Dundee Corporation Reports Third Quarter 2012 Financial Results
November 13 2012 - 6:36PM
Marketwired
Dundee Corporation (TSX:DC.A)(TSX:DC.PR.A)(TSX:DC.PR.B) (the
"Corporation") is today reporting its financial results as at and
for the three and nine months ended September 30, 2012. The
Corporation's unaudited condensed interim consolidated financial
statements, along with the accompanying management's discussion and
analysis, have been filed on the System for Electronic Document
Analysis and Retrieval ("SEDAR") and may be viewed under the
Corporation's profile at www.sedar.com or the Corporation's website
at www.dundeecorp.com.
FINANCIAL HIGHLIGHTS
-- Fee Earning Assets under Management and Administration - Fee earning
assets under management and administration increased to $15.4 billion at
September 30, 2012, compared with $12.3 billion at each of September 30,
2011 and December 31, 2011.
-- Equity Accounted Investments - Earnings from equity accounted
investments were $3.3 million during the third quarter of 2012 compared
with $15.4 million earned during the same period of the prior year. At
September 30, 2012, the market value of equity accounted investments was
$697.6 million.
-- Market Value of Investments - The market value of the Corporation's
portfolio of investments, excluding equity accounted investments, was
$1.2 billion at September 30, 2012, and included $0.5 billion in shares
of The Bank of Nova Scotia, which were received by the Corporation on
its divestment of DundeeWealth Inc. in February 2011.
-- Net Earnings - Driven primarily from realized losses on dispositions of
certain investments, during the third quarter the Corporation incurred a
net loss of $8.1 million attributable to owners of the parent, compared
to net earnings of $88.6 million earned during the same period of the
prior year. Earnings in the third quarter of the prior year included a
pre-tax gain of $95.6 million from the Corporation's divestment of its
investment in Breakwater Resources Ltd.
-- Corporate Debt at September 30, 2012 was $376.5 million, all of which
was borrowed by our operating subsidiaries. At September 30, 2012, there
were no amounts borrowed pursuant to the credit facilities at the
corporate level.
At September 30, 2012, fee earning assets under management and
administration had increased to $15.4 billion, representing a 25%
increase over $12.3 billion in fee earning assets under management
and administration at September 30, 2011, and December 31, 2011. A
significant part of this growth occurred in the real estate asset
management division, which benefited from a number of successful
new acquisitions of quality assets, including the acquisition in
June 2012 of a 67% interest in the Scotia Plaza complex, a premier
office complex located in downtown Toronto.
Operating results from Dundee Realty's land and housing business
were strong, with revenue increasing 42% to $119.5 million from
$84.3 million in the third quarter of the prior year, and with a
50% increase in contribution margins from $21.2 million in the
third quarter of 2011 to $31.8 million in the current quarter. Real
estate results in the third quarter of 2012 benefited from higher
land under development sales, primarily in western Canada, compared
to the same period of the prior year. The real estate segment also
benefited from first year condominium sales in two of Dundee
Realty's projects in the Toronto area. Condominium sales are
dependent upon the timing of completion of development projects and
may vary significantly from period to period.
Equity markets advanced during the third quarter of 2012,
sustained in part by stimulus provided by central banks, most
notably in the United States and in the European Union. This is
reflected in the market value of the Corporation's portfolio, which
appreciated in value by approximately $25.2 million since June 30,
2012, and $16.2 million on a year-to-date basis.
Dundee Capital Markets incurred a loss before taxes of $2.4
million in the third quarter of 2012, compared with a loss of $1.5
million in the same quarter of the prior year. Capital markets
investment banking revenue in the third quarter of 2012 increased
54% over the third quarter of the prior year, however this was
offset by higher general and administrative costs associated with
certain restructuring activities, including its expansion into the
United Kingdom.
The Corporation continues to investigate numerous opportunities
to expand its agricultural portfolio. The focus of this effort is
to spot good potential, in advance of the general market. In
agriculture, this means developing a thorough understanding of how
marketplace trends are likely to affect industry players; ferreting
out new "game changing" agricultural processes and technologies, as
well as high growth niche markets; and investing in companies that
have a sustainable competitive advantage.
ABOUT THE CORPORATION
Dundee Corporation is an independent publicly traded Canadian
asset management company. The Corporation's asset management
activities are focused in the areas of the Corporation's core
competencies and include real estate and infrastructure as well as
energy, resources and agriculture. Asset management activities are
carried out by Goodman Investment Counsel Inc. (formerly Ned
Goodman Investment Counsel Limited), a registered portfolio manager
and exempt market dealer across Canada and an investment fund
manager in the provinces of Ontario, Quebec and Newfoundland; and
by DREAM, the asset management division of Dundee Realty
Corporation, a 70% owned subsidiary of the Corporation. Asset
management activities are supported by the Corporation's ownership
interest in Dundee Capital Markets Inc. Dundee Capital Markets is
also the asset manager of the Corporation's flow-through limited
partnership business carried out through the "CMP", "CDR" and
"Canada Dominion Resources" brands. Dundee Corporation also owns
and manages direct investments in these core focus areas, through
ownership of both publicly listed and private companies. Real
estate operations are carried out through the Corporation's
investment in Dundee Realty Corporation, an owner, developer and
manager of residential and recreational properties in North
America. Energy and resource operations include the Corporation's
ownership in Dundee Energy Limited, an oil and natural gas company
with a mandate to create long-term value through the development of
high impact energy projects. The Corporation also holds other
investments in the resource sector, several of which are equity
accounted. Agricultural activities are carried out through Dundee
Agricultural Corporation. Dundee Agricultural Corporation holds an
84% interest in Blue Goose Capital Corporation, a privately owned
Canadian company with a leading position in the organic and natural
beef production market with operations in both British Columbia and
Ontario.
Contacts: Dundee Corporation Ned Goodman President and Chief
Executive Officer (416) 365-5665 Dundee Corporation Lucie Presot
Vice President and Chief Financial Officer (416) 365-5157
www.dundeecorp.com
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