Augen Capital announces record results



    Shares outstanding: 35,915,615

    TORONTO, April 27 /CNW/ - Augen Capital Corp. ("Augen" or the "Company")
(TSX-V:AUG) is pleased to announce its audited consolidated financial results
for the year ended December 31, 2006. The highlights are as follows:

    
    -  Income was $7.1 million, up 223% from $2.2 million in 2005;

    -  Net earnings were $2.9 million in 2006, up from $0.9 million in 2005,
       representing $0.09 per share as compared to $0.03 per share;

    -  Assets increased 145% to $10.3 million at December 31, 2006 from $4.2
       million in 2005.
    

    "Augen's investment performance for both the managed products and
merchant banking portfolio was strong in 2006 and our 2005 limited partnership
offering set the benchmark for performance in the flow-through business. 2006
was our record year to date and the outlook in our specialist area of the
natural resource sector is exceptionally favourable. The merchant banking
portfolio has been realigned into five significant positions including Augen
Gold Corp., Energy Fuels Inc, Polar Bear Explorations, Uravan Minerals, and a
previously announced uranium play. Augen is a financier of first resort for
emerging resource companies and the contribution of our Merchant Banking
division should see significant growth in the current year, underpinned by the
recurring cash flow of the Managed Products division," said J. David Mason,
Chairman of Augen.
    The Company restated its consolidated quarterly results for the first
three quarters of 2006 to reflect a change in timing of the recognition of
performance fee income and incentive compensation. The restatement has no
impact on the cash flow of the Company. The impact of these restatements have
been disclosed in further detail in the 2006 Management's Discussion and
Analysis and is summarized in the following table:

    
    -------------------------------------------------------------------------
    $000's (except per       Q4 2006        Q3 2006             Q2 2006
     share data)            Reported  Reported  Restated  Reported  Restated
    -------------------------------------------------------------------------
    Performance fees
     income (YTD)                875       691        89       833        89
    Income (YTD)               7,128     3,936     3,334     3,234     2,490
    Incentive compensation
     (YTD)                       508       650        52       535        70
    Expenses before income
     taxes (YTD)               3,109     2,536     1,938     1,792     1,327
    -------------------------------------------------------------------------
    Net earnings (YTD)         2,902       983       980     1,038       860
    EPS - basic and diluted
     (YTD)                      0.09      0.04      0.04      0.04      0.03
    -------------------------------------------------------------------------


    -------------------------------------------
    $000's (except per            Q1 2006
     share data)            Reported  Restated
    -------------------------------------------
    Performance fees
     income (YTD)              1,109         -
    Income (YTD)               1,950       841
    Incentive compensation
     (YTD)                         -         -
    Expenses before income
     taxes (YTD)                 318       318
    -------------------------------------------
    Net earnings (YTD)         1,047       339
    EPS - basic and diluted
     (YTD)                      0.04      0.00
    -------------------------------------------

    The Audited Consolidated Financial Statements for the years ended December
31, 2006 and 2005 are available at www.augencc.com or at www.sedar.com.
Attached below are extracts from the 2006 Consolidated Statements of Earnings
and Consolidated Balance Sheets:

    -------------------------------------------------------------------------
    AUGEN CAPITAL CORP.
    Consolidated Statements of Earnings
    -------------------------------------------------------------------------
    For the years ended December 31,                   2006          2005
                                                         $             $
    -------------------------------------------------------------------------
    Income                                           7,127,538     2,165,210
    -------------------------------------------------------------------------
    Expenses                                         3,095,813     1,746,213
    -------------------------------------------------------------------------
    Earnings before income taxes and amortization    4,031,725       418,997
    -------------------------------------------------------------------------
      Amortization                                      12,764        17,244
    -------------------------------------------------------------------------
    Earnings before income taxes                     4,018,961       401,753
    -------------------------------------------------------------------------
    Income taxes
      Current                                          456,742             -
      Future                                           520,511      (572,925)
    -------------------------------------------------------------------------
                                                       977,253      (572,925)
    -------------------------------------------------------------------------
    Earnings before non-controlling interest         3,041,708       974,678
    -------------------------------------------------------------------------
      Non-controlling interest                         139,245        83,448
    -------------------------------------------------------------------------
    Net earnings                                     2,902,463       891,230
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings per share - basic and diluted                0.09          0.03
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
    AUGEN CAPITAL CORP.
    Consolidated Balance Sheets
    -------------------------------------------------------------------------
    As at December 31,                                 2006          2005
                                                         $             $
    -------------------------------------------------------------------------

