2012 Third Quarter Results Compared to Third Quarter 2011:
- Originations increased 18% to $65 million,
- Mortgage portfolio of $1.3 billion increased 13%,
- Net income of $0.09 per share compared with $0.12 per share,
- Adjusted net income of $0.13 per share compared with $0.15 per share.
TORONTO, Nov. 12, 2012 /CNW/ - HOMEQ Corporation [TSX: HEQ ("HOMEQ")], today announced its financial results for the three month period ended September 30, 2012.
During the third quarter of 2012 originations of $65 million increased 18% over Q3 2011 and the total mortgage portfolio increased 13% to $1.3 billion. For the quarter HOMEQ's net income was $1.3 million or $0.09 per share including costs incurred for the sale transaction compared to $1.7 million or $0.12 per share in Q3 2011. Adjusted net income in Q3 2012 was $2.0 million or $0.13 per share, in comparison to $2.2 million or $0.15 per share in 2011.
Birch Hill Equity Partners Management Inc. ("Birch Hill") has received approval from the Minister of Finance that will enable the completion of the shareholder-approved Arrangement (the "Arrangement") under the Business Corporations Act (Ontario) by which Monaco Acquisition Inc., an entity controlled by Birch Hill, will acquire all of the outstanding common shares of HOMEQ Corporation.
In accordance with the terms of the Arrangement, HOMEQ shareholders will receive $9.50 in cash per common share. It is anticipated that the acquisition will close on or before November 30, 2012.
Third Quarter Financial Statements
Forward Looking Statements
Certain statements included herein constitute "forward-looking statements". All statements, other than statements of historical fact, included in this release that address future activities, events, developments or financial performance are forward-looking statements. These forward-looking statements can be identified by the use of forward-looking words such as "may", "should", "will", "could", "expect", "intend", "plan", "estimate", "anticipate", "believe", "future" or "continue" or the negative thereof or similar variations. In particular, statements about the proposed Arrangement between Birch Hill and HOMEQ, including the expected timetable for completing the Transaction and any other statements regarding HOMEQ's future expectations, beliefs, goals or prospects are or involve forward-looking information. These forward-looking statements are based on certain assumptions and analyses made by HOMEQ and its management, in light of their experiences and their perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. Shareholders are cautioned not to put undue reliance on such forward looking-statements, which are not a guarantee of performance and are subject to a number of uncertainties, assumptions and other factors, many of which are outside the control of Birch Hill and HOMEQ, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, among other things, the parties' ability to consummate the Arrangement; the parties' ability to satisfy the conditions to the completion of the Arrangement, general economic and market factors (including changes in global, national or regional financial, credit, currency or securities markets), changes or developments in global, national or regional political conditions (including any act of terrorism or war), changes in government laws or regulations (including tax laws) and changes in GAAP or regulatory accounting requirements. Readers are cautioned that the foregoing lists are not exhaustive.
Such forward-looking statements should, therefore, be construed in light of such factors. If any of these risks or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein. All forward-looking statements attributable to HOMEQ, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements set forth above. Readers are cautioned not to place undue reliance on forward-looking statements contained herein, which reflect the analyses of the management of Birch Hill or HOMEQ, as appropriate, only as of the date of this release.
For more information regarding these and other risks, readers should consult HOMEQ's reports on file with applicable securities regulatory authorities accessible online by going to SEDAR at www.sedar.com or by going to the HOMEQ website at www.homeq.ca. HOMEQ is under no obligation, and HOMEQ expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
About HOMEQ Corporation
HOMEQ's wholly owned subsidiary HomEquity Bank is the only national provider of reverse mortgages to homeowners aged 55 and over, Canada's fastest growing demographic segment. HomEquity Bank originates and administers Canada's largest portfolio of reverse mortgages under the CHIP Home Income Plan brand. As of September 30, 2012, the mortgage portfolio comprised approximately 9,500 reverse mortgages with an accrued value of $1.3 billion, secured by residential properties across Canada worth approximately $3.5 billion. HomEquity Bank has been the main underwriter of reverse mortgages in Canada since its predecessor, Canadian Home Income Plan, pioneered the concept in 1986.
The Company's shares trade on the Toronto Stock Exchange under the symbol HEQ. Additional information on HOMEQ, including annual and quarterly reports can be viewed at www.homeq.ca.
SOURCE: HOMEQ Corporation
Steven K. Ranson, President and Chief Executive Officer
Gary Krikler, Senior Vice President and Chief Financial Officer