TSE SYMBOL: BEI NYSE SYMBOL: BEI NOVEMBER 15, 2001 - 08:01 EST Boardwalk Equities Reports Strong Third Quarter Results: Record Quarter for Rental Operations CALGARY, ALBERTA--Boardwalk Equities Inc. ("BEI" - NYSE, TSE) is pleased to report a strong quarter of financial results for the third quarter of 2001, which was a record quarter for the Company's core rental operations. For the third quarter ended September 30, 2001, the Company reported total revenues of $51.7 million, funds from operations ("FFO") of $14.9 million and FFO per share of $0.30. For the nine months ended September 30, 2001, the Company reported total revenues of $170.0 million, FFO of $45.9 million and FFO per share of $0.92. Effective December 31, 2000, the Company changed its fiscal period end to December 31 from May 31. Due to this change, an identical period for comparative purposes is not available. For illustrative purposes only, where applicable, we have presented the Company's results for the three-month and nine-month periods ended August 31, 2000. Readers are cautioned that these results are not for identical comparable periods and that the real estate industry is subject to seasonal fluctuations that will affect straight comparisons of these amounts. Highlights of the Company's third quarter 2001 financial results include: * Rental revenues of $51.5 million, an increase of 10% compared to $46.7 million for the three-month period ended August 31, 2000; * Total revenues of $51.7 million, compared to $46.7 million for the three-month period ended August 31, 2000; * Net operating income of $36.0 million, representing a 16% increase from $31.1 million for the three-month period ended August 31, 2000; * FFO of $14.9 million, up 54% compared to $9.7 million for the three-month period ended August 31, 2000; * FFO per share of $0.30 on a diluted basis, an increase of 58% from the $0.19 for the three-month period ended August 31, 2000; * Net loss of $17.3 million, compared to a loss of $1.2 million for the three-month period ended August 31, 2000. A one-time write-down of $27.5 million ($18.0 million after-tax) on technology investments was recorded in the Company's third quarter, fiscal 2001; * Loss per share of $0.34, compared to a loss of $0.02 per share for the three-month period ended August 31, 2000. In the current quarter, the write-down on technology investments amounted to $0.36 per share after-tax. Commenting on the Company's third quarter results, Sam Kolias, President and Chief Executive Officer said, "We are pleased to report that our core real estate operations continue to show strong and improving results. The fundamentals for the multi-family rental sector remain healthy". Boardwalk's core rental operations posted record quarterly results, driven by continued improvement in its portfolio performance. The average vacancy rate across the Company's portfolio for the third quarter of 2001 was 4.6%, down from 6.2% in the second quarter. As of October 2001, the vacancy rate had declined further to 4.0%. Average monthly rents realized in the nine-month period of 2001 were $658 per unit, up $40, or 6%, from $618 per unit for the nine months ended August 31, 2000. Management estimates that market rents for its properties at the end of September 2001 averaged $748, which compares to an average in-place rent per occupied unit of $702. This indicates an estimated "loss-to-lease" on the portfolio of approximately $14.3 million on an annualized basis. The third quarter 2001 results include a small profit of $0.1 million derived from the sale of excess land at one of the Company's Edmonton properties. There were no operating profits from asset sales in the comparable three-month period ended August 31, 2000. The Company completed the previously announced acquisition of two properties early in the third quarter totaling 531 units at a cost of just over $23.4 million before closing costs, or approximately $44,100 per unit. This brings the total units acquired year-to-date to 1,242. Subsequent to September 30, 2001, the Company has contracted to acquire 120 units at a purchase price of $7.0 million. The deal is scheduled to close in the fourth quarter of 2001. The Company's net income in the quarter was affected by a one-time write-down on technology investments of $27.5 million, or $18.0 million after-tax. The bulk of this write-down is associated with our Suite Systems subsidiary. In October, Management announced its decision to curtail Suite Systems operations, and the expected write-down. Under the Company's normal course issuer bid, Boardwalk bought back a total of 49,700 shares in the third quarter of 2001 at an average price of $11.84. Subsequent to the end of the third quarter through to November 14, 2001, Boardwalk acquired a further 242,900 shares at an average price of $11.16 per share. For the year-to-date and the current normal