Street Capital Announces 2017 Second Quarter Results

TORONTO, Aug. 3, 2017 /CNW/ - Street Capital Group Inc. ("Street Capital" or the "Company") (TSX: SCB), today announced its financial results for the three and six months ended June 30, 2017.

Q2-2017 Financial Highlights
All comparisons below are to Q2-2016, unless otherwise noted

  • Total revenue (net of acquisition costs) was $16.1 million in Q2-2017 compared to $19.9 million.
  • Net gains on sale of mortgages were $15.7 million, compared to $19.8 million.
  • Adjusted shareholders' diluted earnings per share (i) were $0.02, compared to $0.05.
  • Mortgages under administration were $27.81 billion, compared to $25.67 billion.
  • Total prime originations and renewals were $1.96 billion, compared to $2.54 billion.
  • Total Street Solutions originations were $10.2 million.
  • The total portfolio serious arrears rate (iii) was 0.11% at the end of Q2-2017, unchanged from Q2-2016.

"Q2 was a pivotal period for Street Capital Bank (the "Bank", our wholly-owned subsidiary) as we launched our Street Solutions Program, a suite of mortgage products tailored to address the needs of customers in the growing uninsured segment," said Ed Gettings, Chief Executive Officer of Street Capital Group Inc. "As expected, Q2 new prime originations remained under pressure industry-wide due to the mortgage insurance rules announced in October 2016. Street Capital Bank is not immune to these challenges; however we are solidly positioned to grow as we build our uninsured book and begin to prudently expand our product suite to better serve our valued customers and mortgage broker partners. With a Schedule I bank licence as a foundation, a stable and conservative funding approach, and a relentless focus on generating industry-leading credit quality, we are positioned to generate substantial value for our shareholders over time."

"As Ed prepares to retire as the CEO of Street Capital, I would like to take this opportunity to extend my sincere thanks to him for his dedication and fundamental contribution to the growth of Street Capital Bank over the past 10 years," said Allan Silber, Chairman of Street Capital's Board of Directors. "Along with my fellow Board members, I appreciate that Ed will remain as a Director and we look forward to continuing to work with him. His leadership and the team he has built have brought the Bank to its current position of strength. Ed's experience and track record of success leading consumer lending businesses will continue to be an important resource for the Board and the management team in the coming years, as the Bank grows and diversifies."

Business Outlook

Note to readers: This section includes forward-looking information and is qualified in its entirety by the discussion about Forward-Looking Information, below.

Regulatory and Policy Changes

Many housing markets in Canada are experiencing prolonged periods of house price appreciation that have led to concerns from observers and market participants, resulting in an increased focus on the stability of the domestic housing market. Partly in response, the federal government has implemented regulatory changes that tightened the qualification criteria for insured loans, with the most recent being in October and November of 2016. OSFI's introduction of higher regulatory capital requirements for mortgage insurers has increased the cost of insurance for some borrowers, as well as the cost of portfolio insurance. The federal government has also proposed lender risk sharing arrangements that could further affect the insured mortgage market, and provincial governments in British Columbia and Ontario have recently introduced, and may further introduce, measures intended to slow house price appreciation in those provinces. Additionally, in July 2017, OSFI released draft amendments to Guideline B-20–Residential Mortgage Underwriting Practices and Procedures ("Guideline B-20") for public consultation. The basic framework of Guideline B-20 has not changed:  the five fundamental principles for sound residential mortgage underwriting remain. However, OSFI is proposing to tighten and clarify its expectations, and introduce new expectations, including:

  • Requiring a GDS/TDS stress test for all uninsured mortgages of at least 2.00% above the contractual interest rate;
  • Requiring that Loan-to-Value (LTV) measurements remain dynamic and adjust for local market conditions where they are used as a risk control, such as for qualifying borrowers;
  • Expressly prohibiting co-lending arrangements that are designed, or appear to be designed, to circumvent regulatory requirements; and
  • Additional requirements with respect to income verification.

