West Street Capital Corporation
TSX VENTURE : WSC
TSX VENTURE : WSC.PR.A

West Street Capital Corporation

April 30, 2009 17:54 ET

West Street Announces 2008 Year End Results

TORONTO, ONTARIO--(Marketwire - April 30, 2009) - West Street Capital Corporation ("West Street" or the "company") (TSX VENTURE:WSC)(TSX VENTURE:WSC.PR.A) reported net income for the year ended December 31, 2008 of $1.6 million compared to $1.8 million in 2007. After providing for unpaid preferred share dividend obligations of $2.9 million (2007 - $2.9 million), the net loss per common share was $0.12 compared with a net loss of $0.10 per common share during the year ended December 31, 2007.

Dividends, interest and other income totalled $2.6 million for the year ended December 31, 2008, in comparison to $3.0 million in the same period in 2007 and consist principally of dividends and interest earned on the company's securities portfolio. The decrease in investment income is a result of lower interest rates and dividend income and decreased foreign exchange gains.

The company and its major shareholders are considering alternatives that would be intended to provide liquidity to preferred shareholders and simplify the company's capital structure.



Statement of Operations
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Three months ended Years ended
December 31 December 31
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(unaudited)
$thousands, except per share amounts 2008 2007 2008 2007
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Investment income
Dividends, interest and other $ 576 $ 669 $ 2,578 $ 3,019

Expenses
Operating (90) (17) (205) (227)
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486 652 2,373 2,792
Investment losses - (6) - (6)
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Net income before tax 486 646 2,373 2,786
Current tax expense (73) (143) (611) (570)
Future tax expense - (353) (137) (375)
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Net income $ 413 $ 150 $ 1,625 $ 1,841
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Net loss per common share $ (0.03) $ (0.05) $ (0.12) $ (0.10)
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Balance Sheet
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As at December 31
$thousands, except per share amount 2008 2007
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Assets
Cash and equivalents $ 16,805 $ 16,190
Securities 25,392 30,460
Interest receivable and other 235 117
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$ 42,432 $ 46,767
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Liabilities
Accounts payable and provisions $ 58 $ 532
Shareholders' equity(1) 42,374 46,235
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$ 42,432 $ 46,767
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Attributable to each Class E
Preferred Share, Series 1(1) $ 25.25 $ 27.55
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(1) Shareholders' Equity
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Per
As at December 31, 2008 Total Preferred
$thousands, except per share amounts Share
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Shareholders' equity $ 42,374 $ 25.25
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Less amounts attributed to preferred shares
Redemption value 41,887 24.96
Unaccrued dividends in arrears 50,560 30.12
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92,447 55.08
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Common share deficit $ (50,073) $ (29.83)
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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 1,678,465 preferred shares currently issued and outstanding.

Note: This news release contains "forward-looking information" within the meaning of Canadian provincial securities laws and regulations. Expressions of future or conditional verbs such as "would" are predictions of or indicate future events, trends or prospects and which do not relate to historical matters or identify forward-looking information. Forward-looking information in this news release includes statements with regard to providing liquidity to the company's preferred shareholders and simplification of the company's capital structure.

Although the company believes that the anticipated future results or achievements expressed or implied by the forward-looking information and statements are based upon reasonable assumptions and expectations, the reader should not place undue reliance on the forward-looking information and statements because they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking information and statements.

Factors that could cause actual results to differ materially from those contemplated or implied by the forward-looking information and statements include: the behavior of financial markets, including fluctuations in interest and exchange rates, availability of equity and debt financing and other risks and factors detailed from time to time in the company's other documents filed with the Canadian securities regulators.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking information to make decisions with respect to the company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as may be required by law, the company undertakes no obligation to publicly update or revise any forward-looking information or statements, whether written or oral, that may be as a result of new information, future events or otherwise.

Contact Information

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