TORONTO, June 7, 2012 /CNW/ - Xceed Mortgage Corporation [TSX: XMC]
("Xceed" or the "Company") today reported its second quarter results
for the six month period ended April 30, 2012.
The results of the quarter were prepared using International Financial
Reporting Standards ("IFRS"), with a transition date of November 1,
2011. Consequently, prior period comparative results, the information
contained in this news release, the Company's Management Discussion &
Analysis and financial statements have all been restated to conform
with IFRS requirements.
The following are highlights of the second quarter:
Net loss of $0.4 million and $0.1 million for the 3 month and 6 month
periods ended April 30, 2012.
Basic and diluted loss per share of $0.01 for the second quarter of
After excluding one-time expenses of $0.3 million and costs associated
with the wind-down of the Company's legacy trust operations, net income
before tax for the six-month period ended April 30, 2012 was $0.6
Book value per share of $1.96 as at April 30, 2012 after giving effect
to the consolidation of $8.2 million deficit in a securitization trust
that will be reversed on wind up of the Trust, anticipated to occur
prior to the end of the fiscal year.
The Company's primary source of revenue continues to be from the sale of
pools of insured mortgages to third parties. In Q2, 2012, the Company
sold $15.8 million of insured mortgages for a net gain of $0.2 million
and the Company continues to grow and develop its presence in the
broker channel for this asset class.
The Company has filed its financial statements and management's
discussion and analysis on SEDAR and they will be posted on the
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 at www.sedar.com or on the Company's website at www.xceedmortgage.com.
Management Comments on Results
"In the second quarter of fiscal 2012, we incurred a net loss of $0.4
million which includes several one-time items noted,as well as losses
from consolidating XMT-2 trust activities under IFRS that will reverse
when the trust matures, expected later in this fiscal year", said
Michael Jones, President & CEO.
"We are pleased that the Company's core business was slightly profitable
in the second quarter even though mortgage sales for the quarter were
low by historical standards", Mr. Jones continued.
Michael Jones, President and Chief Executive Officer, and Jeff Bouganim,
Chief Financial Officer will be available from Thursday, June 7, 2012
onwards to respond to investor inquiries regarding these results.
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 $0.9 billion of mortgages under administration. The
Company's shares are traded on the Toronto Stock Exchange (TSX: XMC).
To find out more about Xceed Mortgage Corporation, visit our website at
Forward-looking statements in this document are based on current
expectations that are subject to significant risks and uncertainties.
Actual results might differ materially due to various factors such as
the competitive nature of the mortgage industry, the ability of the
Company to continue to execute its growth and development strategy, and
the reliance of the Company on key personnel. The Company and the
Company's management assume no obligation to update these
forward-looking statements, or to update the reasons why actual results
could differ from those reflected in these. Additional information
identifying risks and uncertainties is contained in the company's
regulatory filings available on its website and at www.sedar.com.
SOURCE Xceed Mortgage Corporation
For further information:
Michael Jones can be reached at:
Telephone: (416) 364-7944 Ext.3434
Jeff Bouganim can be reached at:
Telephone: (416) 364-7944 Ext.3335