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

West Street Capital Corporation

April 21, 2011 18:29 ET

West Street Announces Fourth Quarter Results

TORONTO, ONTARIO--(Marketwire - April 21, 2011) - 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, 2010 of $4.2 million compared to $0.6 million in 2009. After providing for unpaid preferred share dividend obligations of $2.9 million (2009 - $2.9 million), net income per common share was $0.12 for the year ended December 31, 2010 compared to a net loss of $0.21 per common share in 2009.

Dividends, interest and other income totalled $2.9 million for the year ended December 31, 2010, in comparison to $1.6 million for the same period in 2009 and consisted principally of dividends and interest earned on the company's securities portfolio. The increase in investment income is primarily the result of higher interest rates associated with a high yield bond portfolio acquired in late 2009.

Statements of Operations
FOR THE YEARS ENDED DECEMBER 31Three months ended December 31Twelve months ended December 31
(thousands, except per share amounts)2010200920102009
Investment income$717$305$2,850$1,598
Operating and legal expenses4385132216
Net income before investment gains (losses) and taxes6742202,7181,382
Investment gains (losses)8861,224(393)
Net income before taxes1,5602203,942989
Current taxes(154)(37)(692)(368)
Future taxes981981
Net income$2,387$183$4,231$621
Net income (loss) per common share$0.22$0.02$0.12$(0.21)

The company recorded comprehensive income for the year ended December 31, 2010 of $13.2 million compared to $4.9 million in the prior year, which accrues to the preferred shares and reduced the common share deficit to $37.7 million.

Balance Sheets
AS AT DECEMBER 31 (thousands)20102009
Assets
Cash and equivalents$5,592$4,605
Securities54,27442,240
Interest receivables and other1,147572
$61,013$47,417
Liabilities
Accounts payable and other provisions572189
Shareholders' equity60,44147,228
$61,013$47,417
AS AT DECEMBER 31 (thousands, except per share amounts)20102009
Shareholders' equity$60,441$47,228
Less: amounts attributable to preferred shares
Stated value(42,160)(42,160)
Unpaid dividends(1)(55,932)(52,995)
Common share deficit(2)$(37,651)$(47,927)
Per common share$(3.45)$(4.39)
(1)Represents dividends in arrears on preferred shares that are unaccrued for GAAP 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

  • West Street Capital Corporation
    Sachin G. Shah
    President
    (416) 369-8268