Wednesday, February 29, 2012

TCI - <span class="simulate_din_font">Target Capital Inc. announces quarterly dividend</span> (CAD 0.02)

Company: Target Capital Inc.
Stock Name: TCI
Amount: CAD 0.02
Announcement Date: 29/02/2012
Record Date: 07/03/2012

Dividend Detail:




CALGARY, Feb. 29, 2012 /CNW/ - Target Capital Inc. (TSX-V: TCI) is
pleased to announce that its Board of Directors has declared the
quarterly cash dividend of $0.02 per common share for shareholders of
record as at March 23, 2012. The dividend will be paid to shareholders
on March 31, 2012.



Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.



For further information:

Ryan Hoult, CFO, at (403) 261-7500, e-mailryan@targetcapitalinc.com









TMA - <span class="simulate_din_font">Trimac Announces Fourth Quarter and Annual Results for 2011</span> (CAD 0.0625)

Company: Trimac Transportation Ltd.
Stock Name: TMA
Amount: CAD 0.0625
Announcement Date: 29/02/2012
Record Date: 28/03/2012

Dividend Detail:








  • Revenue for the quarter improved $11.6 million (15.4%) to $87.0 million


  • Revenue for the quarter excluding fuel surcharges increased 9.3% to
    $75.3 million


  • EBITDA for the quarter increased 12.6%


  • Cash generated from operations per share increased from $0.33/share to
    $0.42/share


  • Awarded the 2012 Best Fleets to Drive For by the Truck Carriers
    Association for North America



CALGARY, Feb. 29, 2012 /CNW/ - Trimac Transportation Ltd. (TSX Symbol TMA) ("Trimac" or the "Company"), Canada's leader in bulk
trucking, is pleased to announce the release of its financial results
for the fourth quarter ended December 31, 2011 ("current quarter").



Trimac's consolidated revenue, including fuel surcharges, for the
three-month period ended December 31, 2011 increased by $11.6 million
(or 15.4%) as compared to the same period in the prior year
("comparative quarter"). This increase was the result of increased
revenue volumes from existing customers, new business awards and an
increase in fuel surcharge revenue of $5.3 million. Revenue excluding
fuel surcharges improved by 9.3% to close the current quarter at $75.3
million
. Increased revenue volumes were experienced in cement hauling
which was the result of the longer fall season and increased activity
in the oil and gas sector lead to increased volumes in various
commodities. For the year ended December 31, 2011 ("current year")
total revenue increased 13.7% to $332.1 million as compared to the
$292.2 million reported at December 31, 2010 ("prior year"). The
Benson asset acquisition late in the second quarter contributed $3.4
million
in incremental revenue for the current year.



Direct costs net of fuel surcharge revenue (net direct costs) expressed
as a percentage of revenue before fuel surcharges, decreased in the
current quarter to 70.5% from 71.8% in the comparative quarter.
Improved productivity due to warmer weather and fully-trained new
drivers and increased utility contributed to this decrease. Net direct
costs in actual dollar amounts increased $3.6 million over the
comparative quarter. This increase was primarily the result of the
increased revenue volumes.



EBITDA closed the current quarter at $10.7 million compared to $9.5
million
in the comparative quarter, an increase of 12.6%. Taking into
consideration public company costs incurred by Trimac Income Fund of
$0.3 million that were not included in the comparative quarter, EBITDA
actually increased 16.3%. This increase was the result of the
increased revenue volumes and improved productivity and utility and
strong cost controls. For the current year EBITDA increased 4.6% to
$36.5 million. If public company costs of $0.9 million are taken into
consideration for the prior year, EBITDA increased 7.3%.



"The first half of 2011 was challenging due to the wet weather and the
decreased activity in various sectors in the Eastern provinces,
however, we were able to overcome these challenges and finish the year
off with a 4.6% increase to our EBITDA, so I am very pleased with the
results," commented Edward V. Malysa, President and Chief Operating
Officer of Trimac.



