Welcome!

Microsoft Cloud Authors: Lori MacVittie, Elizabeth White, Yeshim Deniz, Serafima Al, Janakiram MSV

News Feed Item

C.A. Bancorp Inc. Reports Third Quarter 2012 Financial Results and Provides Realization Strategy Update

TORONTO, ONTARIO -- (Marketwire) -- 11/05/12 -- C.A. Bancorp Inc. ("C.A. Bancorp" or the "Company") (TSX:BKP) today announced its consolidated financial results for the three and nine months ended September 30, 2012.

In connection with the advancement of the Company's Realization Strategy effective October 1, 2010, the Company, in preparing its financial statements (i) applied Accounting Guideline 18 - Investment Companies ("AcG-18") and (ii) adopted the liquidation basis of accounting. As an Investment Company under AcG-18, C.A. Bancorp has received exemptive relief from the requirement to adopt International Financial Reporting Standards ("IFRS") until January 1, 2013.

Third Quarter 2012 Financial Highlights

For the three months ended September 30, 2012, the Company reported:

--  Revenues of $0.4 million compared to $0.4 million in the third quarter
    of 2011; 
--  Net gain from results of investments of $nil compared to a net gain from
    results of investments of $1.1 million in the third quarter of 2011; and
--  Net earnings of $0.0 million or $0.00 per share compared to net earnings
    of $1.1 million or $0.09 per share in the third quarter of 2011. 

For the nine months ended September 30, 2012, the Company reported:

--  Revenues of $1.3 million compared to $1.4 million in the same period of
    2011; 
--  Net gain from results of investments of $1.3 million compared to a net
    gain from results of investments of $4.1 million in the same period of
    2011; and 
--  Net earnings of $1.1 million or $0.09 per share compared to net earnings
    of $3.8 million or $0.31 per share in the same period of 2011. 

As at September 30, 2012, the Company's:

--  Cash and working capital was $25.3 million or $2.06 per share; 
--  Investments in private entities were fair valued at $16.7 million or
    $1.36 per share; 
--  Accrued liquidation costs were $1.0 million or $0.08 per share; and 
--  Net book value was $41.1 million or $3.35 per share. 

Realization Strategy Update

The Realization Strategy has to date been successful. Since June 2010, the Company has (i) successfully completed the dispositions of a number of assets for aggregate cash proceeds of approximately $51 million, (ii) completed a $30 million issuer bid at a purchase price of $2.09 per share which was accretive to other shareholders, (iii) significantly reduced its operating expenses and eliminated all long term debt, and (iv) increased the Company's net book value from $2.33 per share as of September 30, 2010 to $3.35 as of September 30, 2012. During that time, the trading price of the Company's shares on the TSX has almost doubled. As at September 30, 2012, the Company had cash of approximately $25 million; $22 million of which was realized from asset dispositions subsequent to the December 2010 issuer bid.

The Company's Board of Directors (the "Board") and management team continue to believe (subject to their fiduciary duties) that distributing the net cash proceeds from asset dispositions to shareholders is in the best interests of the Company.

Proposed Cash Distribution to Shareholders

At the Company's 2012 annual and special meeting, shareholders approved a special resolution authorizing a reduction in stated capital, which facilitates the making of cash distributions to shareholders. Following that approval the Company re-initiated discussions with the tax authorities on a tax ruling which, if obtained and followed, would permit the Company to make cash distributions to shareholders generally on a more tax efficient basis.

Subject to the Company receiving comfort from the tax authorities that the proposed cash distribution will be treated as a return of capital for tax purposes, the Company currently intends to make an initial cash distribution to its shareholders in an amount between $1.50 per share and $1.60 per share, prior to December 31, 2012. The cash distribution will be comprised of cash realized from asset dispositions subsequent to the December 2010 issuer bid. The Board will determine the final amount and timing of the cash distribution taking into account present, future and contingent liabilities of the Company as well as maintaining a cash balance to support existing investments in the best interests of the Company.

There can be no assurance as to the timing or amount of any cash distribution, or as to its characterization. Details of the cash distribution, once determined, will be communicated by press release.

Completing the Realization Strategy

The Company's remaining investments consist of common shares in Blue Ant Media Inc. "Blue Ant"), subordinated debt and common share warrants in Salbro Bottle Group ("Salbro"), and the Company's most significant investment, its debt and equity interests in Digital Payment Technologies Corp. ("DPT").

Management is considering alternatives, which are at various stages of advancement, concerning the disposition of its interests in Blue Ant and Salbro, in the context of the Realization Strategy. The Company is continuously evaluating the benefits and costs of, and working to identify and develop, alternatives concerning its interests in Blue Ant and Salbro.