course issuer bid-to-date (which began March 1, 2001), Boardwalk has acquired a total of 293,100 shares at an average price of $11.28 per share. Same-Store Results Boardwalk continued to show solid improvement in its stabilized properties (defined as properties owned for over 24 months). A total of 22,549 units were classified as stabilized at September 30, 2001, representing 87% of Boardwalk's total portfolio. The table below compares the "same-store" results for the nine months ended September 30, 2001 to the nine months ended September 30, 2000. /T/ Same-store portfolio - Nine months ended September 30, 2001 vs. nine months ended September 30, 2000 % of Rental Rental Stabilized Revenues Expenses NOI NOI --------------------------------------------------------------------- Edmonton 9.56% -0.68% 14.23% 45% Calgary 5.19% -5.37% 8.14% 26% Other Alberta 9.42% -8.71% 14.13% 7% Ontario 14.40% 6.53% 32.38% 7% Saskatoon 8.51% 0.30% 5.60% 6% Regina 3.33% 7.68% 1.30% 9% --------------------------------------------------------------------- Total Stabilized 8.20% 0.88% 11.91% 100% --------------------------------------------------------------------- /T/ On this basis, same-store results for the Company's stabilized portfolio for the nine-month period continued to show improved results with rental revenue growth of 8.2% and NOI growth of 11.9% versus the nine months ended September 31, 2000. Continued Balance Sheet Strength The Company maintained its strong financial position in the quarter. Boardwalk's mortgage debt totaled $1.06 billion as at September 30, 2001, up marginally from $1.03 billion at December 31, 2000. The weighted average interest rate of 6.24% as of September 30, 2001 is down slightly from 6.27% at December 31, 2001. The Company's liquidity remained strong, with cash and available credit facilities in excess of $46 million at the end of the third quarter. The Company's coverage ratios also remain strong, with an interest coverage ratio of 1.96 for the current nine-month period, excluding the one-time technology write-down, compared to 1.75 times in the comparative period last year. Outlook and Summary Commenting on the outlook for the Company, Mr. Kolias said, "Boardwalk remains well positioned to continue to show improved results. Despite the slowdown in the economy, we are seeing continued solid performance in our portfolio. With our portfolio heavily weighted in strong geographic markets, we believe we can continue to deliver solid results driven by strong internal growth over the next several years." With respect to current "street" estimates, Rob Geremia, Vice President, Finance and Chief Financial Officer said, "We are comfortable that we can deliver results for the full year towards the upper end of current street estimates. We are expecting that FFO for 2001 will be between $0.92 and $0.96 per share excluding profits on asset sales, with guidance for total FFO for the year of between $1.09 and $1.19 per share. Forward-Looking Statements This release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements are statements that involve risks and uncertainties, including, but not limited to, changes in the demand for apartment and town home rentals, the effects of economic conditions, the impact of competition and competitive pricing, the effects of the Company's accounting policies and other matters detailed in the Company's filings with Canadian and United States securities regulators available on SEDAR in Canada and by request through the Securities and Exchange Commission in the United States, including matters set forth in the Company's Annual Report to Shareholders under the heading "Management's Discussion and Analysis". Because of these risks and uncertainties, the results, expectations, achievements, or performance described in this release may be different from those currently anticipated by the Company. Teleconference on Fiscal 2001 Third Quarter Financial Results We invite you to participate in the teleconference that will be held to discuss the fiscal 2001 third quarter financial results this morning at 11:15am EST. Sam Kolias, President and C.E.O., Rob Geremia, Vice President, Finance and C.F.O., and Mike Hough, Senior Vice President, will speak to the results. Presentation materials will be made available on the INVESTOR section of our website (www.bwalk.com) prior to the call. Participation & Registration: Please RSVP to Paul Moon (403) 508-6208 or by email to investor@bwalk.com. Teleconference: The telephone numbers for the conference are: (416) 641-6715 (within Toronto) or 1-800-379-4140 (outside Toronto). Webcast: Investors will be able to listen to the call and view our slide presentation over the Internet by visiting http://investor.bwalk.com at least 15 minutes prior to the start of the call. An information page will be provided for software needed and system requirements. The