2012 Best Fleets to Drive For



Due to our ongoing commitment to our recruitment and retention program,
Trimac has for the second year in a row been honoured with the 2012
Best Fleets to Drive For award by the Truck Carriers Association, a
U.S. industry organization. Jeffrey J. McCaig commented, "This award
was due to the hard work and dedication of the whole Trimac team by
making Trimac the preferred place to work. As we enter into 2012, we
will continue to focus on our recruitment and retention program to
ensure we are hiring the "best of the best" to be a part of the Trimac
team."



Financial Highlights


























































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































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



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

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



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

Three months ended December 31







Year ended December 31

(in millions of dollars except per share data)







2011





2010



Variance







2011





2010



Variance

Consolidated Financial Results













































































Revenue before fuel surcharges







75.3





68.9



9.3%







291.5





268.6



8.5%









































Operating expenses 







































Direct costs 







64.8





55.9



15.9%







249.5





216.3



15.3%



Fuel surcharges (1) 







(11.7)





(6.4)



-82.8%







(40.6)





(23.6)



-72.0%









53.1





49.5



7.3%







208.9





192.7



8.4%





Percent of revenue 







70.5%





71.8%











71.7%





71.7%













































Selling and administration







11.5





9.9



16.2%







46.1





41.0



12.4%



EBITDA (2)  







10.7





9.5



12.6%







36.5





34.9



4.6%





Percent of revenue 







14.2%





13.8%











12.5%





13.0%













































Operating earnings 







5.6





5.2



7.7%







18.1





17.7



2.3%



Adjusted net income (2)







4.3





4.3



0.0%







11.1





11.6



-4.3%

































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Segment Results 

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Revenue before fuel surcharges































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Bulk Trucking 







66.6





61.9



7.6%







258.2





241.2



7.0%





Bulk Plus Logistics 







4.7





3.8



23.7%







18.9





15.3



23.5%





National Tank Services







10.0





8.0



25.0%







36.6





30.5



20.0%





Inter-segment revenue







(6.0)





(4.8)











(22.2)





(18.4)













75.3





68.9



9.3%







291.5





268.6



8.5%









































EBITDA  









































Bulk Trucking 







9.0





7.7











29.6





28.7









Bulk Plus Logistics 







0.4





0.8











2.0





3.2









National Tank Services







1.3





1.0











4.9





3.0













10.7





9.5











36.5





34.9

















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Other Information 

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







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



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





































Cash generated from operations







10.9





8.8











37.6





33.7









Net property, plant and equipment additions







3.1





2.8











26.9





14.4









Repurchase of common shares







-





-











5.5





-









Acquisitions 







-





-











4.0





3.3













































Share Information 















































































Cash generated from operations per share







0.42





0.33











1.45





1.26









Earnings per share - adjusted (2)







0.17





0.16











0.43





0.44





(1) Management believes it is useful to net fuel surcharge revenue into
direct expenses when analyzing operating results. For Trimac, fuel
surcharge revenue is considered an expense recovery.

(2) Refer to the management's discussion and analysis for the year
ended December 31, 2011 for the reconciliation of non-GAAP financial
measures.


Financial Statements



At the time of issuing this press release, the audited consolidated
financial statements and the related Management Discussion and Analysis
("MD&A"), including a reconciliation of non-GAAP financial measures,
can be found on the Company's website at www.trimac.ca.



Declaration of Quarterly Dividend



The Board of Directors today declared a dividend of $0.0625 per share on
the Class A common shares, payable on April 16, 2012 to shareholders of
record at the close of business on March 30, 2012. This dividend is
designated as an eligible dividend pursuant to subsection 89(14) of the
Income Tax Act (Canada) and any applicable provincial legislation
pertaining to eligible dividends.



