West Street Capital Corporation
TSX VENTURE : WSC

West Street Capital Corporation

May 01, 2008 18:47 ET

West Street Announces 2007 Year End Results

TORONTO, ONTARIO--(Marketwire - May 1, 2008) - West Street Capital Corporation (TSX VENTURE:WSC) today reported net income of $1.8 million for the year ended December 31, 2007, compared to $2.3 million in 2006. After providing for unpaid and unaccrued preferred share dividend obligations that accumulated during the year, the net loss per common share was $0.10 compared with $0.06 per share in 2006.

Income prior to investment gains and income taxes was $2.8 million during 2007 compared to $2.3 million in 2006. The increase was due to $0.4 million of foreign currency gains.

Income tax expense increased in the fourth quarter of 2007 due to a reduction in the carried value of tax loss carry forwards commensurate with a decline in the value of unrealized gains on the company's security portfolio.

The book value attributed to the company's Preferred Shares at December 31, 2007 was $27.55 per share.



Statements of Operations

Three months ended Years ended
December 31 December 31
(unaudited)
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$thousands, except per share amounts 2007 2006 2007 2006
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Investment Income $ 669 $ 627 $ 3,019 $ 2,551
Operating and legal expenses (17) 2 (227) (220)
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652 629 2,792 2,331
Investment (losses) gains (6) 180 (6) 497
Income taxes (496) (168) (945) (578)
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Net income $ 150 $ 641 $ 1,841 $ 2,250
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Net loss per common share $ (0.05) $ (0.01) $ (0.10) $ (0.06)
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Balance Sheets

As at December 31
$thousands, except per share amount 2007 2006
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Assets
Cash and equivalents $ 16,190 $ 10,518
Securities (1) 30,460 33,421
Interest receivable and other 117 258
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$ 46,767 $ 44,197
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Liabilities
Accounts payable and other $ 532 $ 239
Shareholders' equity (2) 46,235 43,958
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$ 46,767 $ 44,197
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Attributable to each Class A Preferred Share,
Series E (2) $ 27.55 $ 26.19
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(1) As a result of a change in accounting standards which took effect January 1, 2007, securities are carried at market value in the company's financial statements as at December 31, 2007. The carrying value of securities as at December 31, 2006 was based on historical book value.

(2) Shareholders' Equity



As at December 31, 2007
$thousands, except per share amounts Total Per Preferred Share
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Book value of net assets and liabilities $ 46,235 $ 27.55
Less amounts attributed to preferred shares
Redemption value 41,887 24.96
Preferred share dividends in arrears 47,628 28.38
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89,515 53.34
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Common share deficit $ (43,280) $ (25.79)
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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. The above preferred share information is based on 1,678,465 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