Grey Horse Corporation
TSX : GHC

Grey Horse Corporation

October 09, 2008 17:01 ET

Grey Horse Provides Outlook for 3rd Quarter 2008 Revenues

Revenue growth estimated at 50% - 60% for the quarter ended September 2008 Revenue growth estimated at 5% - 8% for the nine months ended September 2008

TORONTO, ONTARIO--(Marketwire - Oct. 9, 2008) - Grey Horse Corporation (TSX:GHC) ("Grey Horse" or "the Corporation"), a Canadian financial services company serving the corporate and institutional market, provided today its outlook of revenues for the three and nine months ended September 30, 2008. While releasing such preliminary information is an unusual step for the Corporation, Grey Horse feels it appropriate given the current widespread unease in capital markets.

Led by foreign exchange transactions, revenues are expected to increase within a range of 50% to 60% ($1.7 million to $2.1 million) for the third quarter and to increase within a range of 5% to 8% ($0.7 million to $1.1 million) for the initial nine months of the fiscal year compared with the comparative periods last year. In dollar terms, this translates into estimated revenues for the third quarter of between $5.3 million and $5.7 million, and to estimated revenues for the initial nine months of the fiscal year of between $14.3 million and $14.7 million.

While the Corporation's core businesses (e.g. transfer agent and corporate trust) remain stable, the large majority of the estimated revenue growth in the quarter stems from large volume foreign exchange transactions and from the contribution of Toro FX ("Toro"), which the Corporation acquired on July 2, 2008. The Toro acquisition was motivated by the Corporation's desire to solidify its position in the foreign exchange market, and shows early and promising signs in this regard.

The Corporation's complete financial results for the quarter and nine months ended September 30, 2008, will be released to the public on or around November 13, 2008.

Caution Concerning Forward-Looking Statements

Readers are reminded that, although the information in this press release concerns the three and nine months ended September 30, 2008, the financial information announced today is considered, and is treated in this press release as, a financial outlook pending the release of the Corporation's complete financial results for the quarter and nine months ended September 30, 2008.

This preliminary information was approved by the Corporation's management on October 9, 2008 and is being released because the Corporation believes it may be useful to stakeholders uncertain about the Company's performance in the current market. However, several cautionary notes are appropriate:

- the financial information included in this press release is forward-looking and involves risks and uncertainties and may not be appropriate for other purposes. The results or events predicted in this press release may differ from actual results or events. Factors that might cause a difference include, but are not limited to, the factors set out below and any changes in financial characterization that may occur as the Company continues to compile its third quarter information. Grey Horse will update the forward looking information in compliance with applicable securities laws;

- the forward looking information contained in this press release is based on a preliminary compilation of financial results in preparation for the release of the Corporation's quarterly financial results. The financial results for the third quarter have not yet been finalized and have not yet been reviewed or approved by the Corporation's audit committee and Board. While management is confident in the figures presented above, it is continuing to compile its third quarter information, and the revenue information reported in this release may change when reported as part of the Corporation's quarterly financial results. The Corporation's complete financial results for the quarter and nine months ended September 30, 2008, will be released to the public on or around November 13, 2008. The Corporation is not making any representation in this release about its expected net income for the quarter or for the nine months ended September 30, 2008;

- large volume transactions of the kind contributing materially to this quarter's estimated revenues are by their nature volatile and are dependent on fluctuations in capital market activities and other unpredictable factors; therefore, the Corporation's success in obtaining such transactions in a particular quarter does not provide a basis for predicting similar success in any subsequent quarters;

- although the Corporation's overall revenues are estimated to have increased during the year to date, the current market malaise, if prolonged, may pose a risk to its financial results. To date however, as noted, the Corporation's revenues do not appear to have been significantly affected by such events.

This press release and past information related to Grey Horse can be found in the Company's filings on SEDAR at www.sedar.com and on the Corporation's website at www.greyhorsecorp.com.

About Grey Horse

Through its wholly owned subsidiaries, Grey Horse provides transfer agent, corporate trust, corporate secretary, foreign exchange and limited market dealer services to corporations in North American capital markets. Learn more at www.greyhorsecorp.com.

Certain information included in this press release may be forward-looking and involve risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with Grey Horse's growth, the state of the financial markets, regulatory risks and other factors. Unless otherwise required by applicable securities laws, Grey Horse disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about potential factors that could affect Grey Horse's financial and business results is included in public documents Grey Horse files from time to time with Canadian securities regulatory authorities.

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Grey Horse Corporation
    Kevin Reed
    President & CEO
    (416) 361-0930
    or
    Grey Horse Corporation
    Paul G. Smith
    EVP & CFO
    (416) 361-0930
    Website: www.greyhorsecorp.com