C.A. Bancorp Inc.
TSX : BKP

C.A. Bancorp Inc.

March 11, 2008 09:37 ET

C.A. Bancorp Inc. (TSX:BKP) Reports 2007 Year-End Financial Results

TORONTO, ONTARIO--(Marketwire - March 11, 2008) - C.A. Bancorp Inc. ("C.A. Bancorp" or the "Company")(TSX:BKP) is pleased to report its 2007 business achievements and full year financial results.

The Company was active executing its business plan which included investing in both private and public enterprises and expanding its managed funds business. These investments and managed funds have centered in the four industry sectors in which the Company focuses: industrials, real estate, infrastructure, and financial services.

During the fiscal year 2007, the Company:

- Grew assets invested and under management to approximately $300 million;

- Recorded four consecutive quarters of revenue growth;

- Built out its management team to 11 full-time professionals with backgrounds in merchant banking, private equity, real estate, financial services and management consulting;

- Reviewed over 130 private investment opportunities in both public and private companies pertaining to buy-out, re-financing and growth capital situations;

- Closed three private equity investments and subsequent to year-end closed an additional three private equity investments;

- Established its commercial real estate lending division and subsequent to year-end sponsored the launch of C.A. Bancorp Canadian Realty Finance Corporation, a mutual fund corporation that provides tax-efficient exposure to the investment performance of Canadian commercial real estate loans;

- Invested in a portfolio of public securities under different investment theses such as "toehold" and "event/catalyst" driven investments; and

- Provided sponsor capital to Charter REIT in conjunction with Charter REIT's initial public offering and put in place a management contract that will provide the Company with recurring management and deal fees.



C.A. Bancorp's invested capital

The following table is a pro-forma allocation of C.A. Bancorp's
invested capital(1)
(unconsolidated and in $millions of dollars)

Publicly Traded Investments, net of all others $25.6
Charter REIT 17.4
AgriFinancial Canada Corp. 9.6
Bermingham Foundation Solutions 9.2
C.A. Bancorp Canadian Realty Finance Corporation 7.4
Kingswood Property 6.0
Salbro Bottling Group 3.6
High Fidelity HDTV Inc. 2.9
Windward Telecom Limited 0.7
------------------------------------------------------------------
$82.4

(1)Pro-forma carrying value of investments per the unconsolidated
financial statements as at year-end and updated for effects of material
transactions subsequent to year-end.


2007 year-end financial highlights

The Company's consolidated financial results for the year ended December 31, 2007 are as follows:

- Total on-balance sheet assets of $154,348,000 and additional assets under management of $137,328,000 for a total of $291,676,000.

- Total revenue (excluding net realized and unrealized gains and losses on publicly traded investments) comprised of interest and investment income, asset management fees, revenue from rental properties and other fees and commissions for the full year of $9,366,000 (2006 - $428,000).

- Realized gains on the sale of publicly traded investments for the full year of $1,022,000 (2006 - gain of $4,000).

- Unrealized losses on publicly traded investments for the full year of $3,259,000 (2006 - unrealized loss of $439,000). The Company adopted new accounting standards consistent with the Canadian Institute of Chartered Accountants Handbook as of January 1, 2007 which requires the recognition in the calculation of net income for fair value adjustments if these relate to financial assets that are designated as trading by the Company. The unrealized losses were largely a result of the weakness in the small capitalization income trust sector.

- Net income of $17,000 for the full year (2006 - net loss of $1,736,000) or $0.00 (2006 - loss of $0.08) per common share on a basic and fully diluted basis.

- As of December 31, 2007, the Company's net book value per share under GAAP was $2.88 and the closing price on the Toronto Stock Exchange (the "TSX") on December 31, 2007 (the last day of trading for the full year) was $1.92 per share. This represented a trading discount to net book value of 33%. Using the March 7, 2008 closing price, the Company's common shares traded at a 49% discount to the December 31, 2007 net book value.

The Company instituted a normal course issuer bid on August 10, 2007 and has sought to purchase shares in the open market for cancellation. Any such purchases will be 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 February 29, 2008 the Company had purchased 622,400 shares for cancellation at an average price of $2.03 per share.

2007 fourth quarter financial highlights

The Company's consolidated financial results for the fourth quarter ending December 31, 2007 are as follows:

- Total revenue (excluding net realized and unrealized gains and losses on publicly traded investments) comprised of interest and investment income, asset management fees, and other fees and commissions for the fourth quarter of $3,873,000 (2006 - $306,000).

- Realized losses on the sale of investments for the fourth quarter of $419,000 (2006 - nil).

- Unrealized losses on publicly traded investments for the fourth quarter of $769,000 (2006 - unrealized loss of $242,000). The unrealized losses were largely a result of the weakness in the small capitalization income trust sector.

- Unrealized gains on private investments for the fourth quarter of $90,000 (2006 - nil).

- Net loss of $365,000 for the fourth quarter (2006 - net loss of $919,000) or $0.01 (2006 - loss of $0.40) per common share on a basic and fully diluted basis.

Corporate outlook

The management team at C.A. Bancorp is optimistic about the Company's growth and operational plans for 2008. The Company believes it will be able to build on its achievements of 2007 and continue the momentum in 2008. C.A. Bancorp seeks to increase the capital available to invest, which it expects will lead to an increase in assets invested and under management and subsequently, to growth in the Company's revenues, earnings and share price.

The Company intends to continue to make private investments in both private and public companies.

- The Canadian small-cap and mid-cap markets are buoyant with good quality investment opportunities in our sectors of focus.

- The current turbulence in the debt markets has not significantly affected C.A. Bancorp's investment activities as growth capital opportunities typically do not require debt financing, and buyout opportunities in the mid-cap sector can obtain debt financing directly from Tier I banks.

- The Company practices an active investing style. As such, the Company regularly meets with the management teams in its portfolio of existing private investments to monitor the execution of growth plans and manage risk to increase the likelihood that the investment increases in value.

The Company plans to develop and market new alternative asset funds to both retail and institutional investors.

- In early 2008, the Company raised gross proceeds of $36 million in the C.A. Bancorp Canadian Realty Finance Corporation preferred share offering in a very difficult market environment.

- Shareholders' capital dedicated to forming and sponsoring those funds is expected to earn substantial returns from a combination of general returns on invested capital, as well as management on total capital in the funds.

The Company will continue its marketing and investor relations efforts in 2008.

- Management believes there is embedded value in the Company today that is not fully reflected in the current share price.

- Management plans to increase its efforts to raise awareness and communicate the C.A. Bancorp growth story in order to expand its shareholder base and have the value of the Company recognized by the market.

The management team's interests are aligned with the shareholders and will seek to allocate the Company's capital in the most prudent manner with the long-term objective of generating stable and growing cash flows while targeting long-term gross rates of return of 15% to 25% on all of the Company's investments and managed funds.

Year-end conference call

A conference call has been scheduled for Tuesday, March 11, 2008 at 11:00 a.m. EST to discuss the Company's 2007 financial results and provide an update on current business activities. C.A. Bancorp's 2007 Management's Discussion and Analysis and Consolidated Financial Statements will be available on its website at www.cabancorp.com prior to the call and on SEDAR by Wednesday, March 12, 2008.

To participate in the call, please dial 416-695-6120 or 1-800-446-4472. A recording of the conference call will be available for replay until Friday, April 11, 2008, by dialing 416-695-5800 or 1-800-408-3053, passcode: 3253892#.

C.A. Bancorp Inc.

C.A. Bancorp Inc. 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. The Company 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 2007 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 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, 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.



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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