TORONTO, ONTARIO--(Marketwire - May 28, 2012) - West Street Capital Corporation (TSX VENTURE:WSC)(TSX VENTURE:WSC.PR.A) ("West Street" or the "company") reported net income for the quarter ended March 31, 2012 of $1.5 million compared to $0.6 million in the comparative quarter in 2011. After providing for unpaid preferred share dividend obligations of $0.7 million (2011 - $0.7 million) that accumulated during the quarter, net income per common share was $0.07 for the three months ended March 31, 2012 compared to a net loss of $0.01 per common share in 2011.
| STATEMENTS OF OPERATIONS | ||||||
| Three months ended March 31 | ||||||
| (Thousands, except per share amounts) | 2012 | 2011 | ||||
| Investment income | $ | 731 | $ | 821 | ||
| Operating and legal expenses | (23 | ) | (18 | ) | ||
| 708 | 803 | |||||
| Foreign currency revaluation | (40 | ) | (12 | ) | ||
| Investment losses | - | (236 | ) | |||
| Net income before taxes | 668 | 555 | ||||
| Current tax recovery (expense) | 3 | (337 | ) | |||
| Deferred tax recovery | 805 | 405 | ||||
| Net income | $ | 1,476 | $ | 623 | ||
| Net income per share | $ | 0.07 | $ | (0.01 | ) | |
Comprehensive income, which includes both net income and other comprehensive income, for the three months ended March 31, 2012 totalled $7.1 million compared to $3.1 million in the comparative period in 2011, which reduced the common share deficit to $31.1 million. The company recorded an unrealized gain of $5.6 million (2011 - $2.5 million) in other comprehensive income during the quarter as a result of increases in the fair value of the securities portfolio.
| STATEMENTS OF FINANCIAL POSITION | |||||||
| (Unaudited) March 31, |
December 31, | ||||||
| (Thousands) | 2012 | 2011 | |||||
| Assets | |||||||
| Cash and cash equivalents | $ | 5,748 | $ | 5,078 | |||
| Securities | 64,143 | 57,922 | |||||
| Interest receivable and other | 764 | 617 | |||||
| $ | 70,655 | $ | 63,617 | ||||
| Liabilities | |||||||
| Accounts payable and other provisions | 20 | 101 | |||||
| Equity | 70,635 | 63,516 | |||||
| $ | 70,655 | $ | 63,617 | ||||
| March 31, | December 31, | ||||||
| (Thousands, except per share amount) | 2012 | 2011 | |||||
| Equity | $ | 70,635 | $ | 63,516 | |||
| Less: amounts attributable to preferred shares | |||||||
| Stated value | (42,160 | ) | (42,160 | ) | |||
| Unpaid dividends1 | (59,603 | ) | (58,869 | ) | |||
| Common share deficit2 | $ | (31,128 | ) | $ | (37,513 | ) | |
| Per common share | $ | (2.85 | ) | $ | (3.43 | ) | |
| 1 | Represents dividends in arrears on preferred shares that are unaccrued for IFRS purposes |
| 2 | The above table presents the significant common share deficit resulting from the net book value of the company being attributed to the preferred shares |
Contact Information:
Sachin G. Shah
President
(416) 359-8625