|By Marketwired .||
|May 30, 2014 05:51 PM EDT||
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."
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.
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.
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.
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.
Builders Capital Mortgage Corp.
Chief Financial Officer
SYS-CON Events announced today that the DevOps Institute has been named “Association Sponsor” of SYS-CON's DevOps Summit, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. The DevOps Institute provides enterprise level training and certification. Working with thought leaders from the DevOps community, the IT Service Management field and the IT training market, the DevOps Institute is setting the standard in quality for DevOps education and training.
Mar. 30, 2015 04:30 PM EDT Reads: 1,193
Business as usual for IT is evolving into a “Make or Buy” decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud busi...
Mar. 30, 2015 04:15 PM EDT Reads: 1,458
Businesses are looking to empower employees and departments to do more, go faster, and streamline their processes. For all workers – but mobile workers especially – utilizing the cloud to reconnect documents and improve processes without destructing existing workflows can have a dramatic impact on productivity. In his session at 16th Cloud Expo, Mark Grilli, vice president of Acrobat Solutions marketing at Adobe Systems Incorporated, will outline new ways that the cloud is changing the way peo...
Mar. 30, 2015 04:00 PM EDT Reads: 1,360
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...
Mar. 30, 2015 03:00 PM EDT Reads: 3,095
WSM International has launched a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of the organization. According to a recent press release from Gartner, "By 2016, DevOps will evolve from a niche strategy employed by large cloud ...
Mar. 30, 2015 03:00 PM EDT Reads: 1,344
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional S...
Mar. 30, 2015 03:00 PM EDT Reads: 2,891
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...
Mar. 30, 2015 03:00 PM EDT Reads: 1,312
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.
Mar. 30, 2015 03:00 PM EDT Reads: 1,349
Sematext is a globally distributed organization that builds innovative Cloud and On Premises solutions for performance monitoring, alerting and anomaly detection (SPM), log management and analytics (Logsene), and search analytics (SSA). We also provide Search and Big Data consulting services and offer 24/7 production support for Solr and Elasticsearch.
Mar. 30, 2015 02:15 PM EDT Reads: 1,527
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, will explain the best practices of continuous testing at high scale, which is r...
Mar. 30, 2015 02:00 PM EDT Reads: 2,026
Modern Systems announced completion of a successful project with its new Rapid Program Modernization (eavRPMa"c) software. The eavRPMa"c technology architecturally transforms legacy applications, enabling faster feature development and reducing time-to-market for critical software updates. Working with Modern Systems, the University of California at Santa Barbara (UCSB) leveraged eavRPMa"c to transform its Student Information System from Software AG's Natural syntax to a modern application lev...
Mar. 30, 2015 01:00 PM EDT Reads: 1,043
DevOps is all the rage these days and with good reason as it promises to reduce the time-to-market for new applications. It also promises to improve change management, allowing teams to deploy changes to their applications quickly and efficiently. However, DevOps isn’t something you buy, install, or implement; rather it is the symptom of an appropriate organizational system. In his session at DevOps Summit, Mark Thiele, EVP, Data Center Technologies at SUPERNAP International, will discuss how ...
Mar. 30, 2015 01:00 PM EDT Reads: 1,453
Plutora provides enterprise release management and test environment SaaS solutions to clients in North America, Europe and Asia Pacific. Leading companies across a variety of industries, including financial services, telecommunications, retail, pharmaceutical and media, rely on Plutora's SaaS solutions to orchestrate releases and environments faster and with integrity. Products include Plutora Release Manager, Plutora Test Environment Manager and Plutora Deployment Manager.
Mar. 30, 2015 12:15 PM EDT Reads: 1,625
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
Mar. 30, 2015 12:00 PM EDT Reads: 1,322
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
Mar. 30, 2015 12:00 PM EDT Reads: 1,495