Forward-Looking Statements



Certain information included in this news release constitutes
"forward-looking statements". Trimac cautions that, by their nature,
these forward-looking statements are based on suppositions, risks, and
uncertainties as well as on management's best possible evaluation of
future events. Trimac cautions that its assumptions may not materialize
and that current economic conditions render such assumptions, although
reasonable at the time they were made, subject to greater uncertainty.
Such forward-looking statements are not guarantees of future
performance and the actual results or performance of Trimac or the
transportation industry may be materially different from the outlook or
any future results or performance implied by such statements. Please
see "Forward-Looking Statements" in Trimac's MD&A for the year ended
December 31, 2011 for a discussion on the material factors that could
cause actual results to differ from the forward-looking information
contained herein and the material factors and assumptions that were
applied in preparing such forward-looking information.



Profile



Trimac is Canada's largest provider of bulk trucking services with
operations from coast to coast. In addition, through its National Tank
Services division, Trimac performs repairs, maintenance and
tank-trailer cleaning services for both the Trimac fleet and for third
party commercial customers. Trimac also provides third party
transportation logistics services in Canada and the United States
through its wholly owned subsidiary Bulk Plus Logistics. Shares of
Trimac Transportation Ltd. are traded on the Toronto Stock Exchange
under the symbol TMA.



For more detailed information, please visit our website at www.trimac.ca or SEDAR at www.sedar.com and review our MD&A and financial statements for the Company.



You are invited to join us on a conference call (conference ID 6838047)
at 9:00 a.m. Eastern Time on Thursday, March 1, 2012. For North
American participants, please dial 1-800-820-0231 or for international
participants, please dial ++1-416-640-5926 at least 10 minutes prior to
the start time of the call. An audio playback of the call will be
available starting Friday, March 2, 2012 on our website at http://www.trimac.ca/page/eventscalendar.
















For further information:

Edward V. Malysa
President & Chief Operating Officer
Trimac Transportation Ltd.
Telephone: 403-298-5100
Facsimile: 403-298-5258

Scott D. Calver
Vice President & Chief Financial Officer
Trimac Transportation Ltd.
Telephone: 403-298-5100
Facsimile: 403-298-5146









Tuesday, February 28, 2012

ETC - <span class="simulate_din_font">Equitable Group reports 2011 annual, fourth quarter results</span> (CAD 0.12)

Company: Equitable Group Inc.
Stock Name: ETC
Amount: CAD 0.12
Announcement Date: 28/02/2012
Record Date: 13/03/2012

Dividend Detail:




TORONTO, Feb. 28, 2012 /CNW/ - Equitable Group Inc. (TSX: ETC and ETC.PR.A) ("Equitable" or the "Company") today reported its financial results
for the three and 12 months ended December 31, 2011, including solid
earnings performance on strong growth in its conventional single family
mortgage portfolio.



ANNUAL RESULTS




  • Diluted earnings per share ("EPS") increased 11.5% to $3.88 compared to
    $3.48 in 2010;


  • Adjusted EPS, excluding a third quarter 2011 operational provision (the
    "provision") was $4.15 compared to $3.83 in 2010;


  • Adjusted net income was $62.7 million, or $66.3 million excluding the
    provision, compared to $61.1 million in 2010;


  • Net interest income was $133.8 million, 11.5% higher than the $119.9
    million
    achieved in 2010, with net interest margin ("NIM") at 2.5% on
    non-securitized assets and 0.5% on securitized assets;


  • Total mortgage assets were a record $9.6 billion at year end, up 16.5%
    from December 31, 2010;


  • Conventional mortgage principal increased 22.9% year over year to $4.3
    billion
    , inclusive of a 33.4% increase in single family mortgage
    principal;


  • Mortgage production increased 15.3% to $2.8 billion, inclusive of record
    conventional single family mortgage production of $1.2 billion (20.6%
    higher than in 2010);


  • Return on equity ("ROE") was 16.5% (16.6% on an adjusted basis, 17.5%
    excluding the provision) compared to 17.0% (18.6% adjusted) in 2010;


  • Productivity ratio on a taxable equivalent basis ("TEB") was 32.4%
    (28.8% excluding the provision) compared to 26.1% in 2010;


  • Equitable Trust's year-end total capital ratio was 15.8% (including its
    collective allowance);


  • Book value per share of $25.18 grew 13.0% from $22.28 at December 31,
    2010
    ;


  • Equitable declared $0.45 in dividends per common share in 2011, up 12.5%
    from $0.40 in 2010, reflecting increases the Board announced in the
    first and third quarters of 2011.



