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Augen Capital Reports First Quarter Results
- Results affected by change to accounting policy for fair value of investment portfolio - Reduce...
About this update from Gensource Potash Corp.
[{"type":"text","content":"\n\n\n\n- Results affected by change to accounting policy for fair value of\n investment portfolio\n- Reduced Q1 operating expenses by 44% from the same period in 2007\n- Achieved record Q1 growth in consulting asset base\n\n\nShares outstanding: 36,515,615\n\n\nTORONTO, May 29 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG) today\nannounced its unaudited interim consolidated financial results for the\nthree-month period ended March 31, 2008.\n\n\nNote: The adoption of CICA Handbook Section 3855, which requires the\nreporting of unrealized fluctuations in the fair value of the Merchant Banking\ninvestment portfolio, has resulted in greater volatility in the net earnings\nof Augen since it was adopted in the first quarter of 2007. While these\naccounting standards provide insight into the current fair value of the\nMerchant Banking investment portfolio, they do not necessarily provide an\naccurate indication of the ultimate realized gain or loss, which will be\ndifferent.\n\n\nAugen's income for the first quarter was $208,000, after realized losses\nof $191,000 from the sale of investments, compared with income of $667,000 in\nthe same period of 2007, when Augen recorded realized gains of approximately\n$138,000.\n\n\nThe net loss for the quarter was $746,000, or $0.02 per share, basic and\ndiluted, compared with a net loss of $530,000 or $0.01 per share, basic and\ndiluted, in the same quarter of 2007.\n\n\nIn the latest quarter, the net loss before income taxes and before the\nunrealized loss on the Merchant Banking segment investment portfolio of\n$569,000 resulting from the adoption of the new accounting policy was\nrelatively unchanged from a year earlier at $342,000 or $0.01 per share.\n\n\nCash flow used in operating activities, before changes in non-cash\nworking capital, decreased in the first quarter to $67,000 compared with\n$197,000 of cash used in the same quarter of 2007.\n\n\nConsolidated assets decreased by 6.0% to $10.6 million at March 31, 2008\nfrom $11.3 million at December 31, 2007. Augen continues to maintain a solid\nbalance sheet with more than $5 million in current assets and no long-term\ndebt.\n\n\n"Market conditions for junior mining companies were particularly\nchallenging during the first quarter of this year, despite good fundamentals\nfor many of them. This, combined with the chan...