Press Release & News
FOR IMMEDIATE RELEASE
Abode Mortgage Corporation Reports 3rd Quarter 2007 Results
Vancouver, BC - July 24, 2007 –
Abode Mortgage Corporation (TSXV: ABD), an emerging Canadian non-conforming mortgage lender, today announced its financial results for the quarter ending May 31, 2007. The company incurred a loss in the quarter of $1,150,851. The loss included non-recurring development expenses of $632,818. Most of the company’s revenues were earned in the last sixty days of the quarter after receipt of warehouse financing.
FINANCIAL HIGHLIGHTS
- The company funded loans worth $43.8 million for 60 days of operations (April, May 2007)
- The company funded $30.5 million of mortgages in May, its first full month of funding
- The company achieved $1,264,652 of fee income in sixty days of full operations
|
BUSINESS HIGHLIGHTS
- Launched mortgage lending programs in Western Canada on February 19, 2007
- Accessed Deutsch Bank AB $75 million warehouse credit facility on March 29, 2007
- Established $15 million warehouse margin facility with a leading financial institution
- Appointed former RBC Royal Bank executive Michael J. Linehan as new CEO
|
“We are very pleased with Abode Mortgage Corporation’s third quarter performance – the inaugural operating quarter in which we originated and funded residential mortgages. We continue to be on target for our fiscal 2007 plan,” commented Bill Boni, Chief Financial Officer of Abode Mortgage Corporation. “The mortgage growth since the completion of the warehouse facility at the end of March 2007 has met our initial expectations. We continue to improve our revenue position and have controlled expenses during the quarter, both of which have allowed us to provide positive earnings during the last month of the quarter before completing our securitization program.” Boni continued, “Our performance reflects Abode’s success in executing on our market entry strategy, particularly our ability to increase origination volumes through the Western Canadian mortgage broker channel.”
Financial Information
Abode Mortgage Holdings Corp.
Consolidated Balance Sheets
As at May 31, 2007 and August 31, 2006
| |
May 31, 2007
(Unaudited)
$ |
August 31, 2006
(Audited)
$ |
|
ASSETS
Current Assets |
| Cash and cash equivalents |
1,109,986 |
4,950,854 |
| Advances for mortgage loans |
4,114,290 |
- |
| Mortgage loans |
40,656,429 |
- |
| Accounts receivable |
31,832 |
64,575 |
| Prepaid expenses and deposits |
51,748 |
237,001 |
| |
45,964,285 |
5,252,430 |
|
| Equipment |
|
|
| |
128,062 |
151,113 |
| |
46,092,347 |
5,403,543 |
|
LIABILITIES
Current Liabilities |
| Credit Facility |
43,049,355 |
- |
| Accounts payable and accrued liabilities |
638,775 |
535,315 |
| Current portion of long term debt |
679,088 |
- |
| |
44,367,218 |
535,315 |
|
| Long-term debt |
| |
- |
653,422 |
| |
44,367,218 |
1,188,737 |
|
| Shareholders' equity |
| Capital stock |
9,327,581 |
8,737,581 |
| Equity portion of convertible debenture |
65,757 |
65,757 |
| Contributed surplus |
301,746 |
298,678 |
| Deficit |
(7,969,955) |
(4,887,210) |
| |
1,725,129 |
4,214,806 |
| |
46,092,347 |
5,403,543 |
|
Abode Mortgage Holdings Corp.
Consolidated Statements of Operations and Deficit
Third Quarter ended May 31 2007 and May 31 2006
| |
Three Months
Ended May 31
(unaudited) |
Nine Months
Ended May 31
(unaudited) |
|
| |
2007
$ |
2006
$ |
2007
$ |
2006
$ |
| Revenue |
|
|
|
|
| Fee income |
1,264,652 |
- |
1,281,242 |
- |
| Interest on mortgages held |
156,964 |
- |
163,274 |
- |
| Gain on sale of mortgages (Note 5) |
56,808 |
- |
56,808 |
- |
| |
1,478,424 |
- |
1,501,324 |
- |
| Financing interest expense |
(165,030) |
- |
(165,030) |
- |
| Origination expense |
(596,372) |
- |
(606,018) |
- |
| |
717,022 |
- |
730,276 |
- |
| |
|
|
|
|
| Expenses |
|
|
|
|
| General and administrative |
1,277,286 |
114,292 |
3,197,456 |
342,052 |
| Non-recurring development expense |
632,818 |
- |
794,918 |
- |
| Interest on long-term debt |
31,673 |
32,194 |
88,493 |
94,858 |
| Loss from continuing operations |
(1,224,755) |
(146,486) |
(3,350,591) |
(436,910) |
| |
|
|
|
|
| Other Items |
|
|
|
|
| Foreign exchange gain (loss) |
52,796 |
75,650 |
17,629 |
202,060 |
| Other income |
21,108 |
- |
250,217 |
- |
| Income from discontinued operations |
- |
224,945 |
- |
664,333 |
| Income (Loss) for the period |
(1,150,851) |
154,109 |
(3,082,745) |
429,483 |
| Deficit - Beginning of period |
(6,819,104) |
(5,435,677) |
(4,887,210) |
(5,711,051) |
| Deficit - End of period |
(7,969,955) |
(5,281,568) |
(7,969,955) |
(5,281,568) |
| Basic and diluted loss per share from continuing operations |
(0.0111) |
(0.0013) |
(0.0304) |
(0.0045) |
| Basic and diluted earnings per share from discontinued operations |
- |
0.0042 |
- |
0.0126 |
| Weighted average number of shares outstanding |
103,706,539 |
53,672,116 |
101,266,978 |
52,529,259 |
|
Abode Mortgage Holdings Corp.
