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Mass Financial Corp 2009 Results


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2009 results out today and Michael Smith is still on a roll.


HONG KONG, June 1 /PRNewswire-FirstCall/ -- Mass Financial Corp. ("MFC") (Vienna Stock Exchange symbol: MASS) today reported its financial results for the year ended December 31, 2009.  All figures are in U.S. dollars and earnings per share amounts are on a diluted basis.


For the year ended December 31, 2009, MFC reported total revenues of $406.4 million with net income attributable to our shareholders of $75.2 million or $2.70 per share, compared to total revenues of $598.8 million with net income of $23.3 million or $0.91 per share for the year of 2008.


At December 31, 2009, MFC had $346.8 million in cash and securities, its current ratio was 2.14, and the long-term debt-to-shareholders' equity ratio was 0.28. Equity per common share increased to $9.72 ($10.55 a share before our adjustment for our stock dividend paid in December 2009). For 2009 MFC's net income represented a 65% return on equity as compared to S&P 500's return of 26%.


MFC's book value per share as of December 31, 2009 has increased by 300% from our first full year in 2006. We believe this is the best measurement of our results and performance and that a price earnings multiple is not relevant measurement of MFC's performance.



Our revenues for the year ended December 31, 2009 declined from 2008, primarily due to reducing our risk exposure by scaling back our commodity and trade finance business in countries we deemed higher-risk. We also reduced our product lines and customer base to reflect global macro economic conditions.


President Michael Smith commented, "We are not pleased with our overall performance in 2009.  Progress on certain projects proved elusive and we believe we are capable of better execution. We remain focused on preserving our capital and liquidity. MFC is healthier, as we are not currently operating with a belief that our markets will return to prior levels in the short-term.


In December 2009 we issued a stock dividend to shareholders of one new common share for each 11 shares owned."


Mr. Smith continued, "Our strategy demands constant review and attention to ensure MFC reflects our commitment to building shareholder value. This year, we are determined to:



•Become more disciplined and focused more specific business lines

•Create value in areas where we have specialized knowledge

•Direct more energy and effort to the Asian markets

•Seek greater asset exposure in Asia

•Complete another listing for our common shares

•Increase the number and industry experience of our directors."



Mr. Smith concluded, "Our main objective remains simply to do good business. Our liquidity allows us to take advantage of emerging opportunities. These are interesting times for business opportunity, but we must maintain our financial discipline. Now is the time to focus on projects in our areas of our special knowledge while carefully assessing the risks.


Our goal for 2010 and 2011 will be to leverage our foundation of resources and strategic network of operating businesses to pursue international growth opportunities. We will continue to manage our business for the long term."


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