C.A. Bancorp Inc.

C.A. Bancorp Inc.

August 07, 2009 15:56 ET

C.A. Bancorp Inc. Reports Second Quarter 2009 Financial Results

TORONTO, ONTARIO--(Marketwire - Aug. 7, 2009) - C.A. Bancorp Inc. ("C.A. Bancorp" or the "Company") (TSX:BKP) today reported its financial results for the second quarter ended June 30, 2009.

Second Quarter 2009 Highlights

During the second quarter of 2009 the Company reported:

- revenues of $1.4 million;

- net loss from results of investments of $1.5 million;

- net loss of $1.8 million or $0.07 per share on a basic and fully diluted basis;

- a net book value of $2.61 per share compared to the Company's closing share price on the TSX on June 30, 2009 of $0.87 per share;

- it has been in discussions with Sentry Select Capital Corp. ("Sentry Select") to terminate the management and administration agreements that are currently in place between the Company and Sentry Select and to internalize the management functions of the Company (the "Proposed Internalization").

The Company completed the quarter with a balance sheet consisting of working capital of approximately $14.3 million and minimal debt.

Second Quarter 2009 Results

The Company's consolidated financial results for the second quarter ended June 30, 2009 are as follows:

In thousands except
per share amounts Q2 2009 Q1 2009 Change Q2 2008 Change
Results from Operations
Revenues $ 1,397 $ 1,348 $ 49 $ 2,103 $ (706)
Net Results of Investments (1,501) 6,586 (8,087) (1,723) 222
Expenses (1,772) (1,566) (206) (1,970) 198
Taxes and Non-controlling
Interest 56 473 (473) 321 (265)
Net Earnings (Loss) from
continuing operations $ (1,820) $ 5,951 $ (7,771) $ (1,269) $ (551)
Net Earnings from
discontinued operations $ - $ 28 (28) 123 (123)
Net Earnings (loss) $ (1,820) $ 5,979 (7,799) $(1,146) $(674)

Earnings per Share
Earnings (Loss) -
Continuing Operations $ (0.07) $ 0.22 $ 0.29 $ (0.05) $ (0.02)
Earnings (Loss) -
Discontinued Operations - - - 0.01 (0.01)
Earnings (Loss)
per Share $ (0.07) $ 0.22 $ 0.29 $ (0.04) $ (0.03)

Balance Sheet Metrics
(at quarter end)
Cash and Other
Working Capital $ 12,630 $ 12,597 $ (133) 11,332 $ 1,298
Assets from Continuing
Operations $ 73,685 $ 76,171 $ (2,486) $87,097 $(13,412)
Assets from
Discontinued Operations - - - 155,227 (155,227)
Total Assets $ 73,685 $ 76,171 $ (2,486) $242,324 $(168,639)

Shareholders' Equity
(Net Book Value) $ 69,815 $ 77,489 $ 2,674 $ 78,360 $ (8,545)
Number of Shares
Outstanding 26,750 27,133 (383) 27,891 (1,141)
Net Book Value per Share $ 2.61 $ 2.67 $ (0.06) $ 2.81 $ (0.20)

Revenues from continuing operations in the quarter declined compared to both the first quarter of 2009 and the second 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 Company recognized non-cash impairment charges of $2.0 million related to the goodwill and intangible assets of the Company's investment in Barlow Capital Management Inc. The impairment charges are as a result of a material reduction in assets under management in Barlow's private client business and a strategic decision to slow all money raising efforts in Barlow's pooled funds division. This was partially offset by the recognition of an unrealized gain of $0.7 million on the equity component of the Company's investment in High Fidelity HDTV Inc. as a reflection of High-Fidelity's corporate performance to date and its long term growth prospects.

The loss from net results on investments decreased relative to the second quarter of 2008 as the Company substantially reduced its exposure to publicly traded investments which was the primary source of losses in 2008. This reduced exposure was partially offset by the non-cash impairment charges on Barlow. The gain from net results on investments in the first quarter of 2009 changed to a loss in the second quarter of 2009 as the gain in the first quarter related primarily to the sale of the Company's interest in AgriFinancial Canada Corp.

Expenses increased compared to the first quarter of 2009. This increase in costs is primarily attributable to costs incurred in connection with negotiations between the Company and Sentry Select regarding the Proposed Internalization.

Company Outlook

The Company remains committed to its core business of managing its investments in private entities and its core 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 Tuesday, August 11, 2009 at 11:00 a.m. EST to discuss the second quarter 2009 financial results. C.A. Bancorp's Q2 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 416-695-7806 or 1-866-789-9572, Passcode: 2230762#.

A recording of the conference call will be available for replay until September 22 2009, by dialing 416-695-5800 or 1-800-408-3053, Passcode: 3718427#.

C.A. Bancorp Inc.

C.A. Bancorp is a publicly traded Canadian merchant bank and alternative asset manager that provides investors with access to a range of private equity and other alternative asset class investment opportunities. C.A. Bancorp is focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.

This news release contains forward-looking statements. These statements relate to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent C.A. Bancorp's beliefs regarding future events. Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as "will," "expect," "intend," "plan," "estimate," "anticipate," "believe" or "continue," similar words or the negative thereof, or variations of such words and phrases that certain actions, events or anticipated outcomes "may," "would" or "might" be taken, occur or be achieved. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. The future business, operations and performance of C.A. Bancorp discussed herein could differ materially from those expressed or implied by such statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Additional important factors that could cause actual results to differ materially from expectations include, among other things, the ability of the Company to make additional private investments, and general economic and market factors, competition, interest rates, tax related matters, loss of personnel, reliance on key personnel, ability of the Company to generate positive future returns for investors, Company's success in preserving capital, managing debt, maintaining liquidity and managing operating costs. The Company cautions that risk factors discussed in applicable continuous disclosure filings required by law that the Company has made and filed on SEDAR including its MD&A and annual information form, should also be considered carefully and that undue reliance not be placed on forward-looking statements as events and results could differ materially from those expressed or implied by forward-looking statements made by the Company. The cautionary statements qualify all forward-looking statements attributable to C.A. Bancorp and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. C.A. Bancorp does not undertake, and specifically disclaims, any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

C.A. Bancorp Inc.
The Exchange Tower
130 King Street West
Suite 2810, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 214-5985
Fax: (416) 861-8166

Contact Information