Xceed Mortgage Corporation Reports Third Quarter 2012 Results

    




 TORONTO, Sept. 6, 2012 /CNW/ - Xceed Mortgage Corporation [TSX: XMC]  ("Xceed" or the "Company") today reported its third quarter results for  the three and nine month period ended July 31, 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 third quarter: 




        --  Net income after tax of $8.3 million for both the 3 month and 9
            month periods ended July 31, 2012.

        --  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 per share of $0.31 and $0.29 for the
            third quarter of fiscal 2012.

        --  Basic book value per share of $2.26 as at July 31, 2012,
            increased from $1.96 as at April 30, 2012, primarily due to the
            above noted one-time gain. Diluted book value  per share of
            $2.10 as at July 31, 2012.

        --  The Company's primary source of revenue continues to be from
            the sale of pools of insured mortgages to third parties.  In
            Q3, 2012, the Company sold $21.8 million of insured mortgages
            for a net gain of $0.4 million (compared to selling $15.4
            million for a net gain of $0.2 million in Q3, 2011).  The
            Company continues to expand its broker channel presence and
            insured product offerings in those channels.




 Management Comments on Results 

 Mr. Michael Jones, President and CEO, commented that "during the third  quarter, we executed an early clean-up of XMT 2 trust as part of the  Company's objective of winding down its legacy securitized mortgage  portfolio." 

 "The XMT 2 clean-up call, resulted in a return of cash to the Company of  $4.5 million, $3.1 million of which was used to repurchase existing  mortgages from the trust.  Additionally, D-note holders of XMT 2 were  repaid approximately $4.4 million and E-note holders were repaid  approximately $10.7 million using proceeds from the mortgages purchased  by the Company and funds in the cash collateral account of the Trust,"   Mr. Jones commented. 

 "As a result of the conversion to IFRS effective November 1, 2010, the  Company was required to consolidate the financial results of the trust  including a deficit in the amount of $8.2 million that represented  losses on E notes. It was always anticipated that the effect of this  consolidation would be reversed at the point the trust was wound up  with no economic effect on Xceed, either positive or negative. 

 The Company's basic book value per share was $2.26 as at July 31, 2012  compared with $1.96 as at April 30, 2012. 

 In its operations this quarter, the Company continued to expand its  broker channel presence and experienced a slight upward trend in  origination volumes," Mr. Jones noted. 

 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. 

 Investor Inquiries  

 Michael Jones, President and Chief Executive Officer, and Jeff Bouganim,  Chief Financial Officer will be available from Thursday, September 6,  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 $0.8 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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