With respect to the Company's investment in DPT (the Company's most material asset), the Company has been managing and monitoring its interests with a view to maximizing their value in the context of the Realization Strategy, by among other things providing active support to DPT's management.

DPT has enjoyed success this year in winning a material number of new business accounts, resulting in DPT increasing its North American market share. The North American parking industry itself has been active in 2012, as the number and size of new sales opportunities in both the off-street and on-street markets has been greater than in previous years. These factors have had a positive impact on DPT's sales, size of its installed base of paystations and baseline recurring revenues generated from software as a service and after-sales support. The Company continues to be bullish about the market opportunities in the North American parking industry and is optimistic about the long-term prospects of DPT. These considerations factor in the ongoing management of the Company's investments in DPT and the timing of any realization event.

In anticipation of growth within the DPT business, DPT (subsequent to September 30, 2012) completed a refinancing resulting in a repayment to C.A. Bancorp of approximately $0.6 million in principal and interest owing under the promissory note. Subsequent to the refinancing, $0.25 million remains outstanding under the promissory note and $7.9 million under the debenture. As a condition of the refinancing at DPT, the Company agreed to extend the maturity date of the promissory note and debenture from September 30, 2012 to December 31, 2013. The Company continues to preserve its rights under the DPT shareholders' agreement, including its liquidity rights.

As the Company has only one remaining material asset (DPT), the Company is considering alternatives to reallocate its management resources, whereby those resources can provide greater time and effort to maximization of the value of the Company's investment in DPT. Any reorganization would preserve continuity to carry out the Realization Strategy. The financial objectives, at the time of monetizing the Company's investment in DPT, are to increase the net book value of the Company and the cash available for distribution to shareholders. The Company expects to be in a position to provide details of the reorganization of its operations in the near future.

Financial Results Discussion

Statement of Operations and Earnings Highlights                             
----------------------------------------------------------------------------
                                     Three Months Ended   Nine Months Ended 
                                               Sept 30,            Sept 30, 
                                    ----------------------------------------
In C$ millions except per share                                             
 amounts                                 2012      2011      2012      2011 
----------------------------------------------------------------------------
Revenue                              $    0.4  $    0.4  $    1.3  $    1.4 
Net results of investments                0.0       1.1       1.3       4.1 
Expenses and taxes                       (0.4)     (0.4)     (1.5)     (1.7)
----------------------------------------------------------------------------
Net earnings                         $    0.0  $    1.1  $    1.1  $    3.8 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings per share               $   0.00  $   0.09  $   0.09  $   0.31 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Consolidated revenues increased slightly for the three months ended September 30, 2012 compared to the same period in 2011 as the Company generated additional investment income from its investment in DPT. For the nine month period ended September 30, 2012, the Company's revenues declined compared to the same period in 2011 as the Company terminated its asset management agreements in connection with the sale of its interest in NorRock Realty Finance Corporation (formerly C.A. Bancorp Canadian Realty Finance Corporation) in the second quarter of 2011. This was partially offset by an increase in interest income related to the Company's investment in DPT.

Consolidated net results of investments for the three months ended September 30, 2012 yielded a net result of nil compared to a net gain from results of investments of $1.1 million related to the Company's previous investment in High Fidelity HDTV Inc. ("High Fidelity"). The net unrealized gain in the first nine months of 2012 was as a result of an unrealized gain related to the Company's investment in DPT compared to an unrealized gain related to the Company's previous investment in High Fidelity.

The Company's operating expenses for the three months ended September 30, 2012 compared to the same period in 2011 were effectively flat as the majority of headcount reductions occurred in the second quarter of 2011. The majority of the Company's operating expenses is related to being a public company and is generally fixed and recurs on an annual basis. The Company is continuously assessing different operating structures to further reduce or eliminate certain costs as the Company continues to execute the Realization Strategy.

Balance Sheet Highlights                                                    
----------------------------------------------------------------------------
                                               September 30,   December 31, 
In C$ millions except per share amounts                 2012           2011 
----------------------------------------------------------------------------
Cash and liquid assets                         $        25.5  $        13.4 
Investments in private entities and loans                                   
 receivable                                             16.7           27.8 
Other assets                                             0.0            0.1 
----------------------------------------------------------------------------
Total Assets                                   $        42.2  $     41.3(1) 
Total Liabilities                                       (1.1)      (1.3)(1) 
----------------------------------------------------------------------------
Total Shareholders' Equity                     $        41.1  $     39.9(1) 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Number of shares outstanding (millions)                 12.3           12.3 
----------------------------------------------------------------------------
Net book value per share                       $        3.35  $        3.26 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Closing market price per share                 $        2.98  $        2.25 
Market price discount to net book value                   11%            31%
----------------------------------------------------------------------------
(1) Rounding.                                                               

