West Street Capital Corporation
TSX VENTURE : WSC

West Street Capital Corporation

May 01, 2007 17:50 ET

West Street Announces 2006 Year End Results

TORONTO, ONTARIO--(CCNMatthews - May 1, 2007) - West Street Capital Corporation (TSX VENTURE:WSC) today reported net income of $2.3 million for the year ended December 31, 2006, compared to $3.1 million in 2005. After providing for unpaid and unaccrued preferred share dividend obligations that accumulated during the year, the net loss per common share was $0.06 compared with net income of $0.02 per share in 2005.

Net income for 2006 included investment gains of $0.5 million. Net income for 2005 included a receipt of $3.0 million payment received on the settlement of outstanding litigation in October 2005 offset in part by investment losses of $1.4 million.

Net income for the three months ended December 31, 2006 was $637 thousand compared to $2.1 million for the same period of 2005, which included the above-mentioned litigation settlement.



Statement of Operations
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Three months ended Year ended
December 31 December 31
(unaudited)
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$thousands, except per share amounts 2006 2005 2006 2005
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Investment Income $ 580 $ 519 $ 2,551 $ 2,378
Operating and legal expenses (2) (4) (220) (411)
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578 515 2,331 1,967
Investment gains (losses) 227 (1,414) 497 (1,414)
Income taxes (168) (29) (578) (404)
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Net income before extraordinary items 637 (928) 2,250 149
Litigation settlement - 3,000 - 3,000
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Net income $ 637 $ 2,072 $ 2,250 $ 3,149
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Net loss before extraordinary items
per common share $ (0.01) $ (0.16) $ (0.06) $ (0.26)
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Net income (loss) per common share $ (0.01) $ 0.12 $ (0.06) $ 0.02
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Balance Sheets
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Market Value Book Value
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As at December 31
$thousands 2006 2006 2005
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Assets
Cash and equivalents $ 10,518 $ 10,518 $ 14,843
Securities 34,640 33,421 26,399
Interest receivable and other 258 258 125
Future income tax asset (2) - - 341
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$ 45,416 $ 44,197 $ 41,708
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Liabilities
Accounts payable and other $ 239 $ 239 -
Shareholders' equity (1) 45,177 43,958 41,708
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$ 45,416 $ 44,197 $ 41,708
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Attributable to each Class A Preferred
Share, Series E (3) $ 26.97 $ 26.24 $ 25.96
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(1) Based on December 31, 2006 market prices. Not adjusted to reflect
disposition costs.
(2) Income taxes:
The company has no non-capital losses and capital losses of
approximately $292 million available to reduce capital gains. No value
has been attributed to the capital gains for the book or net asset
values due to the lack of assurance that they can be utilized.
(3) Shareholders' Equity


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As at December 31, 2006 Market Value Book Value
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$thousands Total Per Share Total Per Share
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Tangible net book value $ 45,411 $ 26.97 $ 43,958 $ 26.24
Less amounts attributed to
preferred shares

Par value 41,887 25.00 41,887 25.00

Dividends in arrears 44,696 26.68 44,696 26.68
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86,583 51.68 86,583 51.68
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Common share deficit $ (41,172) $ (24.71) $ (42,625) $ (25.44)
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As a result of cumulative dividends in arrears, the tangible net book value of the company currently accrues entirely to the preferred shares. Based on 1,675,465 preferred shares currently issued and outstanding.

This news release contains forward-looking statements concerning the Company's business and operations. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and the Company's actual results could differ materially from those expressed or implied in such statements. Reference should be made to the company's most recent Annual Report for a description of the major risk factors.

Contact Information

  • West Street Capital Corporation
    Brian D. Lawson
    President and Chief Executive Officer
    (416) 359-8625