West Street Announces Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 27, 2009) - West Street Capital Corporation ("West Street" or the "company")(TSX VENTURE:WSC)(TSX VENTURE:WSC.PR.A) reported net income for the three months ended September 30, 2009 of $0.3 million, compared with $0.5 million reported during the same period in 2008. The decrease is primarily the result of lower interest rates on floating rate investments. After providing for unpaid preferred share dividend obligations of $0.7 million that accumulated during the three month period, the net loss was $0.04 per common share, compared to a net loss of $0.03 per common share during the three months ended September 30, 2008.

The company classifies investments within its securities portfolio as available-for-sale financial instruments and accordingly records changes in the market value of these investments in other comprehensive income. During the three months ended September 30, 2009, unrealized gains recorded in other comprehensive income were $2.0 million after tax, compared with unrealized losses of $2.1 million in the same period in the prior year. As a result, the net book value attributed to the preferred shares increased to $47.5 million or $28.29 per preferred share compared to $42.4 million or $25.25 per preferred shares at December 31, 2008.

Update on Preferred Share Acquisition

On August 11, 2009, the company's major shareholder, Brookfield Asset Management Inc., ("Brookfield"), acquired 103,117 Class E Preferred Shares, Series 1 of the company (the "Preferred Shares") at a price of $37.50 for each Preferred Share pursuant to an offer to all holders of Preferred Shares. The acquisition represented 86.5% of the Preferred Shares not already held by Brookfield, increasing Brookfield's ownership of the Preferred Shares to approximately 99%. On September 28, 2009, the company's shareholders approved the amalgamation of West Street with a wholly owned subsidiary of Brookfield. The amalgamation was completed on October 1, 2009, and as a result, Brookfield owns beneficially all of the preferred shares which were delisted from the TSX venture exchange on October 6, 2009.



Statements of Operations 

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 Three months ended Nine months ended 
(unaudited) Sept. 30 Sept 30 
 $thousands, except per share 
 amounts 2009 2008 2009 2008 
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 Investment income $ 360 $ 643 $ 1,293 $ 2,002 
 Operating and legal expenses (24) (20) (131) (115) 
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 Net income before investment 
 losses and taxes 336 623 1,162 1,887 
 Investment losses - - (393) - 
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 Net income before tax 336 623 769 1,887 
 Current tax expense (76) (157) (331) (538) 
 Future tax expense - - - (137) 
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 Net income $ 260 $ 466 $ 438 $ 1,212 
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 Net loss per common share $ (0.04) $ (0.03) $ (0.16) $ (0.09) 
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 Balance Sheets 
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 (unaudited) 
 $thousands, except per share September 30, December 31, 
 amounts 2009 2008 
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 Assets 
 Cash and cash equivalents $ 20,479 $ 16,805 
 Securities 26,604 25,392 
 Interest receivable and 
 other 408 235 
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 $ 47,491 $ 42,432 
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 Liabilities 
 Accounts payable and 
 provisions $ - $ 58 
 Shareholders' equity(1) 47,491 42,374 
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 $ 47,491 $ 42,432 
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 Attributable to each Class E Preferred 
 Share, Series 1(1) $ 28.29 $ 25.25 
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 1) Shareholders' Equity 
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 Per 
 $thousands, except per September 30 Preferred 
 share amounts 2009 Share 
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 Shareholders' equity $ 47,491 $ 28.29 
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 Less amounts attributed to 
 preferred shares 
 Redemption value 41,887 24.96 
 Unaccrued dividends 
 in arrears 52,026 30.99 
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 93,913 55.95 
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 Common share deficit $ (46,422) $ (27.66) 
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 As a result of cumulative dividends in arrears, the tangible net book 
 value of the company currently accrues entirely to the preferred shares.
 Based on 1,678,465 preferred shares currently issued and outstanding.

N@N

West Street Announces Third Quarter Results