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

West Street Capital Corporation

August 27, 2010 17:54 ET

West Street Announces Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 27, 2010) - West Street Capital Corporation ("West Street" or the "company") (TSX VENTURE:WSC)(TSX VENTURE:WSC.PR.A) reported net income for the period ended June 30, 2010 of $0.7 million compared to a net loss of $0.2 million in 2009. After providing for unpaid preferred share dividend obligations of $0.7 million (2009 - $0.7 million), the net loss per common share was $0.01 compared with a net loss of $0.09 per common share during the same period in the prior year.

The total return to shareholders, including changes in the market value of the company's security portfolio, was a decrease of $0.7 million (2009 - increase of $2.8 million). Through their cumulative dividend entitlement, $0.7 million accrued to the preferred shareholders, and as a result, the deficit attributable to the company's common shares increased by $1.4 million to $48.9 million.

Interest, dividends and other income totalled $0.7 million for the period ended June 30, 2010, in comparison to $0.4 million in the same period in 2009 and consist principally of interest and dividends earned on the company's securities portfolio. The increase in investment income is primarily the result of the investment of cash balances into a higher yielding U.S. dollar bond portfolio in the fourth quarter of 2009.

Statements of Operations  
   
  Three months ended June 30   Six months ended June 30  
(Thousands, except per share amounts)   2010     2009     2010     2009  
Investment income $ 730   $ 412   $ 1,426   $ 933  
Operating expenses   28     72     69     107  
Net income before investment gains (losses) and taxes   702     340     1,357     826  
Investment gains (losses)   143     (393 )   143     (393 )
Net income (loss) before taxes   845     (53 )   1,500     433  
Current taxes   (185 )   (149 )   (363 )   (255 )
Net income   660     (202 )   1,137     178  
Preferred share dividend entitlement   (734 )   (733 )   (1,468 )   (1,466 )
Net loss attributable to common shares $ (74 ) $ (935 ) $ (331 ) $ (1,288 )
Net loss per common share $ (0.01 ) $ (0.09 ) $ (0.03 ) $ (0.12 )
 
 
Statements of Total Return
 
   Three months ended June 30    Six months ended June 30
(Thousands)   2010     2009     2010     2009
Net income / loss $ 660   $ (202 ) $ 1,137   $ 178
Unrealized (loss) gain on securities   (1,316 )   3,039     (601 )   2,636
Total return $ (656 ) $ 2,837   $ 536   $ 2,814
                       
                       
Balance Sheets  
   
  (unaudited)        
(Thousands) June 30, 2010   December 31, 2009  
Assets            
  Cash and equivalents $ 4,846   $ 4,605  
  Securities   43,028     42,240  
  Interest receivables and other   389     572  
  $ 48,263   $ 47,417  
Liabilities            
  Accounts payable and other provisions $ 499   $ 189  
Shareholders' Equity   47,764     47,228  
  $ 48,263   $ 47,417  
   
(Thousands, except per share amounts) June 30, 2010   December 31, 2009  
Shareholders' Equity $ 47,764   $ 47,228  
Less: amounts attributable to preferred shares            
  Stated value   (42,160 )   (42,160 )
  Unpaid dividends(1)   (54,463 )   (52,995 )
Common share deficit(2) $ (48,859 ) $ (47,927 )
  Per common share $ (4.47 ) $ (4.39 )
(1) Represent dividends in arrears on preferred shares that are not recorded in the financial statements.
(2) The above table presents the common share deficit.

Contact Information

  • West Street Capital Corporation
    Sachin G. Shah
    President
    (416) 369-8268