- Difficult environment continues for mortgages refinancing resulting
in net loss for the quarter as company experiences loss in residual
securitization income and valuation write-down on deferred net
mortgage interest receivables ("deferred purchase price")
- Originations in the 2009 third quarter and first nine months exceeded
sales of mortgages and the level of new underwritings in the 2008
periods
- Assets under administration at $1.972 billion, down slightly from
second quarter
- Mortgage default ratio of 3.5% continues within expected range and is
approximately same as year-earlier level
- Conference call at 10:00 a.m. (EDT) today (Thursday)TORONTO, Sept. 10 /CNW/ - Xceed Mortgage Corporation (TSX: XMC), a
Canadian provider of insured mortgages, today announced its financial results
for the fiscal 2009 third-quarter and first nine months ended July 31, 2009.
All references to quarters or years are for the fiscal periods and all
currency amounts are in Canadian dollars unless otherwise noted.
"In recent months, there have been some mildly encouraging signs of a
turnaround in the Canadian and global economies. Unfortunately, if the
economies indeed have begun to recover, this has not yet positively affected
the credit markets for mortgage refinancing," said, Ivan Wahl, Chairman and
Chief Executive Officer.
"Sufficient financing to fund uninsured mortgages remains either
unavailable or uneconomic and it is not yet clear when this situation will
significantly improve. As a result, some Canadians, even if they have
maintained their monthly mortgage payments, are still having problems renewing
their mortgages if their overall credit condition has not improved
sufficiently for them to qualify now for an insured mortgage. This is
particularly true for non-conventional, uninsured mortgages, consisting of
those where the loan exceeds 80% of the value of the property.
"Perhaps as a result of this climate, during our third quarter, a major
lender for non-prime mortgages, Wells Fargo, with which we have worked for
years, withdrew from the Canadian market. This significantly increased the
difficulty of obtaining financing for mortgages that do not qualify for
insurance. These conditions in the credit and wholesale funding markets
continue to adversely affect Xceed's financial performance due to the impact
on our legacy portfolio of uninsured mortgages. Nevertheless, we were able to
renew $10.0 million and $23.0 million of certain qualified uninsured mortgages
in the 2009 third-quarter and nine-month periods, respectively," he said.
The difficult funding environment resulted in Xceed incurring a 2009
third-quarter loss, after four consecutive quarters of profitability and
positive cash flow from operations. Xceed recorded a net loss of $7.5 million
in the 2009 third quarter and slightly negative cash flow. Cash flow from
operations for the 2009 third quarter would have been $0.1 million after
backing out hedge costs allocated.
The persistent difficult market conditions manifested themselves by the
amortization events in Xceed Mortgage Trust (XMT), as the company announced in
April 2009. Since the commencement of the amortization period, the funding
costs for XMT have risen by more than 400 basis points. With XMT not being
able to refinance the maturing fixed-rate notes with a new class of floating
rate notes as the offsetting swaps matured, funding costs in the trust have
increased to a point where spreads are negative. The company, acting for XMT,
is unable to finance renewals of many uninsured mortgages at their maturity as
the result of the market conditions, including for customers with good payment
records. Xceed expects this trend in XMT will continue as the bulk of existing
loans are scheduled to be maturing over the next six to eighteen months.
Consequently, the company took a charge of $2.7 million during the 2009 third
quarter to fully write-down its retained interest in XMT. This write-down
minimizes the company's exposure to further market challenges.
The difficult conditions in the credit and funding market also are
reflected in the company's residual securitization income being negative and
in valuation write-downs on the deferred purchase prices from its existing
securitization programs. Residual securitization income for the 2009 third
quarter was negative largely attributable to the fallout of the amortization
events in XMT, resulting in negative spreads in the Trust, and increased
losses inside the securitization vehicles from higher foreclosure activities
during late spring and into the summer and higher property management fees as
the result of there being longer periods from initiation to receiving
foreclosure proceeds in some weaker real estate markets.
Results for the 2009 third quarter also were negatively impacted by the
valuation write-down which the company took on its deferred purchase prices
due to increases in credit loss assumptions used in the valuation models, and
the write-off on the deferred purchase price for XMT from which the company no
longer expects to reap any future economic benefits. This is in light of the
continue deterioration in spreads that have resulted from the amortization
events and the expected increase in losses associated with defaults at
maturity. These negative impacts were marginally offset by a decline in the
discount rate in the deferred purchase price valuations as well as an
improvement in spreads for Okanagan Funding Trust (OFT) during the 2009 third
quarter from the second quarter of the year.
