The Canadian Press
Dundee Corp. (TSX:DC.A) posted a $10.6-million profit in the fourth quarter, reversing a big loss from a year earlier, as the company booked smaller adjustments to the value of its investments.
The Toronto-based investment firm reported that earnings were worth 10 cents per share, compared to a net loss of $184.6 million or $2.48 per share in the prior-year period. That’s when the company booked a massive $271.5 million fair value loss on its investments, caused by the market downturn.
In the latest quarterly results, Dundee said that its comparative fair value loss was $25.3 million.
Dundee, which also has a number of publicly traded subsidiaries including its flagship DundeeWealth Inc. (TSX:DW), said that revenues were down to $324.1 million from $359.5 million.
The firm also reduced quarterly expenses to $225 million from $301.4 million.
One of the company’s subsidiaries, Ned Goodman Investment Counsel Ltd., is in the final stages of a plan to raise up to $1 billion for private equity investment in the resource sector through Dundee Global Resource LP.
For the full year, Dundee returned to profitability as it broadened its focus to attract more non-retail and institutional clients. Dundee said it earned $62.4 million in the 12 months ended Dec. 31 or 77 cents per share on a fully diluted basis.
That compared with a $196.2-million annual loss or $2.62 per in 2008, when the company had to reduce the carrying value of certain corporate investments amid a major market downturn caused by a crisis in the U.S. financial sector.
Dundee Corp.’s revenue was $1.04 billion in 2009, down 15.5% from $1.2 billion a year earlier. The largest source of revenue was management fees, which increased to $466.6 million last year from $464.3 million last year.
Revenue from financial services fell to $293.6 million last year from $325.36 million a year earlier, while real-estate revenue dropped to $243.1 million from $400.9 million in 2008.
Dundee’s “A” shares were up 20 cents to $13.55 on the Toronto Stock Exchange on Monday afternoon.