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Kingsway International Reports Continued Profitable Earnings for the Third Quarter Ended March 31, 2010

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  Published in Business and Finance on Friday, May 14th 2010 at 14:40 GMT by Market Wire
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 Financial highlights for the third quarter include: - Net income was $10.0 million, or $0.1250 basic earnings per share, compared with a net loss of $0.08 million, or $0.0010 loss per share, for the same quarter last year; - An increase in revenue from services and other income to $2.7 million, compared with $2.3 million for the same period last year; - Trading income from financial assets held for trading was $8.4 million, compared with $2.0 million for the same quarter last year; - A one-off gain on disposal of shares of jointly controlled entities of $7.7 million before non-controlling interests in current quarter. 

 Segmented Results of Operations for the Third Quarter ------------------------------------------------------------------------- Corporate Investment in Finance & Securities Corporate Capital Asset & Structured and Other Brokerage Markets Management Investment Activities Total $'000 $'000 $'000 $'000 $'000 $'000 ------------------------------------------------------------------------- Commission & fee income 2,006 407 - - 118 2,531 Interest and other income 59 4 - - 87 150 Trading (loss)/ income (13) 63 - 8,389 - 8,439 ------------------------------------------------------------------------- 2,052 474 - 8,389 205 11,120 Inter- segment revenue 26 - - - 548 574 Selling and admini- strative expenses (2,582) (724) (57) (1,291) (1,603) (6,257) Share of profit/ (loss) of investments subject to significant influence 3 - - (66) - (63) Other expenses (32) (6) (1) (133) (62) (234) ------------------------------------------------------------------------- (Loss)/income before income taxes, non- controlling interests and discontinued operations (533) (256) (58) 6,899 (912) 5,140 ------------------------------------------------------------------------- - Brokerage Kingsway was ranked the Best Local Brokerage in Hong Kong as determined by the Asiamoney Brokers Poll in October 2009, a category in which it has been a top three contender for the last five consecutive years. The division organized several road shows for fund managers and seminars for current and prospective retail clients, designed to strengthen our client relationships. Further strengthening the division's prospects, a new internet trading platform was implemented in April 2010, which is expected to improve our service delivery standard and expand our customer base. Revenue in the current quarter increased 64% to $2.1 million, compared with $1.3 million in the same quarter last year, as a result of the recovery of the fund raising activities and active market activities in Hong Kong. The division recorded an overall loss of $0.5 million in the third quarter, compared with $0.8 million in the same quarter last year. - Corporate Finance & Capital Markets The division recorded total revenue of $0.5 million in the current quarter, compared with $0.7 million in the corresponding quarter last year. Net loss of $0.3 million was recognized in the third quarter, compared with an income of $0.01 million in the same quarter last year. The division participated in several underwriting and placing activities in the current fiscal year, and is also taking part in several projects including IPO sponsorships. - Asset Management There was no revenue recorded in the current quarter, compared with $0.5 million in the same quarter last year. The division recorded an overall loss of $0.06 million in the third quarter, compared with a gain of $0.4 million in the same quarter last year. The division is now looking for suitable investment opportunities to set up a new private equity fund. - Investment In Securities and Structured Investments Trading income in the division increased significantly to $8.4 million in the current quarter from $1.7 million in the corresponding quarter last year, mainly due to the recovery of the Hong Kong stock market over the last two quarters. Selling and administrative expenses has also increased accordingly to $1.3 million in the current quarter, compared with $0.2 million in the same quarter last year, as a result of the increase in variable staff costs including the provision for staff bonuses. As a result, the division recorded an overall income of $6.9 million in the third quarter, compared with an income of $1.6 million from continuing operations in the same quarter last year. - Corporate and Other Activities The results of the division remained stable with an overall loss of $0.9 million recognized in current quarter, comparable to $0.8 million in last year's corresponding quarter.