"Equitable achieved exactly what we set out to do in 2011," said Andrew
Moor
, President and Chief Executive Officer, "grow our conventional
mortgage book with emphasis on single family, expand our national
presence, deliver excellent customer service, sustain credit quality
and translate these advancements into solid earnings for our
shareholders. It is clear to us that our current strategy, including
the alignment realized between our mortgage production activities and
our goal of optimizing risk-adjusted returns, will serve our
shareholders very well going forward."



DIVIDEND DECLARATIONS



The Company's Board of Directors declared a quarterly common share
dividend of $0.12 per share, payable on April 4, 2012, to common
shareholders of record at the close of business on March 15, 2012. This
amount is consistent with the dividend of $0.12 per share declared in
the previous quarter, and on an annualized basis represents a 6.7%
increase over the dividends declared in 2011. The Board also declared a
quarterly dividend in the amount of $0.453125 per preferred share,
payable on March 31, 2012, to preferred shareholders of record at the
close of business on March 15, 2012.



FOURTH QUARTER RESULTS



Equitable's results in the fourth quarter were strong and demonstrated
the fundamental operating strength of the business, particularly in the
single family residential mortgage segment. Results in the quarter
were fuelled by growth in the Company's mortgage book combined with its
stable NIM.



Consistent with its annual results, comparatives to 2010 were impacted
by several non-recurring items that augmented the Company's performance
in Q4 of the prior year, the majority of which are only visible under
new IFRS accounting standards. Specifically, Q4 2010 benefitted from a
lower effective tax rate, $4.1 million of higher than normal prepayment
charge income from two discharged mortgages, and $5.8 million of fair
value gains on derivatives.



In the fourth quarter:




  • Diluted EPS was $1.07 compared to $0.82 in the third quarter of 2011 and
    $1.54 in the fourth quarter of 2010;


  • Adjusted EPS on a diluted basis was $1.10 compared to $0.84 in the third
    quarter and $1.28 in the fourth quarter a year ago;


  • Adjusted net income was $17.5 million compared to $13.6 million in the
    third quarter of 2011, and $20.1 million in the fourth quarter of 2010;


  • Adjusted net income available to common shareholders was $16.6 million
    compared to $12.7 million in the third quarter and $23.2 million in the
    fourth quarter a year ago;


  • Net interest income was $35.3 million (1.4% NIM) compared to $34.8
    million
    (1.4% NIM) in the third quarter of 2011 and $32.8 million (1.6%
    NIM) in the fourth quarter a year ago, and was higher in 2011 even with
    the $4.3 million of additional prepayment income in 2010, which is
    included in net interest income;


  • Adjusted ROE was 17.4% compared to 14.0% in the third quarter of 2011
    (17.3% excluding the provision) and 23.8% in the fourth quarter of
    2010;


  • Productivity ratio - TEB was 29.7% compared to 42.8% in the third
    quarter of 2011 (29.2% excluding the provision) and 25.2% in the fourth
    quarter of 2010.



In commenting on fourth quarter performance, Mr. Moor said: "This was a
solid finish to a record year, and our strong and growing mortgage book
provide Equitable with very positive momentum for 2012."



CONVENTIONAL MORTGAGE PORTFOLIO




  • Single Family Lending Services mortgage principal amounted to a record
    $2.1 billion at year end, 33.4% higher than at the end of 2010 on
    growth in production in each quarter of 2011. During the fourth
    quarter, this business line originated $345.6 million of conventional
    mortgages, 19.7% higher than in the fourth quarter of 2010;


  • Commercial Mortgage - Broker Services conventional mortgage principal at
    year end was a record $1.0 billion, 20.8% higher than at the end of
    2010, as it originated $72.2 million in the fourth quarter compared to
    $67.2 million in the same quarter of 2010;


  • Commercial Lending Services conventional mortgage principal at year end
    was $1.2 billion, 9.3% higher than at the end of 2010, as it originated
    $120.3 million of conventional mortgages in the fourth quarter compared
    to $37.4 million in Q4 2010.



