TORONTO, ONTARIO -- (Marketwire) -- 08/27/10 -- West Street Capital Corporation ("West Street" or the "company") (TSX VENTURE: WSC)(TSX VENTURE: WSC.PR.A) reported net income for the period ended June 30, 2010 of $0.7 million compared to a net loss of $0.2 million in 2009. After providing for unpaid preferred share dividend obligations of $0.7 million (2009 - $0.7 million), the net loss per common share was $0.01 compared with a net loss of $0.09 per common share during the same period in the prior year.
The total return to shareholders, including changes in the market value of the company's security portfolio, was a decrease of $0.7 million (2009 - increase of $2.8 million). Through their cumulative dividend entitlement, $0.7 million accrued to the preferred shareholders, and as a result, the deficit attributable to the company's common shares increased by $1.4 million to $48.9 million.
Interest, dividends and other income totalled $0.7 million for the period ended June 30, 2010, in comparison to $0.4 million in the same period in 2009 and consist principally of interest and dividends earned on the company's securities portfolio. The increase in investment income is primarily the result of the investment of cash balances into a higher yielding U.S. dollar bond portfolio in the fourth quarter of 2009.
Statements of Operations
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Three months ended June Six months ended June
30 30
(Thousands, except per share
amounts) 2010 2009 2010 2009
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Investment income $ 730 $ 412 $ 1,426 $ 933
Operating expenses 28 72 69 107
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Net income before investment
gains (losses) and taxes 702 340 1,357 826
Investment gains (losses) 143 (393) 143 (393)
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Net income (loss) before
taxes 845 (53) 1,500 433
Current taxes (185) (149) (363) (255)
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Net income 660 (202) 1,137 178
Preferred share dividend
entitlement (734) (733) (1,468) (1,466)
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Net loss attributable to
common shares $ (74) $ (935) $ (331) $ (1,288)
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Net loss per common share $ (0.01) $ (0.09) $ (0.03) $ (0.12)
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Statements of Total Return
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Three months ended Six months ended June
June 30 30
(Thousands) 2010 2009 2010 2009
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Net income / loss $ 660 $ (202) $ 1,137 $ 178
Unrealized (loss) gain on
securities (1,316) 3,039 (601) 2,636
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Total return $ (656) $ 2,837 $ 536 $ 2,814
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Balance Sheets
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(unaudited)
(Thousands) June 30, 2010 December 31, 2009
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Assets
Cash and equivalents $ 4,846 $ 4,605
Securities 43,028 42,240
Interest receivables and other 389 572
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$ 48,263 $ 47,417
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Liabilities
Accounts payable and other
provisions $ 499 $ 189
Shareholders' Equity 47,764 47,228
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$ 48,263 $ 47,417
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(Thousands, except per share
amounts) June 30, 2010 December 31, 2009
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Shareholders' Equity $ 47,764 $ 47,228
Less: amounts attributable to
preferred shares
Stated value (42,160) (42,160)
Unpaid dividends(1) (54,463) (52,995)
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Common share deficit(2) $ (48,859) $ (47,927)
Per common share $ (4.47) $ (4.39)
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(1) Represent dividends in arrears on preferred shares that are not recorded
in the financial statements.
(2) The above table presents the common share deficit.
Contacts:
West Street Capital Corporation
Sachin G. Shah
President
(416) 369-8268
