E.G. Capital Inc.
NEX BOARD : EGC.H

January 29, 2008 19:28 ET

E.G. Capital Inc. Announces Results for the Third Quarter Ended November 30, 2007

BROSSARD, QUEBEC--(Marketwire - Jan. 29, 2008) - E.G. Capital Inc. (NEX BOARD:EGC.H), ("E.G. Capital"), formally National Construction Inc., today announces results for the third quarter ended November 30, 2007

Comparison of the three months ended November 30, 2007 and November 30, 2006

Revenues decreased 100% from $417,000 for the three months ended November 30, 2006 to $nil for the three months ended November 30, 2007. Revenue in the three months ended November 30, 2006 was entirely composed of an increase in the actual recoverable earn-out distribution. For the three months ended November 30, 2007, the Corporation achieved a gross profit of $nil compared to $417,000 representing 100% of total revenue for the three months ended November 30, 2006. This increase was entirely due to an increase in the actual recoverable earn-out distribution.

Selling, General and Administrative Expenses were $47,014 for the three months ended November 30, 2007 as compared to $63,254 for the same period last year. For the three months ended November 30, 2007, the $47,014 included approximately $22,000 in professional and advisory expenses and approximately $25,000 in regulatory related filing expenses, consulting, and sundry administrative costs. For the three months ended November 30, 2006 the $63,254 included approximately $50,000 in professional and advisory expenses, approximately $13,000 in regulatory related filing expenses, consulting, and sundry administrative costs. The Corporation incurred interest and bank charges of $273 for the three months ended November 30, 2007 as compared to interest expense of $2,368 for the same period last year.

As a result of the foregoing factors, the loss before income taxes for the three months ended November 30, 2007 was $47,287 as compared to income before income taxes and special items of $351,378 for the same period last year. The net loss for the three months ended November 30, 2007 was $47,287 after income tax of $nil as compared to net income of $351,378 after income tax expense of $nil for the same period last year.

Comparison of the nine months ended November 30, 2007 and November 30, 2006

Revenues decreased 86% from $417,000 for the nine months ended November 30, 2006 to $55,371 for the nine months ended November 30, 2007. Revenue in the nine months ended November 30, 2007 was composed of $52,571 in income from the recovery of a joint venture receivable that was previously written off as it was deemed at that time to be non-recoverable and $2,800 in miscellaneous interest revenue. Revenue in the nine months ended November 30, 2006 was entirely composed of an increase in the actual recoverable earn-out distribution. For the nine months ended November 30, 2007, the Corporation achieved a gross profit of $55,371 representing 100% of total revenue compared to $417,000 for the nine months ended November 30, 2006 representing 100% of total revenue.

Selling, General and Administrative Expenses were $110,900 for the nine months ended November 30, 2007 as compared to $83,308 for the same period last year. For the nine months ended November 30, 2007, the $110,900 included approximately $72,000 in professional and advisory expenses and approximately $39,000 in regulatory related filing expenses, consulting, and sundry administrative costs. For the nine months ended November 30, 2006 the $83,308 included approximately $50,000 in professional and advisory expenses and approximately $33,000 in regulatory related filing expenses, consulting, and sundry administrative costs. The Corporation incurred interest and bank charges of $943 for the nine months ended November 30, 2007 as compared to interest expense of $7,199 for the same period last year.

As a result of the foregoing factors, the loss before income taxes for the nine months ended November, 2007 was $56,472 as compared to income before income taxes of $326,493 for the same period last year. The net loss for the nine months ended November 30, 2007 was $56,472 after income tax of $nil as compared to income of $326,493 after income tax expense of $nil for the same period last year.

About E.G. Capital Inc.

The Corporation is an inactive company listed on the NEX board of the TSX Venture Exchange Inc ("the Exchange"). The business of the Corporation is to identify and evaluate businesses or assets with a view to completing a reactivation transaction on the Exchange. The Corporation's principal activities in the prior fiscal year were the wind-down of remaining current assets and liabilities subsequent to the sale of its Plant Maintenance Division on February 4, 2004 and preparation for the completion of a private placement which was completed on July 11, 2005.

The Corporation intends to review and pursue opportunities to unlock the value of its tax pools of approximately $9,000,000.

This press release may contain forward-looking statements relating to the Corporation. Among the important factors that could cause actual results to differ materially from those indicated by such forward looking statements are competitive pressures, technical difficulties, market acceptance, changes in customer requirements, and general economic conditions, and other risks and uncertainties as described from time to time in Corporation's reports, registration statements and filings filed by the Corporation with securities regulatory authorities.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • E.G. Capital Inc.
    William G. Edwards
    CFO
    (450) 444-2405 ext 237