On the insured and renewal business, the gain on sales for the 2009 third
quarter was marginally down as a result of spread compressions from
intensified competition during the late spring and summer housing market. This
was partially offset by an improvement in new origination volume from the
level in the second quarter of 2009. Excluding residual securitization income
and write-downs, the company managed to generate modest income for the first
nine months of 2009. For the nine-month 2009 period, the company generated
cash earnings from operations of $9.7 million ($0.35 per basic and diluted
share).
"Our strategy is to continue focus on originating mortgages that qualify
for insurance and for sale under the Canada Mortgage Bond Program, as well as
to renew uninsured mortgages that qualify for renewals within the QSPE-XCD,
the securitization vehicle affected by the implementation of the restructuring
plan implemented in January 2009 for third-party asset-backed commercial Paper
(ABCP). We also will continue to work to protect our retained interest in the
existing securitization programs," Mr. Wahl continued.
On March 12, 2009 Xceed announced its intention to apply to the Office of
the Superintendent of Financial Institutions (OSFI) to become a federally
regulated deposit-taking institution. The company is holding a special
shareholder's meeting later today to vote for the continuance of Xceed to
become a bank, the name of the new bank, and to amend the by-laws. Approval by
the shareholders does not mean that the company's application to become a
federally regulated deposit-taking institution has been approved or will be
approved with certainty.
"We believe that being a deposit-taking financial institution will
provide Xceed with a new avenue of accessing stable capital at a reasonable
cost, which will significantly increase the company's underwriting capacity,
including for renewals of mortgages for customers that had good payment
records but were not able to get refinancing of their homes within OSFI
operating guidelines," Mr. Wahl said.Financial Highlights
- The company incurred a net loss for the 2009 third-quarter of
$7.5 million, offsetting net income for the first half of the year
and resulting in a net loss for the first nine months of
$4.1 million. This compares with net income in the 2008 third-quarter
of $1.6 million and a net loss for the nine-month period of
$13.6 million. The 2009 third-quarter loss reflects a pre-tax
valuation write-down of $6.5 million ($4.4 million after tax) on the
deferred purchase price related to the write-off of the retained
interest in XMT and the increased credit-loss assumptions in the
valuations, partially offset by a positive fair-value adjustment on
the deferred purchase price for OFT and the decrease in discount rate
in the valuations. Results for the 2009 third quarter also were
affected by residual securitization losses of $5.0 million
($3.4 million after-tax). The losses were mainly attributable to the
amortization event and defaults at maturity for XMT, and losses
crystallized inside the securitization vehicles during the active
spring and summer housing markets. The corresponding 2008 third
quarter included unusual items of $10.2 million pre-tax ($6.8 million
after tax) related to restructuring and a write-down of $2.7 million
pre-tax ($1.8 million after tax) on the deferred purchase price for
XMT as a result of increased spreads for the new Class A-C-1 Notes
issued during the period.
Nine-month 2009 results also reflect that, with the approval in
January 2009 of the ABCP restructuring plan, Xceed received a one-
time payment of $4.8 million for the retroactive adjustment in
funding costs. The company received $0.9 million for interest earned
on the illiquid ABCPs through its residual interest in a
securitization vehicle that Xceed previously had written off in the
2008 second quarter. As the result of these, Xceed recorded
$3.8 million after-tax ($5.7 million pre-tax) as income under
securitization income for the 2009 first quarter. Xceed also recorded
a fair-value increase of $5.9 million after-tax ($8.8 million pre-
tax) to its deferred purchase price for the securitization vehicle
that had been affected. There were two significant one-time charges
in the 2009 first quarter that partially offset the ABCP-related
gains. One charge was caused by the fact that on March 17, 2009 and
April 17, 2009, respectively, Xceed, as financial services agent of
XMT, announced that an amortization event had occurred for Series
2007-T2 and Series 2006-T1 Notes as a result of XMT not being able to
issue a new tranche of A-C Notes to retire the senior notes on the
targeted principal distribution date and that an amortization period
had commenced for each note series.
During the amortization period within XMT, (a) principal and interest
collections from the underlying asset pool of the note series will
continue unchanged, (b) these principal and interest collections will
be paid to holders of the senior notes, monthly on a pro-rata basis
with coupon interest converted to a monthly equivalent rate, (c)
holders of Class B, C, D, and E Subordinated Notes, will be
sequentially paid in priority sequence after all senior notes have
been fully repaid, with the most subordinate tranche being paid last,
in each case, in accordance with the Material Contracts as defined
and described in the prospectus for each note series, and (d) the
residual cash collected from the underlying asset pool of the note
series, after the final interest and principal distributions to all
subordinated notes, will be paid to the residual interest holder
(Xceed). The amortization period for each note series will end when
the principal amount outstanding for all notes in each note series is
repaid. The company took a $2.0 million ($1.4 million after-tax)
write-down to its deferred net mortgage interest receivable for the
2009 first quarter.
Since the commencement of the amortization period, the funding costs
for XMT have gone up by more than 400 basis points resulting in
negative excess spreads in the Trust. As at July 31, 2009 $18.8 and
$57.4 million in principal were repaid to Series 2006-T1 and Series
2007-T2 Class A Senior Noteholders respectively. Approximately
$1.2 million in excess funds were accumulated in the Series 2006-T1
cash collateral account, while a deficit of $3.0 million was drawn
from the Series 2007-T2 cash collateral account. The company's
exposure to XMT's deferred purchase price was fully written-off
during the 2009 third quarter. XMT holds $11.5 million in cash
collateral for hedge valuations, which does not provide credit
support to the program. After the last note matures in XMT, the
company expects to receive the cash in full after settling all its
hedge obligations. XMT had total outstanding principal of
$325.8 million as at July 31, 2009.
The company's mortgage securitization facility provided by the
Canadian branch of an international bank through OFT was adjusted
with less favorable pricing terms during the second quarter of 2009.
The company took a $4.5 million ($3.0 million after-tax) write-down
to its deferred net mortgage interest receivable for the 2009 first
quarter. The facility has total outstanding mortgage principal of
$170.9 million as at July 31, 2009.
In the 2008 first quarter, Xceed recognized a one-time reversal of
$1.3 million after-tax ($2.0 million pre-tax) related to its employee
long-term incentive plan and an executive long-term compensation
plan.
The basic and diluted loss per share for the 2009 third quarter and
first nine months were $0.27 and $0.15, respectively. In the 2008
periods, basic and diluted earnings per share were $0.06 for the
third quarter and a loss of $0.49 basic and $0.48 diluted for the
first nine months of the year.
- In the 2009 third-quarter and nine-month periods, Xceed's origination
of new mortgages exceeded its sales and the level of originations in
the prior-year periods. Third-quarter and nine-month 2009
originations amounted to $171.8 million and $393.8 million,
respectively. In the comparable 2008 periods, new mortgage
originations were $82.8 million and $273.8 million, respectively. All
new originations in the company's pipeline are insured mortgage
products. All funding for new mortgage originations is provided by
the company's warehouse credit facility.
In the 2009 third quarter and first nine months, Xceed sold mortgages
valued at $128.3 million and $348.4 million, respectively, to
securitization and other vehicles. The majority were insured and sold
on a whole-loan basis. In the comparable 2008 periods, Xceed sold
$174.1 million and $383.5 million of mortgages.
The net gain on its mortgage sales was $3.0 million in the 2009 third
quarter and $10.6 million in the first nine months of the year,
compared with $3.4 million and $8.7 million in the comparable 2008
periods. The gains in 2009 were more than offset by the residual
securitization loss incurred of $5.0 million for the third quarter
and $1.0 million for the first nine months. In the 2008 periods,
residual securitization income was $1.6 million and $1.1 million,
respectively. The company received premium proceeds from the sale of
insured whole-loan mortgages of $1.7 million in the third-quarter
2009 and $11.3 million for the first nine months, compared with
$5.9 million and $15.5 million in the comparable 2008 periods.
