Dundee (DDEJF) 6-K Current report (foreign)

DUNDEE BANCORP REPORTS

THIRD QUARTER 2004 RESULTS

Toronto, Ontario – November 11, 2004:DUNDEE BANCORP INC. (TSX:  DBC.A)reports its financial results for the three and nine months ended September 30, 2004.  Net earnings for the first nine months of 2004 were $55.5 million or $2.20 per share compared with $40.9 million or $1.62 per share for the same period of 2003.  On a quarterly basis, net earnings were $14.4 million or $0.57 per share, compared with $4.5 million or $0.18 per share in the third quarter of 2003.

The results for our Dundee Wealth Management activities reflect the increase of $1.6 billion in assets under management since December 31, 2003, as well as the increased financial service revenues resulting from an acquisition completed in December 2003.  Expenses reflect the increased activities as well as higher than normal operating costs, which were expected as the result of the integration and ramp up of our securities brokerage and financial planning activities.  It was originally estimated that the integration period, along with higher than normal operating costs would occur over 18 to 24 months.  Since acquisition, Dundee Wealth has merged similar regulated operating subsidiaries, and has completed several back office system conversions, with another to be completed by the end of this year.  To date, operations related to the Cartier acquisition are running at break even levels.  Non recurrin g integration costs in the nine month period are estimated at $8 million.

Our real estate division reported three and nine month operating earnings before taxes of $17.7 million and $35.2 million, respectively.  During the third quarter of this year, Dundee Realty completed the registration of the first tower of the Pantages condominium project in downtown Toronto, and reported an accounting profit of $9.7 million.  In the three and nine month periods ended September 30, 2004, we earned $3.1 million and $8.0 million, respectively, in equity earnings and dilution gains from our ownership in Dundee REIT.

Subsequent to the end of the third quarter, our real estate division announced that it had acquired 50% of the assets comprising the Distillery Historic District in downtown Toronto for approximately $18 million.  The Distillery District is a historical site, built in 1832, and has recently been developed from a former distillery into a well known tourist area and cultural district, home to artist studios, performance theatres, art organizations and galleries.  The project consists of 400,000 square feet of existing historical properties and a further 1,000,000 of residential density.  

The investment income reflected in our resources segment is almost all related to the elimination of our ownership of the remaining shares of IAMGold Corporation, which position was acquired when our affiliate, Repadre Capital Corporation was taken over by that company during 2003.

DUNDEE BANCORP INC.

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Our investment income was $8.1 million in the three months ended September 30, 2004.  This compares with $8.6 million earned in the same period of 2003.  Our year-to-date investment income is $63.7 million and includes $26.8 million earned from Dundee Precious Metals Inc. by Dundee Wealth.

FORWARD LOOKING STATEMENTS

This release contains forward looking statements about the Company, including its business operations, strategy and expected financial performance and conditions.  Forward looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” or similar expressions. Such statements are based on the current expectations of management, and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the financial services industry, generally.  These forward looking statements are not guarantees of future performance, and actual events and r esults could differ materially from those expressed or implied by forward looking statements made by the Company.  The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward looking statements.  The Company has no specific intention to update any forward looking statements whether as a result of new information, future events or otherwise.  

Readers are referred to the media release of Dundee Wealth Management Inc. dated November 11, 2004 for more information on that company.

A review of the activities and performance of the Company, together with interim consolidated financial statements and a Management’s Discussion and Analysis, will be published in the Company’s Third Quarter 2004 Report to Shareholders which should be mailed to shareholders on or before November 12, 2004.

For further information please contact:

Ned Goodman

Joanne Ferstman

Dundee Bancorp Inc.

Dundee Bancorp Inc.

President & CEO

Executive Vice President & CFO

Tel: (416) 365-5665

Tel: (416) 365-5010

ngoodman@dundeebancorp.com

jferstman@dundeebancorp.com

DUNDEE BANCORP INC.

