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

West Street Capital Corporation

December 02, 2008 08:17 ET

West Street Capital Corporation Announces Third Quarter Financial Results

TORONTO, ONTARIO--(Marketwire - Nov. 28, 2008) - West Street Capital Corporation ("West Street" or the "company") (TSX:WSC)(TSX:WSC.PR.A) reported net income for the three months ended September 30, 2008 of $0.5 million compared to $0.5 million in the same period at 2007. After providing for unpaid preferred share dividend obligations of $0.7 million that accumulated during each three month period, the net loss per common share was $0.03 compared with a net loss of $0.02 per common share during the three months ended September 30, 2007.

Dividends, interest and other income totalled $0.6 million for the three months ended September 30, 2008, in comparison to $0.9 million in the same period in 2007 and consists principally of dividends and interest earned on the company's securities portfolio.

The company and its major shareholder are considering alternatives that would be intended to provide liquidity to preferred shareholders and simplify the company's capital structure.



Statement of Operations
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Three months ended Nine months ended
September 30 September 30
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(unaudited)
$thousands, except per share
amounts 2008 2007 2008 2007
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Investment income
Dividends, interest and other $ 643 $ 918 $ 2,002 $ 2,350

Expenses
Operating 20 28 115 210
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Net income before tax 623 890 1,887 2,140

Current tax expense 157 210 538 427
Future tax expense - 142 137 22
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Net income $ 466 $ 538 $ 1,212 $ 1,691
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Net loss per common share $(0.03) $(0.02) $ (0.09) $ (0.05)
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Balance Sheet
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$thousands, except per (unaudited)
share amount September 30, 2008 December 31, 2007
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Assets
Cash and equivalents $ 17,042 $ 16,190
Securities 27,640 30,460
Interest receivable and other 323 117
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$ 45,005 $ 46,767
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Liabilities
Accounts payable and provisions $ 388 $ 532
Shareholders' equity(1) 44,617 46,235
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$ 45,005 $ 46,767
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Attributable to each Class E
Preferred Share, Series 1(1) $ 26.58 $ 27.55
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(1) Shareholders' Equity
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$thousands, except per share September 30 Per Preferred
amounts 2008 Share
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Shareholders' equity $ 44,617 $ 26.58
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Less amounts attributed to
preferred shares
Redemption value 41,887 24.96
Unaccrued dividends
in arrears 49,827 29.68
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91,714 54.64
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Common share deficit $ (47,097) $ (28.06)
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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. Based on 1,678,465 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
    (416) 359-8625