Mass Financial Corp. Reports Results for the Year Ended 2009
- Book Value Increases to $9.72 Per Common Share -
HONG KONG, June 1 /PRNewswire-FirstCall/ -- Mass Financial Corp. ("MFC") (Vienna Stock Exchange symbol: MASS) today reported its financial results for the year ended December 31, 2009. All figures are in U.S. dollars and earnings per share amounts are on a diluted basis.
For the year ended December 31, 2009, MFC reported total revenues of $406.4 million with net income attributable to our shareholders of $75.2 million or $2.70 per share, compared to total revenues of $598.8 million with net income of $23.3 million or $0.91 per share for the year of 2008.
At December 31, 2009, MFC had $346.8 million in cash and securities, its current ratio was 2.14, and the long-term debt-to-shareholders' equity ratio was 0.28. Equity per common share increased to $9.72 ($10.55 a share before our adjustment for our stock dividend paid in December 2009). For 2009 MFC's net income represented a 65% return on equity as compared to S&P 500's return of 26%.
MFC's book value per share as of December 31, 2009 has increased by 300% from our first full year in 2006. We believe this is the best measurement of our results and performance and that a price earnings multiple is not relevant measurement of MFC's performance.
MFC's book value per share as of December 31, for the dates indicted is set out below |
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2009 |
2008 |
2007 |
2006 |
2005 |
|
$9.72 |
$5.71 |
$4.39 |
$2.43 |
Nil |
|
Note: 2006 to 2008 amounts are adjusted for the effect of our stock dividend paid in December 2009 |
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Our revenues for the year ended December 31, 2009 declined from 2008, primarily due to reducing our risk exposure by scaling back our commodity and trade finance business in countries we deemed higher-risk. We also reduced our product lines and customer base to reflect global macro economic conditions.
President Michael Smith commented, "We are not pleased with our overall performance in 2009. Progress on certain projects proved elusive and we believe we are capable of better execution. We remain focused on preserving our capital and liquidity. MFC is healthier, as we are not currently operating with a belief that our markets will return to prior levels in the short-term.
In December 2009 we issued a stock dividend to shareholders of one new common share for each 11 shares owned."
Mr. Smith continued, "Our strategy demands constant review and attention to ensure MFC reflects our commitment to building shareholder value. This year, we are determined to:
- Become more disciplined and focused more specific business lines
- Create value in areas where we have specialized knowledge
- Direct more energy and effort to the Asian markets
- Seek greater asset exposure in Asia
- Complete another listing for our common shares
- Increase the number and industry experience of our directors."
Mr. Smith concluded, "Our main objective remains simply to do good business. Our liquidity allows us to take advantage of emerging opportunities. These are interesting times for business opportunity, but we must maintain our financial discipline. Now is the time to focus on projects in our areas of our special knowledge while carefully assessing the risks.
Our goal for 2010 and 2011 will be to leverage our foundation of resources and strategic network of operating businesses to pursue international growth opportunities. We will continue to manage our business for the long term."
Shareholders are encouraged to read the entire Annual Report, which is available on the Company's website for a greater understanding of MFC.