live audiocast will also be available at http://www.newswire.ca/webcast/pages/BoardwalkEquities20011115/. Replay: An audio recording of the teleconference will be available approximately one hour after the call until 11:59pm EST on November 22nd. You can access it by dialing (416) 626-4100 and using the following reservation number, 19892437. An audio archive will also be available on our Investor site (http://investor.bwalk.com) two hours after the conference call until November 22, 2001. Corporate Profile Boardwalk Equities Inc. is Canada's largest owner/operator of multi-family rental properties. Boardwalk currently owns and operates in excess of 200 properties with over 25,800 units totaling over 21 million net rentable square feet. The Company's portfolio is concentrated in the provinces of Alberta, Saskatchewan and Ontario. Boardwalk is headquartered in Calgary and its shares are listed on both the Toronto Stock Exchange and the New York Stock Exchange and trade under the symbol BEI. The Company has a total market capitalization of $1.6 billion. Additional information is available at Boardwalk's web site at www.bwalk.com. Recent investor information can be found on the Internet at http://investor.bwalk.com/. /T/ Consolidated Balance Sheets - As at (Thousands of dollars) September 30, 2001 December 31, 2000 (Unaudited) (Audited) Assets Revenue producing properties $ 1,378,958 $ 1,328,702 Properties held for development and resale 6,537 6,692 Mortgages and accounts receivable 18,616 17,230 Other assets 15,804 14,637 Deferred financing costs 32,133 31,460 Technology (Note 4) 7,109 24,058 Cash and short-term investments 1,445 21,055 ----------------- ----------------- $ 1,460,602 $ 1,443,834 ----------------- ----------------- ----------------- ----------------- Liabilities Mortgages payable $ 1,064,480 $ 1,034,444 Accounts payable and accrued liabilities 18,276 24,795 Refundable security deposits and other 10,289 9,953 Capital lease obligations 8,929 8,404 Future income taxes (Note 5) 60,813 64,864 ----------------- ----------------- $ 1,162,787 $ 1,142,460 ----------------- ----------------- ----------------- ----------------- Shareholders' equity Share capital (Note 6) $ 262,364 $ 253,586 Retained earnings 35,451 47,788 ----------------- ----------------- 297,815 301,374 ----------------- ----------------- $ 1,460,602 $ 1,443,834 ----------------- ----------------- ----------------- ----------------- Consolidated Statement of (Loss) Earnings - For the three and nine months ended (Thousands of dollars, except per share amounts) (Unaudited) September 30 August 31 September 30 August 31 2001 2000 2001 2000 (9 Months) (9 Months) (3 Months) (3 Months) Revenue Rental income $ 151,804 $ 139,702 $ 51,490 $ 46,664 Sales - properties held for development and resale 18,244 21,044 232 - ----------------------------------------------- $ 170,048 $ 160,746 $ 51,722 $ 46,664 ----------------------------------------------- Expenses Revenue producing properties Operating expenses $ 17,242 $ 17,650 $ 5,154 $ 6,359 Utilities 21,239 16,886 5,428 4,497 Utility rebate (4,060) - (327) - Property taxes 14,883 14,041 5,205 4,716 Cost of sales - properties held for development and resale 10,622 16,827 121 - Administration 11,549 12,607 3,720 4,004 Financing costs 50,311 47,171 16,773 16,633 Amortization (Note 3) 38,611 29,208 13,329 11,179 ----------------------------------------------- $ 160,397 $ 154,390 $ 49,403 $ 47,388 ----------------------------------------------- Operating earnings (loss) before the following $ 9,651 $ 6,356 $ 2,319 $ (724) Provision for loss on technology investments (Note 4) 27,515 - 27,515 - ----------------------------------------------- Operating (loss) earnings before income taxes $ (17,864) $ 6,356 $ (25,196) $ (724) Large corporations taxes 2,333 2,343 755 732 Future income taxes (Note 5) (10,689) 586 (8,672) (306) ----------------------------------------------- Net (loss) earnings for the period $ (9,508) $ 3,427 $ (17,279) $ (1,150) ----------------------------------------------- ----------------------------------------------- Net (loss) earnings per share (Note 7) Basic $ (0.19) $ 0.07 $ (0.34) $ (0.02) Diluted $ (0.19) $ 0.07 $ (0.34) $ (0.02) ----------------------------------------------- ----------------------------------------------- Consolidated Statement of Retained Earnings - For the nine months ended (Thousands of dollars, except per share amounts) (Unaudited) September August 2001 2000 (9 Months) (9 Months) Retained earnings, as previously stated Adjustment for the retroactive adoption of future income taxes accounting standard $ 47,788 $ 32,726 - (1,500) ------------------------- Retained earnings, beginning of period as restated $ 47,788 $ 31,226 Net (loss) earnings $ (9,508) $ 3,427 Dividends paid (2,496) - Premium on share repurchases (333) (3,462) ------------------------- Retained