C.A. Bancorp Inc.

TSX : BKP


C.A. Bancorp Inc.

May 12, 2014 08:00 ET

C.A. Bancorp Inc. Reports First Quarter 2014 Financial Results

TORONTO, ONTARIO--(Marketwired - May 12, 2014) - C.A. Bancorp Inc. ("C.A. Bancorp" or the "Company") (TSX:BKP) today announced its financial results for the three months ended March 31, 2014.

Financial Highlights

For the three months ended March 31, 2014, the Company reported:

  • Net earnings of $387,000 or $0.03 per share compared to a net loss of $346,000 or $0.03 per share for the first quarter of 2013.

As at March 31, 2014, the Company's:

  • Cash and cash equivalents totaled $41.6 million or $3.39 per share;
  • Investments were valued at $3.8 million or $0.31 per share;
  • Shareholders' equity (or net book value1) was $45.7 million or $3.73 per share.1
1 Net book value per share is a non-IFRS financial measure and is calculated as total shareholders' equity under International Financial Reporting Standards (IFRS) divided by the number of common shares outstanding as at March 31, 2014 and as at December 31, 2013. See the cautionary statement regarding use of Non-IFRS financial measures at the end of this release.
Statement of Operations Highlights
Three months ended March 31,
In C$ thousands except per share 2014 2013
Revenue $ 263 $ 442
Net results of investments 494 96
Expenses (370 ) (884 )
Net earnings/(loss) $ 387 $ (346 )
Net earnings/(loss) per share $ 0.03 $ (0.03 )

The $494 net results of investments for 2014 includes the realized gain on the sale of the Company's interests in Digital Payment Technologies in January 2014 for proceeds of $15,257. An additional $585, held in escrow, is expected to be released in July 2014.

Balance Sheet Highlights
In C$ millions except per share amounts March 31, 2014 December 31, 2013
Cash and marketable securities $ 41.6 $ 26.3
Investments in private entities 3.8 18.8
Other assets 0.6 0.3
Total Assets $ 46.0 $ 45.4
Total Liabilities 0.3 0.1
Total Shareholders' Equity $ 45.7 $ 45.3
Number of shares outstanding (millions) 12.3 12.3
Net book value per share $ 3.73 $ 3.69

IFRS Implementation

The Company implemented International Financial Reporting Standards effective January 1, 2014. In preparing the IFRS financial statements, the Company determined no adjustments were required to amounts previously reported in the financial statements previously prepared in accordance with Canadian GAAP as those policies are consistent with IFRS policies. There is no impact on the Company's financial position, net income or cash flows as a result of adopting IFRS.

Substantial Issuer Bid

On April 15, 2014, the Company completed a substantial issuer bid, repurchasing 6,965,273 shares or 56.8% of the issued and outstanding shares at $3.50 per share for total consideration of $24,378.

Financial Information

For a comprehensive review of the Company's results, shareholders are encouraged to read the Company's March 31, 2014 condensed interim financial statements and accompanying Management's Discussion and Analysis, copies of which will be available on the Company's website at www.cabancorp.com and on SEDAR at www.sedar.com.

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 focuses on investments in small and medium capitalized public and private companies, with emphasis on the industrials, infrastructure and financial services sectors.

Caution Regarding Forward-Looking Information

This release includes certain forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue" or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These forward-looking statements are subject to a number of risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. Reference should be made to the risk factors in the Company's 2013 Annual Information Form, in the Management's Discussion and Analysis for the three months ended March 31, 2014 and in our other filings with Canadian securities regulators. Additional important factors that could cause actual results to differ materially from expectations include, among other things, 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, ability of the Company to execute its strategies from time to time; the receipt of any regulatory approvals or consents required from time to time. This news release makes reference to the net book value per share which is a non-IFRS financial measure. The Company calculates the net book value per share as it believes it to be an important metric that shareholders use and frequently request and refer to because shareholders often view the Company as an holding company of investments in private entities. Net book value is a non-IFRS financial measure that does not have any standardized meaning prescribed by International Financial Reporting Standards and therefore it is unlikely to be comparable to similar measures presented by other issuers. This classification is not an IFRS measure and should not be considered either in isolation of, or as a substitute for, measures prepared in accordance with IFRS.

Cautionary Statement Regarding the Valuation of Investments in Private Entities

In the absence of an active market for its investments in private entities, fair values are determined by management using the appropriate valuation methodologies after considering the history and nature of the business, operating results and financial conditions, the outlook and prospects, the general economic, industry and market conditions, capital market and transaction market conditions, contractual rights relating to the investment, public market comparables, private market transactions multiples and, where applicable, other pertinent considerations. The process of valuing investments for which no active market exists is inevitably based on inherent uncertainties and the resulting values may differ from values that would have been used had an active market existed. The amounts at which the Company's investments in private entities could be disposed of may differ from the fair value assigned and the differences could be material. Estimated costs of disposition are not included in the fair value determination.

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