2011 Annual Results Compared to 2010:
- The mortgage portfolio grew by 17% to $1.2 billion;
- Originations grew by 16% to $239 million;
- Net income of $0.24 per share improved from net loss of $0.05 per share;
- Adjusted net income increased by 18% to $0.52 per share.
2011 Fourth Quarter Results Compared to 2010:
- Originations grew by 41% to $67 million;
- Net income of $0.08 per share improved from net income of $0.0 per share;
- Adjusted net income increased by 55% to $0.17 per share.
TORONTO, March 5, 2012 /CNW/ - HOMEQ Corporation (TSX: HEQ) [("HOMEQ")], today announced its financial results for the year ended December 31, 2011.
During 2011 HOMEQ achieved record breaking performance, originating $239 million of reverse mortgages, an increase of 16% over 2010. "Our reverse mortgage offering is now widely recognized as a mainstream financial solution," said Steven Ranson, President and CEO. "We are seeing broad market demand for reverse mortgages as the demographic wave and other macro economic factors affect retirement trends in Canada."
Since its inception, the CHIP Home Income Plan has helped thousands of Canadian seniors achieve a more secure retirement. The demand for our product solution is robust. It is driven by demographics and by increasing awareness amongst Canadians and their financial advisors. As a result, HOMEQ's portfolio of reverse mortgages reached $1.2 billion as of December 31, 2011, 17% higher than a year earlier.
HOMEQ expects that demand for reverse mortgages will remain firm in 2012. With a continued positive impact coming from the increasing number of Canadians over 60 years of age, an increase in the size of the sales force and additional experience in the sales and marketing functions, HOMEQ's objective is to increase the mortgage portfolio by between 15% and 20% per annum.
The combination of portfolio growth, efficient originations, spread management and overhead expense control should provide continuing increases in adjusted net income per share of a minimum of 20% per annum.
Annual Financial Statements and Conference Call
HOMEQ will hold a conference call to discuss these financial results on March 6, 2011, at 9:00 am (Eastern).
Available on the call to answer questions will be Steven Ranson, President and Chief Executive Officer, and Gary Krikler, Senior Vice President and Chief Financial Officer.
To participate in the conference call, please dial 1-888-892-3255.
An archived recording of the call will be available at 1-800-937-6305 (conference ID 879704).
Forward Looking Statements
HOMEQ Corporation from time to time makes written and verbal forward-looking statements about business objectives, operations, performance, and financial condition, including the likelihood of HOMEQ's success in developing and expanding its business. These may be included in HOMEQ's and its predecessor's annual reports, regulatory filings, reports to shareholders, press releases, presentations and other communications. These forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of HOMEQ. Actual results may differ materially from those expressed or implied by such forward-looking statements. HOMEQ does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time.
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 December 31, 2011, the mortgage portfolio comprised approximately 9,000 reverse mortgages with an accrued value of $1.2 billion, secured by residential properties across Canada worth approximately $3.3 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.
For further information:
Steven K. Ranson
President and Chief Executive Officer
Senior Vice President and Chief Financial Officer