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

June 30, 2008 14:59 ET

E.G. Capital Inc. Announces Results for the Year Ended February 29, 2008

BROSSARD, QUEBEC--(Marketwire - June 30, 2008) - E.G. Capital Inc. (NEX BOARD:EGC.H) ("E.G. Capital"), formally National Construction Inc., today announces results for the year ended February 29, 2008.

Comparison of the twelve months ended February 29, 2008 and February 28, 2007

Interest income of $2,685 previously disclosed as revenue for the year ended February 28, 2007 have been reclassified within Special Items within the February 29, 2009 financial statements. Other revenues previously disclosed as revenues within the interim financial statements have also been reclassified within Special Items within the February 29, 2008 financial statements. Administrative Expenses were $178,043 for the year ended February 29, 2008 as compared to $111,891 for the same period last year. For the year ended February 29, 2008, the $178,043 included approximately $62,000 in professional and advisory expenses, approximately $116,000 in regulatory related filing expenses, consulting, and sundry administrative costs. For the year ended February 28, 2007 the $111,891 included approximately $50,000 in professional and advisory expenses and approximately $61,000 in regulatory related filing expenses, consulting and sundry administrative costs. The increase is due to additional expenses incurred in pursuing potential opportunities to enhance shareholder value. Write-down of assets held for sale was $25,000 for the year ended February 29, 2008 as compared to $nil for the same period last year.

The Corporation incurred interest and bank charges of $23,629 for the year ended February 29, 2008 as compared to interest expense of $7,606 for the same period last year. The increase was due to increased interest on outstanding Ontario capital tax for which management is attempting to negotiate a reduction in taxes claimed as payable by the Province.

As a result of the foregoing factors, the loss before special items for the year ended February 29, 2008 was $226,672 as compared to a loss before income taxes and special items of $119,497 for the same period last year. The Corporation earned special items income of $82,438 for the year ended February 29, 2008 representing a recovery of revenue from a joint venture in the amount of approximately $52,000, a partial recovery of the earn-out allowance recorded in the prior year of approximately $34,000, an expense of approximately $36,000 representing an adjustment to CSST recoverable and interest income of approximately $32,000 earned on term deposits as compared to special item income of $382,685 for the same period last year representing an earn-out allowance recovery of $380,000 and interest income of $2,685. As a result of the foregoing factors, the loss for the year ended February 29, 2008 was $144,234 as compared to income before income taxes of $263,188 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 intends to review and pursue opportunities to unlock the value of its tax pools.

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