TORONTO, Jan. 10, 2013 /CNW/ - Xceed Mortgage Corporation [TSX: XMC] ("Xceed" or the "Company") today reported its results for the three month and year ended October 31, 2012.
The results of the quarter and the year were prepared using International Financial Reporting Standards ("IFRS"), with a transition date of November 1, 2010. Consequently, prior period comparative results, the information contained in this news release, the Company's Management Discussion & Analysis and financial statements have all been restated to conform with IFRS requirements.
The following are highlights of the fourth quarter and year to date annual results:
- Net income (loss) after tax of ($0.7) million and $7.6 million for the three-month period and year ended October 31, 2012.
- Year to date results include a one-time gain of $8.6 million recognized as a result of the early clean-up call of Xceed Mortgage Trust ("XMT 2") announced on July 17, 2012.
- Basic and diluted earnings(loss) per share of ($0.03) and ($0.02) for the fourth quarter of fiscal 2012. Basic and diluted earnings per share of $0.28 and $0.26 for the year ending October 31, 2012.
- Undiluted book value per share and diluted book value per share of $2.24 and $2.18 as at October 31, 2012. This compares to an undiluted book value per share and diluted book value per share of $1.94 and $1.93 as at October 31, 2011; improved over the prior year primarily due to the above noted one-time gain relating to XMT 2.
Management Comments on Results
Mr. Michael Jones, President and CEO, commented that "fiscal 2012 was a year in which considerable efforts were focused on reducing any remaining financial exposure to the Company's legacy securitization activities. This focus included the early clean up call of XMT 2 announced in the third quarter that resulted in a return of cash to the Company of $4.5 million ($3.0 million of which was used to repurchase existing mortgages) from XMT 2. The clean up call also resulted in the recognition of a one-time gain of approximately $8.6 million through the Company's consolidated statement of net income."
Mr. Jones also noted that "in addition, management continued to focus on reducing outstanding legacy securitized mortgages so that by October 31, 2012 there were only $13.7 million of such mortgages remaining compared to $484.2 million as at November 1, 2010 and $67.5 million as at October 31, 2011."
Mr. Jones noted that "as announced on December 31, 2012, subsequent to the year end, the Company also received $10.6 million in cash relating to the payout of the Company's senior subordinated Q-XCD note. This note payout along with the XMT 2 clean up call demonstrates execution on Management's focus to transform the Company's balance sheet into cash, near cash or other more liquid assets." Mr. Jones also stated that "aside from an overall focus on improving the Company's book value per share, significant focus has been placed on improving the underlying quality of assets on the book".
Mr. Jones noted "that the Company has seen improving origination volumes in the fourth quarter of fiscal 2012. The market for insured single family residential mortgages continues to be competitive albeit at more stable profitability levels in recent quarters."
The Company has filed its financial statements and management's discussion and analysis on SEDAR (which combined also form the Company's annual report) and they will be posted on the company's website.
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.
Michael Jones, President and Chief Executive Officer, and Jeff Bouganim, Chief Financial Officer will be available from Thursday, January 10, 2013 onwards to respond to investor inquiries regarding these results.
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 www.xceedmortgage.com.
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 can be reached at:
Telephone: (416) 364-7944 Ext.3434
Jeff Bouganim can be reached at:
Telephone: (416) 364-7944 Ext.3335