Business
MCAN Mortgage Corporation reports second quarter earnings
Stock market symbol TSX: MKP TORONTO , Aug. 13, 2013 /CNW/ - MCAN Mortgage Corp...
About this update from Mcan Mortgage Corporation
[{"type":"text","content":"\n\n\nStock market symbol TSX: MKP\n\n\nTORONTO, Aug. 13, 2013 /CNW/ - MCAN Mortgage Corporation's (\"MCAN\", the\n \"Company\" or \"we\") net income for the second quarter of 2013 decreased\n to $5.0 million from $6.3 million in 2012. Estimated taxable income\n (refer to \"Non-IFRS Measures\" section of the Second Quarter 2013\n Management's Discussion & Analysis of Operations (\"MD&A\") for a\n definition of these measures) for the quarter was $4.3 million ($0.23\n per share) compared to $8.2 million ($0.48 per share) in the prior\n year.  The decrease in net income was primarily due to lower income\n from securitization assets, marketable securities income and interest\n earned on financial investments and loans, and transaction expenses\n incurred in the current year, partially offset by lower provisions for\n credit losses and a recovery of income taxes. Earnings per share were\n $0.27 for the quarter compared to $0.37 in the prior year.\n\n\nYear to date net income decreased to $9.5 million from $10.7 million in\n the prior year as a result of the reasons noted above for the quarter. \n Estimated taxable income for the year to date was $5.6 million ($0.30\n per share) compared to $14.3 million ($0.84 per share) in the prior\n year. For the year to date, earnings per share were $0.51 compared to\n $0.63 in the prior year.\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 Commercial LP (\"MCAP\") for\n accounting and tax purposes.  As a mortgage investment corporation\n (\"MIC\"), we typically pay out all of our taxable income (refer to\n \"Non-IFRS Measures\" section of the MD&A for a definition of these\n measures) to shareholders through dividends.\n\n\nAs discussed in the 2013 first quarter press release, taxable income\n from MCAP continues to be significantly lower than income for\n accounting purposes.  For tax purposes, equity income from MCAP related\n to mortgage securitizations is recognized in line with actual cash\n flows, such th...