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Segmented Earnings for the nine months ended September 30, 2004 and 2003

(in thousands of dollars)											2004
For the nine months ended September 30, 2004	WealthManagement		Real Estate		Resources		Other Investments and Corporate Costs		Intersegment		TOTAL
REVENUES
Management and administration fees	$	169,985	$	-	$	-	$	-	$	-	$	169,985
Redemption fees		7,797		-		-		-		-		7,797
Financial services		249,715		-		-		2,276		(2,261)		249,730
Real estate revenue		-		137,173		-		-		-		137,173
Oil and gas sales, net of royalties		-		-		4,296		-		-		4,296
Investment income		28,247		-		25,480		10,826		(813)		63,740
		455,744		137,173		29,776		13,102		(3,074)		632,721
EXPENSES
Selling, general and administrative		149,442		5,048		881		13,229		(2,261)		166,339
Variable compensation		174,826		-		-		-		-		174,826
Trailer fees		30,997		-		-		-		-		30,997
Operating costs, real estate		-		101,912		-		-		-		101,912
Operating costs, oil and gas properties		-		-		1,194		-		-		1,194
		355,265		106,960		2,075		13,229		(2,261)		475,268
OPERATING EBITDA		100,479		30,213		27,701		(127)		(813)		157,453
Amortization of deferred sales commissions		26,384		-		-		-		-		26,384
Depreciation, depletion and amortization		7,389		330		1,062		760		-		9,541
Interest expense		1,532		1,090		19		8,710		(813)		10,538
OPERATING EARNINGS (LOSS)		65,174		28,793		26,620		(9,597)		-		110,990
Equity earnings		-		8,037		3,758		573		-		12,368
Investment provision		-		-		-		(3,339)		-		(3,339)
Non controlling interest		(17,635)		(1,585)		(319)		-		-		(19,539)
	$	47,539	$	35,245	$	30,059	$	(12,363)	$	-		100,480
Dilution loss												(1,738)
Income taxes												(43,281)
NET EARNINGS FOR THE PERIOD											$	55,461

(in thousands of dollars)											2003
For the nine months ended September 30, 2003	WealthManagement		Real Estate		Resources		Other Investments and Corporate Costs		Intersegment		TOTAL
REVENUES
Management and administration fees	$	121,662	$	-	$	-	$	-	$	-	$	121,662
Redemption fees		8,038		-		-		-		-		8,038
Financial services		103,721		-		-		2,517		(2,512)		103,726
Real estate revenue		-		29,916		-		-		-		29,916
Oil and gas sales, net of royalties		-		-		9,203		-		-		9,203
Investment income (loss)		(430)		425		30,634		2,209		(886)		31,952
		232,991		30,341		39,837		4,726		(3,398)		304,497
EXPENSES
Selling, general and administrative		95,428		504		1,318		6,572		(2,512)		101,310
Variable compensation		58,303		-		-		-		-		58,303
Trailer fees		23,580		-		-		-		-		23,580
Operating costs, real estate		-		28,639		-		-		-		28,639
Operating costs, oil and gas properties		-		-		4,016		-		-		4,016
		177,311		29,143		5,334		6,572		(2,512)		215,848
OPERATING EBITDA		55,680		1,198		34,503		(1,846)		(886)		88,649
Amortization of deferred sales commissions		31,685		-		-		-		-		31,685
Depreciation, depletion and amortization		3,924		632		1,301		816		-		6,673
Interest expense		2,917		-		30		9,417		(886)		11,478
OPERATING EARNINGS (LOSS)		17,154		566		33,172		(12,079)		-		38,813
Equity earnings (loss)		-		8,965		(136)		305		-		9,134
Non controlling interest		(3,205)		-		(298)		-		-		(3,503)
	$	13,949	$	9,531	$	32,738	$	(11,774)	$	-		44,444
Dilution loss												(1,312)
Income taxes												(2,267)
NET EARNINGS FOR THE PERIOD											$	40,865

DUNDEE BANCORP INC.

