Shares outstanding: 35,915,615
TORONTO, March 2 /CNW/ - Augen Capital Corp. (the "Company") (TSX-V: AUG)
announces that it will be restating its consolidated quarterly financial
results for the first three quarters of 2006. The restatement will reflect a
change in timing of the recognition of a performance fee and has no impact on
the cash flow of the Company.
During the first quarter of 2006, the Company recognized $0.7 million in
performance fees, net of income taxes, in connection with the performance of
Augen Limited Partnership 2005 ("LP 2005"). The performance fee, net of income
taxes, was adjusted to $0.5 million in the Q2 2006 results, and further
adjusted to $0.4 million in the Q3 2006 results.
In connection with the Company's year end audit procedures, it has been
determined that, in accordance with GAAP, the performance fee revenue should
be recognized in the fourth quarter. Accordingly, the restated Q1 revenue is
$0.8 million versus $1.9 million reported, resulting in earnings per share of
$0.02 versus $0.04 reported; the restated Q2 revenue is $2.4 million versus
$3.2 million reported, resulting in earnings per share of $0.02 versus $0.04
reported; and the restated Q3 revenue is $3.2 million versus $3.9 million
reported, resulting in earnings per share of $0.03 versus $0.04 reported.
The Company expects Q4 revenue to include a performance fee, net of
income taxes, of $0.5 million in respect of LP 2005, in addition to strong
revenue from structured products and merchant banking operations. The Company
expects the 2006 annual results to be the best in its history.
The restatement will be made in the Company's annual management's
discussion and analysis for the year ended December 31, 2006. There are no
anticipated delays in the filing of the Company's audited annual consolidated
financial statements, expected to occur in April.
About Augen Capital
Based in Toronto, Augen Capital is a merchant bank specializing in the
financing of, and investment in, early stage resource companies and is an
industry leader in tax-advantaged flow-through investments in Canada's
resource sectors. Augen has raised over $40 million in flow-through limited
partnership assets in the last four years. The Company now has under
management a core portfolio of primarily emerging resource stocks, two
Resource Flow-Through Limited Partnerships, and its mutual fund, Augen
Resource Strategy Fund.
For more information on Augen, 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 certain "Forward-Looking Statements" within
the meaning of Section 21E of the United States Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact,
included herein are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations as
disclosed in the Company's documents filed from time to time with applicable
Canadian securities regulators and the United States Securities & Exchange
For further information:
For further information: J. David Mason, Chairman, Tel: (416) 777-2007
ext 223, email@example.com