In the 2009 third quarter, the net gain amounted to 2.3% of the
sales, which compares with 2.0% in the 2008 quarter. Net gains as a
percentage of sales reflect changes in average sales mix trends
between insured and uninsured mortgage products. Insured mortgages
normally have borrowers with better credit profiles and are arranged
on fixed-rate terms, entailing lower spread margins than previously
enjoyed. Other factors affecting the gains as a percentage of sales
relate to the overall mix of business securitized, including the
length of the average mortgage duration, the average risk profile,
and the costs of the respective credit enhancement or
collateralization levels required, as well as market factors such as
the discount rate used for valuation and pricing.
- Mortgages and other assets under administration were $1.972 billion
at the end of 2009 third quarter, down from $2.273 billion a year
earlier, and compared with $2.039 billion at the end of the 2009
second quarter.
- Return on average shareholders' equity for the 2009 third quarter and
first nine months was a negative 36.4% and 6.6%, compared with 7.9%
and negative 20.9% for the respective corresponding 2008 periods.
- Total revenues, after giving effect to the net gain on mortgages
sales, the loss from residual securitization income, interest earned,
and the costs of net originations, amounted to a negative of
$3.1 million in the 2009 third quarter and a total of $7.3 million
for the first nine months of the year. This compares with total
revenues of $7.5 million and $15.9 million in the comparative 2008
periods. Pending sales, the company earns interest income on
mortgages that are on the company's balance sheet for the brief
intervening period. Interest earned in the 2009 quarter was
$1.0 million, compared with $3.0 million in the 2008 period. For the
nine months, interest earned was $3.1 million in 2009 and
$9.3 million in 2008. Net origination costs amounted to $2.2 million,
compared with $0.5 million in the 2008 quarter; for the nine months
in 2009 it was $5.4 million, compared with $3.2 million a year
earlier.
- Cash flow from operations was a negative $0.4 million ($0.02 per
basic and diluted share) and a positive $9.7 million ($0.35 per basic
and diluted share) for the 2009 third quarter and first nine months,
respectively, compared with $7.1 million ($0.26 per basic and diluted
share) and $8.9 million ($0.32 per basic and diluted share) in the
comparative 2008 periods after removing the one-time items as
explained on the MD&A. Cash securitization income was $1.9 million in
the 2009 third quarter and $24.4 million in the first nine months,
and $11.6 million and $30.3 million in the comparative 2008 periods.
The cash securitization income in the first nine months of 2009
includes the funds received on the implementation of the ABCP
restructuring plan as well as the interest earned on the illiquid
ABCPs that the company had previously written off in 2008. Cash-based
revenues in the 2009 third quarter were $2.9 million and were
$27.6 million in the first nine months of the year, compared with
$14.6 million and $39.6 million in the comparable periods a year
earlier.In the 2009 third quarter, Xceed employed an average of 46 full-time
employees, which compares to an average of 44 people a year earlier.
Reflecting the reported loss, the productivity index was a negative 123.2% for
the 2009 third quarter and 74.9% for the first nine months, compared with
45.2% in the 2008 third quarter and 129.1% for the 2008 nine-month period. A
lower productivity index generally is associated with a more-efficient cost
structure.
The average mortgage default ratio (90 or more days in arrears) on the
company's combined securitized and non-securitized portfolio was 3.50% for the
2009 third quarter and 3.36% in the first nine months of the year, compared
with 3.58% in the 2008 third quarter and 3.48% for the first nine months of
2008.
At the end of the 2009 third quarter, Xceed had cash and cash equivalents
of $6.5 million, which compared with $13.5 million at the end of the second
quarter and $9.9 million at the fiscal 2008 year-end of October 31. Cash
invested in mortgages not sold to trusts totaled $96.0 million, compared with
$62.8 million at the end of the 2009 second quarter.
Xceed believes that, based on the current origination activities and the
reduced size of its operating structure and costs, the cash flow from
operations and existing resources will enable it to meet its short- and
intermediate-term liquidity requirements, and its objectives to maximize value
for its shareholders.
During the 2009 second quarter, Xceed announced its intention to make a
normal course issuer bid (NCIB) to purchase up to 5% of its issued and
outstanding common shares or 1,387,127 shares on or before March 22, 2010.
Pursuant to the terms of the NCIB, the company purchased 160,900 and 239,600
shares during the third quarter and first nine months of 2009, respectively,
at an average price of $1.17 and $1.11, respectively.
