- Return on Shareholders' Equity for Six Months of 25% -
HONG KONG, Sept. 15 /PRNewswire-FirstCall/ -- Mass Financial Corp. ("MFC") (Pink Sheets: MFCAF) today reported its financial results for the six months ended June 30, 2008. All figures are in U.S. dollars.
For the six months ended June 30, 2008, MFC reported total revenues of $305.9 million with net income attributable to shareholders of $25.6 million or $1.12 per diluted share, compared to total revenues of $265.9 million with net income attributable to shareholders of $34.0 million or $1.46 per diluted share for the first six months of 2007.
At June 30, 2008, the Company had $287.8 million in cash and securities, our working capital ratio was 2.49, and the long-term debt-to-shareholders' equity ratio was 0.51. Return on shareholders' equity (not annualized) was 25 percent. In comparison, the S&P 500 returned negative 15 percent in this period. Equity per common share increased to $6.97, a 163 percent increase in two years.
President Michael Smith, commented, "With this second half of 2008, we see a strong year developing. MFC is in its third year since becoming an independent company. We have kept focus on redefining our corporate objective of fully capitalizing on our industry knowledge and striving for greater growth and diversification.
Our commodities business along with our large number of related contacts has enabled us to gain greater product, service diversification and find new markets. This business should not be viewed as a commodities business but as a risk business with suppliers and purchasers.
We are pleased to report almost 60 percent of our trading revenues are derived from term marketing and distribution agreements for non-ferrous metals and other products. Some of the investments we make in commodity producers are part of our proprietary investing strategy. Our first shipment from our Indian iron ore reserves has been completed and we anticipate additional shipments after the rain season at the end of this year.
With the downturn in the global economy, opportunities are becoming more visible. Valuations of several, what started to be, complementary projects have been coming closer to much more sensible levels and start to be at a real discount to net tangible asset value. We will, however, maintain our strict level of discipline in assessing these risks."
Mr. Smith continued, "It is now time to start creating market awareness and liquidity for our shareholders. One of the very first steps is to complete the process of listing our common shares on the Vienna Stock Exchange. This will only be an initial start to creating liquidity for our common shares since our spin-out in 2006 as an independent company and marks an important phase in enhancing shareholder value.
The effectiveness of our strategy demands constant review and attention in order for MFC to reflect our commitment to developing wealth for our shareholders."
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
North America Contact: Rene Randall
Tel: 1 (604) 408 8538
Fax: 1 (604) 683 3205
Email: rrandall@bmgmt.com
MASS FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
June 30, 2008 and December 31, 2007
(unaudited)
(U.S. Dollars in Thousands)
ASSETS 2008 2007
Current Assets
Cash and cash equivalents $262,910 $183,903
Securities 24,856 45,984
Restricted cash 2,161 0
Loans 2,878 1,992
Trade and other receivables 43,085 37,053
Inventories 42,654 43,907
Real estate held for resale 22,578 0
Tax receivables 246 1,051
Prepaid and other 2,004 1,366
403,372 315,256
Non-current Assets
Securities 6,041 5,989
Securities, restricted 9,357 9,357
Loans 5,645 11,869
Receivables 942 972
Property, plant and equipment 3,042 992
Investment property 16,998 0
Goodwill 5,158 4,754
Deferred tax assets 589 368
Equity method investments 6,018 6,019
53,790 40,320
$457,162 $355,576
MASS FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS (con't)
June 30, 2008 and December 31, 2007
(unaudited)
(U.S. Dollars in Thousands)
2008 2007
LIABILITIES
Current Liabilities
Financial liabilities $90,960 $85,185
Trade and other payables and accrued expenses 67,913 56,716
Provision for warranty 235 0
Income tax liabilities 1,796 1,423
Long-term debt, current portion 1,323 0
162,227 143,324
Long-term Liabilities
Long-term debt, less current portion 60,902 28,068
Financial liabilities 9,357 9,357
Deferred tax liabilities 462 154
Liabilities, preferred shares 89,207 91,956
Due to an affiliate 1,143 0
Other non-current liabilities 115 0
161,186 129,535
Total Liabilities 323,413 272,859
EQUITY
Shareholders' Equity
Common stock 14,291 2,591
Equity component of convertible debt 1,000 1,000
Other reserves (844) (11,592)
Retained earnings 110,932 89,584
125,379 81,583
Less: Treasury stock (6,568) 0
Total shareholders' equity 118,811 81,583
Minority Interests 14,938 1,134
Total Equity 133,749 82,717
$457,162 $355,576
MASS FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
For the Six Months Ended June 30, 2008 and 2007
(unaudited)
(U.S. Dollars in Thousands, Except per Share Data)
2008 2007
Revenues from sales, services and other $303,699 $264,083
Shares of the results of associates and
joint ventures 2,181 1,780
Total revenues 305,880 265,863
Expenses
Cost of sales 250,438 207,666
General and administrative 14,230 17,293
Interest 9,075 6,526
Other 3,278 491
277,021 231,976
Operating profit 28,859 33,887
Other items:
Currency transaction gain 1,550 1,004
Goodwill impairment (1,121) 0
Profit before income taxes 29,288 34,891
Provision for income taxes (1,057) (315)
Profit after taxes $28,231 $34,576
Attributable to:
Shareholders of Mass Financial Corp. 25,644 34,017
Minority interests 2,587 559
$28,231 $34,576
Earnings per share
basic $1.50 $2.00
diluted $1.12 $1.46
Weighted average shares outstanding -
basic 17,044,229 17,044,229
Weighted average shares outstanding -
diluted 23,010,816 23,309,893
MASS FINANCIAL CORP.
FINANCIAL SUMMARY
(U.S. Dollars in Thousands, Except per Share Data and Ratios)
2008 2007 2006
(1) (4) (4)
Cash 262,910 183,903 99,078
Securities 24,856 45,984 36,787
Current Assets 403,372 315,256 195,462
Total Assets 457,162 355,576 230,437
Current Liabilities 162,227 143,324 91,280
Working Capital 241,145 171,932 104,182
Current Ratio 2.49 2.20 2.14
Long-Term Debt, less current
portion 60,902 28,068 4,710
Long-Term Debt-to- Shareholders'
Equity 0.51 0.34 0.10
Debt - Preferred Shares (2) 89,207 91,956 77,976
Total Liabilities 323,413 272,859 183,491
Shareholders' Equity 118,811 81,583 45,131
Return on Shareholders'
Equity 25%(3) 77% 40%
Equity Per Common Share 6.97 4.79 2.65
Notes:
(1) Unaudited figures for the six months ended June 30, 2008.
(2) On our opening balance sheet of 2005, preferred shares are
denominated in Canadian dollars.
(3) Not annualized.
(4) As of December 31st
SOURCE Mass Financial Corp.
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