Addenda Capital reports its 2007 third quarter results



    
    (All figures in Canadian dollars, unless otherwise indicated)

    - The highlights for the three-month period ended September 30, 2007 were
      as follows:

      - 5.0% increase in EBITDA, reaching $6.7 million;
      - Net earnings of $4.4 million;
      - Basic and diluted net earnings per common share of $0.38 and $0.37
        respectively;
      - Assets under management of $28.6 billion, an increase of $0.8 billion
        from June 30, 2007.
      - Dividend per common share of $0.33 for the fourth quarter of 2007.
    

    MONTREAL, Oct. 18 /CNW Telbec/ - Addenda Capital Inc. ("Addenda")
(TSX:ADV) today announced its financial results for the third quarter of 2007.
For the three-month period ended September 30, 2007, Addenda reported revenues
of $9.4 million, representing an increase of $474,187 or 5.3% over the
revenues for the same period in 2006, while EBITDA reached $6.7 million,
representing an increase of $319,455 or 5.0% compared to the three-month
period ended September 30, 2006. For the three-month periods ended
September 30, 2007 and 2006, net earnings reached $4.4 million. The basic and
diluted net earnings per common share for the three-month period ended
September 30, 2007 reached $0.38 and $0.37 respectively, compared to $0.37 for
the same period last year.
    In the three-month period ended September 30, 2007, our total assets
under management increased by $0.8 billion from $27.8 billion as at June 30,
2007, to $28.6 billion as at September 30, 2007, representing an increase of
2.8%. Net contributions from clients amounted to $258 million while positive
fixed income market returns increased assets under management by $528 million
during the quarter.
    Pursuant to its share buyback program under a normal course issuer bid,
the company has repurchased and cancelled 189,400 common shares during the
three-month period ended September 30, 2007.
    "We continued to add value to our clients' portfolios in spite of stormy
market conditions in the third quarter. These very good management results
will support our business development efforts in the final quarter of the year
and in 2008." said Benoît Durocher, President and Chief Executive Officer of
Addenda.
    Based on actual financial performance, the Board of Directors of Addenda
approved today a quarterly dividend of $0.33 per common share, payable on
February 1st 2008, to shareholders of record on December 31, 2007.
    A summary of Addenda's financial results for the three-month and
nine-month periods ended September 30, 2007 and 2006 is provided hereinafter.
Addenda's Management's Discussion and Analysis (MD&A) and Interim Consolidated
Financial Statements (unaudited) for the third quarter and nine-month period
ended September 30, 2007 are available via SEDAR www.sedar.com or directly
from Addenda's webpage: www.addenda-capital.com.

    Addenda will hold a conference call today, October 18, 2007, at 3:00 PM.
To participate in the call, please dial 1-800-291-5032. A replay will also be
available for 30 days through a webcast posted on www.addenda-capital.com.

    
    SUMMARY OF OPERATING RESULTS

                         Statement of Earnings Data
                (in $ thousands except per share information)

                             Three-Month Periods          Nine-Month Periods
                              Ended September 30,         Ended September 30,
                       -------------------------    -------------------------
                              2007          2006          2007          2006
                       -------------------------    -------------------------
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)

    Revenues
      Management fees      $ 9,431       $ 8,956      $ 27,693      $ 26,655
      Investment
       income                   51            21           212           195
                       -------------------------    -------------------------
    Total revenues           9,481         8,977        27,905        26,851
    General and
     administrative
     expenses(1)             2,778         2,594         8,285         7,933
                       -------------------------    -------------------------
    EBITDA(2)                6,703         6,384        19,621        18,918
    Amortization of
     capital assets             89            35           191           168
    Income taxes             2,221         1,981         6,472         5,850
                       -------------------------    -------------------------
    Net earnings           $ 4,393       $ 4,368      $ 12,957      $ 12,900
                       -------------------------    -------------------------
                       -------------------------    -------------------------

    Earnings per share
      Basic net
       earnings
       available to
       common
       shareholders        $ 4,393       $ 4,368      $ 12,957      $ 12,900
      Weighted average
       number of
       common shares    11,637,040    11,787,176    11,733,737    11,782,050
      Basic net
       earnings per
       common share         $ 0.38        $ 0.37        $ 1.10        $ 1.09
                       -------------------------    -------------------------
                       -------------------------    -------------------------
      Diluted net
       earnings
       available
       to common
       shareholders        $ 4,393       $ 4,368      $ 12,957      $ 12,900
      Weighted average
       number of
       diluted common
       shares           11,716,663    11,951,891    11,853,348    11,961,044
    Diluted net
     earnings per
     common share           $ 0.37        $ 0.37        $ 1.09        $ 1.08
                       -------------------------    -------------------------
                       -------------------------    -------------------------

    Dividends declared
     per common share       $ 0.33        $ 0.31        $ 0.99        $ 0.90
                       -------------------------    -------------------------
                       -------------------------    -------------------------
    -------------------------------------------------------------------------
    Notes
    (1) General and administrative expenses include the stock-based
        compensation expense.
    (2) "EBITDA" means earnings before interest, income taxes, depreciation
        and amortization. See "Non-GAAP Financial Measures" and
        "Reconciliation of EBITDA to Net Earnings" in the MD&A for the
        three-month and nine-month periods ended September 30, 2007.
    Note that the financial statements of the Addenda Multi-Credit Pooled Fund
were consolidated with the Company's financial statements of the three-month
and nine-month periods ended September 30, 2007. The consolidated financial
statements include the assets and liabilities and the results of operations of
the Addenda Multi-Credit Pooled Fund which meets the criteria for a variable
interest entity of which the company is the primary beneficiary.

    This press release presents certain forward-looking statements that
reflect management's current beliefs and assumptions. These are based on
management's current expectations and estimates related to the business
conditions under which Addenda operates. By their very nature, forward-looking
statements involve inherent risks and uncertainties as these beliefs,
assumptions, expectations, and estimates may prove to be inaccurate. Actual
results and events may therefore differ materially from those predicted by the
forward-looking statements. Please refer to our Annual Information Form for a
description of the principal risk factors. Readers are cautioned not to place
undue reliance on forward-looking statements.

    About Addenda

    Addenda is an investment management firm specializing in the active
management of fixed-income portfolios, primarily for institutional clients. As
at September 30, 2007, Addenda had assets under management of approximately
$28.6 billion.
    




For further information:

For further information: Myriam Larcher, Chief Operating Officer and
Chief Financial Officer, (514) 287-7373, info@addenda-capital.com

Organization Profile

ADDENDA CAPITAL INC.

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