West Street Announces 2007 Second Quarter Results
August 29 2007 - 7:28PM
Marketwired Canada
West Street Capital Corporation (TSX VENTURE:WSC)(TSX VENTURE:WSC.PR.A) ("West
Street" or the "company") reported net income before taxes for the three months
ended June 30, 2007 of $594 thousand, compared to $678 thousand during the same
period in 2006. After providing for unpaid preferred share dividend obligations
that accumulated during the three months ended June 30, 2007, the net loss per
common share was $0.01, compared with a net loss of $nil per common share during
the same period last year.
Dividends, interest and other income totalled $837 thousand for the three months
ended June 30, 2007, which increased by $179 thousand over the prior year and
consists principally of dividends and interest earned on the company's
securities portfolio.
Statement of Operations
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Three months ended Six months ended
June 30 June 30
(unaudited)
$thousands, except per share
amounts 2007 2006 2007 2006
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Investment income and other $ 837 $ 658 $ 1,432 $ 1,230
Operating and legal expenses 118 70 182 153
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Net income before investment
gains 719 588 1,250 1,077
Investment gains - 138 - 317
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Net income before taxes 719 726 1,250 1,394
Income tax expense 125 48 97 185
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Net income $ 594 $ 678 $ 1,153 $ 1,209
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Net loss per common share $ (0.01) $ - $ (0.03) $ (0.02)
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Balance Sheet
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(unaudited)
$thousands, except per share amount June 30, 2007 December 31 2006
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Assets
Cash and equivalents $ 11,601 $ 10,518
Securities(1) 35,336 33,421
Interest receivable and other 227 258
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$ 47,164 $ 44,197
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Liabilities
Accounts payable and provisions $ 258 $ 239
Shareholders' equity(3) 46,906 43,958
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$ 47,164 $ 44,197
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Attributable to each Class A Preferred
Share, Series E(3) $ 28.00 $ 26.24
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(1) The carrying value of securities as at December 31, 2006 was based on
historical book value. As a result of the change in accounting
standards which took affect January 1, 2007, securities are carried at
market value in the company's financial statements as at June 30, 2007.
(2) No carrying value has been assigned to $287.3 million of capital losses
in the company's financial statements as there is not sufficient
certainty of utilization.
(3) Shareholders' Equity
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June 30 Per Preferred
$thousands, except per share amounts 2007 Share
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Book value of net assets and liabilities $ 46,906 $ 28.00
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Less amounts attributed to preferred shares
Redemption value 41,887 25.00
Unaccrued dividends in arrears 46,162 27.56
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88,049 52.56
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Common share deficit $ (41,143) $ (24.56)
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As a result of cumulative dividends in arrears, the tangible net book value
of the company currently accrues entirely to the preferred shares. The
above preferred share information is based on 1,675,465 preferred shares
currently issued and outstanding.
This news release contains forward-looking statements concerning the Company's
business and operations. The Company cautions that, by their nature,
forward-looking statements involve risk and uncertainty and the Company's actual
results could differ materially from those expressed or implied in such
statements. Reference should be made to the most recent Annual Information Form
for a description of the major risk factors.
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