It will take some time to fully understand the complete effect that the combination of these changes would have on housing activity and prices, and ultimately on mortgage activity and mortgage rates. However, the Company believes directionally that prime insured mortgage activity and housing price appreciation will begin to slow during the remainder of 2017, as we have seen in some markets in Q2 2017.

Changes proposed in Guideline B-20 have the potential to reduce the size of mortgage a borrower may qualify for and require more documentation for self-employed borrowers, and therefore perhaps reduce the level of lending activity in uninsured mortgages originated by OSFI-regulated financial institutions. While the Company is in the preliminary stages of reviewing the potential implications of proposed changes to Guideline B-20 and developing its comments to OSFI on the proposals, management is maintaining its previously outlined origination targets for Street Solutions, given that they are relatively modest compared to the size of the market.

There remains a great deal of uncertainty in the markets, making it challenging to predict outcomes, and as a result the Company's views can change over time in response to observed factors and market trends.  

Other Business Developments

On June 29, 2017 the Company's CEO and acting President, Mr. W. Edward Gettings, announced his intention to retire from Street Capital Group Inc. and Street Capital Bank effective September 1, 2017. Mr. Gettings will continue to serve as a member of the Company's Board of Directors.

Concurrently, the Company also announced that Duncan Hannay, a seasoned financial services and technology executive leader, has been appointed President and CEO of both the Company and Street Capital Bank. Mr. Hannay will assume these responsibilities subsequent to the retirement of Mr. Gettings, on September 1, 2017.

During Q2 2017, the Company initiated a business restructuring that involved the reduction of approximately 10% of its workforce. An action plan was developed during the quarter and selected reductions were implemented beginning July 5, 2017. Associated reorganization expenses of $2.5 million, pre-tax, were recorded as a component of operating expense in Q2 2017. Together with the $3.6 million retiring allowance recorded in Q1 2017 for Mr. DaRocha, the former President, total pre-tax reorganization expenses in 2017 are $6.1 million. The anticipated ongoing expense savings from the staff reduction is between $1.5 to $2.0 million per year. Over time, and as the Bank more formally develops its mid- and long-term strategy, the Company expects to add additional staff with the relevant skills and experience to execute that strategy. The Bank is still targeting positive operating leverage beginning in 2018.

Prime Mortgage Lending

Recent regulatory changes, discussed above, have reduced the volume of prime mortgages that qualify for insurance, leading to a decline in lending activity in the prime insured mortgage segment in 2017.

While it remains difficult to estimate, with any level of certainty, the potential reduction in prime mortgage activity in the market and for the Bank, the Company has been able to maintain strong origination volumes for prime insurable mortgages. These mortgages are not affected by the recent mortgage insurance rule changes. The Company has more than adequate funding and strong market demand, and the Bank remains competitive in this mortgage segment. 

For mortgages that previously qualified for mortgage insurance, i.e.: prime uninsured mortgages, the Bank is offering these mortgages on a very limited basis. The Company remains active in pursuing additional funding for this specific product and has made good progress on this front during Q2 2017. However, given the uncertainty of the timing of funding availability, and the uncertainty of the potential profitability of these mortgages, management is taking a more conservative view of new prime origination volumes and gain on sale rates in 2017. The Company still expects that new prime originations volumes could be 20 – 30% below 2016, and it cannot currently provide a reasonable estimate of gain on sale rates. When market conditions stabilize, the Company hopes to resume providing guidance of this type moving forward.  

Softness in new originations of prime mortgages will be partly offset by the Bank's expected highly profitable renewal activity in 2017, 2018 and 2019. Based on the maturity profile of the MUA, the Bank will experience material increases in renewal activity in these years and as we have seen in this quarter. To optimize this revenue stream, the Bank will continue to focus on its service and retention activities. The Bank's almost $28 billion of MUA provides both a sustainable portfolio of quality revenue generating assets and a customer base to drive significant value over the coming years as it expands into additional product areas.  

