Independent investment dealer Canaccord Capital Inc. posted its second straight quarterly loss on write downs, restructuring costs and a steep fall in revenue from its investment banking business.

The Vancouver-based firm said the net loss for the third quarter ended Dec. 31, 2008, was $62.4 million, or $1.27 a share, compared with net income of $15 million, or 31¢ a share in the year-ago period.

The company recorded several significant items during the third quarter including:

> a pre-tax non-cash adjustment of $6.7 million related to asset backed commercial paper held in treasury to reflect the impact of the current market conditions on the valuation of its holdings in ABCP;

> a pre-tax provision of $5.3 million for the previously announced Canaccord Relief Program, which included the repurchase of up to $152 million of restructured ABCP at par value from clients who hold $1 million or less;

> an impairment of goodwill and other intangibles of $27.5 million related to the firm’s U.S. capital markets business;

> a pre-tax non-cash charge of $4 million related to Canaccord Enermarket Ltd., which has been impacted by the steep decline in oil prices; and

> and $7.5 million pre-tax in restructuring costs, resulting from staff cuts.

The Q3 results also include a pre-tax credit provision of $5.5 million, of which $4.5 million relates to Canaccord’s Canadian operations and $1 million is attributed to the firm’s U.K. operations.

Total revenue for the quarter fell 52% to $87.2 million. Revenue from the company’s investment banking business was $20.2 million, decrease of $64.7 million from the year earlier period.

Commenting on the quarter, Paul Reynolds, president and CEO, said, “We have made difficult but necessary decisions regarding our balance sheet this quarter. Moving forward, we intend to leverage our solid capital base and aggressively pursue growth opportunities while controlling costs.”

Canaccord, which suspended its quarterly dividend in November, said its board decided against a payout in the current quarter also.

IE