    ASSETS

    Current assets
      Cash and equivalents                           3,833,786       307,085
      Prepaid expenses and deposits                     54,000        27,013
      Receivables                                    1,436,347       721,978
      Due from related parties (note 10)             1,615,538       646,480
    -------------------------------------------------------------------------
                                                     6,939,671     1,702,556
    -------------------------------------------------------------------------

    Investments (note 9)                             2,659,709     1,853,449
    -------------------------------------------------------------------------
    Mineral properties and deferred costs (note 3)     509,044             -
    -------------------------------------------------------------------------
    Capital assets, net (note 4)                        46,284        56,812
    -------------------------------------------------------------------------
    Future income taxes (note 8)                        52,414       572,925
    -------------------------------------------------------------------------
    Goodwill (note 11)                                  62,014             -
    -------------------------------------------------------------------------
    Total assets                                    10,269,136     4,185,742
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES

    Current liabilities
      Accounts payable and accrued liabilities       1,173,552       386,419
      Income taxes payable (note 8)                    456,742             -
    -------------------------------------------------------------------------
                                                     1,630,294       386,419
    -------------------------------------------------------------------------
    Non-controlling interest (note 3 and note 11)            -       144,529
    -------------------------------------------------------------------------
                                                     1,630,294       530,948
    -------------------------------------------------------------------------

    SHAREHOLDERS' EQUITY
      Capital stock (note 5)                         6,772,575     4,979,218
      Contributed surplus (note 6)                     568,668       280,440
      Retained earnings (deficit)                    1,297,599    (1,604,864)
    -------------------------------------------------------------------------
                                                     8,638,842     3,654,794
    -------------------------------------------------------------------------

    Total liabilities and shareholders' equity      10,269,136     4,185,742
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    About Augen Capital

    Augen Capital is a Toronto-based merchant bank which finances early stage
resource companies. Augen is an industry leader in tax-advantaged flow-through
investments in Canada's resource sectors having raised over $44 million in
flow-through limited partnership assets since inception. Augen manages a core
portfolio of emerging resource stocks, resource flow-through limited
partnerships, and its mutual fund, Augen Resource Strategy Fund.

    For more information on Augen Capital, visit our website at
    www.augencc.com
    The company's public documents may be accessed at www.sedar.com

    The TSX Venture has not reviewed and does not accept responsibility for
    the adequacy or accuracy of this release.

    -------------------------------------------------------------------------

    This news release contains forward-looking statements. These statements
are based on certain factors and assumptions as set forth in this new release
including expected growth, results of operations, performance and business
prospects and opportunities. While the Company considers these factors and
assumptions to be reasonable based on information currently available, they
may prove to be incorrect. A number of factors could cause actual results to
differ materially from those in the forward-looking statements, including, but
not limited to results of exploration, project development, reclamation and
capital costs of the companies in the merchant banking portfolios ("investee
companies"), and the Company's financial condition and prospects, could differ
materially from those currently anticipated in such statements for many
reasons such as; changes in general economic conditions and conditions in the
financial markets; changes in demand and prices for the minerals the investee
companies expect to produce; litigation, legislative, environmental and other
judicial, regulatory, political and competitive developments; technological
and operational difficulties encountered in connection with the activities of
the Company's and investee companies. Additional risks and uncertainties can
be found in our 2006 Management's Discussion and Analysis and in filings with
the Canadian provincial securities commissions. Forward-looking statements are
given only as at the date of this news release and the Company disclaims any
obligation to update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise.

    %SEDAR: 00008335E




For further information:

For further information: J. David Mason, Managing Director & Chairman,
Tel: (416) 777-2007 Ext. 223, investorrelations@augencc.com

Organization Profile

Gensource Capital Corporation

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890