TORONTO, May 13 /CNW/ - Jaguar Financial Corporation ("Jaguar" or the "Company") today reported results for its first quarter ended March 31, 2010, of its 2010 fiscal year.
For the three months ended March 31, 2010, the Company reported net income of $1,437,396 compared to net income of $681,840 in the first quarter of 2009. The improvement in net income was driven by gains in the Company's investment portfolio. Included in net income is the Company's non-cash share of the loss of its associated company, Lakeside Steel Inc. ("Lakeside"), of $702,155 compared to a loss of $307,624 in the quarter ended March 31, 2009.
Operating income, excluding the share of net income of Lakeside, was $2,139,551 compared to $989,464 in the prior year.
For the three months ended March 31, 2010, the Company generated a net gain on investments of $2,328,141 compared to a net gain on investments of $3,604,999 in the first quarter of 2009. The net gain on investments in Q1 of 2010 was largely due to the Company's investment in Royal Laser Corp. ("Royal"). Subsequent to quarter-end, the company entered into a lock-up agreement with Triple M Metal L.P. ("Triple M") to tender all of the Royal shares owned by Jaguar to Triple M's all cash take-over bid offer of $0.47 per Royal share. Jaguar anticipates receiving approximately $8.5 million on or about June 15, 2010. 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.
Jaguar substantially reduced its expenses from $2,710,153 in Q1 of 2009 to $250,696 in Q1 of 2010. The decrease in expenses was largely the result of less investment activity by the Company in the quarter.
Jaguar had cash and investments at fair value of $14,830,399 as at March 31, 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: 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) 644-8177