TOTAL PROFITS OF $1,212,000 FOR NINE MONTHS TO SEPTEMBER 30, 2009
TORONTO, Nov. 12 /CNW/ - Jaguar Financial Corporation ("Jaguar" or the "Company") today reported results for its third quarter ended September 30, 2009, of its 2009 fiscal year.
For the third quarter ended September 30, 2009, the Company reported net income of $791,802 compared to a loss of $8,172,149 in the third quarter of 2008. The Company's recovery after a difficult fiscal 2008 is well underway, reporting net income of $1,212,565 for the nine months ended September 30, 2009, compared to a loss of $12,725,400 in the same period in 2008. Included in net income is the Company's non-cash share of the loss of its associated company, Lakeside Steel Inc. ("Lakeside"), of $756,447 compared to a gain of $618,777 in the quarter ended September 30, 2008.
Operating income, excluding the share of net income of Lakeside, was $1,548,249 and $2,974,042 for the three and nine months ended September 30, 2009 respectively. This compares to losses of $8,790,926 and $13,306,786 for the equivalent periods in the prior year.
The improved results in the third quarter were driven by gains of $2,191,678 in the Company's investment portfolio compared to losses of $6,119,522 in the third quarter of the prior year. For the nine months ended September 30, 2009, the Company had investment gains of $8,066,021 compared to losses of $8,625,691 in the prior year. Included in the year to date amount are realized gains of $6,104,737 on the Company's investment in HudBay Minerals Inc. ("HudBay") and $1,182,333 on its investment in Kinbauri Gold Corporation ("Kinbauri").
Jaguar reduced substantially its expenses from $2,518,692 in the third quarter ended September 30, 2008, to $666,429 in the September 30, 2009 quarter. A substantial portion of the expenses in the September 30, 2009 quarter, or $417,741, related to profit participation paid to lenders who financed the Company's investments in Kinbauri and HudBay.
Jaguar had cash and investments at fair value of $15,560,267 as at September 30, 2009.
Vic Alboini, Chairman and Chief Executive Officer stated: "We have developed a brand name for catalytic investments in small cap and mid cap companies in Canada, following our realized gains in investments in HudBay, Kinbauri, Virtek Vision International and Century II Holdings. Our current major investments are in WGI Heavy Minerals, Lakeside Steel and Royal Laser Corp."
Jaguar is a Canadian merchant bank that invests in undervalued small capitalization companies in a variety of industry sectors.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this news release. This news release may contain certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under Jaguar's control which may cause actual results, performances or achievements of Jaguar to be materially different from those implied by such forward looking statements.
SOURCE Jaguar Financial Corporation
For further information: For further information: Vic Alboini, Chairman and Chief Executive Officer, (416) 644-8110