Xceed has filed its 2009 third-quarter and nine-month financial
statements and management's discussion and analysis with SEDAR and they will
be posted on the company's website.XCEED MORTGAGE CORPORATION
INTERIM CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands of dollars)
-------------------------------------------------------------------------
As at As at
July 31, October 31,
2009 2008
$ $
-------------------------------------------------------------------------
Assets
Cash and cash equivalents 6,541 9,942
Investment in notes (note 3) 32,067 27,423
Cash collateral and other deposits receivable
from Trusts (note 3) 15,702 13,773
Deferred net mortgage interest receivable (notes 3) 15,778 34,915
Mortgages (note 4) 95,985 63,210
Accounts receivable 4,232 7,302
Derivative instruments (note 6) - 209
Mortgage commitments - 48
Deferred charges 482 238
Fixed assets, net 157 240
-------------------------------------------------------------------------
170,944 157,300
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities
Credit facilities (note 5) 79,905 57,382
Accounts payable and accrued liabilities (note 3) 6,148 8,146
Derivative instruments (note 6) 154 108
Mortgage commitments 123 -
Future and other income taxes 6,118 9,038
-------------------------------------------------------------------------
Total liabilities 92,448 74,674
-------------------------------------------------------------------------
Shareholders' equity
Capital stock (note 7) 56,776 57,274
Contributed surplus (note 8) 1,608 1,108
Retained earnings 20,112 24,244
-------------------------------------------------------------------------
Total shareholders' equity 78,496 82,626
-------------------------------------------------------------------------
170,944 157,300
-------------------------------------------------------------------------
-------------------------------------------------------------------------
See accompanying notes to the interim consolidated financial statements
XCEED MORTGAGE CORPORATION
INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND RETAINED EARNINGS
(unaudited)
(in thousands of dollars, except per share amounts)
-------------------------------------------------------------------------
Three months ended Nine months ended
July 31, July 31, July 31, July 31,
2009 2008 2009 2008
$ $ $ $
-------------------------------------------------------------------------
Revenues
Securitization income
(expense) (note 3) (2,011) 5,050 9,613 9,743
Interest earned 1,043 2,982 3,106 9,267
-------------------------------------------------------------------------
(968) 8,032 12,719 19,010
Add: Net origination
income (costs) (2,168) (535) (5,370) (3,156)
-------------------------------------------------------------------------
(3,136) 7,497 7,349 15,854
-------------------------------------------------------------------------
Expenses
Compensation and benefits 1,550 1,225 4,382 6,100
Interest 588 1,987 2,037 6,236
Deferred charge amortization 49 21 132 1,208
Other operating 878 1,038 2,685 5,268
-------------------------------------------------------------------------
3,065 4,271 9,236 18,812
-------------------------------------------------------------------------
Realized and unrealized
gains (losses) on
financial instruments (4,725) (937) (4,064) (8,381)
-------------------------------------------------------------------------
Income (loss) before
unusual items and
income taxes (10,926) 2,289 (5,951) (11,339)
-------------------------------------------------------------------------
Unusual items (note 9) - 77 - (10,093)
-------------------------------------------------------------------------
Provision for (recovery
of) income taxes (3,407) 779 (1,819) (7,866)
-------------------------------------------------------------------------
Net income (loss) for
the period (7,519) 1,587 (4,132) (13,566)
-------------------------------------------------------------------------
Retained earnings,
beginning of period 27,631 21,063 24,244 36,211
Less: Shares purchased
for cancellation (note 7) - - - 5
-------------------------------------------------------------------------
Retained earnings, end
of period 20,112 22,650 20,112 22,650
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings (loss) per share
Basic (0.27) 0.06 (0.15) (0.49)
Diluted (0.27) 0.06 (0.15) (0.48)
See accompanying notes to the interim consolidated financial statements
XCEED MORTGAGE CORPORATION
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands of dollars)
-------------------------------------------------------------------------
Three months ended Nine months ended
July 31, July 31, July 31, July 31,
2009 2008 2009 2008
$ $ $ $
-------------------------------------------------------------------------
Operating activities
Net income (loss) for
the period (7,519) 1,587 (4,132) (13,566)
Items not affecting
operating cash:
Non-cash net gain (loss)