About the Company:
Mass Financial Corp's merchant banking business encompasses a broad spectrum of activities related to the integrated combination of banking, trading of commodities and natural resources, financing of commercial trade, and proprietary investing. To obtain further information, please visit our website at http://www.massfinancialcorp.com
Disclaimer for Forward-Looking Information
Certain statements in this news release are forward-looking statements, which reflect our management's expectations regarding our future growth, results of operations, performance, and business prospects and opportunities. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits we will obtain from them. These forward-looking statements reflect management's current views, are based on certain assumptions, and speak only as of December 31, 2009. These assumptions, which include management's current expectations, estimates and assumptions about certain projects and the markets we operate in, the global economic environment, interest rates, exchange rates and our ability to attract and retain customers and to manage the company's assets and operating costs, may prove to be incorrect. Important factors and risks that might cause our actual results to differ materially from the results contemplated by these forward-looking statements, including those that are contained in the section titled "Risk Factors," are included in our annual report for 2009 and investors are urged to read them in there entirety. Investors are also cautioned not to place undue reliance on these forward-looking statements. No forward-looking statement is a guarantee of future results. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
North America Contact: Rene Randall |
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Telephone: 1 (604) 408 8538 Email: [email protected] |
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-FINANCIAL TABLES FOLLOW-
MASS FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS December 31, 2009 and 2008 (U.S. Dollars in Thousands) |
||||||
2009 |
2008 |
|||||
ASSETS |
||||||
Current Assets |
||||||
Cash and cash equivalents |
$ |
329,554 |
$ |
201,622 |
||
Securities |
17,196 |
4,493 |
||||
Restricted cash |
2,466 |
16,054 |
||||
Loan receivables |
111 |
1,357 |
||||
Trade and other receivables |
19,778 |
30,315 |
||||
Inventories |
46,197 |
20,075 |
||||
Properties for sale |
13,616 |
13,374 |
||||
Tax receivables |
3,138 |
2,237 |
||||
Prepaid and other |
5,211 |
6,934 |
||||
Total current assets |
437,267 |
296,461 |
||||
Non-current Assets |
||||||
Restricted cash |
29 |
28 |
||||
Securities |
5,880 |
9,150 |
||||
Securities, restricted |
9,357 |
9,357 |
||||
Receivables |
– |
286 |
||||
Property, plant and equipment |
5,460 |
2,806 |
||||
Investment property |
41,290 |
39,744 |
||||
Goodwill |
5,657 |
4,513 |
||||
Deferred tax assets |
3,317 |
2,149 |
||||
Equity method investments |
4,074 |
5,421 |
||||
Total non-current assets |
75,064 |
73,454 |
||||
$ |
512,331 |
$ |
369,915 |
|||
MASS FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS (cont'd) December 31, 2009 and 2008 (U.S. Dollars in Thousands) |
||||||
2009 |
2008 |
|||||
LIABILITIES |
||||||
Current Liabilities |
||||||
Financial liabilities, short-term bank loans |
$ |
141,016 |
$ |
65,067 |
||
Trade and other payables and accrued expenses |
45,714 |
39,040 |
||||
Accrued dividend on preferred shares |
– |
9,265 |
||||
Provisions |
959 |
487 |
||||
Income tax liabilities |
933 |
1,134 |
||||
Long-term debt, current portion |
16,071 |
2,770 |
||||
Total current liabilities |
204,693 |
117,763 |
||||
Long-term liabilities |
||||||
Long-term debt, less current portion |
58,097 |
52,634 |
||||
Financial liabilities |
9,357 |
9,357 |
||||
Deferred tax liabilities |
1,367 |
1,030 |
||||
Due to prior owner and former subsidiaries |
– |
71,506 |
||||
Note payable |
1,672 |
– |
||||
Other non-current liabilities |
25,829 |
91 |
||||
Total long-term liabilities |
