TORONTO, ONTARIO--(Marketwire - May 31, 2011) - West Street Capital Corporation ("West Street" or the "company") (TSX VENTURE:WSC)(TSX VENTURE:WSC.PR.A) reported net income for the quarter ended March 31, 2011 of $0.6 million compared to $0.5 million in the comparative quarter in 2010. After providing for unpaid preferred share dividend obligations of $0.7 million (2010 – $0.7 million), the net loss per common share was $0.01 compared with a net loss of $0.02 per common share during the period ended March 31, 2010.
Dividends, interest and other income totalled $0.8 million for the period ended March 31, 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. The increase in investment income is primarily the result of additional securities acquired during 2010 and 2011.
| Statements of Operations | ||||||
| THREE MONTHS ENDED MARCH 31 | ||||||
| (thousands, except per share amounts) | 2011 | 2010 | ||||
| Investment income | $ | 809 | $ | 681 | ||
| Operating and legal expenses | 18 | 26 | ||||
| Net income before investment losses and taxes | 791 | 655 | ||||
| Investment losses | (236 | ) | — | |||
| Net income before taxes | 555 | 655 | ||||
| Current taxes | (337 | ) | (178 | ) | ||
| Future taxes | 405 | — | ||||
| Net income | $ | 623 | $ | 477 | ||
| Net loss per common share | $ | (0.01 | ) | $ | (0.02 | ) |
| The company recorded comprehensive income for the quarter ended March 31, 2011 of $3.1 million compared to $1.2 million in the comparative period in 2010, which accrued to the preferred shares and reduced the common share deficit to $35.3 million. |
| Balance Sheets | |||||||
| (unaudited) | March 31, | December 31, | |||||
| (thousands) | 2011 | 2010 | |||||
| Assets | |||||||
| Cash and equivalents | $ | 3,513 | $ | 5,592 | |||
| Securities | 60,221 | 54,274 | |||||
| Interest receivable and other | 712 | 1,147 | |||||
| $ | 64,446 | $ | 61,013 | ||||
| Liabilities | |||||||
| Accounts payable and other provisions | $ | 922 | $ | 572 | |||
| Shareholders' equity | 63,524 | 60,441 | |||||
| $ | 64,446 | $ | 61,013 | ||||
| March 31, | December 31, | ||||||
| (thousands, except per share amounts) | 2011 | 2010 | |||||
| Shareholders' equity | $ | 63,524 | $ | 60,441 | |||
| Less: amounts attributable to preferred shares | |||||||
| Stated value | (42,160 | ) | (42,160 | ) | |||
| Unpaid dividends1 | (56,666 | ) | (55,932 | ) | |||
| Common share deficit2 | $ | (35,302 | ) | $ | (37,651 | ) | |
| Per common share | $ | (3.23 | ) | $ | (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:
Sachin G. Shah
President
(416) 363-9491