Uninsured Mortgage Lending

The Bank launched its uninsured mortgage product, Street Solutions, in Q2 2017. Discussions and observations in the market have been very positive, with many existing mortgage broker partners welcoming another provider in this segment. Management deliberately limited the launch of Street Solutions to a handful of brokers and geographic regions in order to manage demand and monitor our underwriting processes. After a successful test run we have expanded our broker reach and geographic regions, and are expecting to make the origination targets as set out in the guidance. The Bank has relatively modest plans for uninsured lending origination in 2017, and will remain conservative in both credit quality and funding, and prudent with growth, to ensure it builds a sustainable and quality portfolio of assets and customers that drives profitability today and in the coming years.

Deposits

The Bank began taking its first CDIC-insured GIC deposits in February 2017. The Company offers deposits, in the form of GICs, for fixed terms of 90 days cashable, and 1 year to 5 years, with fixed interest rates. Deposits are sourced through investment dealers and the distribution network has been growing each month. As banking operations continue to expand, deposits will be cash flow duration matched to underlying mortgages and other assets, with maturity gaps managed within the Bank's conservative risk appetite. The Company is confident that it will achieve sufficient deposit flows to support $150-$200 million in uninsured mortgage funding in 2017.

Near-term Strategic Priorities 

The Bank continues to focus on infrastructure and the development of a compelling credit card offering to be launched in 2018. The product will initially be offered directly to both qualifying borrowers in our current base of more than 130,000 customers, and new mortgage clients. Credit cards are expected to add modestly to revenue in 2018.

Financial Expectations – 2017 to 2019

Note: The Bank may not realize the financial expectations indicated below if business or competitive conditions, the regulatory environment, the housing market, or general economic conditions change, or if any of the other management assumptions do not materialize in the amount or within the timeframes expected. Please refer to the Forward-Looking Information, below.

Management's financial expectations, below, are unchanged since they were originally presented on May 10, 2017.


2016 –
Actual

2017

2018

2019

Prime New
Originations 1

$7.94 billion

20%-30% lower
than 2016

Maintain market
share

Maintain market
share






Prime Renewal
Volume

$1.43 billion

$1.80 - $1.90
billion

$2.40 - $2.60
billion

$2.60 - $2.70
billion






Uninsured
Originations

nil

$150 -  $200
million

$600 - $700
million

$850 - $950
million






Uninsured Net
Interest Margin
(net of
provisions for

credit losses)

N/A

2.0% -2.5%

2.0% -2.5%

2.0% -2.5%






Expense Ratio
(% of
originations
and renewals) 2

0.50%

N/A

Positive operating
leverage 3

Positive operating
leverage 3

1 Forecasting future prime insured originations remains challenging, given the recent regulatory changes, and competitors' and consumers' potential reactions thereto. The projections reflect management's current views only and are subject to change over time.


2 As revenues from balance sheet lending begin to grow, the Bank will begin to measure itself on operating leverage.


3 Positive operating leverage is defined as: percentage growth in revenue, minus percentage growth in expenses, is greater than zero.

 

Financial Highlights
The following tables set out the financial highlights for the three and six months ended June 30, 2017:





(in thousands of $, except where defined)

   For the three months ended or as at


For the six months ended or as at


June 30,

March 31,

June 30,


June 30,

June 30,


2017

2017

2016


2017

2016

Financial performance







Shareholders' net income (loss)

$

(104)

$

(2,574)

$

5,310


$

(2,678)

$

8,313

Shareholders' diluted earnings (loss) per share 

$

0.00

$

(0.02)

$

0.04


$

(0.02)

$

0.07








Adjusted shareholders' net income (i)

$

1,845

$

69

$

5,845


$

1,914

$

8,289

Adjusted shareholders' diluted earnings per share (i)

$

0.02

$

0.00

$

0.05


$

0.02

$

0.07








Total revenue (net of acquisition costs)

