ consolidated assets now total $10.2 million.

The two companies continued to support community organizations last year, but not to the same degree as previously. In 2014, Comfor/BLCF spent a combined $75,741 on donations and gifts. This represented a marked decline from previous year, when the companies gave away $1,502,967, most of it ($960,000) to the Village of Burns Lake.

Comfor is a wholly-owned subsidiary of the Village of Burns Lake. It was incorporated to hold the shares of BLCF and provide the latter with management services.

The vast majority of the companies’ consolidated revenue comes from Burns Lake Community Forest Ltd. and the sale of timber from the community forest to sawmills throughout the Central Interior.

 

Burns Lake Lakes District News

Just Posted

Most Read