Envoy Capital Group Inc.

Envoy Capital Group Inc.

February 03, 2010 16:05 ET

Envoy Capital Group Inc. Announces First Quarter Results for Fiscal 2010

TORONTO, ONTARIO--(Marketwire - Feb. 3, 2010) - Envoy Capital Group Inc. (TSX:ECG)(NASDAQ:ECGI) today announced its financial results for its first quarter of fiscal 2010.

For the quarter ended December 31, 2009, Envoy incurred a net loss of ($4.0) million or ($0.47) per fully diluted share compared with a net loss of ($1.0) million or ($0.12) per fully diluted share for the same quarter last year. Included in the current quarter's results is a one-time charge of approximately $2.4 million related to the executive restructuring announced in December 2009.

The Consumer and Retail Branding Division, experienced a significant decline in revenue due to difficult economic conditions therefore incurred a significant loss.

The Merchant Banking Division did not perform well compared to the overall market. This was due to not being fully invested and market timing. The Company anticipates the benefits of its restructuring to be realized over the remainder of the fiscal year.

Management's discussion and analysis, containing a full analysis of financial results, is available on EDGAR (www.sec.gov/edgar.shtml) and on SEDAR (www.sedar.com).

About Envoy Capital Group Inc.

Envoy Capital Group Inc. (TSX:ECG)(NASDAQ:ECGI) is a merchant banking organization that focuses on providing financial services as well as equity and debt capital, to small and mid-cap companies. For more information on Envoy Capital Group Inc., visit our website at www.envoy.to

Cautionary Statement

Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of Section 21E (i) (1) of the United States Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Envoy Capital Group's actual results to be materially different from any future results expressed or implied by these statements. Such factors include the following: general economic and business conditions, changes in demand for Envoy Capital Group's services, changes in competition, the ability of Envoy Capital Group to integrate acquisitions or complete future acquisitions, interest rate fluctuations, currency exchange rate fluctuations, dependence upon and availability of qualified personnel and changes in government regulation. In light of these and other uncertainties, the forward-looking statements included in this press release should not be regarded as a representation by Envoy Capital Group that Envoy Capital Group's plans and objectives will be achieved. These forward- looking statements speak only as of the date of this press release, and we undertake no obligation to update or revise the statements.

Envoy Capital Group Inc.        
Consolidated Balance Sheet Highlights        
Unaudited - Prepared by Management        
(Expressed In Canadian dollars)        
As at:   December 31   September 30
    2009   2009
Current assets $ 18,208,742 $ 21,476,272
Long-term assets   1,907,706   2,118,932
    20,116,448   23,595,204
Current liabilities   2,496,516   1,958,762
Long-term liabilities   -   -
    2,496,516   1,958,762
Minority interest   7,964   12,408
Shareholders' equity   17,611,968   21,624,034
  $ 20,116,448 $ 23,595,204
Financial Highlights        
Envoy Capital Group Inc.        
Consolidated Statements of Operations        
Unaudited - Prepared by Management        
(Expressed In Canadian dollars)        
For the three months ended:   December 31   December 31
    2009   2008
Net revenue from consumer branding business $ 1,577,127 $ 3,941,774
Net investment losses   (78,208)   (350,928)
Interest and dividend income   7,484   137,720
    1,506,403   3,728,566
Operating expenses:        
  Salaries and benefits   2,093,642   3,465,620
  General and administrative   698,538   890,362
  Occupancy costs   233,702   219,933
    3,025,882   4,575,915
Depreciation   67,261   187,475
Interest expense and financing costs   14,136   4,495
    3,107,279   4,767,885
Loss before restructuring expense, income taxes and minority interest   (1,600,876)   (1,039,319)
Restructuring expense   2,414,948   -
Loss before income taxes and minority interest   (4,015,824)   (1,039,319)
Income tax expense   -   -
Loss before minority interest   (4,015,824)   (1,039,319)
Minority interest   (3,758)   (1,488)
Net loss   (4,012,066)   (1,037,831)
Loss per share        
    Basic $ (0.47) $ (0.12)
    Diluted $ (0.47) $ (0.12)
Weighted average number of common shares outstanding - basic   8,558,377   8,558,730
Weighted average number of common shares outstanding - fully diluted   8,558,377   8,558,730
Envoy Capital Group Inc.        
Consolidated Statements of Retained Earnings (Deficit)        
Unaudited - Prepared by Management        
(Expressed In Canadian dollars)        
Deficit, beginning of period $ (17,539,820) $ (7,064,010)
Net loss   (4,012,066)   (1,037,831)
Deficit, end of period $ (21,551,886) $ (8,101,841)

Contact Information

  • Envoy Capital Group Inc.
    Andrew Patient
    (416) 593-1212
    Envoy Capital Group Inc.
    Investor relations department