$

16,092

$

10,756

$

19,924


$

26,848

$

33,149








Return on tangible equity

0.1%

(9.3%)

22.5%


(4.6%)

18.1%

Adjusted return on tangible equity (i)

7.5%

0.7%

24.7%


4.1%

18.1%








Mortgages originated and under administration







Mortgages under administration (in billions of $)

$

27.81

$

27.81

$

25.67


$

27.81

$

25.67








Prime mortgage originations

$

1,499,930

$

1,213,257

$

2,155,761


$

2,713,187

$

3,346,152

Prime mortgage renewals

463,167

304,597

380,615


767,764

708,647

Total prime originations and renewals

$

1,963,097

$

1,517,854

$

2,536,376


$

3,480,951

$

4,054,799








Total Street Solutions originations 

$

10,225

N/A

N/A


$

10,225

N/A








Gain on sale - new mortgages - % of originations

2.03%

1.84%

1.88%


1.94%

1.86%

Acquisition expenses - new mortgages - % of originations

1.41%

1.30%

1.24%


1.36%

1.21%

Net gain on sale - new mortgages - % of originations

0.62%

0.53%

0.65%


0.58%

0.65%








Gain on sale - renewals - % of originations

1.49%

1.51%

1.63%


1.50%

1.61%

Acquisition expenses - renewals - % of originations

0.10%

0.11%

0.10%


0.11%

0.11%

Net gain on sale - renewals - % of originations

1.39%

1.39%

1.54%


1.39%

1.51%















Operating expenses as a % of originations (ii)

0.70%

0.71%

0.48%


0.70%

0.54%








Credit quality - prime mortgages







Total portfolio serious arrears rate (iii)

0.11%

0.12%

0.11%




Average beacon (iv)

748

747

749




Average loan to value ratio (iv)

80.8%

80.7%

81.2%




Average total debt service ratio (iv)

36.5%

36.3%

36.1%











Regulatory Capital Ratios







Common equity Tier 1 (CET1) ratio

29.99%

32.24%

N/A




Total regulatory ratio

29.99%

32.24%

N/A




Leverage ratio

18.37%

20.86%

N/A











Equity and share information







Shareholders' equity

$

132,252

$

131,998

$

127,001




Shares outstanding end of period (000s)

121,974

121,580

121,876




Book value per share

$

1.08

$

1.09

$

1.04




Market capitalization 

$

164,665

$

182,370

$

152,345




Share price at close of market

$

1.35

$

1.50

$

1.25











(please see definitions, following)







 

(i)

Non-GAAP measure the Company uses to measure its performance from continuing and recurring income from its core business. Please see the section Non-GAAP Measures in the Company's Q2-2017 Management's Discussion and Analysis for a reconciliation of amounts to GAAP measures, and the reconciliation of Shareholders' Net Income (Loss) to Adjusted Shareholders' Net Income in the table below.


(ii) .

Operating expenses are net of any restructuring costs or recoveries.


(iii)

Defined as the number of mortgages that are greater than 90 days in arrears, plus the number of mortgages involved in legal action due to non-payment, divided by the number of mortgages under administration.


(iv)

Calculated on a weighted average basis at origination. Please see the section Non-GAAP Measures in the Company's Q2-2017 Management's Discussion and Analysis for more detailed definitions of these metrics.

Reconciliation of Shareholders' Net Income (Loss) to Adjusted Shareholders' Net Income





(in thousands of $)

For the three months ended


For the six months ended


June 30,

March 31,

June 30,


June 30,

June 30,


2017

2017

2016


2017

2016

Net income (loss)

$

(104)

$

(2,574)

$

5,310


$

(2,678)

$

8,313

Fair value adjustments

(28)

(103)

541


(131)

589


(net of non-controlling interest)

Private equity management expense (net of tax)

137

101

-


238

-

Restructuring expense (recovery) (net of tax)

1,823

2,647

-


4,470

(598)

Discontinued operations (net of tax)

17

(2)

(6)


15

(15)

Adjusted net income 

$

1,845

$

69

$

5,845


$

1,914

$

8,289

 

YTD 2017 Results against Fiscal 2017 Objectives

2017 Objectives

YTD 2017 Results or Status



Launch uninsured mortgage product, with $150 to
$200 million in new originations in 2017.

Street Solutions launched in Q2 2017
with $10 million in new originations in the quarter,
and is on track to meet the target.



Maintain broker market share at #4.

The Bank's market share in the mortgage
broker channel was 7.4% and sixth place for
the quarter ended March 31, 2017. Market
share data for Q2 2017 was not available at
the date of this MD&A.



Maintain renewal volumes of 75 – 80% of
mortgages eligible for renewal.

Q2 2017 – renewed approximately 72% of
the mortgages eligible for renewal.




YTD 2017 – renewed approximately 75%.



Build credit card capability and be ready to launch
the product in 2018.

On track to launch in 2018.



Maintain credit quality, with serious arrears and
early delinquency rates better than industry
averages.

The Bank's serious arrears rate at June 30,
2017 was 0.11%, as compared to 0.12% at
March 31, 2017 and 0.11% at December 31,
2016. The rate was 0.24% at May 31, 2017

in the markets in which the Company operates.

Sustainable Tax Advantage

The Company continues to generate a sustainable tax advantage, given the differing treatment between accounting and income tax rules for gains on sale. Its tax loss carryforwards were approximately $331 million at June 30, 2017. This represents a real and sustainable tax advantage as the Company is not paying cash taxes and does not expect to pay cash taxes for many years.

Dividends

The Company and its management are committed to consistently creating shareholder value. At this time, this means retaining our earnings and allocating capital to the business opportunities within the growing potential of the bank platform. Over the next few years, it is the Company's intention that the creation of shareholder value will include consideration of an allocation between retaining and investing earnings, and distributing common shareholder dividends.

Update Regarding Normal Course Issuer Bid

The Company, with the approval of the Toronto Stock Exchange (the "Exchange") commenced a normal course issuer bid (the "NCIB") that became effective on March 23, 2016. It expired on March 22, 2017 and was subsequently renewed. The renewed NCIB will expire on March 22, 2018. Under the NCIB, the Company can purchase for cancellation up to 2% of its common shares outstanding. The Company makes those purchases on the open market through the facilities of the Exchange and otherwise in accordance with the rules and policies of the Exchange. The Company believes that the potential repurchase of a portion of its outstanding common shares is an appropriate use of available cash and is in the best interests of the Company and its shareholders.

During the period March 23, 2016 to December 31, 2016, the Company repurchased 630,132 of its common shares for $0.91 million, which reduced share capital by $1.27 million and increased contributed surplus by $0.36 million. Between December 31, 2016 and June 30, 2017, the Company did not purchase any additional common shares through the NCIB.

Further Information

Please also refer to the Company's Q2-2017 Financial Statements and Second Quarter Ended June 30, 2017 Management's Discussion and Analysis, which are available on the Company's website (www.streetcapital.ca) and on SEDAR (www.sedar.com).

Conference Call

Street will host a conference call today, August 3, 2017 at 7:30 a.m. ET to discuss its financial results. Ed Gettings, Chief Executive Officer of Street, will chair the call with Marissa Lauder, Chief Financial Officer of Street.


Participant Dial-in

Webcast

Reference Number

Conference Call

 

647-427-7450; or

1-888-231-8191

http://bit.ly/2uJOBMH


Replay

(available for 2 weeks)

416-849-0833; or

1-855-859-2056


58546601

About Street Capital Group Inc. (streetcapitalgroup.ca)
Street Capital Group Inc. (TSX: SCB) is a public company operating through its wholly-owned subsidiary, Street Capital Bank of Canada, a federally regulated Schedule I Bank offering residential mortgage loans with the strategic goal of introducing additional retail banking products in the coming years. Street Capital Bank of Canada sources its mortgage products primarily through a network of independent mortgage brokers across Canada with whom it has built relationships. Street Capital Bank of Canada offers a broad line-up of high ratio and conventional mortgages to borrowers and either sells the mortgages it underwrites to top tier financial institutions or holds them on balance sheet. Street Capital Bank of Canada lends throughout all of the Provinces of Canada (other than Quebec) and has offices in Ontario, Alberta and British Columbia. For more information please visit streetcapital.ca.

Forward-Looking Statements
This release contains certain forward-looking statements that are based on management's exercise of business judgment as well as assumptions made by, and information currently available to, management. When used in this document, the words "may", "plan", "will", "anticipate", "believe", "estimate", "expect", "intend", and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect our current view of future events and are subject to certain risks and uncertainties as outlined in the Company's Annual Information Form and other filings made with securities regulators, which are available on SEDAR (sedar.com). These factors include, without limitation: expansion opportunities, technological changes, regulatory changes (including mortgage insurance rules), and changes to the business and economic environment, including, but not limited to, Canadian housing market conditions and activity, interest rates, mortgage backed securities markets and employment conditions that may impact the Company, its mortgage origination volumes, investments and capital expenditures, and competitive factors that may impact revenue and operating costs. Any of these factors, amongst others, could cause actual results to vary materially from current results or from the Company's currently anticipated future results and financial condition. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. We undertake no obligation, and do not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize.

The following table sets out financial highlights of the Company's consolidated quarterly results of operations for the eight quarters ended June 30, 2017.










(in thousands of $, except
where defined)

2015
Q3

2015
Q4

2016
Q1

2016
Q2

2016
Q3

2016
Q4

2017
Q1

2017
Q2










Financial performance









Shareholders' net income (loss)

$

6,676

$

(2,795)

$

3,003

$

5,310

$

7,491

$

462

$

(2,574)

$

(104)

Adjusted shareholders' net income

$

6,909

$

4,792

$

2,444

$

5,845

$

6,171

$

1,900

$

69

$

1,845










Shareholders' diluted earnings










(loss) per share

$

0.06

$

(0.02)

$

0.02

$

0.04

$

0.06

$

0.00

$

(0.02)

$

0.00

Adjusted shareholders' diluted










earnings per share

$

0.06

$

0.04

$

0.02

$

0.05

$

0.05

$

0.02

$

0.00

$

0.02










Return on equity

22.8%

(9.4%)

10.0%

17.1%

22.9%

1.4%

(7.7%)

(0.3%)

Adjusted return on equity

23.5%

16.0%

8.1%

18.8%

18.9%

5.7%

0.2%

5.6%










Return on tangible equity

30.5%

(11.7%)

13.6%

22.5%

29.6%

2.2%

(9.3%)

0.1%

Adjusted return on tangible equity

31.6%

21.5%

11.1%

24.7%

24.5%

7.6%

0.7%

7.5%










Mortgages sold and under
 administration









Prime mortgages sold - new

$

1,874,541

$

1,553,556

$

1,190,391

$

2,155,761

$

2,493,132

$

2,101,474

$

1,213,257

$

1,499,930

Prime mortgages sold - renewal

410,288

587,061

328,032

380,615

361,844

358,043

304,597

463,167

Prime mortgages sold - total

$

2,284,829

$

2,140,617

$

1,518,423

$

2,536,376

$

2,854,976

$

2,459,517

$

1,517,854

$

1,963,097










Total Street Solutions originations

 N/A 

 N/A 

 N/A 

 N/A 

 N/A 

 N/A 

 N/A 

$

10,225










Mortgages under administration










(in billions of $)

