TORONTO, Sept. 6, 2012 /CNW/ - Xceed Mortgage Corporation [TSX: XMC]
("Xceed" or the "Company") today reported its third quarter results for
the three and nine month period ended July 31, 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 third quarter:
Net income after tax of $8.3 million for both the 3 month and 9 month
periods ended July 31, 2012.
Results include a one-time gain of $8.6 million recognized as a result
of the early clean-up call of Xceed Mortgage Trust ("XMT 2") announced
on July 17, 2012.
Basic and diluted earnings per share of $0.31 and $0.29 for the third
quarter of fiscal 2012.
Basic book value per share of $2.26 as at July 31, 2012, increased from
$1.96 as at April 30, 2012, primarily due to the above noted one-time
gain. Diluted book value per share of $2.10 as at July 31, 2012.
The Company's primary source of revenue continues to be from the sale of
pools of insured mortgages to third parties. In Q3, 2012, the Company
sold $21.8 million of insured mortgages for a net gain of $0.4 million
(compared to selling $15.4 million for a net gain of $0.2 million in
Q3, 2011). The Company continues to expand its broker channel presence
and insured product offerings in those channels.
Management Comments on Results
Mr. Michael Jones, President and CEO, commented that "during the third
quarter, we executed an early clean-up of XMT 2 trust as part of the
Company's objective of winding down its legacy securitized mortgage
"The XMT 2 clean-up call, resulted in a return of cash to the Company of
$4.5 million, $3.1 million of which was used to repurchase existing
mortgages from the trust. Additionally, D-note holders of XMT 2 were
repaid approximately $4.4 million and E-note holders were repaid
approximately $10.7 million using proceeds from the mortgages purchased
by the Company and funds in the cash collateral account of the Trust,"
Mr. Jones commented.
"As a result of the conversion to IFRS effective November 1, 2010, the
Company was required to consolidate the financial results of the trust
including a deficit in the amount of $8.2 million that represented
losses on E notes. It was always anticipated that the effect of this
consolidation would be reversed at the point the trust was wound up
with no economic effect on Xceed, either positive or negative.
The Company's basic book value per share was $2.26 as at July 31, 2012
compared with $1.96 as at April 30, 2012.
In its operations this quarter, the Company continued to expand its
broker channel presence and experienced a slight upward trend in
origination volumes," Mr. Jones noted.
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.
Michael Jones, President and Chief Executive Officer, and Jeff Bouganim,
Chief Financial Officer will be available from Thursday, September 6,
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 $0.8 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