TORONTO, May 11 /PRNewswire-FirstCall/ -- The Westaim Corporation (Westaim) announced today that for the quarter ended March 31, 2010, it recorded net income of $24.2 million or 23 cents per share, compared to a net loss of $2.7 million or 3 cents per share in the first quarter of 2009. Westaim's 2010 first quarter results include an accounting gain of $23.7 million as a result of the acquisition of JEVCO Insurance Company (JEVCO) on March 29, 2010 at a discount to its net book value, and a gain on the sale and redemption of investments of $3.2 million.
Westaim's first quarter results do not include any revenue or net income of JEVCO from the closing date of March 29, 2010 to March 31, 2010 as the amounts are not material. Westaim's ownership of JEVCO is reflected on the consolidated balance sheet, and JEVCO's earnings will be included in Westaim's results going forward.
At March 31, 2010, Westaim had $67.1 million in consolidated cash and cash equivalents, compared to $62.4 million at December 31, 2009.
"We believe our new focus on the property and casualty insurance industry will bring significant value to our shareholders," said Cameron MacDonald, Westaim's President and Chief Executive Officer.
Tomorrow, May 12, 2010, The Westaim Corporation is holding its Annual Meeting of Shareholders in Toronto, Canada at 10:00 a.m. EDT. The meeting takes place at the Metro Toronto Convention Centre at 255 Front Street West in Toronto Ontario.
Westaim's business is focused on the property and casualty insurance industry. Westaim's common shares are listed on The Toronto Stock Exchange under the trading symbol WED.
Certain portions of this press release as well as other public statements by Westaim, contain forward-looking statements. Such forward-looking statements include but are not limited to statements concerning the transaction described herein; JEVCO's business and the industry in which it operates; investment strategies and expected rates of return; and strategic alternatives to maximize value for shareholder. These statements are based on current expectations that are subject to risks, uncertainties and assumptions and Westaim can give no assurance that these expectations are correct. Westaim's actual results could differ materially from those anticipated by forward-looking statements for various reasons generally beyond our control, including but not limited to: (i) changes in market conditions or deterioration in underlying investments; (ii) general economic, market, financing, regulatory and industry developments and conditions; (iii) the risks relating to JEVCO's business; and (iv) other risk factors set forth in Westaim's Annual Report or Annual Information Form. Westaim disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise except as required by law. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.
THE WESTAIM CORPORATION Financial Highlights (unaudited) (thousands of Canadian dollars except per share data) ------------------------------------------------------------------------- Three Months Ended March 31 --------------------------- Consolidated Statements of Operations 2010 2009 ------------------------------------------------------------------------- Income (loss) from continuing operations $ 24,743 $ (960) Net income (loss) 24,219 (2,681) Earnings (loss) per common share Continuing operations - basic and diluted 0.23 (0.01) Net earnings (loss) - basic 0.23 (0.03) - diluted 0.22 (0.03) Weighted average number of common shares outstanding (thousands) - basic 106,443 94,216 - diluted 108,119 94,216 ------------------------------------------------------------------------- ------------------------------------------------------------------------- March 31, December 31, Consolidated Balance Sheets 2010 2009 ------------------------------------------------------------------------- Cash and cash equivalents $ 67,081 $ 62,423 Investments 932,350 9,231 Total assets 1,267,434 72,567 Total liabilities 926,598 14,564 Shareholders' equity 340,836 58,003
Westaim Corporation
CONTACT: Jeff Sarfin, CFO, The Westaim Corporation, (416) 203-2253,
info@westaim.com
