TORONTO, June 6, 2013 /CNW/ - Xceed Mortgage Corporation (TSX: XMC)
("Xceed" or the "Company") today reported its results for the three and
six-month period ended April 30, 2013.
The following are highlights of the second quarter results:
Net loss after tax of $608 thousand and $528 thousand, respectively, for
the three and six-month period ended April 30, 2013.
Basic book value per share and diluted book value per share of $2.22 and
$2.09 as at April 30, 2013.
The Company's primary source of revenue continues to be from the sale of
pools of insured mortgages to third parties. In Q2, 2013, the Company
sold $37.9 million of insured mortgages for a net gain of $0.7 million.
The Company's liquidity position has improved substantially with cash
and cash equivalents of $12.4 million as at April 30, 2013 compared to
$6.1 million as at October 31, 2012. This improvement resulted from
the payout in December 2012 of the senior subordinated interest in
Xceed's shareholders approved the Plan of Arrangement with MCAN Mortgage
Corporation at the Annual and Special Meeting held in Toronto on May
Management Comments on Results
Mr. Michael Jones, President and CEO, commented that "the year-to-date
2013 income statement shows a loss before taxes of $0.7 million mainly
due to expenses related to the MCAN transaction of $0.9 million. In the
absence of these expenses, the Company would have made a profit before
tax of $0.2 million."
Mr. Jones also noted that "the insured residential mortgage market
continues to be highly competitive with market participants offering
lower mortgage spreads combined with higher broker commissions to
attract origination volumes."
Mr. Jones further noted that "the Company's shareholders, at the Annual
and Special Meeting held on May 30, 2013, have approved the Plan of
Arrangement with MCAN Mortgage Corporation, which was previously
announced by the Company in March 2013. Regulatory and other approvals
are still awaited. The deal is expected to close on or before July 4,
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.
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, President and Chief Executive Officer, and Jeff Bouganim, Chief Financial Officer will be available from Thursday, June 6, 2013 onwards to respond to investor inquiries regarding these results.
Michael Jones can be reached at:
Telephone: (416) 364-7944 Ext.3434
Jeff Bouganim can be reached at:
Telephone: (416) 364-7944 Ext.3335