West Street Announces Fourth Quarter Results
15 April 2010 - 8:17AM
Marketwired
West Street Capital Corporation ("West Street" or the "company")
(TSX VENTURE: WSC)(TSX VENTURE: WSC.PR.A) reported net income for
the year ended December 31, 2009 of $0.6 million compared to $1.6
million in 2008. After providing for unpaid preferred share
dividend obligations of $2.9 million (2008 - $2.9 million), the net
loss per common share was $0.21 compared with a net loss of $0.12
per common share during the year ended December 31, 2008.
Dividends, interest and other income totalled $1.6 million for
the year ended December 31, 2009, in comparison to $2.6 million in
the same period in 2008 and consist principally of dividends and
interest earned on the company's securities portfolio. The decrease
in investment income is primarily the result of lower interest
rates on floating rate investments.
On October 1, 2009, the company amalgamated with a wholly-owned
subsidiary of Brookfield Asset Management Inc. ("Brookfield") which
resulted in Brookfield acquiring 100% of the preferred shares of
the company. At the time of the transaction, Brookfield owned
approximately 99% of the cumulative redeemable convertible Class E
Preferred Shares, Series 1. The preferred shares owned by
Brookfield were exchanged on a one-for-one basis into 7% cumulative
redeemable convertible Class A Preferred Shares, Series 1 of the
newly formed company. Subsequent to the amalgamation, Brookfield
invested additional capital into the company in exchange for a new
class of 4.68% cumulative redeemable convertible Class A Preferred
Shares, Series 2. The proceeds were used to redeem and cancel the
remaining preferred shares of the company that Brookfield did not
own. At December 31, 2009, undeclared dividends in arrears on the
Class A Preferred Shares, Series 1 and 2 were $53.0 million,
whereas the unaccrued preferred share dividends of the Class E,
Series 1 Preferred Shares at December 31, 2008 were $50.6
million.
Statements of Operations
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FOR THE YEARS ENDED DECEMBER 31 (thousands, except per
share amounts) 2009 2008
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Investment income $ 1,598 $ 2,578
Operating and legal expenses 216 205
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Net income before investment losses and taxes 1,382 2,373
Investment losses (393) -
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Net income before taxes 989 2,373
Current taxes (368) (611)
Future taxes - (137)
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Net income $ 621 $ 1,625
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Net loss per common share $ (0.21) $ (0.12)
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Balance Sheets
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AS AT DECEMBER 31 (thousands) 2009 2008
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Assets
Cash and equivalents $ 4,605 $ 16,805
Securities 42,240 25,392
Interest receivables and other 572 235
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$ 47,417 $ 42,432
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Liabilities
Accounts payable and other provisions 189 58
Shareholders' Equity 47,228 42,374
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$ 47,417 $ 42,432
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AS AT DECEMBER 31 (thousands, except per share amounts) 2009 2008
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Shareholders' Equity $ 47,228 $ 42,374
Less: amounts attributable to preferred shares
Stated value (42,160) (41,887)
Unpaid dividends(1) (52,995) (50,560)
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Common share deficit(2) $ (47,927) $ (50,073)
Per common share $ (4.39) $ (4.58)
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(1) Represents dividends in arrears on preferred shares that are unaccrued
for GAAP 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.
Contacts: West Street Capital Corporation Brian D. Lawson
President (416) 359-8625
West Street Capital Corp. (TSXV:WSC)
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