TORONTO, June 7, 2012 /CNW/ - Xceed Mortgage Corporation [TSX: XMC] ("Xceed" or the "Company") today reported its second quarter results for the six month period ended April 30, 2012.
The results of the quarter were prepared using International Financial Reporting Standards ("IFRS"), with a transition date of November 1, 2011. 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 second quarter:
- Net loss of $0.4 million and $0.1 million for the 3 month and 6 month periods ended April 30, 2012.
- Basic and diluted loss per share of $0.01 for the second quarter of fiscal 2012.
- After excluding one-time expenses of $0.3 million and costs associated with the wind-down of the Company's legacy trust operations, net income before tax for the six-month period ended April 30, 2012 was $0.6 million.
- Book value per share of $1.96 as at April 30, 2012 after giving effect to the consolidation of $8.2 million deficit in a securitization trust that will be reversed on wind up of the Trust, anticipated to occur prior to the end of the fiscal year.
- The Company's primary source of revenue continues to be from the sale of pools of insured mortgages to third parties. In Q2, 2012, the Company sold $15.8 million of insured mortgages for a net gain of $0.2 million and the Company continues to grow and develop its presence in the broker channel for this asset class.
The Company has filed its financial statements and management's discussion and analysis on SEDAR 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.
Management Comments on Results
"In the second quarter of fiscal 2012, we incurred a net loss of $0.4 million which includes several one-time items noted,as well as losses from consolidating XMT-2 trust activities under IFRS that will reverse when the trust matures, expected later in this fiscal year", said Michael Jones, President & CEO.
"We are pleased that the Company's core business was slightly profitable in the second quarter even though mortgage sales for the quarter were low by historical standards", Mr. Jones continued.
Michael Jones, President and Chief Executive Officer, and Jeff Bouganim, Chief Financial Officer will be available from Thursday, June 7, 2012 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 $0.9 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.
For further information:
Michael Jones can be reached at:
Telephone: (416) 364-7944 Ext.3434
E-mail: [email protected]
Jeff Bouganim can be reached at:
Telephone: (416) 364-7944 Ext.3335
E-mail: [email protected]