Envoy Capital Group Inc.
TSX : ECG
NASDAQ : ECGI

Envoy Capital Group Inc.

May 13, 2011 16:01 ET

Envoy Capital Group Inc. Announces Second Quarter Results for Fiscal 2011

TORONTO, ONTARIO--(Marketwire - May 13, 2011) -Envoy Capital Group Inc. (TSX:ECG)(NASDAQ:ECGI) today released its financial results for the second quarter of fiscal 2011.

For the quarter ended March 31, 2011, Envoy incurred a net loss of ($6.4) million or ($0.80) per fully diluted share compared with a net income of $0.9 million or $0.11 per fully diluted share for the same quarter last year. Included in the results for the current quarter is approximately $6.1 million in one-time restructuring costs. The per-share calculations are based on fully diluted, weighted average shares outstanding of approximately 8.0 million for the current quarter and 8.4 million for the prior 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:March 31September 30
20112010
Current assets$10,952,983$17,848,629
Long-term assets1,483,8911,720,924
12,436,87419,569,553
Current liabilities1,191,3632,630,749
Long-term liabilities102,42270,178
1,293,7852,700,927
Minority interest-7,242
Shareholders' equity11,143,08916,861,384
$12,436,874$19,569,553
Financial Highlights
Envoy Capital Group Inc.
Consolidated Statements of Operations
Unaudited - Prepared by Management
(Expressed In Canadian dollars)
For the six months ended:March 31March 31
20112010
Net revenue from consumer and retail branding$3,799,174$3,640,965
Net investment gains1,901,9171,401,662
Interest and dividend income14,15412,488
5,715,2455,055,115
Operating expenses:
Salaries and benefits3,918,3573,901,327
General and administrative831,0061,231,028
Occupancy costs441,724480,037
5,191,0875,612,392
Depreciation171,273133,375
Interest expense and financing costs16,78519,711
Restructuring expense6,061,4132,414,948
11,440,5588,180,426
Loss before income taxes and minority interest(5,725,313)(3,125,311)
Income tax expense--
Loss before minority interest(5,725,313)(3,125,311)
Minority interest(7,018)(1,714)
Net loss and comprehensive loss(5,718,295)(3,123,597)
Loss per share
Basic$(0.71)$(0.37)
Diluted$(0.71)$(0.37)
Weighted average number of common shares outstanding - basic8,028,3778,478,097
Weighted average number of common shares outstanding - diluted8,028,3778,478,097
Envoy Capital Group Inc.
Consolidated Statements of Retained Earnings (Deficit)
Unaudited - Prepared by Management
(Expressed In Canadian dollars)
Deficit, beginning of period$(21,682,312)$(17,539,820)
Net loss(5,718,295)(3,123,597)
Deficit, end of period$(27,400,607)$(20,663,417)
Financial Highlights
Envoy Capital Group Inc.
Consolidated Statements of Operations
Unaudited - Prepared by Management
(Expressed In Canadian dollars)
For the three months ended:March 31March 31
20112010
Net revenue from consumer branding business$2,033,880$2,063,838
Net investment gains339,5191,479,870
Interest and dividend income2,1485,004
2,375,5473,548,712
Operating expenses:
Salaries and benefits1,971,3591,807,685
General and administrative463,978532,490
Occupancy costs226,672246,335
2,662,0092,586,510
Depreciation86,99566,114
Interest expense and financing costs6,7515,575
Restructuring expense6,061,413-
8,817,1682,658,199
Income (loss) before income taxes and minority interest(6,441,621)890,513
Income tax expense--
Income (loss) before minority interest(6,441,621)890,513
Minority interest(8,548)2,044
Net income (loss) and comprehensive income (loss)(6,433,073)888,469
Earnings (loss) per share
Basic$(0.80)$0.11
Diluted$(0.80)$0.11
Weighted average number of common shares outstanding - basic8,028,3778,399,562
Weighted average number of common shares outstanding - diluted8,028,3778,399,562
Envoy Capital Group Inc.
Consolidated Statements of Retained Earnings (Deficit)
Unaudited - Prepared by Management
(Expressed In Canadian dollars)
Deficit, beginning of period$(20,967,534)$(21,551,886)
Net income (loss)(6,433,073)888,469
Deficit, end of period$(27,400,607)$(20,663,417)

Contact Information

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

    Envoy Capital Group Inc.
    Investor Relations Department
    info@envoy.to