TORONTO, May 14 /CNW/ - Jaguar Financial Corporation ("Jaguar" or the
"Company") today reported results for its first quarter ended March 31, 2009,
of its 2009 fiscal year.
For the three months ended March 31, 2009, the Company reported net
income of $681,840 compared to a loss of $1,072,468 in the first quarter of
2008. The improvement in net income was driven by gains in the Company's
For the three months ended March 31, 2009, the Company generated a net
gain on investments of $3,604,999, comprised of unrealized gains of $6,327,739
and realized losses of $2,722,740. This compares to a net loss on investments
of $15,183 in the first quarter of 2008. The net gain on investments in Q1 of
2009 was largely due to the Company's investment in HudBay Minerals Inc.
("HudBay"). The Company's investment portfolio is recorded on a mark to market
basis and will experience, at various times, unrealized gains or losses based
on equity market conditions.
Total expenses increased from $1,102,201 in Q1 of 2008 to $2,710,153 in
Q1 of 2009. The increase in expenses is primarily related to costs associated
with the Company's investment in HudBay, including higher transaction costs,
legal fees and financing fees. These increases were partially offset by lower
salaries and consulting fees and patent rights costs. The total annual
salaries payable by Jaguar have been reduced to $25,000 effective January 1,
2009. In addition, the Chairman and Chief Executive Officer of Jaguar has
agreed to waive all salary and all bonuses to which he may be entitled until a
total amount of $1,150,000 has been waived.
As at March 31, 2009, the Company's investment portfolio had a fair value
of $12,310,527 compared to $14,057,785 at December 31, 2008. As at March 31,
2009, the core investments include 1,020,000 shares of HudBay with a fair
value of $6,008,389, an investment in Royal Laser Corporation ("Royal")
representing approximately 18% of the issued and outstanding shares of Royal
with a fair value of $3,921,060, and an investment in Lakeside Steel Inc.
("Lakeside") which represents approximately 23% of the issued and outstanding
shares of Lakeside and has a fair value of $2,185,139.
The Company continues to focus on creating value for Jaguar's
shareholders by making merchant banking investments in undervalued companies
in various industry sectors realizing on such investments, passively or
proactively, depending on the circumstances of the particular company.
Proactive involvement by Jaguar could involve working with management or the
directors of the particular company to implement necessary changes to create
shareholder value, or by initiating change at the board level, or by
implementing a change of control transaction. Jaguar's actions with regard to
HudBay are a prime example of the Company's strategic focus and resulted in
the creation of significant shareholder value for all holders of HudBay
In select merchant banking investments, Jaguar has realized positive
annualized gross gains such as 189% in Century II Holdings Inc., 87% in Virtek
Vision International, 25% in Rand A Technology Corporation and 127% to date in
Jaguar is a Canadian merchant bank that invests in undervalued small
capitalization companies in a variety of industry sectors.
The securities of Jaguar Financial Corporation are listed on the TSX
under the symbol "JFC".
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this news release. This news release may contain
certain forward looking statements which involve known and unknown risks,
delays, and uncertainties not under Jaguar's control which may cause
actual results, performances or achievements of Jaguar to be materially
different from those implied by such forward looking statements.
For further information:
For further information: For additional information on this press
release, please contact: Vic Alboini, Chairman and Chief Executive Officer,
(416) 644-8110 or Kyler Wells, General Counsel & Corporate Secretary, (416)