on sale of mortgages (1,400) 1,511 507 3,476
Amortization of deferred
net mortgage interest
receivable 5,937 6,117 16,435 20,330
Amortization of
servicing fee (638) (1,073) (2,112) (3,257)
Amortization of fixed
assets 32 45 106 452
Amortization of
deferred charges 49 21 132 1,208
Unrealized loss (gain)
from financial
instruments 5,458 691 3,462 (431)
Net future income taxes (2,338) (1,779) (4,726) (9,064)
Non-cash unusual items - - - 7,907
-------------------------------------------------------------------------
(419) 7,120 9,672 7,055
Other changes in non-cash
net assets (35,158) 60,121 (30,268) (10,976)
-------------------------------------------------------------------------
(35,577) 67,241 (20,596) (3,921)
-------------------------------------------------------------------------
Investing activities
Sale of notes 509 3,836 807 12,167
Purchase of notes (389) (3,582) (5,282) (12,308)
Net (increase) decrease
in deferred charges (247) 72 (376) (529)
Purchase of fixed assets (3) (9) (21) (713)
-------------------------------------------------------------------------
(130) 317 (4,872) (1,383)
-------------------------------------------------------------------------
Financing activities
Credit facilities, net
of repayments 28,889 (60,549) 22,336 8,381
Share buyback (190) - (269) 5
-------------------------------------------------------------------------
28,699 (60,549) 22,067 8,386
-------------------------------------------------------------------------
Net increase (decrease)
in cash and cash
equivalents (7,008) 7,009 (3,401) 3,082
Cash and cash
equivalents, beginning
of period 13,549 4,998 9,942 8,925
-------------------------------------------------------------------------
Cash and cash
equivalents, end of
period 6,541 12,007 6,541 12,007
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Supplemental cash
flow information
Interest paid 578 1,928 2,149 6,024
Income taxes paid 1,160 - 1,160 4,053
See accompanying notes to the interim consolidated financial statementsConference Call and Webcast for Quarter and Special Meeting
Xceed will hold a conference call for analysts and investors at 10:00
a.m. (Eastern). Ivan Wahl, Chairman and Chief Executive Officer, and Karen L.
Martin, President and Chief Financial Officer, will be available to answer
questions during the call.
To participate in the call, please dial 647-427-7450 or 1-888-231-8191 at
least five minutes prior to the start of the call.
A live audio webcast of the conference call will be available at
www.newswire.ca and www.xceedmortgage.com.
An archived recording of the call will be available at 402-220-0879 or
1-800-374-7921 (Passcode 27928378) from two hours following the conclusion of
the call on September 10 to 11:59 p.m. on September 17. An archived recording
of the webcast also will be available at Xceed's website.
Xceed also is holding a Special Meeting of shareholders today at 2:00
p.m. at The Gallery of the TSX Broadcast Centre, 130 King Street West,
Toronto. At the meeting, shareholders will be asked to approve continuance of
the company as a federally regulated Schedule 1 bank under the Bank Act
(Canada), to change its name to Xceed Bank and Banque Xceed, and to confirm
amendments to the by-laws of the company. Continuance as a Schedule 1 bank
also is subject to the approval of the Office of the Superintendent of
Financial Institutions. The change in Xceed's name will take place subject to
approval being received from OSFI to continue as a bank.
A live audio webcast of the Special Meeting will be available at
www.newswire.ca and www.xceedmortgage.com.
About Xceed
Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of
insured residential mortgages that it originates in Canada. The company has
approximately $2.0 billion of mortgages and other assets under administration.
Xceed's shares are traded on the Toronto Stock Exchange (TSX: XMC). To find
out more about Xceed Mortgage Corporation, visit our website at
www.xceedmortgage.com.
Forward-Looking Statements
Forward-looking statements in this document are based on current
expectations that are subject to significant risks and uncertainties. Actual
results might differ materially due to various factors such as the competitive
nature of the mortgage industry, the ability of Xceed to continue to execute
its growth and development strategy, and the reliance of Xceed on key
personnel. Xceed assumes no obligation to update these forward-looking
statements, or to update the reasons why actual results could differ from
those reflected in these. Additional information identifying risks and
uncertainties is contained in Xceed's regulatory filings available on its
website and at www.sedar.com.
For further information: please contact Investor and Media Relations:
Richard Wertheim - Wertheim + Company Inc. - (416) 594-1600 (bus.) or (416)
518-8479 (cell) - email: wertheim@wertheim.ca
