E.G. Capital Inc.
NEX BOARD : EGC.H

October 30, 2007 13:27 ET

E.G. Capital Inc. Announces Results for the Second Quarter Ended August 31, 2007

BROSSARD, QUEBEC--(Marketwire - Oct. 30, 2007) - E.G. Capital Inc. (NEX BOARD:EGC.H), ("E.G. Capital"), formally National Construction Inc., today announces results for the second quarter ended August 31, 2007

Comparison of the three months ended August 31, 2007 and August 31, 2006

Revenues increased 100% from nil for the three months ended August 31, 2006 to $52,571 for the three months ended August 31, 2007. Revenue in the three months ended August 31, 2007 was composed of $52,571 in income from the recovery of a joint venture receivable that was previously written off as it was deemed at that time to be non-recoverable. For the three months ended August 31, 2007, the Corporation achieved a gross profit of $52,571 representing 100% of total revenue compared to nil for the three months ended August 31, 2006. This increase was entirely due to an increase in joint venture income.

Selling, General and Administrative Expenses were $27,846 for the three months ended August 31, 2007 as compared to a net recovery of $1,620 for the same period last year. For the three months ended August 31, 2007, the $27,846 included approximately $20,000 in professional and advisory expenses and approximately $7,000 in regulatory related filing expenses, consulting, and sundry administrative costs. For the three months ended August 31, 2006 the net recovery of $1,620 included approximately $30,000 in professional and advisory expenses, approximately $10,000 in regulatory related filing expenses, consulting, and sundry administrative costs which was offset by approximately $42,000 in sales tax refunds. The Corporation incurred interest and bank charges of $309 for the three months ended August 31, 2007 as compared to interest expense of $4,403 for the same period last year.

As a result of the foregoing factors, the income before income taxes for the three months ended August 31, 2007 was $24,416 as compared to a loss before income taxes and special items of $2,783 for the same period last year. The net income for the three months ended August 31, 2007 was $24,416 after income tax of nil as compared to a net loss of $2,783 after income tax expense of nil for the same period last year.

Comparison of the six months ended August 31, 2007 and August 31, 2006

Revenues increased 100% from nil for the six months ended August 31, 2006 to $55,371 for the six months ended August 31, 2007. Revenue in the six months ended August 31, 2007 was composed of $52,571 in income from the recovery of a joint venture receivable that was previously written off as it was deemed at that time to be non-recoverable and $2,800 in miscellaneous interest revenue. For the six months ended August 31, 2007, the Corporation achieved a gross profit of $55,371 representing 100% of total revenue compared to nil for the six months ended August 31, 2006. This increase was entirely due to an increase in joint venture income and miscellaneous interest revenue.

Selling, General and Administrative Expenses were $63,886 for the six months ended August 31, 2007 as compared to $20,054 for the same period last year. For the six months ended August 31, 2007, the $63,866 included approximately $50,000 in professional and advisory expenses and approximately $14,000 in regulatory related filing expenses, consulting, and sundry administrative costs. For the six months ended August 31, 2006 the $20,054 included approximately $48,000 in professional and advisory expenses and approximately $14,000 in regulatory related filing expenses, consulting, and sundry administrative costs which was partially offset by approximately $42,000 in sales tax refunds. The Corporation incurred interest and bank charges of $670 for the six months ended August 31, 2007 as compared to interest expense of $4,831 for the same period last year.

As a result of the foregoing factors, the loss before income taxes for the six months ended August 31, 2007 was $9,185 as compared to a loss before income taxes of $24,885 for the same period last year. The net loss for the six months ended August 31, 2007 was $9,185 after income tax of nil as compared to a net loss of $24,885 after income tax expense of nil for the same period last year.

About E.G. Capital Inc.

The Corporation is an inactive company listed on the NEX board of the TSX Venture Exchange Inc ("the Exchange"). The business of the Corporation is to identify and evaluate businesses or assets with a view to completing a reactivation transaction on the Exchange. The Corporation's principal activities in the prior fiscal year were the wind-down of remaining current assets and liabilities subsequent to the sale of its Plant Maintenance Division on February 4, 2004 and preparation for the completion of a private placement which was completed on July 11, 2005.

The Corporation intends to review and pursue opportunities to unlock the value of its tax pools of approximately $9,000,000.

This press release may contain forward-looking statements relating to the Corporation. Among the important factors that could cause actual results to differ materially from those indicated by such forward looking statements are competitive pressures, technical difficulties, market acceptance, changes in customer requirements, and general economic conditions, and other risks and uncertainties as described from time to time in Corporation's reports, registration statements and filings filed by the Corporation with securities regulatory authorities.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • E.G. Capital Inc.
    William G. Edwards
    CFO
    (450) 444-2405 ext 237