Envoy Capital Group Inc.
TSX : ECG
NASDAQ : ECGI

Envoy Capital Group Inc.

December 16, 2009 17:00 ET

Envoy Capital Group Inc. Announces Results for Fiscal 2009

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2009) - Envoy Capital Group Inc. (TSX:ECG)(NASDAQ:ECGI) today announced that for its fiscal year ended September 30, 2009 it incurred a net loss of ($10.5) million or ($1.22) per fully diluted share compared with a net loss of ($10.2) million or ($1.11) per fully diluted share for fiscal 2008. The per share calculations are based on fully diluted weighted average shares outstanding of approximately 8.6 million for the current quarter and 9.1 million for last year.

The net loss for fiscal 2009 includes $6.2 million in one time or non-recurring items as follows:

- Non-cash expenses of $4.4 million relating to the write down of goodwill;

- Non-cash expenses of $1.0 million relating to the write down of future tax assets; and,

- Non-recurring losses of $0.8 million relating to the company's Dubai branch operations which were closed during the fourth quarter of fiscal 2009 because of deteriorating business and economic conditions in that region.

The net loss for the fourth quarter ended September 30, 2009 was ($6.4) million or ($0.75) per fully diluted share compared with a loss of ($8.3) million or ($0.90) for the same quarter last year.

The 2009 fourth quarter loss includes $5.8 million in one-time or non-recurring items as follows:

- Non-cash expenses of $4.4 million relating to the write down of goodwill;

- Non-cash expenses of $1.0 million relating to the write down of future tax assets; and,

- Non-recurring losses of $0.4 million relating to the company's Dubai branch operations which were closed during the fourth quarter of fiscal 2009 because of deteriorating business and economic conditions in that region.

Management's discussion and analysis, containing a full analysis of financial results, is available on EDGAR (www.sec.gov/edgar.shtml) and on SEDAR (www.sedar.com).

About Envoy Capital Group Inc.

Envoy Capital Group Inc. (TSX:ECG)(NASDAQ:ECGI) is a merchant banking organization that focuses on providing financial services as well as equity and debt capital, to small and mid-cap companies. For more information on Envoy Capital Group Inc., visit our website at www.envoy.to

Cautionary Statement

Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of Section 21E (i) (1) of the United States Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Envoy Capital Group's actual results to be materially different from any future results expressed or implied by these statements. Such factors include the following: general economic and business conditions, changes in demand for Envoy Capital Group's services, changes in competition, the ability of Envoy Capital Group to integrate acquisitions or complete future acquisitions, interest rate fluctuations, currency exchange rate fluctuations, dependence upon and availability of qualified personnel and changes in government regulation. In light of these and other uncertainties, the forward-looking statements included in this press release should not be regarded as a representation by Envoy Capital Group that Envoy Capital Group's plans and objectives will be achieved. These forward-looking statements speak only as of the date of this press release, and we undertake no obligation to update or revise the statements.



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Envoy Capital Group Inc.
Consolidated Balance Sheet Highlights
(Expressed In Canadian dollars)

As at: September 30 September 30
2009 2008
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Current assets $ 21,476,272 $ 28,822,868
Long-term assets 2,118,932 7,659,176
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23,595,204 36,482,044
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Current liabilities 1,958,762 4,322,723
Long-term liabilities - -
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1,958,762 4,322,723

Minority interest 12,408 -

Shareholders' equity 21,624,034 32,159,321
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$ 23,595,204 $ 36,482,044
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Financial Highlights
Envoy Capital Group Inc.
Consolidated Statements of Operations
(Expressed In Canadian dollars)

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For the year ended: September 30 September 30
2009 2008
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Net revenue from consumer
branding business $ 11,732,473 $ 15,514,533
Net investment gains (losses) 333,372 (4,930,185)
Interest and dividend income 252,605 675,519
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12,318,450 11,259,867
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Operating expenses:
Salaries and benefits 12,706,335 12,815,891
General and administrative 3,151,830 3,581,721
Occupancy costs 851,112 560,757
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16,709,277 16,958,369

Depreciation 618,761 737,132

Interest expense and financing costs 73,840 33,347

Goodwill impairment 4,407,434 -

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21,809,312 17,728,848
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Loss before income taxes and
minority interest (9,490,862) (6,468,981)

Income tax expense 988,226 3,689,164

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Loss before minority interest (10,479,088) (10,158,145)

Minority interest (3,278) -

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Net loss (10,475,810) (10,158,145)
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Loss per share
Basic $ (1.22) $ (1.11)
Diluted $ (1.22) $ (1.11)

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Weighted average number of common
shares outstanding - basic 8,558,466 9,122,688
Weighted average number of common
shares outstanding - fully diluted 8,558,466 9,122,688

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Envoy Capital Group Inc.
Consolidated Statements of Retained Earnings (Deficit)
(Expressed In Canadian dollars)

(Deficit) retained earnings, beginning
of year $ (7,064,010) $ 3,094,135

Net loss (10,475,810) (10,158,145)

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Deficit, end of year $ (17,539,820) $ (7,064,010)
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Contact Information

  • Envoy Capital Group Inc.
    Joseph Leeder
    (416) 593-1212
    or
    Envoy Capital Group Inc.
    Investor Relations Department
    info@envoy.to