Xceed Mortgage Corp. eked out a profit in the second quarter, benefiting from a positive fair-value accounting adjustment and extending its string of profitable quarters to four.
The Toronto-based mortgage provider reported net income of $46,000 or nil per share, reversing a year-earlier loss of $16.7-million or 60 cents per share.
Xceed said profit was boosted by the $1.4-million fair-value adjustment from its mortgage securitization facility.
Quarterly revenue dropped to $2-million from $2.6-million booked during the corresponding quarter of 2008. Xceed said revenues were driven down by a $1.8-million securitization loss.
Mortgages and other assets under administration declined during the quarter to $2.04-billion from year-earlier levels of $2.4-billion.
The company reported a sharp increase in cash flow from operations, which jumped to $2.1-million or eight cents per share from $200,000 or a penny per share the year before.
"Since last year's second quarter, we have reported four consecutive quarters of net income and of positive operating cash flows," Xceed chief executive Ivan Wahl said in a statement.
"We have met our principal objective of protecting our liquidity financing needs, including preserving the residual interest cash flows from our existing securitization program and expanding premium proceeds from our insured whole-loan sale program."
Xceed has trimmed its work force by more than 50 per cent over the past year, employing an average of 46 full-time staff in the second quarter of 2009 compared to an average of 99 a year ago.