Consolidated Statements of Cash Flows
Third Quarter ended May 31 2007 and May 31 2006
| |
Three Months
Ended May 31
(unaudited) |
Nine Months
Ended May 31
(unaudited) |
| |
2007
$ |
2006
$ |
2007
$ |
2006
$ |
| Operating activities |
|
|
|
|
| Loss from continuing operations |
(1,150,852) |
(106,082) |
(3,082,745) |
(164,014) |
| Items not affecting cash: |
|
|
|
|
| Amortization |
7,683 |
- |
23,051 |
- |
| Accretion on convertible debenture |
10,500 |
10,504 |
25,666 |
21,003 |
| Provision for credit losses |
40,602 |
- |
40,602 |
- |
| Stock-based compensation expense |
3,068 |
18,877 |
3,068 |
38,516 |
| |
(1,088,999) |
(76,701) |
(2,990,358) |
(104,495) |
| Changes in non-cash working capital items |
487,012 |
(45,452) |
321,4566 |
(82,114) |
| Net cash used in operating activities from continuing operations |
(601,987) |
(122,153) |
(2,668,902) |
(186,609) |
| Net cash provided by operating activities from discontinued operations |
- |
323,447 |
- |
935,129 |
| |
(601,987) |
201,294 |
(2,668,902) |
748,520 |
| |
|
|
|
|
| Financing activities |
|
|
|
|
| Credit facility, net of repayments |
43,049,355 |
- |
43,049,355 |
- |
| Advances for mortgage loans |
(4,114,290) |
- |
(4,114,290) |
- |
| Share subscriptions |
- |
1,108,000 |
- |
1,108,000 |
| Proceeds from share issuance, net of costs |
|
240,000 |
590,000 |
240,000 |
| Repayment of advances from directors |
- |
(77,061) |
- |
(241,221) |
| Net cash used in financing activities from discontinued operations |
|
(301,626) |
|
(538,698) |
| Net cash provided by financing activities |
38,935,065 |
969,313 |
39,525,065 |
568,081 |
| |
|
|
|
|
| Investing activities |
|
|
|
|
| Net increase in mortgages receivable |
(39,951,316) |
- |
(40,697,031) |
- |
| Increase in loan receivable |
- |
(250,000) |
- |
(250,000) |
| Purchase of capital assets |
- |
- |
- |
(286) |
| Discontinued operations |
- |
(3,149) |
- |
(7,155) |
| Net cash used in investing activities from continuing operations |
(39,951,316) |
(253,149) |
(40,697,031) |
(257,441) |
| Increase (decrease) in cash and cash equivalents |
(1,618,238) |
917,458 |
(3,840,868) |
1,059,160 |
| Cash and cash equivalents - beginning of period |
2,728,224 |
1,475,326 |
4,950,854 |
416,166 |
| Cash and cash equivalents - end of period |
1,109,986 |
1,475,326 |
1,109,986 |
1,475,326 |
| |
|
|
|
|
| Supplementary cash flow information |
|
|
|
| Income taxes paid |
- |
- |
162,226 |
- |
| Interest paid |
40,046 |
71,727 |
81,701 |
215,963 |
About Abode Mortgage Holdings Corp.
Abode Mortgage Holdings Corp. is a public company trading on the TSX Venture Exchange under the symbol ABD, and through its wholly owned subsidiary, Abode Mortgage Corporation, provides mortgage services to the increasing number of Canadians who are unable to find mortgage financing through traditional sources.
Headquartered in Vancouver, Abode Mortgage Corporation is delivering a new standard of service excellence to the Canadian non-conforming residential mortgage industry by providing simplified products, consistent underwriting decisions, uniformed pricing and competitive compensation programs. The Company launched its lending operations in February, 2007.
Information about Abode Mortgage Corporation is available on the Internet at: www.abodecorp.com.
Forward-Looking Statements
Forward-looking statements in this document are based on current expectations and are subject to significant risks and uncertainties. Actual results may differ due to factors such as the competitive nature of the industry, the ability of Abode Mortgage to execute its growth strategy, and the reliance of Abode Mortgage on key personnel. Additional information identifying risks and uncertainties is contained the regulatory filings available on its website and at www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information, contact:
Peter J. MacLean
SVP Corporate Development
Abode Mortgage Holdings Corp.
Phone: 604.676.2100
Email: ir@abodecorp.com
« Back to Press Releases & News overview
|
