TORONTO, ONTARIO--(Marketwire - Nov. 28, 2011) - West Street Capital Corporation (TSX VENTURE:WSC)(TSX VENTURE:WSC.PR.A)("West Street" or the "company") reported a net loss for the quarter ended September 30, 2011 of $0.6 million compared to net income of $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 loss per common share was $0.13 compared with $nil per common share during the period ended September 30, 2010.
Dividends, interest and other income totalled $1.0 million for the period ended September 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. Included in the net loss for the quarter is a deferred tax expense of $1.7 million which reflects the derecognition of deferred tax assets as a result of a significant decline in the fair value of the securities portfolio.
| Statements of Operations | ||||
| Three months ended | Nine months ended | |||
| (unaudited) | September 30 | September 30 | ||
| (thousands, except per share amounts) | 2011 | 2010 | 2011 | 2010 |
| Investment income | $ | 984 | $ | 707 | $ | 2,611 | $ | 2,133 | ||||
| Operating and legal expenses | 23 | 20 | 93 | 89 | ||||||||
| Net income before investment gains and taxes | 961 | 687 | 2,518 | 2,044 | ||||||||
| Investment gains | - | 195 | 203 | 338 | ||||||||
| Net income before taxes | 961 | 882 | 2,721 | 2,382 | ||||||||
| Current taxes | 118 | (175 | ) | (392 | ) | (538 | ) | |||||
| Future taxes | (1,716 | ) | - | (958 | ) | - | ||||||
| Net (loss) income | $ | (637 | ) | $ | 707 | $ | 1,371 | $ | 1,844 | |||
| Net (loss) income per common share | $ | (0.13 | ) | $ | - | $ | (0.08 | ) | $ | (0.12 | ) |
Comprehensive loss, which includes both net loss and comprehensive loss, for the quarter ended September 30, 2011 totalled $14.4 million compared to comprehensive income of $1.9 million in the comparative period of 2010, which increased the common share deficit to $47.5 million. The company recorded a loss of $13.8 million (2010 - income of $1.2 million) in other comprehensive income during the current quarter as a result of declines in the fair values of the securities portfolio.
| Balance Sheets | |||||||
| (unaudited) | |||||||
| September 30, | December 31, | ||||||
| (thousands) | 2011 | 2010 | |||||
| Assets | |||||||
| Cash and equivalents | $ | 3,881 | $ | 5,592 | |||
| Securities | 48,859 | 54,274 | |||||
| Interest receivable and other | 566 | 1,147 | |||||
| $ | 53,306 | $ | 61,013 | ||||
| Liabilities | |||||||
| Accounts payable and other provisions | $ | 552 | $ | 572 | |||
| Shareholders' equity | 52,754 | 60,441 | |||||
| $ | 53,306 | $ | 61,013 | ||||
| September 30, | December 31, | ||||||
| (thousands, except per share amounts) | 2011 | 2010 | |||||
| Shareholders' equity | $ | 52,754 | $ | 60,441 | |||
| Less: amounts attributable to preferred shares | |||||||
| Stated value | (42,160 | ) | (42,160 | ) | |||
| Unpaid dividends1 | (58,135 | ) | (55,932 | ) | |||
| Common share deficit2 | $ | (47,541 | ) | $ | (37,651 | ) | |
| Per common share | $ | (4.35 | ) | $ | (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:
Sachin G. Shah
President
(416) 363-9491