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

West Street Capital Corporation

April 14, 2010 18:17 ET

West Street Announces Fourth Quarter Results

TORONTO, ONTARIO--(Marketwire - April 14, 2010) - West Street Capital Corporation ("West Street" or the "company") (TSX VENTURE:WSC)(TSX VENTURE:WSC.PR.A) reported net income for the year ended December 31, 2009 of $0.6 million compared to $1.6 million in 2008. After providing for unpaid preferred share dividend obligations of $2.9 million (2008 - $2.9 million), the net loss per common share was $0.21 compared with a net loss of $0.12 per common share during the year ended December 31, 2008.

Dividends, interest and other income totalled $1.6 million for the year ended December 31, 2009, in comparison to $2.6 million in the same period in 2008 and consist principally of dividends and interest earned on the company's securities portfolio. The decrease in investment income is primarily the result of lower interest rates on floating rate investments.

On October 1, 2009, the company amalgamated with a wholly-owned subsidiary of Brookfield Asset Management Inc. ("Brookfield") which resulted in Brookfield acquiring 100% of the preferred shares of the company. At the time of the transaction, Brookfield owned approximately 99% of the cumulative redeemable convertible Class E Preferred Shares, Series 1. The preferred shares owned by Brookfield were exchanged on a one-for-one basis into 7% cumulative redeemable convertible Class A Preferred Shares, Series 1 of the newly formed company. Subsequent to the amalgamation, Brookfield invested additional capital into the company in exchange for a new class of 4.68% cumulative redeemable convertible Class A Preferred Shares, Series 2. The proceeds were used to redeem and cancel the remaining preferred shares of the company that Brookfield did not own. At December 31, 2009, undeclared dividends in arrears on the Class A Preferred Shares, Series 1 and 2 were $53.0 million, whereas the unaccrued preferred share dividends of the Class E, Series 1 Preferred Shares at December 31, 2008 were $50.6 million.

Statements of Operations  
   
FOR THE YEARS ENDED DECEMBER 31 (thousands, except per share amounts)   2009     2008  
Investment income $ 1,598   $ 2,578  
Operating and legal expenses   216     205  
Net income before investment losses and taxes   1,382     2,373  
Investment losses   (393 )    
Net income before taxes   989     2,373  
Current taxes   (368 )   (611 )
Future taxes       (137 )
Net income $ 621   $ 1,625  
Net loss per common share $ (0.21 ) $ (0.12 )
   
  Balance Sheets  
   
AS AT DECEMBER 31 (thousands)   2009     2008  
Assets            
  Cash and equivalents $ 4,605   $ 16,805  
  Securities   42,240     25,392  
  Interest receivables and other   572     235  
  $ 47,417   $ 42,432  
Liabilities            
  Accounts payable and other provisions   189     58  
Shareholders' Equity   47,228     42,374  
  $ 47,417   $ 42,432  
   
   
AS AT DECEMBER 31 (thousands, except per share amounts)   2009     2008  
Shareholders' Equity $ 47,228   $ 42,374  
Less: amounts attributable to preferred shares            
  Stated value   (42,160 )   (41,887 )
  Unpaid dividends(1)   (52,995 )   (50,560 )
Common share deficit(2) $ (47,927 ) $ (50,073 )
  Per common share $ (4.39 ) $ (4.58 )
(1) Represents dividends in arrears on preferred shares that are unaccrued for GAAP purposes.  
(2) The above table presents the significant common share deficit resulting from the net book value of the company being attributed to the preferred shares.  

Contact Information

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