Overall, conventional mortgage principal outstanding amounted to 44.7%
of total mortgage principal at year end, compared to 42.5% at year-end
2010.



SECURITIZED MORTGAGES



During the fourth quarter of 2011, production of CMHC-insured mortgages
amounted to $105.6 million compared to $246.2 million in the fourth
quarter of 2010, consistent with the Company's plan to substantially
reduce securitization activity in line with its emphasis on
conventional mortgage asset growth. At the end of the year, securitized
mortgage assets represented 55.3% of mortgage principal outstanding
($5.3 billion) compared to 57.5% ($4.7 billion) at year-end 2010.



CREDIT QUALITY



Equitable sustained its track record of low realized loan losses during
2011 and in the fourth quarter saw improvements in key credit metrics:




  • Mortgage principal in arrears 90 days or more was 0.22% compared to
    0.46% at December 31, 2010;


  • Net impaired mortgages were 0.24% of total mortgage principal at
    year-end 2011, compared to 0.42% at year-end 2010.



Management remains comfortable that provisions taken to date adequately
provide for the risk of loss.



REGIONAL DIVERSIFICATION



Over the past five years, while remaining focused on its core niches,
the Company has increased its presence in western Canada and Quebec to
complement its solid leadership position in other urban Canadian
markets. As a result, 58.3% of the Company's mortgages were secured on
properties located in Ontario, 14.9% were located in Alberta, 13.1% of
were located in Quebec, 5.8% in British Columbia, 1.5% were located in
Manitoba, and the balance in other selected regions of Canada.



LOOKING AHEAD



"Industry forecasts suggest that Canadian real estate prices will be
stable in 2012," said Mr. Moor, "nonetheless we are prepared for the
possibility of a soft landing for the market as a result of our
proactive, risk-sensitive lending practices. In the context of our own
outlook, we intend to continue prudently growing conventional mortgage
production in chosen markets over the coming year. Combined with our
already sizeable mortgage portfolio balances, and the activities taken
to strengthen our business, we are confident in our ability to grow
earnings, maintain our strong capital position and keep our credit
metrics well within an acceptable range. On balance, our outlook is
very positive and we will continue to position Equitable as the lender
of choice for Canada's mortgage broker community, business-for-self
Canadians and newcomers to our country."



In commenting on interest rate margins, Equitable's Vice President and
Chief Financial Officer Tim Wilson said: "Our expectation is that the
Company's net interest margin will remain stable in 2012, reflecting
Bank of Canada policy decisions that appear to favour a hold-the-line
approach to rates and steady funding markets. Our NIM outlook also
takes into account the fact that we intend to maintain liquidity at
approximately the same levels as in 2011. While this marginally dampens
NIM growth, it ensures we are well-positioned to manage any unforeseen
events in Canadian and international capital markets."



ADJUSTING FOR ACCOUNTING CHANGES



Results for both reporting periods were prepared using International
Financial Reporting Standards ("IFRS"), with a transition date of
January 1, 2010. As a result, prior period comparative information in
this news release reflects conversion from previous Canadian Generally
Accepted Accounting Principles ("GAAP") to IFRS. In addition to being
affected by differences in the method of accounting for securitized
assets, the restatement of the Company's financial results from
previous Canadian GAAP to IFRS is affected by differences in the method
of accounting for the related derivatives that are within its
securitization activities, including the activities it undertakes to
hedge interest rate risk associated with mortgage commitments and
mortgages issued but awaiting securitization, as well as the interest
rate risk associated with the respective securitization liabilities. In
order to help readers, the Company analyzes its 2011 performance by
comparing it to 2010 on an adjusted basis, which removes gains and
losses associated with unmatched derivative measurement accounting.
Adjusted figures are non-GAAP financial measures and do not remove the
operational provision taken in the third quarter. Non-GAAP measures are
not calculated in accordance with GAAP, are not defined by GAAP, and do
not have standardized meanings that would ensure consistency and
comparability between companies using these measures. For further
information on Non-GAAP measures used in this report can be found under
the Non-GAAP Financial Measures section of the Company's Management's
Discussion and Analysis for the three months and year ended December
31, 2011
.



