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

West Street Capital Corporation

August 28, 2012 17:58 ET

West Street Announces Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 28, 2012) - West Street Capital Corporation ("West Street" or the "company") (TSX:WSC)(TSX:WSC.PR.A) reported net income for the quarter ended June 30, 2012 of $1.4 million consistent with $1.4 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 $0.06 for the period ended June 30, 2012 (2011 - $0.06).

STATEMENTS OF OPERATIONS

Three months ended
June 30
Six months ended
June 30
(Thousands, except per share amounts) 2012 2011 2012 2011
Investment income $ 735 $ 769 $ 1,466 $ 1,591
Operating expenses (45 ) (52 ) (68 ) (70 )
690 717 1,398 1,521
Foreign currency revaluation (158 ) 49 (198 ) 36
Investment gains 439 203
Net income before taxes 532 1,205 1,200 1,760
Current tax recovery (expense) 8 (173 ) 11 (510 )
Deferred tax recovery 834 353 1,639 758
Net income $ 1,374 $ 1,385 $ 2,850 $ 2,008
Net income per share $ 0.06 $ 0.06 $ 0.13 $ 0.05

Comprehensive income, which includes both net income and other comprehensive income, for the quarter ended June 30, 2012 totalled $6.5 million compared to $3.7 million in the comparative period in 2011, which reduced the common share deficit to $25.3 million. The company recorded an unrealized gain of $5.2 million (2011 - $2.3 million) as a result of increases in the fair value of the securities portfolio which is recorded in other comprehensive income.

STATEMENTS OF FINANCIAL POSITION

(Unaudited)
June 30,
December 31,
(Thousands) 2012 2011
Assets
Cash and equivalents $ 6,612 $ 5,078
Securities 70,633 57,922
Interest receivable and other 617 617
$ 77,862 $ 63,617
Liabilities
Accounts payable and other liabilities 698 101
Equity 77,164 63,516
$ 77,862 $ 63,617
June 30, December 31,
(Thousands, except per share amount) 2012 2011
Equity $ 77,164 $ 63,516
Less: amounts attributable to preferred shares
Stated value (42,160 ) (42,160 )
Unpaid dividends(1) (60,337 ) (58,869 )
Common share deficit(2) $ (25,333 ) $ (37,513 )
Per common share $ (2.32 ) $ (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

  • West Street Capital Corporation
    Sachin G. Shah
    President
    (416) 359-8625