TORONTO, Aug. 11 /CNW/ - Northern Financial Corporation (TSX: NFC) ("Northern" or the "Company") today announced a profit of $407,376 in its wholly owned subsidiary, Northern Securities Inc. ("Northern Securities") for the first quarter ended June 30 of its fiscal year ending March 31, 2011. The first quarter profit is an improvement from the loss of $125,774 in the same period in the prior fiscal year. Northern Securities has now generated positive net income for three consecutive quarters ended June 30 and also and in the month of July 2010. Revenue in the first quarter for Northern Securities was $2,601,223.
Northern Securities is focused on maintaining and enhancing profitability. Northern Securities supports small cap and mid cap companies in raising capital, providing merger and acquisition advisory services, providing research coverage, marketing companies to institutional investors, and providing market liquidity in the shares of such companies.
Northern reported a loss of $495,211 for its first quarter ended June 30, 2010, in its 2011 fiscal year, compared to a loss of $614,580 in the prior year. Included in net income was income of $215,828 representing the Company's share of the earnings of Jaguar Financial Corporation ("Jaguar"), compared to a loss of $32,875 in the prior year. The net loss also included a negative, non-cash valuation adjustment of $544,253 on the Company's broker warrant portfolio.
Total revenue for the Company declined from $3,020,535 in the prior year to $1,903,313 in the quarter ended June 30, 2010, largely as a result of the above noted broker warrant valuation adjustment. Total expenses for the quarter ended June 30, 2010, were $2,614,352 compared with expenses of $3,602,240 in the prior year. The decrease is largely attributable to expense reduction measures implemented by the Company.
Northern Financial Corporation wholly owns Northern Securities Inc., a full service investment dealer that provides financial advisory services to retail and institutional clients and investment banking services to small capitalization companies.
SOURCE Northern Financial Corporation
For further information: For further information: Ann Krallisch, Director, Business Development, Northern Securities Inc., (416) 644-8113, Fax: (416) 644-0270, e-mail: firstname.lastname@example.org