Q4 CONFERENCE CALL



The Company will hold its fourth quarter conference call and webcast at
10:00 a.m. ET Wednesday February 29, 2012. To access the call live,
please dial in five minutes prior to 416-644-3414. To access a
listen-only version of the webcast, please log on to www.equitabletrust.com under Investor Relations.



A replay of the call will be available until March 7, 2012 and it can be
accessed by dialing 416-640-1917 and entering passcode 4508034 followed
by the number sign. Alternatively, the call will be archived on the
Company's website for three months.




















































































































































































































































































































































































CONSOLIDATED FINANCIAL STATEMENTS



























CONSOLIDATED BALANCE SHEETS















($ THOUSANDS)















 

















December 31, 2011



December 31, 2010

January 1, 2010

 













Assets















Cash and cash equivalents

$

170,845



$

155,242

$

389,170

Restricted cash



83,156





86,570



25,372

Investments



400,307





413,330



302,292

Mortgages receivable



4,262,147





3,468,507



2,763,020

Mortgages receivable - securitized



5,314,940





4,748,794



4,137,247

Other assets



25,618





11,686



15,191



$

10,257,013



$

8,884,129

$

7,632,292

















Liabilities and Shareholders' Equity















Liabilities:

















Deposits

$

4,627,904



$

3,878,853

$

3,332,319



Securitization liabilities



5,100,921





4,531,680



3,885,187



Deferred tax liabilities



7,790





7,086



5,191



Other liabilities



28,587





19,884



14,959



Bank term loans



12,500





12,500



27,500



Subordinated debentures



52,671





52,671



37,671





9,830,373





8,502,674



7,302,827

















Shareholders' equity:

















Preferred shares



48,494





48,494



48,494



Common shares



129,771





128,068



127,336



Contributed surplus



4,718





3,935



3,267



Retained earnings



254,006





202,187



155,890



Accumulated other comprehensive loss



(10,349)





(1,229)



(5,522)





426,640





381,455



329,465



















$

10,257,013



$

8,884,129

$

7,632,292




























































































































































































































































































































































































CONSOLIDATED STATEMENTS OF INCOME











($ THOUSANDS, EXCEPT PER SHARE AMOUNTS)











.











Years ended December 31

2011



2010













Interest income:













Mortgages

$

206,987



$

178,114



Mortgages - securitized



213,604





199,980



Investments



10,307





8,683



Other



4,403





3,235





435,301





390,012

Interest expense:













Deposits



115,314





96,462



Securitization liabilities



181,694





168,796



Bank term loans



812





2,059



Subordinated debentures



3,493





2,626



Other



217





120





301,530





270,063

Net interest income



133,771





119,949

Provision for credit losses



7,183





9,748

Net interest income after provision for credit losses



126,588





110,201

Other income:













Fees and other income



3,545





3,003



Net gain on investments



144





230





3,689





3,233

Net interest and other income



130,277





113,434

Non-interest expenses:













Compensation and benefits



22,856





18,632



Other



22,858





14,918





45,714





33,550

Income before income taxes and fair value loss



84,563





79,884

Fair value loss on derivative financial instruments - securitization
activities



(648)





(7,544)

Income before income taxes



83,915





72,340

Income taxes:













Current



21,026





16,004



Deferred



703





443





21,729





16,447

Net income

$

62,186



$

55,893













Earnings per share:













Basic

$

3.91



$

3.50



Diluted

$

3.88



$

3.48













































































































































































































CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME











($ THOUSANDS)























Years ended December 31

2011



2010













Net income

$

62,186



$

55,893













Other comprehensive (loss) income:























Available for sale investments:











Net unrealized gains from change in fair value



1,470





4,854

Reclassification of net (gains) losses to income



(385)