As at September 30, 2012, the Company had cash of approximately $25.4 million, no debt and total accrued liquidation costs of $1.0 million. The Company is required to make significant estimates and exercise judgment in determining accrued liquidation costs. The Company reviewed contractual commitments such as lease termination costs and professional fees to determine the estimated costs to be directly incurred through the Realization Strategy period. The Company has not accrued the ongoing operating costs that are anticipated to be incurred through the Realization Strategy period such as payroll and related expenses, general and administration costs and other corporate expenses.

Subsequent to September 30, 2012

On October 31, 2012, DPT completed a refinancing resulting in a payment to the Company of approximately $0.6 million in principal and interest owing under a promissory note. Subsequent to the refinancing, $0.25 million remained outstanding under the promissory note. As a condition of the refinancing, the Company agreed to extend the maturity date of the promissory note and debenture to December 31, 2013.

Company Adopts Advance Notice By-Law

The Company also announced today the approval and adoption by the Board of a by-law (the "By-Law") which includes provisions that require advance notice to the Company in circumstances where nominations of persons for election to the Board are made by shareholders of the Company other than pursuant to: (i) a requisition of a meeting of shareholders made pursuant to the provisions of the Business Corporations Act (Alberta) (the "Act"); or (ii) a shareholder proposal made pursuant to the provisions of the Act.

The purpose of the By-Law is to provide shareholders, directors and management of the Company with a clear framework for nominating directors. Among other things, the By-Law fixes a deadline by which holders of common shares of the Company must submit director nominations to the Company prior to any annual or special meeting of shareholders and sets forth the minimum information that a shareholder must include in the notice to the Company for the notice to be in proper written form.

In the case of an annual meeting of shareholders, notice to the Company must be made not less than 30 nor more than 60 days prior to the date of the annual meeting; provided, however, that in the event that the annual meeting is to be held on a date that is less than 50 days after the date on which the first public announcement of the date of the annual meeting was made, notice may be made not later than the close of business on the 10th day following such public announcement.

In the case of a special meeting of shareholders (which is not also an annual meeting), notice to the Company must be made not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made. The By-Law is effective as of the date it was approved by the Board and will be placed before shareholders for ratification at the next annual and special meeting of shareholders.

Financial Information

For a comprehensive review of the Company's results, shareholders are encouraged to read (i) the Company's third quarter 2012 unaudited consolidated financial statements and accompanying Interim Management's Discussion and Analysis and (ii) the Company's 2011 audited consolidated financial statements and accompanying Annual 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 has historically focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors. The Company is currently executing its Realization Strategy.

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. Without limiting the generality of the foregoing, there can be no assurance of any kind that the Realization Strategy will yield a value equal or close to the net book value per Company common share. 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 three and nine months ended September 30, 2012 and the year ended December 31, 2011 and in the Directors' Circular dated June 4, 2010 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 the Realization Strategy or any alternative strategy, Company's success in preserving capital, managing debt, maintaining liquidity and managing operating costs, the decision of the Board of Directors as to the timing and amount of any cash distribution, inability to secure a satisfactory tax ruling from the regulatory authority, negative performance of the parking industry, other changes that impact the ability of the Company to effect a reorganization and the timing thereof. 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.

C.A. Bancorp Inc.                                                           
401 Bay Street, Suite 1600                                                  
Toronto, Ontario M5H 2Y4                                                    
Telephone: (416) 214-5985                                                   
Fax: (416) 861-8166                                                         

Contacts:
C.A. Bancorp Inc.
Kurt Brands
Chief Executive Officer
1-866-388-5985
416-861-8166 (FAX)
[email protected]
www.cabancorp.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, added the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor analytic...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Michael Maximilien, better known as max or Dr. Max, is a computer scientist with IBM. At IBM Research Triangle Park, he was a principal engineer for the worldwide industry point-of-sale standard: JavaPOS. At IBM Research, some highlights include pioneering research on semantic Web services, mashups, and cloud computing, and platform-as-a-service. He joined the IBM Cloud Labs in 2014 and works closely with Pivotal Inc., to help make the Cloud Found the best PaaS.
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
I think DevOps is now a rambunctious teenager - it's starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution. In his session at @ThingsExpo, Akvelon expert and IoT industry leader Sergey Grebnov provided an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, discussed key challenges and solutions to powering a ride sharing and/or multimodal model in the age ...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...