Xceed Mortgage Corporation Reports Second Quarter 2012 Results

    




 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. 

 Investor Inquiries  

 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. 

  





    Michael Jones can be reached at:

                   

                  Telephone: [phone] Ext.3434 
                  E-mail: [e-mail]

                   

    Jeff Bouganim can be reached at:

                   

                  Telephone: [phone] Ext.3335 
                  E-mail: [e-mail]






  

 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 .   To find out more about Xceed Mortgage Corporation, visit our website at  www.xceedmortgage.com. 

 Forward-Looking Statements 

 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. 

Xceed Mortgage Corporation


CONTACT:  Michael Jones can be reached at:Telephone: [phone] Ext.3434 E-mail: [e-mail] Bouganim can be reached at:Telephone: [phone] Ext.3335 E-mail: [e-mail] 


    

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