1,328





1,085





6,182

Income tax expense



(304)





(1,889)





781





4,293













Cash flow hedges:











Net unrealized losses from change in fair value



(13,684)





-

Reclassification of net gains to income



(77)





-





(13,761)





-

Income tax recovery



3,860





-





(9,901)





-

Total other comprehensive (loss) income



(9,120)





4,293

Total comprehensive income

$

53,066



$

60,186


























































































































































































































































































































































































































































































































































































































































































































































































































































































































CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY 

($ THOUSANDS)







































































































2011









Preferred

shares







Common

shares







Contributed

surplus







Retained

earnings







Accumulated

other

comprehensive

income (loss)







Total





















































Balance, beginning of year







$

48,494





$

128,068





$

3,935





$

202,187





$

(1,229)





$

381,455

Net income









-







-







-







62,186







-







62,186

Other comprehensive loss, net of tax









-







-







-







-







(9,120)







(9,120)

Contributions from reinvestment of dividends









-







582







-







-







-







582

Contributions from exercise of stock options









-







943







-







-







-







943

Dividends:





















































Preferred shares









-







-







-







(3,625)







-







(3,625)



Common shares









-







-







-







(6,742)







-







(6,742)

Stock-based compensation









-







-







961







-







-







961

Transfer relating to the exercise of stock options









-







178







(178)







-







-







-

Balance, end of year







$

48,494





$

129,771





$

4,718





$

254,006





$

(10,349)





$

426,640









































































































2010









Preferred

shares







Common

shares







Contributed

surplus







Retained

earnings







Accumulated

other

comprehensive

income (loss)







Total





















































Balance, beginning of year







$

48,494





$

127,336





$

3,267





$

155,890





$

(5,522)





$

329,465

Net income









-







-







-







55,893







-







55,893

Other comprehensive income, net of tax









-







-







-







-







4,293







4,293

Contributions from reinvestment of dividends









-







357







-







-







-







357

Contributions from exercise of stock options









-







318







-







-







-







318

Dividends:





















































Preferred shares









-







-







-







(3,625)







-







(3,625)



Common shares









-







-







-







(5,971)







-







(5,971)

Stock-based compensation









-







-







725







-







-







725

Transfer relating to the exercise of stock options









-







57







(57)







-







-







-

Balance, end of year







$

48,494





$

128,068





$

3,935





$

202,187





$

(1,229)





$

381,455
































































































































































































































































































































































































































































CONSOLIDATED STATEMENTS OF CASH FLOWS

($ THOUSANDS)























Years ended December 31

2011



2010

CASH FLOWS FROM OPERATING ACTIVITIES











Net income for the year

$

62,186



$

55,893

Adjustments to determine cash flows relating to operating activities:













Financial instruments at fair value through income



2,857





1,875



Depreciation of capital assets



712





609



Provision for credit losses



7,183





9,748



Net (gain) loss on sale or redemption of investments



(144)





2,504



Income taxes



21,729





16,447



Income taxes paid



(18,280)





(16,329)



Stock-based compensation



961





725



Amortization of premiums/discounts on investments



3,273





1,980



Net increase in mortgages receivable



(1,363,900)





(1,326,268)



Net increase in deposits



749,051





546,534



Net change in securitization liability



569,241





646,493



Net interest income, excluding non-cash items



(176,923)





(151,571)



Interest paid



(264,312)





(237,976)



Other assets



(28,756)





(417)



Other liabilities



5,981





5,701



Interest received



431,207





380,042



Dividends received



10,028





9,505

Cash flows from (used in) operating activities



12,094





(54,505)

CASH FLOWS FROM FINANCING ACTIVITIES













Repayment of bank term loan



-





(15,000)



Issuance of subordinated debentures



-





20,000



Redemption of subordinated debentures



-





(5,000)



Dividends paid on preferred shares



(3,625)





(3,625)



Dividends paid on common shares



(5,853)





(5,610)



Proceeds from issuance of common shares



943





318

Cash flows used in financing activities



(8,535)





