C.A. Bancorp Inc.

C.A. Bancorp Inc.

August 08, 2008 16:36 ET

C.A. Bancorp Inc. (TSX:BKP) Reports Second Quarter 2008 Financial Results

TORONTO, ONTARIO--(Marketwire - Aug. 8, 2008) - C.A. Bancorp Inc. ("C.A. Bancorp" or the "Company") (TSX:BKP) reports its second quarter 2008 financial results.

During the second quarter of 2008 and updated for subsequent events up until the date hereof, the Company:

- Grew assets invested and under management to approximately $515 million from $322 million at the end of the first quarter;

- Closed two private equity investments totaling approximately $8 million of invested capital;

- Reviewed over 27 private investment opportunities in both public and private companies pertaining to buy-out, re-financing and growth capital situations; and

- Delivered another quarter of strong revenue growth, making it the Company's sixth consecutive quarter of revenue growth.

The Company is pleased to report that each of its private investments is performing at or above the Company's expectations. However, management is disappointed with the performance of the public portfolio in the second quarter and continues to take measures to address this by reducing the overall size of the public portfolio, limiting its maximum exposure to any one position, and by remaining broadly diversified.

2008 second quarter financial highlights

The Company's consolidated financial results for the quarter ended June 30, 2008 are as follows:

- The Company's net book value per common share was $2.81 (March 31, 2008 - $2.82) and the closing price on the Toronto Stock Exchange ("TSX") on June 30, 2008 (the last day of trading for the quarter) was $1.55 (March 31, 2008 - $1.30). This difference represented a trading discount to net book value of 45% compared to 54% at March 31, 2008;

- Total on-balance sheet assets of $242 million and additional assets under management of $113 million for a total of $355 million in assets invested and under management (the acquisition of Barlow Capital Management Inc. on July 30, 2008 increased assets under management by an additional $160 million to $515 million);

- Total revenue comprised of interest and investment income, asset management fees, other fees and commissions of $4.6 million (Q2, 2007 - $2.1 million);

- Net results of investments a net loss of $1.7 million (Q2, 2007 - a net gain of $1.2 million) which includes $1.7 million in realized losses on publicly traded investments (Q2, 2007 - realized gain on publicly traded investments of $1.1 million);

- Positive cash flow from operations (from the statement of cash flows before consideration of changes in non-cash working capital) of $0.9 million (Q2, 2007 - negative $0.4 million);

- Net loss in the quarter of $1.1 million (Q2, 2007 - net income of $0.7 million) or loss per share of $0.04 (Q2, 2007 - earnings per share of $0.05) on a basic and fully diluted basis;

- The Company has approximately $16 million of working capital and publicly traded investments at the parent level that can be used to fund future private equity investments and to sponsor new funds under management.


The Company intends to continue to make private investments in both private and public companies as 2008 unfolds. Private investments will be funded with existing cash and the liquidation of the public portfolio. The Company believes that the continued transition of the Company's invested capital from publicly traded investments to private investments will increase the stability and predictability of the Company's financial performance.

Purchase for cancellation of the Company's common shares

On April 25, 2008, the Company's shareholders approved a mandatory market purchase plan (the "Mandatory"). Management believes the addition of the Mandatory should enhance the liquidity of its common shares and help reduce the spread between the Company's net book value per common share and the market price of the common shares on the TSX. The Mandatory requires the Company to purchase its shares for cancellation subject to specified conditions and thresholds. As of August 1, 2008, the Company had repurchased 423,100 common shares for cancellation through the Mandatory at an average price of $1.54.

On August 10, 2007, the Company instituted a normal course issuer bid ("NCIB") enabling it to purchase its common shares in the open market for cancellation. Any such purchases are made by the Company at the prevailing market price at the time of such purchases in accordance with the requirements of the TSX. As of August 1, 2008, the Company had purchased 888,100 common shares for cancellation under the NCIB at an average price of $1.88 per share.

Under both programs, purchasing the Company's shares in the marketplace for cancellation at prices below net book value is accretive for all remaining shareholders.

Q2 conference call

A conference call has been scheduled for Monday, August 11, 2008 at 10:00 a.m. EST to discuss the Company's 2008 second quarter financial results and provide an update on current business activities. C.A. Bancorp's 2008 second quarter 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 416-620-3447 or 1-800-396-7098. A recording of the conference call will be available for replay until Wednesday, September 24, 2008, by dialing 416-695-5800 or 1-800-408-3053, passcode: 3268324#.

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 should be read in conjunction with the Company's Q2 - 2008 Management's Discussion and Analysis and Consolidated Financial Statements and the notes thereto to be made available on SEDAR at www.sedar.com.

This news release contains forward-looking statements with respect to matters concerning the business, operations, and strategy of the Company. These statements relate to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent the Company'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 the Company 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 liquidate its public portfolio, to make additional private investments, impact of the Mandatory on the liquidity of the Company's common shares and general economic and market factors. 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 the Company and persons acting on its behalf. Unless otherwise stated, all forward looking statements speak only as of the date of this news release. The Company 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

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