March 24, 2011 19:05 ET

West Mountain Capital Corp. Announces 2010 Results

CALGARY, ALBERTA--(Marketwire - March 24, 2011) - West Mountain Capital Corp. ("the Company") (TSX VENTURE:WMT) today released its financial results for the year ended December 31, 2010.

For the year ended December 31, 2010, the Company generated sales of $4,715,649 and normalized earnings before interest, taxes, depreciation and amortization (EBITDA) of $2,467,106 versus sales of $5,884,361 and EBITDA of $2,907,006 for the year ended December 31, 2009. Net income for the year was $1,039,717 with the Company's working capital increasing by $1,285,171. During the year the Company's soil treatment facility located in Wolseley, Saskatchewan processed stockpiles of PCB contaminated soil from a number of customers on a continuous basis. 

"In 2010 we saw good utilization of our Wolseley Facility and continued profitability for the company domestically," said Paul Antle, President and CEO. "It was also an exciting year for us in China having signed two agreements to form two separate joint ventures and I am very pleased with our progress to date. We have highly respected and credible partners in China who have made our progress very smooth thus far." 

In 2010 the Company successfully penetrated the China remediation market and signed two joint venture agreements. The first is a Strategic Cooperation Agreement with the Nanjing Institute of Environmental Science ("NIES") of the State Environmental Protection Agency, Ministry of Environmental Protection (MEP) for the People's Republic of China. The Strategic Cooperation Agreement contemplates that PS2 and NIES will become equal equity partners in a Sino-foreign joint venture company to be established in late 2011 (or such other date that may be mutually agreed) subject to the satisfaction of a number of terms and conditions. In addition, NIES shall act as an agent for PS2's Thermal Phase Separation Technology (TPS) in China with all future soil treatment activities to be undertaken through the joint venture company. 

The second agreement is a Strategic Joint Venture Agreement with Zhoushan Nahai Solid Waste Central Disposal Co. Ltd. ("Nahai") of Zhoushan, Zhejiang Province, China. Under the terms of the Strategic Joint Venture Agreement, PS2 and Nahai will become equal equity partners in a Sino-foreign joint venture company to be established by late-April 2011. The joint venture will design, engineer, construct and operate an oily sludge waste treatment facility to be located in Zhoushan, Zhejiang Province to receive, process and recover oil from oily sludge waste generated from oil storage operations and oil tanker cleaning activities in that region. The PS2/Nahai facility is expected to be operational by Q3 2011.

Highlights and milestones for the year include:

  • Working capital increase of $1,285,171;
  • Cash increase of $1,380,275;
  • Earnings per share of $0.03;
  • Net income of $1,039,717; and
  • The execution of two joint venture agreements in China.

Selected Financial Data

This summary of selected audited financial data should be read in conjunction with the Management Discussion and Analysis ("MD&A") and the audited financial statements of the Corporation and related notes thereto, for the periods indicated.

      Year Ended     Year Ended
      December 31, 2010     December 31, 2009
Revenue   $ 4,715,649   $ 5,884,361
Net Income (Loss)   $ 1,039,717   $ 2,508,147
Net Income (Loss) per share   $ 0.03   $ 0.069
Total Shares Outstanding     37,616,332     34,724,667
      As at
      December 31, 2010     December 31, 2009
Cash   $ 4,635,278   $ 3,255,003
Working Capital   $ 3,791,168   $ 2,505,997
Total Assets   $ 7,879,923   $ 6,920,842
Long Term Liabilities   $ 200,130   $ 210,683
Share Capital   $ 7,419,168   $ 6,935,817

PS2 entered 2011 with over 2,000 tonnes of soil booked for the first number of months as the Company continues to bid for work to maximize the use of the Wolseley Facility for 2011. 

On February 15, 2011 the Company announced that it was selected as one of the 2011 TSX Venture 50. The Venture 50 highlights the leading 10 companies represented in the 5 major sectors of the TSX Venture Exchange. West Mountain was chosen from a field of over 2,100 listings and placed 4th in the Clean Technology sector. Including Clean Technology, the Venture 50 encompasses well performing listings in Mining, Oil and Gas, Diversified Industries and Technology and Life Sciences. Selections for the Venture 50 are based on a ranking formula whereby equal weighting is allotted to return on investment, market capitalization growth, trading volume and analyst coverage. All data was as of December 31, 2010.

"We are extremely pleased to have been recognized as a member of this leading group of Canadian companies and give credit to our dedicated management and staff," said Antle.

About Phase Separation Solutions:

PS2 is an established Canadian environmental solutions company specializing in the thermal treatment of a variety of hazardous and non-hazardous waste streams. It employs a unique indirectly heated, closed loop technology that allows it to extract even the most hazardous contaminants from soil, industrial sludge and waste converting much of it into reusable oil and synthetic natural gas that it uses to sustain the process. This methodology offers significant opportunity for greenhouse gas reduction over traditional hazardous waste destruction technologies. PS2's management team maintains expertise in hazardous waste management and contaminated site remediation with experience spanning North America and internationally throughout 14 countries.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements in respect of the volume of soil to be processed by PS2 under its current contracts in Western Canada and in general all soil volumes whether domestic or international from any source. The forward-looking statements and information are based on certain key expectations and assumptions made by West Mountain, including expectations and assumptions concerning the plan to remove and treat such material. Although West Mountain believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because West Mountain can give no assurance that they will prove to be correct.

Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the removal and treatment of PCB contaminated materials in general, attempting to secure work, the uncertainty of estimates and projections relating to the value of the contract, health, safety and environmental risks, transportation costs, environmental risks, failure to realize the anticipated benefits of the contract, failure to obtain required regulatory and other approvals, and changes in legislation, including but not limited to environmental regulations, and risks associated with doing business in China. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements and information contained in this news release are made as of the date hereof and West Mountain undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts the responsibility for the adequacy or accuracy of this release.

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