West Street Announces First Quarter Results

Marketwired

TORONTO, ONTARIO--(Marketwired - May 27, 2013) - 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, 2013 of $1.1 million compared to $1.5 million in the comparative quarter in 2012. After providing for unpaid preferred share dividend obligations of $0.7 million (2012 - $0.7 million) that accumulated during the quarter, net income per common share was $0.03 for the three months ended March 31, 2013 compared to a net income of $0.07 per common share during the quarter ended March 31, 2012.

STATEMENTS OF OPERATIONS
Three months ended March 31
(CAD$ Thousands, except per share amounts) 2013 2012
Investment income $ 832 $ 731
Operating and legal expenses (32) (23)
800 708
Foreign currency revaluation - (40)
Net income before taxes 800 668
Current tax (expense) recovery (17) 3
Deferred tax recovery 327 805
Net income $ 1,110 $ 1,476
Net income per share $ 0.03 $ 0.07

Comprehensive income, which includes both net income and other comprehensive income, for the three months ended March 31, 2013 totalled $3.3 million compared to $7.1 million in the comparative period in 2012, which reduced the common share deficit to $14.3 million. The company recorded a pre-tax unrealized gain of $2.5 million (2012 - $6.4 million) in other comprehensive income during the quarter as a result of increases in the fair value of the securities portfolio.

STATEMENTS OF FINANCIAL POSITION
(Unaudited)
March 31,
December 31,
(CAD$ Thousands) 2013 2012
Assets
Cash and equivalents $ 7,041 $ 6,206
Securities 83,578 80,300
Interest receivable and other 644 833
$ 91,263 $ 87,339
Liabilities
Accounts payable and other liabilities 831 165
Equity 90,432 87,174
$ 91,263 $ 87,339
March 31, December 31,
(CAD$ Thousands, except per share amount) 2013 2012
Equity $ 90,432 $ 87,174
Less: amounts attributable to preferred shares
Stated value (42,160) (42,160)
Unpaid dividends1 (62,540) (61,806)
Common share deficit2 $ (14,268) $ (16,792)
Per common share $ (1.31) $ (1.54)
1Represents dividends in arrears on preferred shares that are unaccrued for IFRS purposes
2The above table presents the significant common share deficit resulting from the net book value of the company being attributed to the preferred shares

On April 30, 2013, the company's major shareholder, Brookfield Asset Management Inc. ("Brookfield") offered to purchase any common shares of the company that Brookfield does not currently own at a price of $0.21 per share ("The Offer"). The Offer will be open for acceptance until 5:00 p.m. (Eastern) on June 4, 2013 (the "Expiry Time") unless extended or withdrawn. Brookfield has advised the company that it intends to proceed with a second-stage transaction to acquire any Common Shares not tendered under the Offer. Full details of the Offer are contained in the take-over bid circular of Brookfield and the company's directors' circular, copies of which are available under the company's profile at www.sedar.com.

Contact:
West Street Capital Corporation
Mabel W.H. Wong
Vice-President
(416) 363-9491

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