NR: Jaguar's Dec. 2008 year end earningsJaguar Financial reports fiscal 2008 results
TORONTO, March 11 /CNW/ - Jaguar Financial Corporation ("Jaguar" or the
"Company") (TSX: JFC) today reported a net loss of $24,102,323 for the year
ended December 31, 2008. This compares with net income of $4,518,643 in 2007.
The loss was primarily driven by a net investment loss of $19,119,937
comprised of realized losses on the sale of investments of $3,465,796 and
unrealized losses of $15,654,141. The largest unrealized loss related to
Jaguar's investment in Royal Laser Corporation of $7 million. The Company's
investment portfolio is recorded on a mark to market basis and will
experience, at various times, unrealized gains or losses based on equity
market conditions.
The financial results are a direct result of the continued sell off in
global markets. What began as the asset backed commercial paper crisis soon
led to deterioration in credit markets and disruption to global stock markets
causing large-scale corrections and upheaval.
Revenue for the fiscal year ended December 31, 2008 was negative
$18,400,160 compared with revenue of $10,417,697 in the prior year. The net
loss on investments of $19,119,937 in 2008 compares to a net gain of
$10,117,137 in 2007. In 2007, the Company's generated realized gains on its
two largest investments at the time, Century II Holdings Inc. and Rand A
Technology Corporation. Loss on derivatives was $1,336,365. There is no
comparative for 2007.
Interest revenue for the year was $68,185, a decrease compared to
interest revenue of $353,704 in the prior year. The decrease is due to
Jaguar's shift in investment focus as a merchant bank, moving funds away from
short-term deposits to equity investments.
The Company recorded equity earnings of $1,723,452 from its investment in
Lakeside Steel Inc. compared to a loss of $53,144 in the prior year.
Total expenses decreased from $5,899,054 in 2007 to $5,702,163 in 2008.
The decrease is driven by a reduction in salaries and stock based compensation
expense, partially offset by an increase in transaction and advisory and
financing costs.
As at December 31, 2008, the Company had cash and cash equivalents of
$1,984,813, and the fair value of the Company's investment portfolio,
including its investment in associated companies, was $15,514,544. Total
assets were $22,389,553.