earnings, end of period $ 35,451 $ 31,191 ------------------------- ------------------------- Consolidated Statement of Cash Flows - For the three and nine months ended (Thousands of dollars, except per share amounts) (Unaudited) Sept 30, Aug 31, Sept 30, Aug 31, 2001 2000 2001 2000 (9 months) (9 months) (3 months) (3 months) (restated (restated Note 2) Note 2) Cash flow obtained from (applied to): Operating activities Net (loss) earnings $ (9,508) $ 3,427 $ (17,279) $ (1,150) Future income taxes (10,689) 586 (8,672) (306) Amortization 38,611 29,208 13,329 11,179 Provision for loss on technology investments (Note 4) 27,515 - 27,515 - ------------------------------------------- Funds from operations 45,929 33,221 14,893 9,723 Net change in operating working capital (8,637) 17,443 1,936 (1,630) Net change in properties held for development and resale 9,657 3,228 (87) (259) ------------------------------------------- Total operating cash flows 46,949 53,892 16,742 7,834 ------------------------------------------- Financing activities Issue of common shares (net of issue costs) 1,941 3,104 486 88 Stock repurchase program (613) (6,885) (608) - Dividends paid (2,496) - - - Financing of revenue producing properties 96,583 113,905 25,146 42,947 Repayment of debt on revenue producing properties (96,188) (63,701) (25,066) (24,416) Capital lease payments (1,023) - (79) - Deferred financing costs (1,542) (1,950) 95 (1,677) ------------------------------------------- (3,338) 44,473 (26) 16,942 ------------------------------------------- Investing activities Purchases of revenue producing properties (Note 8) (14,542) (33,836) (7,804) (7,313) Project improvements to revenue producing properties (39,349) (51,133) (10,667) (15,373) Technology (9,330) (8,825) (4,486) (1,384) ------------------------------------------- (63,221) (93,794) (22,957) (24,070) ------------------------------------------- (Decrease) increase in cash balance during the period (19,610) 4,571 (6,241) 706 Cash and cash equivalents (indebtedness), beginning of period 21,055 (2,730) 7,686 1,135 ------------------------------------------- Cash and cash equivalents, end of period $ 1,445 $ 1,841 $ 1,445 $ 1,841 ------------------------------------------- ------------------------------------------- Funds from operations per share Basic $ 0.92 $ 0.67 $ 0.30 $ 0.20 Diluted $ 0.91 $ 0.66 $ 0.30 $ 0.19 ------------------------------------------- Taxes Paid $ 2,670 $ 2,414 $ 846 $ 1,186 ------------------------------------------- ------------------------------------------- Interest Paid $ 48,833 $ 46,223 $ 16,539 $ 16,047 ------------------------------------------- ------------------------------------------- /T/ Notes to the Consolidated Financial Statements For the three months and nine months ended September 30, 2001 Note 1 - Basis of Presentation These unaudited interim consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles ("GAAP") and are consistent with those used in the audited consolidated financial statements as at and for the seven months ended December 31, 2000, except for the adoption of a new Canadian Institute of Public and Private Real Estate Companies ("CIPPREC") requirement. The new standard requires the use of a funds from operations ("FFO") calculation, versus the traditional cash flow from operations calculation. As a result of this change, the Corporation will now calculate funds from operations per share instead of cash flow per share. The interim financial statements should be read in conjunction with the audited financial statements. As a result of the Corporation changing its year end from May 31 to December 31, comparative figures for the quarter are August 31, 2000. Due to seasonality, the operating results for the three months and nine months ended September 30, 2001 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2001. Note 2 - Changes in Accounting Policy Effective June 1, 2000, the Corporation retroactively adopted the new CICA Handbook Section 3500. Under this section, diluted earnings per share and funds from operations per share are calculated using the "treasury stock" method, replacing the previous method of "imputed earnings per share". There was no effect on diluted earnings per share and diluted funds from operations per share for the three months and nine months ended August 31, 2000. Note 3 - Amortization of Capital Items During the nine month comparative period ending August 31, 2000, the Corporation revised the amortization of project improvements to more closely reflect their estimated remaining useful lives. The revision was applied for the entire 2000 fiscal year ended May 31, 2000 and as such a period reconciliation was required for the first six months of the nine month comparative period. This resulted in the reduced amortization charge of $29.2 million for the nine months ended August 31, 2000 versus $38.6 million for the present period. Note 4 - Provision for loss on technology investments During the third quarter ended September 30, 2001, the Corporation provided for a loss on technology investments of $27.5 million due to the following investments: In the third quarter of 2001, the Corporation decided to cease its telecommunication initiative subsequent to a process review. This review highlighted low returns on investment capital when compared to core real estate operations, the high cost of capital given current market conditions and the conclusion that the Corporation would be unable to reach partnership agreements for rights of way or access rights in target markets in the near future. On October 18, 2001, the Corporation formally announced the ceasing of the initiative. A provision of $26.7 million before tax ($17.2 million net of tax) has been recorded in the consolidated statement of loss for the period ended September 30, 2001. This provision represents the write-down of capital assets and estimated closure costs. Included in accounts payable at September 30, 2001 is $3.1 million in outstanding commitments reflecting the amount of cost necessary to cease the initiative. In addition, the Corporation ceased its investment in HomeXpress and as a result a loss of $800,000 was recorded in the quarter. The technology balance remaining at September 30, 2001 reflects net book values of technology anticipated in the ongoing operations of the Corporation including hardware, software and software development, system installations and other related costs. /T/ Note 5 - Future income taxes The recovery of income taxes is computed as follows (thousands): Nine months ended Nine months ended September 30, 2001 August 31, 2000 ------------------ ----------------- Tax expense based on expected rate of 36% (2000 - 44%) $ (6,431) $ 2,772 Adjustment for change in effective tax rate (3,279) (1,629) Non-taxable portion of capital gains and other (979) (557) ------------------ ----------------- $ (10,689) $ 586 ------------------ ----------------- The future income tax liability is calculated as follows (thousands): As at Sept. 30, 2001 Dec. 31, 2000 ------------------ ----------------- Tax assets related to operating losses $ 58,806 $ 49,992 Tax liabilities related to differences in tax and book basis (119,619) (114,856) ------------------ ----------------- Future income tax liability $ (60,813) $ (64,864) ------------------ ----------------- Note 6 - Share capital (a) Share capital September 30, 2001 December 31, 2000 Number Amount Number Amount ------ ------ ------ ------ Common Shares outstanding (thousands) 50,217 $ 262,364 49,259 $ 253,586 (b) Stock options /T/ The Corporation has a stock option plan that provides for the granting to directors, officers and associates of the Corporation options to purchase up to 7,795,822 (December 31, 2000 - 7,795,822) common shares. As at September 30, 2001, there are a total of 3,721,539 (December 31, 2000 - 4,399,288) options outstanding to directors, officers and associates. The exercise prices range from $9.11 to $22.92 (December 31, 2000 - $1.50 to $22.92). These options expire up to March 27, 2011. All options are issued at market prices. /T/ September 30, 2001 December 31, 2000 ---------------------------------------- Options Options Weighted-Average Weighted-Average Exercise Price Exercise Price Outstanding at beginning of period 4,399,288 $12.37 4,043,402 $12.71 Granted 205,000 10.48 765,575 11.85 Exercised (355,482) 5.44 (41,357) 6.08 Forfeited (527,267) 14.50 (368,332) 13.41 ---------------------------------------- Outstanding at end of period 3,721,539 $12.62 4,399,288 $12.37 ---------------------------------------- ---------------------------------------- Options exercisable at period end The following table summarized information about the options outstanding at September 30, 2001: Options Outstanding Options Exercisable --------------------------------------------------------------------- Weighted Weighted Weighted Range of Average Average Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life Price Exercisable Price $9.01 to $11.00 960,875 7.56 $ 9.54 836,620 $ 9.51 $11.01 to $13.00 1,743,800 7.42 11.91 1,013,040 11.61 $13.01 to $15.00 295,764 6.88 14.37 85,053 14.43 $15.01 to $17.00 421,400 6.38 16.08 176,560 16.13 $17.01 to $19.00 93,700 1.45 17.92 65,275 17.98 $19.01 to $21.00 128,000 1.39 20.12 96,000 20.12 $21.01 to $23.00 78,000 1.59 22.53 58,500 22.53 -------------------------------- ------------------- 3,721,539 6.82 $12.62 2,331,048 $12.10 -------------------------------- ------------------- -------------------------------- ------------------- /T/ Note 7 - Per share calculations The following table sets forth the computation of basic and diluted earnings per share with respect to (loss) earnings (thousands except per share amounts). /T/ September 