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

West Street Capital Corporation

November 29, 2010 16:31 ET

West Street Announces Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2010) - West Street Capital Corporation ("West Street" or the "company") (TSX VENTURE:WSC)(TSX VENTURE:WSC.PR.A) reported net income for the three months ended September 30, 2010 of $0.7 million compared to $0.3 million for the same period in 2009. After providing for unpaid preferred share dividend obligations of $0.7 million (2009 - $0.7 million), net loss per common share was $nil compared with a net loss of $0.04 per common share during the same period in the prior year.

The total return to shareholders, including changes in the market value of the company's security portfolio, was $1.9 million for the three months ended September 30, 2010 (2009 - $2.3 million) which included net income of $0.7 million and other comprehensive income of $1.2 million. A total of $0.7 million accrued to the preferred shareholders through their cumulative dividend entitlement and as a result, the deficit attributable to the company's common shares decreased by $1.2 million to $47.7 million.

Interest, dividends and other income totalled $0.7 million for the three months ended September 30, 2010, in comparison to $0.4 million in the same period in 2009 and consisted principally of interest and dividends earned on the company's securities portfolio. The increase in investment income is primarily the result of the investment of cash balances into a higher yielding U.S. dollar bond portfolio in the fourth quarter of 2009. Net income for the three months ended September 30, 2010 also included a disposition gain of $0.2 million (2009 – $nil).

Statements of Operations  
   
(Unaudited) Three months ended September 30   Nine months ended September 30  
(Thousands, except per share amounts) 2010   2009   2010   2009  
Investment income $ 707   $ 360   $ 2,133   $ 1,293  
Operating expenses   (20 )   (24 )   (89 )   (131 )
Net income before investment gains (losses) and taxes   687     336     2,044     1,162  
Investment gains (losses)   195         338     (393 )
Net income before taxes   882     336     2,382     769  
Current taxes   (175 )   (76 )   (538 )   (331 )
Net income $ 707   $ 260   $ 1,844   $ 438  
Net loss per common share $ 0.00   $ (0.04 ) $ (0.03 ) $ (0.16 )
 
 
Statements of Total Return
 
(Unaudited) Three months ended September 30 Nine months ended September 30
(Thousands) 2010 2009 2010 2009
Net income $ 707 $ 260 $ 1,844 $ 438
Unrealized gain on securities   1,203   2,043   602   4,679
Total return $ 1,910 $ 2,303 $ 2,446 $ 5,117
 
 
   
Balance Sheets  
   
(unaudited)        
(Thousands) September 30, 2010   December 31, 2009  
Assets            
  Cash and equivalents $ 5,796   $ 4,605  
  Securities   43,244     42,240  
  Interest receivables and other   1,049     572  
  $ 50,089   $ 47,417  
Liabilities            
  Accounts payable and other provisions   415   $ 189  
Shareholders' Equity   49,674     47,228  
  $ 50,089   $ 47,417  
   
(Thousands, except per share amounts)   September 30, 2010     December 31, 2009  
Shareholders' Equity $ 49,674   $ 47,228  
Less: amounts attributable to preferred shares            
  Stated value   (42,160 )   (42,160 )
  Unpaid dividends1   (55,197 )   (52,995 )
Common share deficit2 $ (47,683 ) $ (47,927 )
  Per common share $ (4.36 ) $ (4.39 )
1 Represents dividends in arrears on preferred shares that are not recorded in the financial statements.
2 The above table presents the common share deficit.

Contact Information

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