Business
MCAP Inc. reports third quarter earnings
MCAP Inc. reports third quarter earnings.
About this update from Mcan Mortgage Corporation
[{"type":"text","content":"\n\n\n\n\nStock market symbol \nTSX: MKP\n\nTORONTO, Nov. 4 /CNW/ - MCAP Inc. (\"MCAP\" or the \"Company\") reported net\nincome of $2.7 million for the third quarter of 2005, up from $2.1 million a\nyear earlier. Earnings per share for the quarter were $0.22 compared to $0.21\nlast year. For the nine months ended September 30, 2005, net income was\n$9.4 million, up from $8.9 million in the prior year, and earnings per share\nwere $0.80 compared to $0.89 in the prior year. The 2004 year-to-date earnings\nper share have been restated from $0.91 to $0.89 to reflect the impact of the\nrights offering that MCAP completed in the fourth quarter of 2004.\nIn April 2004, MCAP reorganized its involvement in the mortgage\norigination and servicing business (the \"Business Reorganization\"). The\ntransactions comprising the Business Reorganization included the sale of MCAP\nFinancial Corporation (\"MFC\") to MCAP Commercial Limited Partnership (\"MCLP\")\nand the acquisition of a 25% limited partnership interest in MCLP. Prior to\nthe Business Reorganization, the Company consolidated MFC. The Company now\nequity accounts for the income from the mortgage origination and servicing\nbusiness based on its 25% minority interest in MCLP.\n\nNet Investment Income: Net investment income was $3.9 million compared to\n$3.2 million in the same period of 2004. Last year's net investment income\nincluded a one-time gain of $579,000 on the sale of a private investment.\nMortgage interest income was $5.0 million in the quarter versus\n$4.2 million last year. Mortgage interest income increased by $780,000\ncompared to last year as a result of a 21% increase in the average mortgage\nportfolio.\nFees of $966,000 were earned in the quarter compared to $467,000 in the\nsame period last year.\nMarketable securities income was $485,000 in the quarter compared to\n$138,000 last year. Gains from sales of marketable securities were $182,000 in\nthe quarter compared to $nil in the same period last year. In addition, a\nwrite-down of $184,000 was taken on a specific security in the portfolio in\nthe quarter. Unrealized gains on the portfolio at the end of September were\n$5.3 million compared to $3.1 million at June 30, 2005.\nThere is currently significant uncertainty regarding the marketable\nsecurities portfolio based on recent statements from the federal and som...