30, August 31, September 30, August 31, 2001 2000 2001 2000 (9 months) (9 months) (3 months) (3 months) ------------------------------------------------------- Net (loss) earnings $ (9,508) $ 3,427 $ (17,279) $ (1,150) ------------------------------------------------------- ------------------------------------------------------- Funds from operations $ 45,929 $ 33,221 $ 14,893 $ 9,723 ------------------------------------------------------- ------------------------------------------------------- Denominator for basic earnings per share - weighted average shares 50,038 49,718 50,204 49,816 Effect of dilutive stock options 190 439 267 501 ------------------------------------------------------- Denominator for diluted earnings per share adjusted for weighted average shares and assumed conversion 50,228 50,157 50,471 50,317 ------------------------------------------------------- Basic (loss) earnings per share $ (0.19) $ 0.07 $ (0.34) $ (0.02) Diluted (loss) earnings per share $ (0.19) $ 0.07 $ (0.34) $ (0.02) Basic funds from operations per share $ 0.92 $ 0.67 $ 0.30 $ 0.20 Diluted funds from operations per share $ 0.91 $ 0.66 $ 0.30 $ 0.19 Note 8 - Purchases of revenue producing properties September 30, August 31, September 30, August 31, 2001 2000 2001 2000 (9 months) (9 months) (3 months) (3 months) ------------------------------------------------------- Cash $ 14,542 $ 33,836 $ 7,804 $ 7,313 Debt assumed 29,641 35,880 15,586 3,848 Shares issued 7,116 nil nil nil ------------------------------------------------------- Total purchase price $ 51,299 $ 69,716 $ 23,390 $ 11,161 ------------------------------------------------------- ------------------------------------------------------- Number of units 1,242 1,306 531 241 ------------------------------------------------------- ------------------------------------------------------- /T/ Note 9 - Commitments As disclosed in the June 30, 2001 quarterly report, the Corporation has entered into a one year supply arrangement with a natural gas utility company to supply the Corporation with 80% of its natural gas requirements in Alberta for the 12 month period ending April 30, 2002. The agreement provides that the gas utility company supplies the commodity at $7.90 per gigajoule. The remaining 20% supply for November 2001 to March 2002 has been contracted at $6.60 per gigajoule. As disclosed in the December 31, 2000 annual report, the Corporation has entered into long-term supply arrangements with two utility companies to supply the Corporation with its electrical power needs for Alberta for the next three to five years at a blended rate of approximately $0.07/kwh. These agreements provide that the Corporation purchase its power for all properties under contract for the upcoming years based on an approximation of the current year's demand levels. Note 10 - Comparative Figures Certain comparative figures have been reclassified to conform with the current year's presentation. Note 11 - Subsequent Events Property Acquisitions Subsequent to September 30, 2001 the Corporation has contracted to acquire 120 units for a purchase price of $7.0 million. The acquisition was financed through cash of $3.0 million and the assumption of an existing mortgage. Property Dispositions Subsequent to September 30, 2001 the Corporation sold a total of 71 units to unrelated parties for an aggregate purchase price of $3.8 million. These transactions were completed on November 1, 2001 and will result in a $0.5 million gain. /T/ CORPORATE INFORMATION Corporate Directory Executive Offices First West Professional Building Suite 200, 1501 - 1st Street SW Calgary, Alberta T2R 0W1 Telephone: (403) 531-9255 Facsimile: (403) 531-9565 Website: www.bwalk.com Board of Directors Sam Kolias Calgary, Alberta George J. Reti Calgary, Alberta Van Kolias Calgary, Alberta Kevin P. Screpnechuk Calgary, Alberta Ernest Kapitza Calgary, Alberta Paul J. Hill Regina, Saskatchewan David V. Richards Calgary, Alberta Michael D. Young Dallas, Texas Solicitors 4300 Bankers Hall West 888 - 3 Street SW Calgary, Alberta T2P 5C5 Butlin Oke Roberts & Nobles 100, 1501 - 1st Street SW Calgary, Alberta T2R 0W1 Bankers Toronto Dominion Bank 340 - 5th Avenue SW Calgary, Alberta T2P 2P6 Auditors Deloitte & Touche LLP 3000, 700 - 2nd Street SW Calgary, Alberta T2P 0S7 Registrar & Transfer Agent Computershare Trust Company of Canada 600, 530 - 8th Avenue SW Calgary, Alberta T2P 3S8 Stock Exchanges The Toronto Stock Exchange The New York Stock Exchange /T/ -30- FOR FURTHER INFORMATION PLEASE CONTACT: Boardwalk Equities Inc. Sam Kolias President and C.E.O. (403) 531-9255 or Boardwalk Equities Inc. Roberto Geremia Vice-President, Finance and C.F.O. (403) 531-9255 or Boardwalk Equities Inc. Mike Hough Senior Vice President (403) 531-9255 or Boardwalk Equities Inc. Paul Moon Director of Investor Relations (403) 531-9255 Website: www.bwalk.com
