Xceed Mortgage Corporation Reports Second Quarter 2013 Results
06 Jun, 2013, 06:00 ET
TORONTO, June 6, 2013 /CNW/ - Xceed Mortgage Corporation (TSX: XMC) ("Xceed" or the "Company") today reported its results for the three and six-month period ended April 30, 2013.
The following are highlights of the second quarter results:
- Net loss after tax of $608 thousand and $528 thousand, respectively, for the three and six-month period ended April 30, 2013.
- Basic book value per share and diluted book value per share of $2.22 and $2.09 as at April 30, 2013.
- The Company's primary source of revenue continues to be from the sale of pools of insured mortgages to third parties. In Q2, 2013, the Company sold $37.9 million of insured mortgages for a net gain of $0.7 million.
- The Company's liquidity position has improved substantially with cash and cash equivalents of $12.4 million as at April 30, 2013 compared to $6.1 million as at October 31, 2012. This improvement resulted from the payout in December 2012 of the senior subordinated interest in QSPE-XCD.
- Xceed's shareholders approved the Plan of Arrangement with MCAN Mortgage Corporation at the Annual and Special Meeting held in Toronto on May 30, 2013.
Management Comments on Results
Mr. Michael Jones, President and CEO, commented that "the year-to-date 2013 income statement shows a loss before taxes of $0.7 million mainly due to expenses related to the MCAN transaction of $0.9 million. In the absence of these expenses, the Company would have made a profit before tax of $0.2 million."
Mr. Jones also noted that "the insured residential mortgage market continues to be highly competitive with market participants offering lower mortgage spreads combined with higher broker commissions to attract origination volumes."
Mr. Jones further noted that "the Company's shareholders, at the Annual and Special Meeting held on May 30, 2013, have approved the Plan of Arrangement with MCAN Mortgage Corporation, which was previously announced by the Company in March 2013. Regulatory and other approvals are still awaited. The deal is expected to close on or before July 4, 2013."
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.
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, President and Chief Executive Officer, and Jeff Bouganim, Chief Financial Officer will be available from Thursday, June 6, 2013 onwards to respond to investor inquiries regarding these results.
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]
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