$

24.30

$

24.75

$

25.02

$

25.67

$

26.83

$

27.70

$

27.81

$

27.81










Gain on sale of mortgages

$

41,197

$

35,729

$

26,883

$

46,797

$

52,578

$

40,793

$

26,886

$

37,278


As a % of mortgages sold

1.80%

1.67%

1.77%

1.85%

1.84%

1.66%

1.77%

1.90%










Acquisition expenses

$

21,994

$

19,313

$

14,286

$

27,009

$

30,608

$

26,735

$

16,166

$

21,564


As a % of mortgages sold

0.96%

0.90%

0.94%

1.06%

1.07%

1.09%

1.07%

1.10%










Net gain on sale of mortgages

$

19,203

$

16,416

$

12,597

$

19,788

$

21,970

$

14,058

$

10,720

$

15,714


As a % of mortgages sold

0.84%

0.77%

0.83%

0.78%

0.77%

0.57%

0.71%

0.80%










Operating expenses

$

10,358

$

11,459

$

9,885

$

12,140

$

13,114

$

11,631

$

10,745

$

13,721


As a % of mortgages sold

0.45%

0.54%

0.65%

0.48%

0.46%

0.47%

0.71%

0.70%










Credit quality-prime mortgages









Total portfolio serious arrears rate

0.14%

0.14%

0.13%

0.11%

0.11%

0.11%

0.12%

0.11%

Average beacon

741

742

743

749

745

746

747

748

Average loan to value ratio

81.8%

81.7%

81.4%

81.2%

81.0%

80.8%

80.7%

80.8%

Average total debt service ratio

36.2%

36.2%

36.2%

36.1%

36.2%

36.2%

36.3%

36.5%










Equity and share performance









Shareholders' equity

$

120,752

$

118,245

$

121,998

$

127,001

$

134,402

$

134,492

$

131,998

$

132,252

Shares outstanding end of period










(in 000s)

120,866

121,226

122,154

121,876

121,790

121,532

121,580

121,974

Book value per share

$

1.00

$

0.98

$

1.00

$

1.04

$

1.10

$

1.11

$

1.09

$

1.08

Market capitalization 

$

199,429

$

162,443

$

157,579

$

152,345

$

219,222

$

228,480

$

182,370

$

164,665

Share price at close of market

$

1.65

$

1.34

$

1.29

$

1.25

$

1.80

$

1.88

$

1.50

$

1.35


 

The following table sets out the Company's consolidated financial position as at June 30, 2017, March 31, 2017 and December 31, 2016. 





As at



June 30,

March 31,

December 31,

(in thousands of $) 

2017

2017

2016






Assets




Cash and cash equivalents

$

48,571

$

7,196

$

3,771

Restricted cash

33,829

23,044

31,159

Street Solutions uninsured loans

10,220

-

-

Other non-securitized mortgages and loans

18,524

11,420

9,323

Securitized mortgage loans 

238,976

253,165

262,203

Deferred placement fees receivable 

50,423

50,139

51,314

Prepaid portfolio insurance

80,008

80,660

79,049

Portfolio investments

1,825

3,214

3,026

Deferred income tax assets

14,557

14,489

14,429

Other assets

24,389

18,163

15,481

Goodwill and intangible assets

28,437

28,949

28,652

Total assets

$

549,759

$

490,439

$

498,407






Liabilities




Bank facilities

$

-

$

15,900

$

3,400

Deposits

72,187

2,358

-

Loans payable

4,143

4,220

4,251

Securitization liabilities

239,324

252,514

262,663

Accounts payable and accrued liabilities

64,049

44,480

53,870

Deferred income tax liabilities

43,139

43,064

43,914

Total liabilities

422,842

362,536

368,098






Total shareholders' equity

132,252

131,998

134,492

Non-controlling interests

(5,335)

(4,095)

(4,183)

Total liabilities and equity

$

549,759

$

490,439

$

498,407

 

SOURCE Street Capital

For further information: W.E. Gettings, CEO, Street Capital Group Inc., Ed.Gettings@streetcapital.ca; Jonathan Ross, CFA, LodeRock Advisors Inc., Inv. Relations, jon.ross@loderockadvisors.com, (416) 283-0178

RELATED LINKS
https://streetcapital.ca/

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890