West Street Announces 2007 Year End Results
May 01 2008 - 6:46PM
Marketwired
TORONTO, ONTARIO today reported net income of $1.8 million for
the year ended December 31, 2007, compared to $2.3 million in 2006.
After providing for unpaid and unaccrued preferred share dividend
obligations that accumulated during the year, the net loss per
common share was $0.10 compared with $0.06 per share in 2006.
Income prior to investment gains and income taxes was $2.8
million during 2007 compared to $2.3 million in 2006. The increase
was due to $0.4 million of foreign currency gains.
Income tax expense increased in the fourth quarter of 2007 due
to a reduction in the carried value of tax loss carry forwards
commensurate with a decline in the value of unrealized gains on the
company's security portfolio.
The book value attributed to the company's Preferred Shares at
December 31, 2007 was $27.55 per share.
Statements of Operations
Three months ended Years ended
December 31 December 31
(unaudited)
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$thousands, except per share amounts 2007 2006 2007 2006
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Investment Income $ 669 $ 627 $ 3,019 $ 2,551
Operating and legal expenses (17) 2 (227) (220)
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652 629 2,792 2,331
Investment (losses) gains (6) 180 (6) 497
Income taxes (496) (168) (945) (578)
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Net income $ 150 $ 641 $ 1,841 $ 2,250
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Net loss per common share $ (0.05) $ (0.01) $ (0.10) $ (0.06)
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Balance Sheets
As at December 31
$thousands, except per share amount 2007 2006
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Assets
Cash and equivalents $ 16,190 $ 10,518
Securities (1) 30,460 33,421
Interest receivable and other 117 258
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$ 46,767 $ 44,197
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Liabilities
Accounts payable and other $ 532 $ 239
Shareholders' equity (2) 46,235 43,958
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$ 46,767 $ 44,197
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Attributable to each Class A Preferred Share,
Series E (2) $ 27.55 $ 26.19
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(1) As a result of a change in accounting standards which took
effect January 1, 2007, securities are carried at market value in
the company's financial statements as at December 31, 2007. The
carrying value of securities as at December 31, 2006 was based on
historical book value.
(2) Shareholders' Equity
As at December 31, 2007
$thousands, except per share amounts Total Per Preferred Share
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Book value of net assets and liabilities $ 46,235 $ 27.55
Less amounts attributed to preferred shares
Redemption value 41,887 24.96
Preferred share dividends in arrears 47,628 28.38
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89,515 53.34
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Common share deficit $ (43,280) $ (25.79)
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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
1,678,465 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 company's most recent Annual Report
for a description of the major risk factors.
Contacts: West Street Capital Corporation Brian D. Lawson
President and Chief Executive Officer (416) 359-8625
West Street Capital Corp. (TSXV:WSC)
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