Envoy Capital Group Inc.
TSX : ECG
NASDAQ : ECGI

Envoy Capital Group Inc.

August 10, 2011 16:00 ET

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

TORONTO, ONTARIO--(Marketwire - Aug. 10, 2011) - Envoy Capital Group Inc. (TSX:ECG)(NASDAQ:ECGI) today released its financial results for the third quarter of fiscal 2011.

For the quarter ended June 30, 2011, Envoy incurred a net loss of ($0.6) million or ($0.07) per fully diluted share compared with a net loss of ($1.4) million or ($0.18) per fully diluted share for the same quarter last year. Included in the results for the current quarter is a loss of (0.1) million related to discontinued operations, compared to income from discontinued operations of $0.3 million in the prior year period. The per-share calculations are based on fully diluted, weighted average shares outstanding of approximately 8.0 million for both the current and 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: June 30 September 30
2011 2010
Current assets $ 10,125,170 $ 17,848,629
Long-term assets 1,419,947 1,720,924
11,545,117 19,569,553
Current liabilities 899,236 2,630,749
Long-term liabilities 98,296 70,178
997,532 2,700,927
Minority interest - 7,242
Shareholders' equity 10,547,585 16,861,384
$ 11,545,117 $ 19,569,553

Financial Highlights
Envoy Capital Group Inc.
Consolidated Statements of Operations
Unaudited - Prepared by Management
(Expressed In Canadian dollars)
For the nine months ended: June 30 June 30
2011 2010
Net investment gains $ 1,641,252 $ 197,710
Interest and dividend income 48,077 23,285
1,689,329 220,995
Operating expenses:
Salaries and benefits 829,451 1,530,823
General and administrative 543,341 788,928
Occupancy costs 64,857 86,461
1,437,649 2,406,212
Depreciation 15,847 23,063
Interest expense and financing costs 10,865 24,205
Restructuring expense 6,061,413 2,414,948
7,525,774 4,868,428
Loss before income taxes, minority interest and discontinued operations (5,836,445 ) (4,647,433 )
Income tax expense - -
Loss before minority interest and discontinued operations (5,836,445 ) (4,647,433 )
Minority interest (7,018 ) (3,379 )
Loss from continuing operations (5,829,427 ) (4,644,054 )
(Loss) earnings from discontinued operations, net of income taxes (484,372 ) 77,320
Net loss (6,313,799 ) (4,566,734 )
Loss per share
Basic $ (0.79 ) $ (0.55 )
Diluted $ (0.79 ) $ (0.55 )
Weighted average number of common shares outstanding - basic 8,028,377 8,302,652
Weighted average number of common shares outstanding - diluted 8,028,377 8,302,652
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 (6,313,799 ) (4,566,734 )
Deficit, end of period $ (27,996,111 ) $ (22,106,554 )

Financial Highlights
Envoy Capital Group Inc.
Consolidated Statements of Operations
Unaudited - Prepared by Management
(Expressed In Canadian dollars)
For the three months ended: June 30 June 30
2011 2010
Net investment losses $ (260,665 ) $ (1,203,952 )
Interest and dividend income 33,923 10,797
(226,742 ) (1,193,155 )
Operating expenses:
Salaries and benefits 126,461 410,756
General and administrative 149,932 116,006
Occupancy costs 13,872 27,110
290,265 553,872
Depreciation 1,215 7,168
Interest expense and financing costs - 4,494
291,480 565,534
Loss before income taxes, minority interest and discontinued operations (518,222 ) (1,758,689 )
Income tax expense - -
Loss before minority interest and discontinued operations (518,222 ) (1,758,689 )
Minority interest - (1,665 )
Loss from continuing operations (518,222 ) (1,757,024 )
(Loss) earnings from discontinued operations, net of income taxes (77,282 ) 313,887
Net loss (595,504 ) (1,443,137 )
Earnings (loss) per share
Basic $ (0.07 ) $ (0.18 )
Diluted $ (0.07 ) $ (0.18 )
Weighted average number of common shares outstanding - basic 8,028,377 8,028,377
Weighted average number of common shares outstanding - fully diluted 8,028,377 8,028,377
Envoy Capital Group Inc.
Consolidated Statements of Retained Earnings (Deficit)
Unaudited - Prepared by Management
(Expressed In Canadian dollars)
Deficit, beginning of period $ (27,400,607 ) $ (20,663,417 )
Net loss (595,504 ) (1,443,137 )
Deficit, end of period $ (27,996,111 ) $ (22,106,554 )

Contact Information

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

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