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Segmented Earnings for the three months ended September 30, 2004 and 2003

(in thousands of dollars)											2004
For the three months ended September 30, 2004	WealthManagement		Real Estate		Resources		Other Investments and Corporate Costs		Intersegment		TOTAL
REVENUES
Management and administration fees	$	54,794	$	-	$	-	$	-	$	-	$	54,794
Redemption fees		2,360		-		-		-		-		2,360
Financial services		74,120		-		-		718		(703)		74,135
Real estate revenue		-		82,744		-		-		-		82,744
Oil and gas sales, net of royalties		-		-		225		-		-		225
Investment income (loss)		(35)		-		7,311		823		(11)		8,088
		131,239		82,744		7,536		1,541		(714)		222,346
EXPENSES
Selling, general and administrative		48,834		1,875		92		2,314		(703)		52,412
Variable compensation		52,979		-		-		-		-		52,979
Trailer fees		10,497		-		-		-		-		10,497
Operating costs, real estate		-		64,350		-		-		-		64,350
Operating costs, oil and gas properties		-		-		59		-		-		59
		112,310		66,225		151		2,314		(703)		180,297
OPERATING EBITDA		18,929		16,519		7,385		(773)		(11)		42,049
Amortization of deferred sales commissions		8,805		-		-		-		-		8,805
Depreciation, depletion and amortization		2,922		271		65		278		-		3,536
Interest expense		358		53		9		2,983		(11)		3,392
OPERATING EARNINGS (LOSS)		6,844		16,195		7,311		(4,034)		-		26,316
Equity earnings (loss)		-		3,064		(1,365)		208		-		1,907
Investment provision		-		-		-		-		-		-
Non controlling interest		(1,024)		(1,585)		160		-		-		(2,449)
	$	5,820	$	17,674	$	6,106	$	(3,826)	$	-		25,774
Dilution gain												78
Income taxes												(11,476)
NET EARNINGS FOR THE PERIOD											$	14,376

(in thousands of dollars)											2003
For the three months ended September 30, 2003	WealthManagement		Real Estate		Resources		Other Investments and Corporate Costs		Intersegment		TOTAL
REVENUES
Management and administration fees	$	42,535	$	-	$	-	$	-	$	-	$	42,535
Redemption fees		2,391		-		-		-		-		2,391
Financial services		38,212		-		-		830		(825)		38,217
Real estate revenue		-		29,916		-		-		-		29,916
Oil and gas sales, net of royalties		-		-		2,047		-		-		2,047
Investment income		202		425		4,681		3,594		(287)		8,615
		83,340		30,341		6,728		4,424		(1,112)		123,721
EXPENSES
Selling, general and administrative		34,080		504		354		3,968		(825)		38,081
Variable compensation		21,519		-		-		-		-		21,519
Trailer fees		8,551		-		-		-		-		8,551
Operating costs, real estate		-		28,639		-		-		-		28,639
Operating costs, oil and gas properties		-		-		680		-		-		680
		64,150		29,143		1,034		3,968		(825)		97,470
OPERATING EBITDA		19,190		1,198		5,694		456		(287)		26,251
Amortization of deferred sales commissions		10,488		-		-		-		-		10,488
Depreciation, depletion and amortization		1,256		632		482		408		-		2,778
Interest expense		873		-		23		3,105		(287)		3,714
OPERATING EARNINGS (LOSS)		6,573		566		5,189		(3,057)		-		9,271
Equity earnings		-		2,647		(1,494)		58		-		1,211
Non controlling interest		(999)		-		(129)		-		-		(1,128)
	$	5,574	$	3,213	$	3,566	$	(2,999)	$	-		9,354
Dilution gain												318
Income taxes												(5,165)
NET EARNINGS FOR THE PERIOD											$	4,507

DUNDEE BANCORP INC.

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     D U N D E E   B A N C O R P   I N C.

