West Street Capital Corporation
TSX VENTURE : WSC
TSX VENTURE : WSC.PR.A

West Street Capital Corporation

November 29, 2007 17:18 ET

West Street Announces 2007 Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2007) - West Street Capital Corporation ("West Street" or the "company")(TSX:WSC)(TSX:WSC.PR.A) reported net income before taxes for the three months ended September 30, 2007 of $890 thousand, compared to $625 thousand during the same period in 2006. After providing for unpaid preferred share dividend obligations that accumulated during the three months ended September 30, 2007, the net loss per common share was $0.02, compared with $0.03 per common share during the same period last year.

Dividends, interest and other income totalled $918 thousand for the three months ended September 30, 2007, which increased by $224 thousand over the prior year.



Statements of Operations
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Three months ended Nine months ended
September 30 September 30
(unaudited)
$thousands, except per share amounts 2007 2006 2007 2006
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Investment income and other $ 918 $ 694 $ 2,350 $ 1,924
Operating and legal expenses 28 69 210 222
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Net income before investment gains 890 625 2,140 1,702
Investment gains - - - 317
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Net income before taxes 890 625 2,140 2,019
Income tax expense 352 225 449 410
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Net income $ 538 $ 400 $ 1,691 $ 1,609
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Net loss per common share $ (0.02) $ (0.03) $ (0.05) $ (0.05)
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Balance Sheet
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(unaudited)
$thousands, except per share amount September 30, 2007 December 31 2006
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Assets
Cash and equivalents $ 12,298 $ 10,518
Securities(1) 34,397 33,421
Interest receivable and other 290 258
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$ 46,985 $ 44,197
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Liabilities
Accounts payable and provisions $ 339 $ 239
Shareholders' equity(3) 46,646 43,958
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$ 46,985 $ 44,197
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Attributable to each Class A Preferred
Share, Series E(3) $ 27.84 $ 26.24
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(1) As a result of a change in accounting standards which took affect
January 1, 2007, securities are carried at market value in the
company's financial statements as at September 30, 2007. The carrying
value of securities as at December 31, 2006 was based on historical
book value.
(2) No carrying value has been assigned to $288.1 million of capital losses
in the company's financial statements as there is not sufficient
certainty of utilization.
(3) Shareholders' Equity
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September 30, 2007
Per Preferred
$thousands, except per share amounts Total Share
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Book value of net assets and liabilities $ 46,646 $ 27.84
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Less amounts attributed to preferred shares
Redemption value 41,887 25.00
Preferred share dividends in arrears 46,895 27.98
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88,782 52.98
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Common share deficit $ (42,136) $ (25.14)
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As a result of cumulative dividends in arrears, the tangible net book value
of the company currently accrues entirely to the preferred shares. The
above preferred share information is based on 1,675,465 preferred shares
currently issued and outstanding.


This news release contains forward-looking statements concerning the Company's business and operations. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and the Company's actual results could differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Information Form for a description of the major risk factors.

Contact Information

  • West Street Capital Corporation
    Brian D. Lawson
    President and Chief Executive Officer
    (416) 359-8625