TORONTO, Aug. 10 /CNW/ - Jaguar Financial Corporation ("Jaguar" or the "Company") today reported results for its second quarter ended June 30, 2010, of its 2010 fiscal year.
Jaguar continued the positive momentum established in the first quarter by reporting net income of $1,317,831 for the three months ended June 30, 2010, compared to a net loss of $261,077 in the second quarter of 2009. The improvement in net income was largely driven by net gains in the Company's investment portfolio, after including participation fees paid to lenders who share in the Company's investment gains. Included in net income is the Company's non-cash share of the loss of its associated company, Lakeside Steel Inc. ("Lakeside"), of $290,015 compared to a loss of $697,407 in the quarter ended June 30, 2009.
Operating income, excluding the share of net income of Lakeside, was $1,607,846 compared to $436,330 in the prior year.
For the three months ended June 30, 2010, the Company generated a net gain on investments of $1,882,682 compared to a net gain on investments of $2,269,345 in the second quarter of 2009. The net gain on investments in Q2 of 2010 was largely due to the sale of the Company's investments in Royal Laser Corp. and WGI Heavy Minerals Inc.
Jaguar substantially reduced its expenses from $1,833,015 in Q2 of 2009 to $275,542 in Q2 of 2010. The primary driver of the decrease in expenses was lower lender participation fees paid to lenders who share in the Company's investment gains. Expenses were also down as a result of less investment activity in the quarter producing lower transaction costs.
For the six months ended June 30, 2010, the Company reported net income of $2,755,227 compared to net income of $420,763 in the same period in 2009. The Company generated a net gain on investments $4,210,822 compared to $5,874,343 in the prior year. Expenses decreased from $4,543,168 to $526,237.
Jaguar had cash and investments at fair value of $15,363,894, or approximately $0.15 per share, as at June 30, 2010.
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.
SOURCE Jaguar Financial Corporation
For further information: For further information: on this press release, please contact: Vic Alboini, Chairman and Chief Executive Officer, 416 644-8110 - or - Kyler Wells, General Counsel & Corporate Secretary, 416 644-8177