96,322 |
134,618 |
||||
Total Liabilities |
301,015 |
252,381 |
||||
EQUITY |
||||||
Shareholders' equity |
||||||
Common stock, net |
46,132 |
18,090 |
||||
Equity component of convertible debt |
800 |
1,000 |
||||
Other reserves |
(3,073) |
(11,656) |
||||
Retained earnings |
166,461 |
108,576 |
||||
Total shareholders' equity |
210,320 |
116,010 |
||||
Non-controlling interests |
996 |
1,524 |
||||
Total Equity |
211,316 |
117,534 |
||||
$ |
512,331 |
$ |
369,915 |
|||
MASS FINANCIAL CORP. CONSOLIDATED STATEMENTS OF INCOME For the Years Ended December 31, 2009 and 2008 (U.S. Dollars in Thousands, Except per Share Amounts) |
||||||
2009 |
2008 |
|||||
Revenues from sales, services and other |
$ |
402,786 |
$ |
594,545 |
||
Share of the results of associates and joint ventures |
3,619 |
4,263 |
||||
Total revenues |
406,405 |
598,808 |
||||
Expenses |
||||||
Cost of sales |
273,793 |
494,391 |
||||
General and administrative |
30,631 |
28,216 |
||||
Interest |
13,350 |
15,464 |
||||
Dividend on preferred shares classified as liabilities |
– |
3,744 |
||||
Other |
7,108 |
8,267 |
||||
324,882 |
550,082 |
|||||
Operating profit |
81,523 |
48,726 |
||||
Other items: |
||||||
Currency transaction loss |
(6,148) |
(18,151) |
||||
Goodwill impairment |
– |
(5,235) |
||||
Profit before income taxes |
75,375 |
25,340 |
||||
Recovery of income taxes |
43 |
1,272 |
||||
Net income |
$ |
75,418 |
$ |
26,612 |
||
Attributable to: |
||||||
Shareholders of Mass Financial Corp. |
$ |
75,179 |
$ |
23,288 |
||
Non-controlling interests |
239 |
3,324 |
||||
$ |
75,418 |
$ |
26,612 |
|||
Earnings per share |
||||||
- basic |
$ |
3.69 |
$ |
1.20 |
||
- diluted |
$ |
2.70 |
$ |
0.91 |
||
Number of weighted average shares outstanding, basic |
20,353,302 |
19,468,454 |
||||
Number of weighted average shares outstanding, diluted |
28,089,650 |
25,977,458 |
||||
MASS FINANCIAL CORP. FINANCIAL HIGHLIGHTS (U.S. Dollars in Thousands except per Share Data and Ratios) |
||||||
December 31, |
||||||
2009 |
2008 |
2007 |
2006 |
2005(5) |
||
Cash |
$329,554 |
$201,622 |
$183,903 |
$99,078 |
$26,185 |
|
Securities |
17,196 |
4,493 |
45,984 |
36,787 |
2,880 |
|
Current Assets |
437,267 |
296,461 |
315,256 |
195,462 |
82,599 |
|
Total Assets |
512,331 |
369,915 |
355,576 |
230,437 |
109,255 |
|
Current Liabilities |
204,693 |
117,763 |
143,324 |
91,280 |
39,421 |
|
Working Capital |
232,574 |
178,698 |
171,932 |
104,182 |
43,178 |
|
Current Ratio |
2.14 |
2.52 |
2.20 |
2.14 |
2.10 |
|
Long-Term Debt, less current portion |
58,097 |
52,634 |
28,068 |
4,710 |
869 |
|
Long-Term Debt-to-Equity Ratio |
0.28 |
0.45 |
0.34 |
0.10(3) |
– (3) |
|
Debt – Preferred Shares |
– |
71,506 |
91,956 |
77,976 |
67,058(1) |
|
Total Liabilities |
301,015 |
252,381 |
272,859 |
183,491 |
107,348 |
|
Shareholders' Equity |
210,320 |
116,010 |
81,583 |
45,131 |
1(2) |
|
Return on Shareholders' Equity |
65% |
29% |
107.4% |
– (3) |
– (3) |
|
Equity Per Common Share |
9.72 |
5.71(4) |
4.39(4) |
2.43(4) |
– (3) |
|
Dividend (in stock) |
9% |
– |
– |
– |
– |
|
(1) Opening balance of 2005, preferred shares are denominated in Canadian dollars. (2) The net assets acquired in 2005 were wholly paid for through the issuance of debt in the form of preferred shares. An independent valuation of the common shares at the time of our spin-off was in the range of $0.50 to $0.76 per share, or approximately US$9 million in aggregate. At that time the valuation treated the common shares as having a warrant value on the future capital that may be made earned on the preferred shares in excess of their stated dividend. (3) 2006 was the first year of common shareholders' equity as there was no equity attributable to such shares as of December 31, 2005. (4) Adjusted for the effect of the stock dividend declared in December 2009. (5) Unaudited. |
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SOURCE Mass Financial Corp.
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