Cervus Financial Group Inc. Announces Results for the Period Ended September 30, 2004.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- Cervus Cervus a genus of true deer in the family Cervidae. Includes C. canadensis (wapiti), C. elaphus (red deer) and C. elaphus nannodes (tule elk). Financial Group Inc. ("Cervus") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:CFG CFG Configuration (File Name Extension) CFG Control Flow Graph CFG Context-Free Grammar CFG Club for Growth CFG Cienfuegos, Cuba (city/airport code) CFG Critical Friends Groups ), which is a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company dedicated to providing mortgages through selected leading mortgage brokers, announced results of operations for the period ended September September: see month. 30, 2004. For the approximately eight and one-half months from incorporation to September 30, 2004, Cervus incurred a net loss for the period of $2,236,110 or $0.11 per share due to costs associated with development and launch of the business. As of September 30, 2004, Cervus had current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. of $7,246,146 and total assets of $11,766,654. Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. as of September 30, 2004 amounted to $3,938,135, total liabilities were $3,944,486 and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $7,822,168. Highlights for the period and to date: - Incorporation of the Company and subsidiaries - Recruitment of management and establishment of the Board of Directors - Completion of private placement financing of $1,569,000 on February February: see month. 27, 2004 - Agreements and letters of intent with key technology service providers - Approval as a lender by Genworth Financial Genworth Financial is an international financial services organization that offers a portfolio of primarily consumer-focused products through its various companies, including annuities, combination products, investment services, life insurance, long term care insurance, medicare Canada, formerly GE Capital Mortgage Insurance Company (Canada) - Mortgage Origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real Volume Agreements with mortgage brokers to acquire mortgage origination volume amounting to $20 billion in mortgages over five years from the date of commencement of such agreements - Completion of private placement financing of $7,384,425 on June 25, 2004 - Articles of Amalgamation amalgamation /amal·ga·ma·tion/ (ah-mal´gah-ma´shun) trituration (3). amalgamation ( for the amalgamation with NetDriven Solutions Inc. filed on July 15, 2004 - Registration under the Mortgage Brokers Act (Ontario) received from the Financial Services Commission of Ontario - Listing of common shares (symbol "CFG") on the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. , commencement of trading on August 4, 2004 - Approval as a lender by Canada Mortgage and Housing Corporation Canada Mortgage and Housing Corporation (CMHC) is a Canadian government agency. The agency is responsible for the housing industry in Canada. Its main duty is currently to ensure low cost mortgage loans are available to Canadians by providing insurance to lenders in case of (CMHC CMHC community mental health center. ) - Warehouse credit facility agreement with RBC RBC red blood cell. RBC or rbc abbr. red blood cell RBC, n See red blood cell count. RBC red blood cells; red blood (cell) count (see blood count). Financial Group for up to $25 million - Regulatory approval received from the British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography Ministry of Finance Financial Institutions Commission - Execution of a sale and servicing agreement with Desjardins Credit Union of Ontario to purchase high ratio, insured residential mortgages - Three-year sale and servicing agreement with Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. Canada Inc. to acquire up to $4.5 billion of high ratio, insured residential mortgages - Completion of private placement financing of $9,010,000 on November 26, 2004 - On November 29, 2004, exercise by an agent of 330,000 share purchase warrants issued in association with the June 25, 2004 private placement to acquire 330,000 common shares of the Company at the price of $1.00 per share
CERVUS FINANCIAL GROUP INC.
Consolidated Balance Sheet
As at September 30, 2004
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ASSETS
CURRENT
Cash $ 2,296,206
Restricted cash (Note 7) 2,500,000
Residential mortgages (Note 5) 2,085,752
Prepaid expenses 364,188
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7,246,146
OTHER ASSETS 22,019
CAPITAL ASSETS (Note 3) 1,037,356
INTANGIBLE ASSETS (Note 4) 3,461,133
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$ 11,766,654
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LIABILITIES
CURRENT
Accounts payable and accrued expenses $ 1,353,692
Sales tax payable 134,443
Warehouse credit facility (Note 7) 2,450,000
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3,938,135
TRAILER COMMISSIONS 6,351
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3,944,486
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SHAREHOLDERS' EQUITY
COMMON SHARES (Note 8) 9,993,955
CONTRIBUTED SURPLUS 301,163
DEFICIT (2,472,950)
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7,822,168
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$ 11,766,654
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Please see www.sedar.com for the following information:
the accompanying notes which are integral to these consolidated
financial statements,
Management's Discussion & Analysis, and
Management's Responsibility for Financial Information.
CERVUS FINANCIAL GROUP INC.
Consolidated Statement of Operations and Deficit
For the period from incorporation date January 16, 2004 to
September 30, 2004
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INTEREST INCOME $ 28,480
INTEREST EXPENSE (957)
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NET INTEREST INCOME 27,523
PROVISION FOR CREDIT LOSSES (115)
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27,408
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OPERATING EXPENSES
Human resources 1,655,162
General and administrative 1,574,805
Premises 113,728
Amortization 20,562
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3,364,257
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NET LOSS BEFORE INCOME TAXES 3,336,849
Future income tax recovery (Note 11) (1,100,739)
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NET LOSS FOR THE PERIOD $ 2,236,110
RETAINED EARNINGS - BEGINNING OF PERIOD -
NET LIABILITIES ACQUIRED (Note 6) 236,840
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DEFICIT - END OF PERIOD $ 2,472,950
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NET LOSS PER COMMON SHARE
Basic and diluted (Note 8(f)) $ (0.11)
Please see www.sedar.com for the following information:
the accompanying notes which are integral to these consolidated
financial statements,
Management's Discussion & Analysis, and
Management's Responsibility for Financial Information.
CERVUS FINANCIAL GROUP INC.
Consolidated Statement of Cash Flows
For the period from incorporation date January 16, 2004 to
September 30, 2004
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NET (OUTFLOW) INFLOW OF CASH RELATED
TO THE FOLLOWING ACTIVITIES
OPERATING
Net loss for the period $ (2,236,110)
Items not affecting cash
Amortization of capital assets 20,562
Provision for credit losses 115
Future income tax benefit (1,100,739)
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(3,316,172)
Net changes in non-cash working capital balance
Prepaid expenses (312,166)
Other assets (22,019)
Accounts payable and accrued expenses 1,064,830
Sales tax payable 134,443
Trailer commissions 6,351
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(2,444,733)
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INVESTING
Mortgage loan advances (2,085,867)
Cash collateral - restricted cash (2,500,000)
Acquisition of capital assets (1,057,918)
Acquisition of intangible assets (413,684)
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(6,057,469)
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FINANCING
Proceeds from issuance of common shares 9,108,508
Common share issue costs (760,100)
Proceeds from credit facility borrowings 2,450,000
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10,798,408
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NET INCREASE IN CASH FOR THE PERIOD 2,296,206
CASH, BEGINNING OF PERIOD -
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CASH, END OF PERIOD $ 2,296,206
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CASH IS REPRESENTED BY:
Cash in bank $ 2,028,479
Cash held in trust 267,727
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$ 2,296,206
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Please see www.sedar.com for the following information:
the accompanying notes which are integral to these consolidated
financial statements,
Management's Discussion & Analysis, and
Management's Responsibility for Financial Information.
About "Customer for Life" The Cervus "Customer for Life" model enables the mortgage professional to retain the relationship with the borrower as a customer throughout the life of the mortgage. The compensation model also creates a continued revenue stream in the form of trailer fees Trailer Fee A fee that a mutual fund manager pays to a salesperson who sells the fund to investors. Notes: The trailer fee pays the salesperson for providing the investor with ongoing investment advice and services. , a one time origination fee A charge imposed by a lending institution or a bank for the service of processing a loan. For example, a bank might charge an individual who has applied for a student loan an origination fee of one percent for processing the application and granting the loan. and a renewal fee every time the customer renews with Cervus. This creates income security for the mortgage professional allowing a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. relationship to be developed with the borrower. This long-term relationship subsequently gets passed along to the institutional investor Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. of the mortgage security, creating a higher yield long-term investment cash flow stream. The Cervus "Customer for Life" model creates profitable relationships for the borrowers, mortgage professionals, institutional investors and for Cervus. About Cervus Cervus Financial Group Inc. is a Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. financial services company created as an industry initiative with leading mortgage broker companies and fixed income investment banks The following is a list of investment banks Financial conglomerates Large financial-services conglomerates combine commercial banking and investment banking, and sometimes insurance. to become a high-yield mortgage producer and the largest mortgage broker lender of AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. mortgages in Canada. Our new and innovative business model demonstrates contracted asset accumulation of $30B in mortgages over five to seven years by fusing In electrophotography, making the toner adhere permanently to the paper. Heat fusing melts the toner, which is pressed into the paper. Cold fusing presses the toner into the paper without applying any heat. Flash fusing melts the toner with light, and no heat or pressure is used. industry ownership, technology, service delivery and long term recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue for the mortgage brokers. Cervus works on the basis of a "Customer for Life" model, where the borrower is the client of the mortgage broker and Cervus is effectively the "Back Office - Servicer" between borrowers and investors. Cervus has assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. an experienced management team and board of directors who are knowledgeable in banking, financial service and related businesses. Cervus is focused on funding and servicing conventional and high ratio residential mortgages originated through mortgage brokers. Cervus is currently licensed under Ontario's and British Columbia's mortgage broker legislation and is seeking similar regulatory approvals in Alberta and Quebec. Cervus head office and Ontario operations centre is located in Toronto, with additional planned offices in Vancouver (2005) serving Western Canada
Western Canada, commonly referred to as the West and in Montreal serving Quebec (2005). Cervus Financial Group Inc., will carry on all lending operations through its wholly-owned subsidiary, Cervus Financial Corp. Forward-looking (safe harbour) statement Statements made in this news release that relate to future plans, events or performances are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Any statement containing words such as "believes," plans," "expects" or "intends" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements. Additional information about Cervus is available on SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review (www.sedar.com). The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Cervus Financial Group Inc. (TSX VENTURE:CFG) |
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