C.A. Bancorp Inc. (TSX:BKP) Announces Second Quarter 2007 Financial Results
Toronto: C.A. Bancorp Inc. (the “Company”) is pleased to announce its financial results for the second quarter of 2007.
Highlights: The consolidated financial statements include the accounts of the Company and its investment in Charter Real Estate Investment Trust (“Charter REIT” TSX-V: CRH.UN) units (collectively “Consolidated Entity”).
* On June 29, 2007, the Company completed a prospectus offering, which raised gross proceeds of $47.85 million through the issuance of 14.5 million common shares at $3.30 per common share. On July 25, 2007, the Company issued an additional 0.41 million shares for gross proceeds of $1.35 million through the exercise by the agents of their over-allotment option.
* For the six months ended June 30, 2007, the Consolidated Entity reported net income of approximately $1.5 million (2006 – loss of $0.389 million) or $0.10 per share (2006 – loss of $0.38 per share) on a basic and fully diluted basis. Excluding the impact of Charter REIT’s loss on the Consolidated Entity’s results, the Company would have earned $0.12 a share.
* For the three months ended June 30, 2007, the Consolidated Entity had net income of approximately $0.66 million (2006 – loss of $0.291 million). This represents earnings of $0.05 per common share on a basic and a fully diluted basis (2006 – loss of $0.26 per share).
* The Consolidated Entity had total revenue (excluding net realized and unrealized gains on direct investments) of $2.1 million (2006 - $0.025 million) comprised of interest and investment income, asset management fees, deal fees and revenue from rental properties.
* The Consolidated Entity had net realized and unrealized gains on investments of approximately $1.2 million (2006 – loss of $0.034 million).
* From December 31, 2006 to June 30, 2007, the Company’s assets increased from $38.0 million to $121.5 million while total liabilities increased from $1.0 million to $36.4 million. The largest factors contributing to these increases were: consolidating Charter REIT into the Company’s accounts and the Company’s June 2007 prospectus offering.
* The Company continues its investments in a portfolio of publicly traded securities as part of its strategy to invest and be involved, either directly or indirectly, in catalyst or event-driven opportunities. These investments have collectively generated realized absolute returns (not including distributions) of approximately 22%.
* The Company continues to expand its real estate capital lending business. In the second quarter, the Company made two Alberta-based real estate mortgage loans totalling $0.913 million at a 10% rate of interest.
* On July 11, 2007, the Company announced a $4.0 million investment in Canadian independent broadcaster High Fidelity HDTV Inc. (“High Fidelity”) to support the growth and expansion of High Fidelity’s High Definition television channels. $2.75 million of the investment was made by the Company and the remaining $1.25 million was made by Sentry Select Total Strategy Fund. The Company is the Manager of the Sentry Select Total Strategy Fund. * On April 30, 2007, the Company’s shares were consolidated on a 10 for 1 basis and listed on the Toronto Stock Exchange. The trading symbol remained BKP. As of June 30, 2007, the Company had approximately 28.7 million common shares outstanding.
* On May 10, 2007, Charter Realty Holdings Ltd. (“Charter”) converted to a real estate investment trust and changed its name to Charter Real Estate Investment Trust. Each 10 common shares of Charter were exchanged for one unit of Charter REIT.
* As of June 30, 2007 the Company held 27.1% of the common shares outstanding of two capital pool companies: Universal Infrastructure Corp. (TSX-V: UIC.P) and Global Alternative Investments Inc.established as the Company’s infrastructure and financial services investment platforms.
* As of June 30, 2007, the Company held 52.4% of Charter REIT’s outstanding units.
Q2 financial results : For the complete June 30, 2007 Management’s Discussion and Analysis, and Consolidated Financial Statements, please visit www.SEDAR.com.
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 contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, the future performance of the Company, including the potential for purchases pursuant to the normal course issuer bid. These statements reflect the Company’s current expectations, but are subject to a number of risks and uncertainties. Due to the many risks and uncertainties, the Company cannot assure that the forward-looking statements contained in this news release will be realized.