Grey Horse Corporation
TSX VENTURE : GHC

Grey Horse Corporation

May 26, 2005 09:00 ET

Grey Horse Reports Third Quarter Earnings for 2005

TORONTO, ONTARIO--(CCNMatthews - May 26, 2005) - All amounts in Canadian dollars

Grey Horse Capital Corporation.(TSX VENTURE:GHC) ("Grey Horse" or the "Company"), a financial services company headquartered in Canada, today reported its third quarter results for the period ended March 31, 2005.

Revenue for the third quarter of fiscal 2005 was $1,209,385 derived from its wholly-owned subsidiary, Equity Transfer Services Inc. ("Equity"). Net income for the quarter was $143,318 or $0.05 per share and Cash Flow from Operations was $312,559 or $0.10 per share. Return on average shareholders' equity for the quarter amounted to 8.31%, which on an annualized basis is in excess of 30%.

Last December 2, 2004 Grey Horse acquired all of the issued and outstanding shares of Equity. For the four-month period since the completion of the transaction, Revenue was $1,665,564, Net Income was $231,610 and Return on average shareholders equity 13.93%, which on an annualized basis is in excess of 40%.

"We are very pleased with these results as we enter into the busiest quarter (April-June) of Equity's fiscal year," commented Kevin Reed, President and CEO of Grey Horse Capital. "This quarter was our first full reporting period since the acquisition of Equity Transfer Services Inc. The business unit is meeting our plan and we look forward to continuing growth going into our fourth quarter and into fiscal 2006."



Financial Highlights for the Quarter ended March 31, 2005

- Q3 Revenue: $1.2 million
- Q3 Net Income: $0.143 million
- Q3 Earnings per Share: $0.05;
- Q3 Cash flows from Operations: $0.312 million
- Q3 Cash Flow from Operations per Share: $0.10(1)
- Q3 Return on Average Equity: 8.31%


(1) Cash Flow from Operations per Share is derived by dividing Cash flow from Operations by the weighted average number of common shares outstanding during the quarter.

"This quarter's results demonstrate that we have the right strategy in place to deliver profitable growth," said Paul G. Smith, EVP and Chief Financial Officer, Grey Horse Capital. "The company was able to generate earnings for the quarter of $0.05 per share or $0.10 per share when non-cash items are added back such as amortization and stock-based compensation (i.e. Cash Flow from Operations per Share)."

Business Highlights

- Successful integration of acquisition of Equity Transfer Services Inc.

- During the quarter, Grey Horse announced a five-year channel partnership with CCNMatthews that will allow Equity to offer a branded news release service to our customer base.

About Grey Horse Capital Corporation

Through its wholly owned subsidiary, Equity Transfer Services Inc., Grey Horse Capital provides transfer services to mid-market issuers in the North American capital markets. As at May 26, 2005 the Company had 3,133,327 common shares issued and outstanding.

Certain information included in this press release is forward-looking and may 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 Capital's growth, the state of the financial markets, regulatory risks and other factors. Unless otherwise required by applicable securities laws, Grey Horse Capital 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 Capital's financial and business results is included in public documents Grey Horse Capital files from time to time with Canadian securities regulatory authorities.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Grey Horse Capital Corporation
    Kevin Reed
    President & CEO
    (416) 361-0930 ext 271
    or
    Grey Horse Capital Corporation
    Paul G. Smith
    (416) 361-0930 ext 270