Xceed Mortgage Corporation Reports Fiscal 2011 Third-Quarter Financial Results

TORONTO, Sept. 8, 2011 /CNW/ -- 
TORONTO, Sept. 8, 2011 /CNW/ - Xceed Mortgage Corporation [TSX: XMC], a
 Canadian provider of residential mortgages, today announced its
 financial results for the third quarter of fiscal 2011 ended July 31,
 2011.


    --  The company reported $1.7 million net loss for the current
        quarter, as compared with net income of $0.7 million in the
        second quarter of 2011, net income of $0.05 million in the
        first quarter of 2011 and net income of $1.4 million in the
        third quarter of 2010.

    --  Results included a $1.7 million one-time pre-tax expense
        reflecting the company's settlement agreement with HSBC
        Financial Corporation Limited and its related parties ending
        all outstanding litigation between the two companies.

    --  The company also announced that as at August 5, 2011, an
        agreement was reached between the QSPE-XCD Trust and its note
        holders to provide the company an opportunity to invest in
        senior subordinated  notes of the trust.  On August 17, 2011,
        the company invested $8.3 million, previously held in an escrow
        account, and an additional $2.3 million in these notes.  In the
        current quarter, Xceed has accrued a one-time expense of $0.4
        million pre-tax for a payment to the trust in part exchange for
        finalizing this transaction.

    --  The company also reported an overall increase in liquidity this
        quarter.  Cash and cash equivalents as at July 31, 2011 was
        $10.6 million increased from $6.0 million as at October 31,
        2010 and $4.0 million as at July 31, 2010.  This liquidity
        improvement is consistent with the company's strategic
        objective of maximizing value to shareholders through the
        ongoing pay down of legacy securitized portfolios into other
        more liquid assets.

    --  In the quarter, the company launched its Registered Education
        Savings Plan PREP mortgage which offers a reduced rate on funds
        borrowed towards a contribution to an existing Registered
        Education Savings Plan promoting saving for post-secondary
        education.

    --  In the current quarter, the company launched a balance sheet
        renewal program on a 1 year term with open prepayment options
        providing clients the opportunity to transition to new mortgage
        products.

    --  The company continues to originate through its Internal Sales
        group to offer renewals, refinancings, and originations to both
        existing clients and the company's "friends and family
        program."

    --  Mortgage and other assets under administration are $1.2 billion
        as at July 31, 2011.



"While this quarter's results include the noted one-time items, we
 believe the company is now well-positioned financially to capitalize on
 new future opportunities" said Michael Jones, President and CEO.


Xceed has filed its financial statements and management's discussion and
 analysis for the third quarter of 2011 with SEDAR and they are also
 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 by clicking here.


Investor Inquiries 


Michael Jones, President and Chief Executive Officer, and Jeff Bouganim,
 Chief Financial Officer will be available from Thursday, September 8
 onwards to respond to investor inquiries regarding these results.


Transfer Agent Change


Effective September 26, 2011, the company will change its share transfer
 agent to Equity Financial Trust. Shareholders with questions regarding
 their shares may contact them by e-mail at [e-mail] or by telephone at 416-361-0152 and ask for Investor Services.


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 $1.2 billion of mortgages and other assets under
 administration.  Xceed'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.



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table valign="top" border="0" tr td colspan="2" Michael Jones can be reached at: /td /tr tr td   /td td Telephone: [phone] Ext.3434  /td /tr tr td   /td td E-mail: a href="mailto:[e-mail]"[e-mail]/a /td /tr tr td   /td td   /td /tr tr td colspan="2" Jeff Bouganim can be reached at: /td /tr tr td   /td td Telephone: [phone] Ext.3335  /td /tr tr td   /td td E-mail: a href="mailto:[e-mail]"[e-mail]/a /td /tr /table p   /p 

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