Pyxis Capital Inc.

Pyxis Capital Inc.

May 09, 2008 17:15 ET

Pyxis Capital Inc.: Second Quarter Results

TORONTO, ONTARIO--(Marketwire - May 9, 2008) - Pyxis (TSX:PYX)(TSX:PYX.A)(TSX:PYX.E) announced today that net loss for the second quarter ended March 31, 2008 was $0.5 million compared to net income of $41.6 million for the same period in 2007.

$ millions, except per share amounts 2008 2007

Realized gains (losses) on investments $ (2.1) $ 79.3
Revenue $ (0.4) $ 83.6
Net income (loss) $ (0.5) $ 41.6
Earnings (loss) per share $ (0.01) $ 0.46

Loss per share in 2008 reflects a decrease in realized gains on investments of $81.3 million and decreased dividend and other income of $1.2 million earned on its long term investments due to the large reduction in long term investments offset by decreased income taxes of $42 million.

The Company cautions that reported earnings are largely dependent on factors and events which do not occur evenly period to period, including the timing of disposition of long term investments, the receipt of dividends, currency exchange fluctuations, and other non-typical, non-recurring events. Accordingly, the results for the quarter may not be indicative of future results.

As previously announced, the Company continues to monetize its investment portfolio due to unsettled market conditions and intends to hold treasury and fixed income investments while it dispenses with its liabilities and dividend shares in normal course of business. The Company has expressed its intention to make further distributions of net assets to equity shareholders through special dividends over an 18 to 24 month period. The return of net assets to shareholders may not be completed within the indicated time frame and may be greater or less than the estimated net asset value depending on transition costs, market conditions, taxes or other costs or expenses that may be incurred.

An offer to purchase all the Common and Non-voting shares at $0.34 per share and all the Dividend share at $11.25 not already held by 1693062 Ontario Inc. is active and outstanding and expires June 4, 2008. Shareholders are urged to consult the details of the offers in the Take Over Bid Circular and Directors' Circular both dated April 29, 2008.

Pyxis is a financial services company. The Company's shares are listed on the TSX under the symbol PYX, PYX.a and PYX.e.

This press release includes certain forward looking statements including management's assessment of the Company's future plans and operations based on current views and expectations. All statements other than statements of historic facts are forward looking statements. These statements contain substantial known and unknown risks and uncertainties, some of which are beyond the Company's control. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements. Readers should not place undue reliance on these forward looking statements which represent estimates and assumptions only as of the date on which such statements are made. The Company undertakes no obligation to publicly revise or update any forward looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Pyxis Capital Inc.
    Andrew Kim
    President and Chief Executive Officer
    (416) 867-9079
    (416) 867-1961 (FAX)