C O N S O L I D A T E D   B A L A N C E   S H E E T S

As at September 30, 2004 and December 31, 2003
(expressed in thousands of Canadian dollars) (unaudited)
		September 30, 2004		December 31, 2003
				(Restated)
ASSETS
Cash and short term investments	$	166,373	$	148,658
Brokerage securities owned		27,297		24,978
Accounts receivable		160,630		170,682
Client accounts receivable		330,508		354,347
Corporate investments		372,792		324,867
Deferred sales commissions		102,069		85,309
Capital and other assets		150,411		160,625
Goodwill and other intangible assets		453,892		465,135
TOTAL ASSETS	$	1,763,972	$	1,734,601
LIABILITIES
Bank indebtedness	$	12,600	$	21,181
Accounts payable and accrued liabilities		147,522		186,276
Brokerage securities sold short		7,870		3,966
Client deposits and related liabilities		325,965		336,126
Income taxes payable		16,979		13,827
Corporate debt		251,979		295,622
Future income tax liabilities		66,883		38,552
		829,798		895,550
NON CONTROLLING INTEREST		284,719		245,818
SHAREHOLDERS' EQUITY
Share capital
Common shares		289,902		288,740
Contributed surplus		1,737		987
Retained earnings		359,185		304,758
Foreign currency translation adjustment		(1,369)		(1,252)
		649,455		593,233
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,763,972	$	1,734,601

DUNDEE BANCORP INC.

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D U N D E E   B A N C O R P   I N C.

C O N S O L I D A T E D   S T A T E M E N T S   O F   O P E R A T I O N S

For the three and nine months ended September 30, 2004 and 2003
(expressed in thousands of Canadian dollars, except per share amounts) (unaudited)
	Three months				Nine months
	2004		2003		2004		2003
				(Restated)				(Restated)
REVENUE
Management and administration fees	$	54,794	$	42,535	$	169,985	$	121,662
Redemption fees		2,360		2,391		7,797		8,038
Financial services		74,135		38,217		249,730		103,726
Real estate revenue		82,744		29,916		137,173		29,916
Oil and gas sales, net of royalties		225		2,047		4,296		9,203
		214,258		115,106		568,981		272,545
Investment income		8,088		8,615		63,740		31,952
		222,346		123,721		632,721		304,497
EXPENSES
Selling, general and administrative		52,412		38,081		166,339		101,310
Variable compensation		52,979		21,519		174,826		58,303
Trailer fees		10,497		8,551		30,997		23,580
Operating costs, real estate		64,350		28,639		101,912		28,639
Operating costs, oil and gas properties		59		680		1,194		4,016
		180,297		97,470		475,268		215,848
OPERATING EARNINGS BEFORE INTEREST,TAXES AND OTHER NON CASH ITEMS		42,049		26,251		157,453		88,649
Amortization of deferred sales commissions		8,805		10,488		26,384		31,685
Depreciation, depletion and amortization		3,536		2,778		9,541		6,673
Interest expense		3,392		3,714		10,538		11,478
OPERATING EARNINGS		26,316		9,271		110,990		38,813
Share of earnings of equity accounted investees		1,907		1,211		12,368		9,134
Dilution (loss) gain		78		318		(1,738)		(1,312)
Investment provision		-		-		(3,339)		-
Income taxes
Current		(2,029)		(3,621)		(16,059)		(3,701)
Future		(9,447)		(1,544)		(27,222)		1,434
		(11,476)		(5,165)		(43,281)		(2,267)
Non controlling interest		(2,449)		(1,128)		(19,539)		(3,503)
NET EARNINGS FOR THE PERIOD	$	14,376	$	4,507	$	55,461	$	40,865
RETAINED EARNINGS AT BEGINNING OF PERIOD	$	345,023	$	217,277	$	304,758	$	184,787
Change in opening retained earnings to account for
changes in accounting policies		-		-		-		(3,452)
Net earnings		14,376		4,507		55,461		40,865
Premiums related to cancellation of share capital		(214)		-		(1,034)		(416)
RETAINED EARNINGS AT END OF PERIOD	$	359,185	$	221,784	$	359,185	$	221,784
EARNINGS PER SHARE
Basic	$	0.57	$	0.18	$	2.20	$	1.62
Diluted	$	0.55	$	0.18	$	2.09	$	1.61

DUNDEE BANCORP INC.

