TORONTO, Sept. 8, 2011 /CNW/ - Xceed Mortgage Corporation [TSX: XMC], a
Canadian provider of residential mortgages, today announced its
financial results for the third quarter of fiscal 2011 ended July 31,
The company reported $1.7 million net loss for the current quarter, as
compared with net income of $0.7 million in the second quarter of 2011,
net income of $0.05 million in the first quarter of 2011 and net income
of $1.4 million in the third quarter of 2010.
Results included a $1.7 million one-time pre-tax expense reflecting the
company's settlement agreement with HSBC Financial Corporation Limited
and its related parties ending all outstanding litigation between the
The company also announced that as at August 5, 2011, an agreement was
reached between the QSPE-XCD Trust and its note holders to provide the
company an opportunity to invest in senior subordinated notes of the
trust. On August 17, 2011, the company invested $8.3 million,
previously held in an escrow account, and an additional $2.3 million in
these notes. In the current quarter, Xceed has accrued a one-time
expense of $0.4 million pre-tax for a payment to the trust in part
exchange for finalizing this transaction.
The company also reported an overall increase in liquidity this
quarter. Cash and cash equivalents as at July 31, 2011 was $10.6
million increased from $6.0 million as at October 31, 2010 and $4.0
million as at July 31, 2010. This liquidity improvement is consistent
with the company's strategic objective of maximizing value to
shareholders through the ongoing pay down of legacy securitized
portfolios into other more liquid assets.
In the quarter, the company launched its Registered Education Savings
Plan PREP mortgage which offers a reduced rate on funds borrowed
towards a contribution to an existing Registered Education Savings Plan
promoting saving for post-secondary education.
In the current quarter, the company launched a balance sheet renewal
program on a 1 year term with open prepayment options providing clients
the opportunity to transition to new mortgage products.
The company continues to originate through its Internal Sales group to
offer renewals, refinancings, and originations to both existing clients
and the company's "friends and family program."
Mortgage and other assets under administration are $1.2 billion as at
July 31, 2011.
"While this quarter's results include the noted one-time items, we
believe the company is now well-positioned financially to capitalize on
new future opportunities" said Michael Jones, President and CEO.
Xceed has filed its financial statements and management's discussion and
analysis for the third quarter of 2011 with SEDAR and they are also
posted on the company's website. These filings provide additional
details on the above noted items along with additional information
regarding results for the quarter and cautions regarding
forward-looking statements. The materials can be accessed by clicking here.
Michael Jones, President and Chief Executive Officer, and Jeff Bouganim,
Chief Financial Officer will be available from Thursday, September 8
onwards to respond to investor inquiries regarding these results.
Transfer Agent Change
Effective September 26, 2011, the company will change its share transfer
agent to Equity Financial Trust. Shareholders with questions regarding
their shares may contact them by e-mail at firstname.lastname@example.org or by telephone at 416-361-0152 and ask for Investor Services.
About Xceed Mortgage
Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of
residential mortgages that it originates in Canada. The company has
approximately $1.2 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.
SOURCE Xceed Mortgage Corporation
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