MCAN Mortgage Corporation Reports Third Quarter Earnings

About this update from Mcan Mortgage Corporation

[{"type":"text","content":"\n\n\nStock market symbol\nTSX: MKP\n\n\nTORONTO, Nov. 13, 2013 /CNW/ - MCAN Mortgage Corporation's (\"MCAN\", the\n \"Company\" or \"we\") net income for the third quarter of 2013 increased\n to $9.7 million from $3.5 million in 2012, while earnings per share\n increased significantly to $0.49 from $0.19 in the prior year.\n Estimated taxable income (refer to the \"Non-IFRS Measures\" section of\n the Third Quarter 2013 Management's Discussion & Analysis of Operations\n (\"MD&A\") for a definition of these measures) for the quarter was $3.4\n million ($0.16 per share) compared to $4.8 million ($0.27 per share) in\n the prior year.  The increase in net income was primarily due to higher\n mortgage interest income and equity income from MCAP Commercial LP\n (\"MCAP\"), in addition to a bargain purchase gain recorded on the\n acquisition of Xceed Mortgage Corporation (\"Xceed\") and significantly\n higher yields earned on the mortgages acquired from Xceed.  These\n increases were partially offset by higher operating expenses incurred\n as part of the acquisition of Xceed.\n\n\nYear to date net income increased to $19.2 million from $14.2 million in\n the prior year, primarily due to the same reasons noted above for the\n increase in quarterly income.  For the year to date, earnings per share\n were $1.00, up from $0.82 in the prior year.  Estimated taxable income\n for the year to date was $8.9 million ($0.46 per share) compared to\n $19.1 million ($1.11 per share) in the prior year.\n\n\nOn July 4, 2013, we completed the acquisition of Xceed.  The acquisition\n resulted in an increase of $21.5 million to share capital and in\n purchasing Xceed at a discount to its fair value, we recorded a bargain\n purchase gain of $2.1 million.  In addition, we acquired the renewal\n rights to $683 million of insured single family mortgages previously\n originated and sold by Xceed to third parties.  For further details,\n refer to the \"Acquisition of Xceed\" discussion below.\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 treatmen...

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