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

West Street Capital Corporation

August 25, 2011 18:10 ET

West Street Announces Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 25, 2011) - West Street Capital Corporation (TSX VENTURE:WSC)(TSX VENTURE:WSC.PR.A) ("West Street" or the "company") reported net income for the quarter ended June 30, 2011 of $1.4 million compared to $0.7 million in the comparative quarter in 2010. After providing for unpaid preferred share dividend obligations of $0.7 million (2010 – $0.7 million), net income per common share was $0.06 compared with a net loss of $0.01 per common share during the period ended June 30, 2010.

Dividends, interest and other income totalled $0.8 million for the period ended June 30, 2011, in comparison to $0.7 million in the same period in 2010 and consisted principally of dividends and interest earned on the company's securities portfolio. The increase in investment income is primarily the result of additional securities acquired during 2010 and 2011.

Statements of Operations
Three months ended June 30 Six months ended June 30
(thousands, except per share amounts) 2011 2010 2011 2010
Investment income $ 818 $ 730 $ 1,627 $ 1,426
Operating and legal expenses 52 28 70 69
Net income before investment gains and taxes 766 702 1,557 1,357
Investment gains 439 143 203 143
Net income before taxes 1,205 845 1,760 1,500
Current taxes (173 ) (185 ) (510 ) (363 )
Future taxes 353 758
Net income $ 1,385 $ 660 $ 2,008 $ 1,137
Net income (loss) per common share $ 0.06 $ (0.01 ) $ 0.05 $ (0.03 )
The company recorded comprehensive income for the quarter ended June 30, 2011 of $3.7 million compared to a comprehensive loss of $0.7 million in the comparative period in 2010, which accrued to the preferred shares and reduced the common share deficit to $32.4 million.
Balance Sheets
(unaudited) June 30, December 31,
(thousands) 2011 2010
Assets
Cash and equivalents $ 4,520 $ 5,592
Securities 62,583 54,274
Interest receivable and other 586 1,147
$ 67,689 $ 61,013
Liabilities
Accounts payable and other provisions $ 509 $ 572
Shareholders' equity 67,180 60,441
$ 67,689 $ 61,013
June 30, December 31,
(thousands, except per share amounts) 2011 2010
Shareholders' equity $ 67,180 $ 60,441
Less: amounts attributable to preferred shares
Stated value (42,160 ) (42,160 )
Unpaid dividends1 (57,400 ) (55,932 )
Common share deficit2 $ (32,380 ) $ (37,651 )
Per common share $ (2.96 ) $ (3.45 )
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

  • West Street Capital Corporation
    Sachin G. Shah
    President
    (416) 363-9491