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Message: Reports First Quarter 2009 Financial Results
| May 7, 2009 | |
| C.A. Bancorp Inc. Reports First Quarter 2009 Financial Results | |
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TORONTO, ONTARIO--(Marketwire - May 7, 2009) - C.A. Bancorp Inc. ("C.A. Bancorp" or the "Company") (TSX:BKP) today reported its financial results for the first quarter ended March 31, 2009. First Quarter 2009 Highlights During the first quarter of 2009 the Company: - Reported net earnings of $6.0 million or $0.22 per share on a basic and fully diluted basis; - Reported a net book value of $2.67 per share compared to the Company's closing share price on the TSX on March 31, 2009 of $0.71 per share; - Completed the sale of AgriFinancial Canada Corp. ("AgriFinancial") to Bank West, a wholly-owned subsidiary of Western Financial Group Inc. (TSX: WES) for total net consideration before taxes of approximately $19.1 million, representing a $9.6 million (pre-tax) gain on the original invested capital of $9.5 million (or two times invested capital) in less than 18 months. This is equivalent to an internal rate of return of approximately 75%; - Reported revenues of $1.3 million; - Acquired three investments in private entities from Sentry Select Total Strategy Fund ("Total Strategy Fund" or the "Fund") for a purchase price of approximately $2.6 million. These acquisitions increased the Company's existing positions in the three private entities; - In its capacity as manager of Total Strategy Fund, the Company completed the liquidation and termination of the Fund. Total Strategy Fund was launched in August of 2006 at a price of $10.00 per unit. After deducting agent and other issue costs, the Fund was left with $9.35 of investable proceeds per unit. The Company returned a total of $10.91 per unit to unitholders over the life of Fund. The Company completed the quarter with a strong balance sheet consisting of working capital of approximately $15.7 million (includes $1.8 million of publicly traded investments) and minimal debt. First Quarter 2009 Results The Company's consolidated financial results for the first quarter ended March 31, 2009 have been reclassified so the net impact of the discontinued operations of AgriFinancial is captured as one line-item. The financial results are as follows: In thousands except per share amounts Q1 2009 Q4 2008 Change Q1 2008 Change ---------------------------------------------------------------------------- Results from Operations Revenues $1,348 $1,696 $(348) $1,779 $(431) Net Results of Investments (349) (11,246) 10,897 (3,179) 2,830 Expenses (1,566) (1,674) 108 (1,464) (102) Non-controlling Interest 8 11 (3) - 8 Taxes (425) (92) (333) 552 (977) Discontinued Operations (AgriFinancial) 6,963 438 6,525 212 6,751 ---------------------------------------------------------------------------- Net Earnings (Loss) $5,979 $(10,867) $16,846 $(2,100) $8.079 Earnings per Share Earnings (Loss) - Continuing Operations $(0.04) $(0.41) $0.37 $(0.08) $0.04 Earnings (Loss) - Discontinued Operations 0.26 0.02 0.24 0.01 0.25 ---------------------------------------------------------------------------- Earnings (Loss) per Share $0.22 $(0.39) $0.61 $(0.07) $0.29 Balance Sheet Metrics (at quarter end) Cash and Other Working Capital $15,702 $1,398 $14,304 19,928 $(4,226) Assets from Continuing Operations $76,171 $62,114 $14,057 $132,927 $(56,756) Assets from Discontinued Operations - 85,664 (85,664) 73,331 (73,331) ---------------------------------------------------------------------------- Total Assets $76,171 $147,778 $(71,607) $206,258 $(130,448) Shareholders' Equity (Net Book Value) $72,489 $66,719 $5,770 $80,008 $(7,519) Number of Shares Outstanding 27,133 27,345 (212) 28,338 (1,205) Net Book Value per Share $2.67 $2.44 $0.23 $2.82 $(0.15) Revenues from continuing operations in the quarter declined compared to both the first quarter and fourth quarter of 2008. This is primarily attributable to two factors: (1) The Company earned less investment income as the Company substantially liquidated its publicly traded investment portfolio in Q4 2008, and (2) the Company no longer consolidates the accounts of C.A. Bancorp Canadian Realty Finance Corporation ("CRFC") which generated significant interest income. The Company consolidated the accounts of CRFC from February 22, 2008 to September 11, 2008 when it owned 100% of CRFC's Class A shares (the Company currently owns approximately 27% of CRFC's Class A shares). The loss from net results on investments decreased significantly relative to both the first and fourth quarters of 2008 as the Company substantially reduced its exposure to publicly traded investments which was the primary source of past losses. Expenses increased slightly compared to the first quarter of 2008 as a result of additional employee expenses now being paid by the Company as outlined in prior press releases issued by the Company. This increase was offset by a decrease in interest expense as the financial results of CRFC were de-consolidated in the fourth quarter of 2008. Expenses decreased slightly from the fourth quarter of 2008 as the increase in employee expenses was offset by lower general administration expenses and a reduction in stock option expense. The Company is working to reduce non-essential expenses given the current economic environment. Company Outlook The Company remains committed to its core business of managing its investments in private entities and its sponsored managed public entities. While doing this the Company will focus on preserving capital, minimizing debt, maintaining liquidity and managing its operating costs during this period of economic uncertainty. Conference Call Details A conference call has been scheduled for Monday, May 11, 2009 at 11:00 a.m. EST to discuss the first quarter 2009 financial results. C.A. Bancorp's Q1 2009 Management's Discussion and Analysis and Consolidated Financial Statements will be available on its website at www.cabancorp.com and on SEDAR at www.sedar.com prior to the call. To participate in the call, please dial 416-340-2219 or 1-866-226-1798. A recording of the conference call will be available for replay until July 6, 2009, by dialing 416-695-5800 or 1-800-408-3053, Passcode: 5136076#. C.A. Bancorp Inc. |
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