Welcome!

News Feed Item

CORRECTION: Builders Capital Mortgage Corp. Reports 2014 First Quarter Results

CALGARY, ALBERTA -- (Marketwired) -- 05/30/14 -- The following corrects and replaces the release sent on May 30th, 2014 at 16:12 ET. The dateline on the press release should read May 30, 2014, and not June 2, 2014. There are no other changes to the release below.

Builders Capital Mortgage Corp. (TSX VENTURE: BCF) (Builders Capital or the company) today released financial results for the three months ended March 31, 2014, which represent the first quarter of its 2014 fiscal year and the company's first full quarter as a publicly-traded mortgage investment corporation (MIC).

First Quarter Results

For the three months ended March 31, 2014, mortgage revenue was $786,410, representing annualized gross revenue of 13.6% of gross share capital. This revenue consisted of $760,085 in interest and $26,325 in lender fees charged to borrowers.

First quarter operating expenses, excluding the provision for mortgage losses, were $87,682, or 11.1% of revenues. The provision for loan losses of $60,763 was estimated by management, based on an analysis of historical bad debts of the predecessor companies and current analysis of the construction finance marketplace. This is a collective provision and does not relate to any individual mortgage.

Total comprehensive income for the first quarter was $637,965, or $0.27 per share, based on the weighted average number of shares outstanding for the period. This translates into earnings of $0.46 per Class A Non-Voting Share. Given the dividend priority granted to Class A Non-Voting Shares held by the public, the effective Class A Non-Voting Share dividend cover ratio for the quarter was 2.3.

"We are pleased with our initial financial performance as a public entity," said Sandy Loutitt, President of Builders Capital. "Our tight focus on financing short-term, wood-frame residential construction in strong urban markets like Calgary and Edmonton positions us to generate above average risk weighted returns. Builders Capital has an established, full-service asset management platform and a strong team of experienced professionals who are proven performers. We're ready to grow."

Mortgage Portfolio

At March 31, 204, Builders Capital's mortgage portfolio consisted of 35 mortgage loans with an aggregate value of $24.6 million. Of the 30 mortgages the company acquired at its start-up, five with values totaling $3.7 million at December 31, 2013 were paid out during the first quarter. These were replaced by ten new mortgages totaling $3.8 million. No loans were in default during the quarter.

Distributions

On March 21, 2014, Builders Capital declared a first quarter dividend of $0.1973 per Class A Non-Voting share to shareholders of record on March 31, 2014, payable on April 30, 2014. The dividend amount was calculated to provide an 8% return on the $10.00 initial Class A Non-Voting share price, prorated for the 90 days in the quarter. On an annual basis, this level of distribution is equivalent to $0.80 per Class A Non-Voting share.

Subsequent to quarter-end, on April 30, 2014, the company declared a dividend of $0.3456 per share to Class B Non-Voting Shareholders of record on April 28, 2014, payable on April 30, 2014. This dividend applied to the 2013 stub period, for which Class A Non-Voting Shareholders had already received a dividend, and the first quarter of 2014.

Outlook

Builders Capital expects that continued steady housing starts in southern Alberta, its primary market, will drive strong demand for construction financing for at least the next several years. In addition to strengthening its position in Alberta, the company intends to expand lending to other western Canadian markets in the future.

"In particular, like Alberta, Saskatchewan is expected to continue to exceed average GDP growth in Canada," said Loutitt. "We believe that employment growth, a strengthening economy and high levels of net migration make Saskatchewan a good market for Builders Capital."

Loutitt noted that, despite favourable conditions in both provinces, prevailing low interest rates have increased borrower's sensitivity to price. "In response, we will be reducing rates and stepping up our marketing," he said. "We are confident that these strategies will allow us to continue to grow, fully utilize our capital, and remain both competitive and profitable."

A more detailed discussion of the company's financial results can be found in its 2014 First Quarter Management's Discussion and Analysis, which will be posted along with the unaudited interim condensed financial statements for the period on Builders Capital's website (www.builderscapital.ca) and SEDAR (www.sedar.com) on May 30, 2014.

About Builders Capital

Builders Capital is a mortgage lender providing short-term course of construction financing to builders of residential, wood-frame properties in Western Canada. The company was formed on March 28, 2013 but did not commence active operations until December 12, 2013, on the closing of its initial public offering, following which it acquired a portfolio of mortgages from two predecessor companies. Builders Capital's investment objective is to generate attractive returns, relative to risk, in order to provide stable and steady distributions to shareholders while remaining focused on capital preservation and staying within the criteria mandated for mortgage investment corporations, as defined in the Income Tax Act.

As a MIC, Builders Capital is not subject to income tax provided that it distributes all of its taxable income as dividends to shareholders within 90 days of its December 31st year-end. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same tax position as if their proportionate share of mortgage investments made by the company had been made directly by the shareholder.

Forward-Looking Information

This news release contains forward-looking statements within the meaning of applicable securities legislation, including statements with respect to management's beliefs, estimates and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intent", "estimate", "anticipate", "believe", "should", "plans" or "continue" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. These statements are not guarantees of future performance and are based on estimates and assumptions that are subject to risks and uncertainties which could cause actual results to differ materially from the forward-looking statements contained in this news release. These include, among other things, risks associated with mortgage lending, competition for mortgage lending, real estate values, interest rate fluctuations, environmental matters and the general economic environment. The company cautions that the foregoing list is not exhaustive, as other factors could adversely affect its results, performance or achievements. Readers are cautioned against undue reliance on any forward-looking statements. Although the forward-looking information contained in this news release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, Builders Capital undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Builders Capital Mortgage Corp.
John Strangway
Chief Financial Officer
(403) 685-9888
www.builderscapital.ca

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.

Latest Stories
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, provideed economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session also included a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
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.
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...