Business
MCAN Mortgage Corporation reports fourth quarter earnings and 2013 annual results
Stock market symbol TSX: MKP TORONTO , Feb. 25, 2014 /CNW/ - MCAN Mortgage Corp...
About this update from Mcan Mortgage Corporation
[{"type":"text","content":"\n\n\nStock market symbol\nTSX: MKP\n\n\nTORONTO, Feb. 25, 2014 /CNW/ - MCAN Mortgage Corporation's (\"MCAN\", the\n \"Company\" or \"we\") net income for the fourth quarter of 2013 increased\n to $11.0 million from $7.3 million in 2012, while earnings per share\n increased to $0.54 from $0.40 in the prior year. The increase was\n primarily due to higher mortgage interest income, whole loan gain on\n sale income and securitization income, and a gain on dilution of our\n equity investment in MCAP Commercial LP (\"MCAP\").  These increases were\n partially offset by lower equity income from MCAP, higher operating\n expenses and a higher provision for income taxes. Estimated taxable\n income (refer to the \"Non-IFRS Measures\" section of the 2013\n Management's Discussion & Analysis of Operations (\"MD&A\") for a\n definition of these measures) for the quarter was $6.4 million ($0.32\n per share) compared to $1.4 million ($0.06 per share) in the prior\n year.  Return on equity for the quarter increased from 16.8% in 2012 to\n 21.2% in 2013.\n\n\nNet income for the year ended December 31, 2013 was $30.2 million, up\n from $21.5 million in the prior year. In addition to the reasons noted\n above relating to quarterly income, we recorded a bargain purchase gain\n on the acquisition of Xceed Mortgage Corporation (\"Xceed\").  For the\n year to date, earnings per share were $1.54, up from $1.22 in the prior\n year.  Taxable income for the year was $15.3 million ($0.78 per share),\n down from $20.5 million ($1.17 per share) in the prior year.  Return on\n equity increased from 13.0% in 2012 to 15.8% in 2013.\n\n\nThe key differences between estimated taxable income and pre-tax net\n income for accounting purposes include the non-deductibility of fair\n market value adjustments, collective provisions for credit losses and\n the amortization of upfront Canada Mortgage Bonds (\"CMB\") program costs\n for tax purposes, the treatment of capital gains income, and\n differences between equity income from MCAP and Xceed for accounting\n and tax purposes.  As a mortgage investment corporation (\"MIC\"), we\n typically pay out all of our taxable income (refer to the \"Non-IFRS\n Measures\" section of the MD&A for a definition of these measures) to\n shareholders through dividends.\n\n\nAs noted above,...