(8,917)

CASH FLOWS FROM INVESTING ACTIVITIES













Purchase of investments



(138,934)





(524,988)



Proceeds on sale or redemption of investments



105,730





371,777



Net change in Canada Housing Trust re-investment accounts



(20,762)





(10,381)



Purchase of investments under reverse repurchase agreements



(191,343)





(364,189)



Proceeds on sale or redemption of investments purchased under reverse
repurchase agreements



256,284





419,002



Change in restricted cash



3,414





(61,198)



Purchase of capital assets



(2,345)





(529)

Cash flows from (used in) investing activities



12,044





(170,506)

Net increase (decrease) in cash and cash equivalents



15,603





(233,928)

Cash and cash equivalents, beginning of year



155,242





389,170

Cash and cash equivalents, end of year

$

170,845



$

155,242





ABOUT EQUITABLE GROUP INC.



Equitable Group Inc. is a niche mortgage lender. Our core business is
first charge mortgage financing, which we offer through our wholly
owned subsidiary, The Equitable Trust Company. Founded in 1970,
Equitable Trust is a federally incorporated trust company. It serves
single family, small and large commercial borrowers and their mortgage
advisors. It also serves the investing public as a provider of
Guaranteed Investment Certificates ("GICs"). Equitable is active in
providing GICs across all Canadian provinces and territories. We
actively originate mortgages across Canada, with offices in Ontario,
Alberta and Quebec. Equitable Group's common and preferred shares are
traded on the Toronto Stock Exchange under the symbols ETC and
ETC.PR.A, respectively. Visit the Company on line at
www.equitabletrust.com and click on Investor Relations.



CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS



Statements made by the Company in the sections entitled "Annual
Results", "Fourth Quarter Results", "Securitized Mortgages", "Credit
Quality", "Looking Ahead" and "Adjusting For Accounting Changes", of
this report, in other filings with Canadian securities regulators and
in other communications include forward-looking statements within the
meaning of applicable securities laws ("forward-looking statements").
These statements include, but are not limited to, statements about the
Company's objectives, strategies and initiatives, financial performance
expectations and other statements made herein, whether with respect to
the Company's businesses or the Canadian economy. Generally,
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "planned", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases which state that
certain actions, events or results "may" , "could", "would", "should",
"might" or "will be taken", "occur", be achieved", or other similar
expressions of future or conditional verbs.



Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, closing of transactions, performance or achievements
of the Company to be materially different from those expressed or
implied by such forward-looking statements, including but not limited
to risks related to capital markets and additional funding
requirements, fluctuating interest rates and general economic
conditions, legislative and regulatory developments, changes in
accounting standards, the nature of our customers and rates of default,
and competition as well as those factors discussed under the heading
"Risk Management" in the Company's documents filed on SEDAR at
www.sedar.com.



All material assumptions used in making forward-looking statements are
based on management's knowledge of current business conditions and
expectations of future business conditions and trends, including their
knowledge of the current credit, interest rate and liquidity conditions
affecting the Company and the Canadian economy. Although the Company
believes the assumptions used to make such statements are reasonable at
this time and has attempted to identify in its continuous disclosure
documents important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended. Certain material assumptions are applied by the
Company in making forward-looking statements, including without
limitation, assumptions regarding its continued ability to fund its
mortgage business at current levels, a continuation of the current
level of economic uncertainty that affects real estate market
conditions, continued acceptance of its products in the marketplace, as
well as no material changes in its operating cost structure and the
current tax regime. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements.
The Company does not undertake to update any forward-looking statements
that are contained herein, except in accordance with applicable
securities laws.



The Company's continuous disclosure materials, including interim
filings, annual Management's Discussion and Analysis and Consolidated
Financial Statements, Annual Information Form, Notice of Annual Meeting
of Shareholders and Proxy Circular are available on the Company's
website at www.equitabletrust.com and on SEDAR at www.sedar.com.







For further information:

Tim Wilson
Vice President and Chief Financial Officer
416-515-7000