WELLAND, ON, Feb. 28 /CNW/ - Added Capital Corp. (TSXV: LS) ("Added" or
the "Company") today reported results for its third quarter and nine month
periods ended December 31, 2007 of its 2008 fiscal year. Net loss for the
third quarter was $2,507,032 or $0.05 per share and a net loss of $5,169,474
or $0.12 per share for the nine months ended December 31, 2007 compared with a
net loss of $2,874,839 or $0.07 per share in the third quarter in the prior
year and a net loss of $3,556,649 or $0.09 per share for the nine months ended
December 31, 2006.
Included in the net loss for the nine months ending December 31, 2007 was
a foreign exchange loss of $1,228,544 and one-time restructuring and reverse
take over costs of $2,288,000.
The cash position of the Company improved by $11,517,020. This was
accomplished by reducing the level of inventory, improving cash collection
practices, and reducing operating costs for the first nine months of fiscal
year 2008. Included in the cash position change were the net proceeds received
on issuance of shares of $8,442,668 and the retirement of the note payable and
interest in the amount of $13,422,535.
The Company's revenue for the 9 months ended December 31, 2007 was
$118,494,235 compared to $130,553,506 for the same period last year. Revenue
declined 9.23% as a result of the decline in the requirements from the oil and
gas sector which accounted for 51.9% of revenue for the nine months ending
December 31, 2006 but only 33.8% of revenue for the nine months ending
December 31, 2007.
Expenses for the 9 months ended December 31, 2007 were $9,309,357
compared to $6,773,396 for the same period last year. Foreign exchange losses,
reverse takeover transaction expenses, and one-time restructuring costs
accounted for the increase.
On November 30, 2007 the Company retired a note payable which resulted in
a reduction of interest rate payable on the note from 22% to 11% retroactive
to April 1, 2007. This provided an interest expense recovery of $272,255 for
the three months ended December 31, 2007 and $1,007,382 for the nine months
ended December 31, 2007.
The balance sheet of the Company has improved with the reduction of
interest-bearing debt from $33,258,538 as at March 31, 2007 to $9,171,062 on
December 31, 2007.
About Added Capital Corp.
Added is the parent company of Lakeside Steel Corporation ("Lakeside").
Lakeside, located in Welland, Ontario, is a diversified steel pipe and tubing
manufacturer. Lakeside's list of customers includes large oil and gas, mining,
automotive and commercial and industrial supply companies. In addition to
supplying its products inthese industries, Lakeside manufactures pipe and
mechanical tubing for the resale market, which is sold to distributors in
Eastern Canada and the Northeastern United States. Lakeside manufactures a
variety of products for these industries including oil well tubing and casing,
mechanical tubing, pressure tubing, automotive tubing, hollows for redraw,
line pipe, heating and plumbing pipe, drill rod and specialty tubing. Lakeside
serves customers worldwide, either directly or indirectly, in Canada, China,
Australia and the United States.
For further information:
For further information: Vic Alboini, Chairman & Chief Executive
Officer, Added Capital Corp., (416) 644-8110, Fax: (416) 644-0271, e-mail:
email@example.com; or Ken Hunter, Chief Financial Officer, Added Capital
Corp., (905) 735-7473 ext 7218, Fax: (905) 735-9069, e-mail: