C.A. Bancorp Inc.

C.A. Bancorp Inc.

November 14, 2013 15:12 ET

C.A. Bancorp Inc. Reports Third Quarter 2013 Financial Results

TORONTO, ONTARIO--(Marketwired - Nov. 14, 2013) - C.A. Bancorp Inc. ("C.A. Bancorp" or the "Company") (TSX:BKP) today announced its unaudited interim financial results for the three and nine months ended September 30, 2013.

Financial Highlights

For the three months ended September 30, 2013, the Company reported:

  • Net earnings of $2.1 million or $0.17 per share compared to net earnings of $0.0 million or $0.00 per share for the same period in 2012.

For the nine months ended September 30, 2013, the Company reported:

  • Net earnings of $2.2 million or $0.18 per share compared to net earnings of $1.1 million or $0.09 per share for the same period in 2012.

As at September 30, 2013, the Company's:

  • Cash, cash equivalents and marketable securities totaled $26.4 million or $2.15 per share;
  • Investments were valued at $17.0 million or $1.39 per share;
  • Shareholders' equity (or net book value(1)) was $43.3 million or $3.53 per share.
(1) Net book value per share is a non-GAAP financial measure and is calculated as total shareholders' equity under Canadian Generally Accepted Accounting Principles (Canadian GAAP) divided by the number of common shares outstanding as at September 30, 2013 and as at December 31, 2012. See the cautionary statement regarding use of Non-GAAP financial measures at the end of this release.

Statement of Operations Highlights

In C$ millions except per share amounts Three Months Ended
September 30,
Nine Months Ended
September 30,
2013 2012 2013 2012
Revenue $ 0.5 $ 0.4 $ 1.4 $ 1.3
Net results of investments 1.8 0.0 2.1 1.3
Expenses (0.2) (0.4) (1.3) (1.5)
Net earnings $ 2.1 $ 0.0 $ 2.2 $ 1.1
Net earnings per share $ 0.17 $ 0.00 $ 0.18 $ 0.09

Balance Sheet Highlights

In C$ millions except per share amounts September 30, 2013 December 31, 2012
Cash and marketable securities $ 26.4 $ 25.1
Investments in private entities 17.0 16.4
Other assets 0.1 0.4
Total Assets $ 43.5 $ 41.9
Total Liabilities 0.2 0.8
Total Shareholders' Equity $ 43.3 $ 41.1
Number of shares outstanding (millions) 12.3 12.3
Net book value per share $ 3.53 $ 3.35

Change of Control

On January 10, 2013, the Company and CDJ Global Catalyst LLC ("CDJ") entered into a support agreement under which CDJ agreed to offer to acquire all of the issued and outstanding common shares of the Company for cash at a price of $3.20 per share (the "Offer") and the Company's Board recommended that shareholders deposit their shares to the Offer.

The Offer was completed on March 7, 2013 and the Realization Strategy was thereby terminated. At that time, the Board of Directors was also reconstituted with the appointment of CDJ's nominees. CDJ also assumed responsibility for managing the business and affairs of the Company.

Colin King, principal of CDJ, said today, "We are pleased to report our financial results and position to our shareholders after our third quarter of profitable operations since the change in management of the Company."

Financial Information

For a comprehensive review of the Company's results, shareholders are encouraged to read the Company's Q3 2013 unaudited 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 middle-capitalization 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 Annual Information Form, in the Management's Discussion and Analysis for the period ended September 30, 2013 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-GAAP 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-GAAP financial measure that does not have any standardized meaning prescribed by Canadian GAAP and therefore it is unlikely to be comparable to similar measures presented by other issuers. This classification is not a Canadian GAAP measure and should not be considered either in isolation of, or as a substitute for, measures prepared in accordance with Canadian GAAP.

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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