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D U N D E E   B A N C O R P   I N C.

C O N S O L I D A T E D   S T A T E M E N T S   O F   C A S H   F L O W S

For the three and nine months ended September 30, 2004 and 2003
(expressed in thousands of Canadian dollars) (unaudited)
	Three months				Nine months
	2004		2003		2004		2003
				(Restated)				(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings for the period	$	14,376	$	4,507	$	55,461	$	40,865
Non cash items in earnings:
Depreciation, depletion and amortization		12,341		13,266		35,925		38,358
Net investment gains		(7,378)		(5,507)		(60,360)		(28,595)
Share of unremitted equity earnings		(1,907)		(1,211)		(12,368)		(9,134)
Dilution loss (gain)		(78)		(318)		1,738		1,312
Investment provision		-		-		3,339		-
Future income taxes		9,447		1,544		27,222		(1,434)
Non controlling interest		2,449		1,128		19,539		3,503
Other		2,463		371		5,657		995
		31,713		13,780		76,153		45,870
Changes in:
Accounts receivable		(4,805)		(4,634)		29,244		(1,771)
Accounts payable and accrued liabilities		(630)		7,244		(33,487)		3,038
Bank indebtedness		7,922		1,816		(8,581)		(3,057)
Income taxes payable		1,922		3,082		1,214		(1,922)
Brokerage securities owned and sold short, net		(293)		(2,634)		1,585		(2,642)
Client accounts receivable, net of client deposits and related liabilities		(33,125)		(18,871)		13,678		(26,089)
Development of land, housing and condominium inventory		37,153		(7,156)		18,296		(7,156)
Other real estate working capital		(56,575)		-		(39,448)		-
CASH PROVIDED FROM (USED IN) OPERATING ACTIVITIES		(16,718)		(7,373)		58,654		6,271
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from dispositions of portfolio investments		7,516		10,848		66,772		110,840
Acquisitions of portfolio investments		(14,585)		(923)		(37,984)		(16,449)
Cash acquired in business acquisitions		-		-		-		2,978
Acquisition of non controlling interest		-		-		(1,000)		(2,000)
Sales commissions paid on distribution of mutual funds		(12,249)		(9,512)		(43,144)		(26,019)
Acquisition of shares in subsidiary		-		(397)		(2,690)		(3,251)
Acquisition of land held for development		(2,587)		10,423		(13,018)		10,423
Other		(7,523)		(1,186)		(14,687)		(5,639)
CASH (USED IN) PROVIDED FROM INVESTING ACTIVITIES		(29,428)		9,253		(45,751)		70,883
CASH FLOWS FROM FINANCING ACTIVITIES:
(Decrease) increase in corporate debt		16,795		(46,911)		(23,947)		(42,565)
Increase in real estate debt		4,187		-		577		-
Issuance of Class A subordinate shares, net of issue costs		44		351		2,020		561
Acquisition of Class A subordinate shares		(400)		(2,573)		(1,675)		(4,694)
Issuance of shares in subsidiaries to non controlling interest		940		632		37,040		2,117
Cancellation of shares in subsidiary		(3,750)		-		(7,855)		-
Dividends paid by subsidiaries to non controlling shareholders		(444)		(137)		(1,348)		(412)
CASH PROVIDED FROM (USED IN)FINANCING ACTIVITIES		17,372		(48,638)		4,812		(44,993)
NET INCREASE (DECREASE) IN CASH DURING THE PERIOD		(28,774)		(46,758)		17,715		32,161
Cash and short term investments, beginning of period		195,147		198,386		148,658		119,467
CASH AND SHORT TERM INVESTMENTS, END OF PERIOD	$	166,373	$	151,628	$	166,373	$	151,628
Cash flows from operating activities include the following:
Interest paid	$	3,392	$	3,714	$	10,538	$	11,478
Taxes paid	$	1,789	$	958	$	19,557	$	7,067

DUNDEE BANCORP INC.

7