The net loss from continuing operations for the nine months ended March 31, 2013 was $35.0 million, or ($0.33) per common share, compared to a net loss from continuing operations of $19.6 million, or ($0.18) per common share, for the same period a year ago. Similar to the quarterly results for the period ended March 31, 2012, the nine month period ended March 31, 2012 included significant benefits related to the deconsolidation of the GATE trusts as well as an income tax benefit from continuing operations that in the aggregate totaled $27.0 million over that period.
As of March 31, 2013, the Company had $191.6 million in cash, cash equivalents and short-term investments compared to $182.5 million at December 31, 2012.
The increase of $9.1 million from the prior quarter resulted primarily from the $37.5 million growth in deposits, net of investments in private education loans and investments available-for-sale at Union Federal Savings Bank of $15.4 million, partially offset by $7.9 million of net operating cash usage to fund operations. The net operating cash usage of $7.9 million was 36% lower than the quarter ended March 31, 2012 and represents the lowest quarterly net operating cash usage since the Company began reporting this metric in the second quarter of fiscal 2009.
Net operating cash usage for the nine months ended March 31, 2013 was $32.4 million, a $9.2 million, or 22%, reduction compared to the same nine month period a year ago.
* See below under the heading "Use of Non-GAAP Financial Measures."
Quarterly Conference Call
First Marblehead will host a conference call on Monday, April 29, 2013 at 5:00 p.m. Eastern time to discuss its operating results. Investors and other interested parties are invited to listen to the conference call via a simultaneous internet broadcast on the Company's website at www.firstmarblehead.com, under "For Investors," or by dialing (888) 317-6003 from the United States or (412) 317-6061 from abroad and entering the pass code 9866432.
A replay will be available approximately one hour after completion of the call on First Marblehead's website or by dialing (877) 344-7529 from the United States or (412) 317-0088 from abroad and entering the pass code 10028091. The replay will be available for two weeks.
About The First Marblehead Corporation First Marblehead helps meet the need for education financing by offering national and regional financial institutions and educational institutions the Monogram® platform, an integrated suite of design, implementation and credit risk management services for private label, customizable private education loan programs. For more information, please see www.firstmarblehead.com. First Marblehead supports responsible lending and is a strong proponent of the smart borrowing principle, which encourages students to access scholarships, grants and federally-guaranteed loans before considering private education loans; please see www.SmartBorrowing.org. Through its subsidiary, Union Federal Savings Bank, First Marblehead offers private education loans, residential and commercial mortgage loans and retail savings, money market and time deposit products. For more information, please see www.unionfsb.com. First Marblehead also offers outsourced tuition planning, billing, payment technology services and refund management services through its subsidiary Tuition Management Systems LLC. For more information, please see www.afford.com. Through its subsidiary, Cology LLC, First Marblehead offers private education loan processing and disbursement services as well as life-of-loan servicing for lenders. For more information, please see www2.cology.com.
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