Envoy Capital Group Inc.

Envoy Capital Group Inc.

December 17, 2010 16:01 ET

Envoy Capital Group Inc. Announces Results for Fiscal 2010

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2010) - Envoy Capital Group Inc. (TSX:ECG)(NASDAQ:ECGI) today announced that for its fiscal year ended September 30, 2010 it incurred a net loss of ($4.1) million or ($0.50) per fully diluted share compared with a net loss of ($10.5) million or ($1.22) per fully diluted share for fiscal 2009. The per share calculations are based on fully diluted weighted average shares outstanding of approximately 8.2 million for the current year and 8.6 million for last year.

Included in the results for fiscal 2010 is approximately $2.4 million in one-time restructuring costs. Similarly, the net loss for fiscal 2009 includes approximately $6.2 million one-time or non-recurring items relating mainly to the write down of goodwill and future tax assets in that year.

For the fourth quarter ended September 30, 2010, Envoy earned net income of approximately $0.4 million or $0.05 per fully diluted share compared with a loss of ($6.4) million or ($0.75) for the same quarter last year.

Investment returns were the main contributor to the profitable fourth quarter and the market is showing encouraging signs that the economy is on its way to recovery. While management continues to employ an overall conservative strategy, the investment landscape in the near future may present some good opportunities.

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        
(Expressed In Canadian dollars)        
As at:   September 30   September 30
    2010   2009
Current assets $ 17,848,629 $ 21,476,272
Long-term assets   1,720,924   2,118,932
    19,569,553   23,595,204
Current liabilities   2,630,749   1,958,762
Long-term liabilities   70,178   -
    2,700,927   1,958,762
Minority interest   7,242   12,408
Shareholders' equity   16,861,384   21,624,034
  $ 19,569,553 $ 23,595,204
Financial Highlights            
Envoy Capital Group Inc.            
Consolidated Statements of Operations            
(Expressed In Canadian dollars)            
For the years ended:   September 30     September 30  
    2010     2009  
Net revenue from consumer and retail branding $ 8,472,077   $ 11,732,473  
Net investment gains   1,066,919     333,372  
Interest and dividend income   46,408     252,605  
    9,585,404     12,318,450  
Operating expenses:            
  Salaries and benefits   8,096,733     12,706,335  
  General and administrative   1,934,799     3,151,830  
  Occupancy costs   935,926     851,112  
    10,967,458     16,709,277  
Depreciation   292,770     618,761  
Realized loss on available for sale investments   24,250     -  
Interest expense and financing costs   31,956     73,840  
Goodwill impairment   -     4,407,434  
Restructuring expense   2,414,948     -  
    13,731,382     21,809,312  
Loss before income taxes and minority interest   (4,145,978 )   (9,490,862 )
Income tax expense   -     988,226  
Loss before minority interest   (4,145,978 )   (10,479,088 )
Minority interest   (3,486 )   (3,278 )
Net loss   (4,142,492 )   (10,475,810 )
Loss per share            
  Basic $ (0.50 ) $ (1.22 )
  Diluted $ (0.50 ) $ (1.22 )
Weighted average number of common shares outstanding - basic   8,233,519     8,558,466  
Weighted average number of common shares outstanding - diluted   8,233,519     8,558,466  
Envoy Capital Group Inc.            
Consolidated Statements of Retained Earnings (Deficit)            
(Expressed In Canadian dollars)            
Deficit, beginning of year $ (17,539,820 ) $ (7,064,010 )
Net loss   (4,142,492 )   (10,475,810 )
Deficit, end of year $ (21,682,312 ) $ (17,539,820 )

Contact Information

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