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

West Street Capital Corporation

November 28, 2011 16:32 ET

West Street Announces Third Quarter Results

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

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