TORONTO, April 28 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG) is
pleased to announce consolidated financial results for the year ended
December 31, 2005.
- Income was $2.1 million, up 23% as from $1.8 million in 2004.
- Net earnings were $0.9 million in 2005, significantly up from a loss
of $0.1 million in 2004, and translating into $0.03 earnings per
share.
- Cash generated from operations amounted to $0.2 million for the year,
up from $0.1 million of cash used in 2004.
- Assets increased 46% and totaled $4.2 million at December 31, 2005,
and were offset by $0.4 million of current liabilities which were
unchanged.
Managed Products income was $1,212 thousand as compared to $1,383
thousand in 2004. Annual & performance fees were $402 thousand, up 35% from
$297 thousand in 2004, primarily due to the increase in assets under
management resulting from the flow-through limited partnership offerings in
2004 and 2005. Consulting and due diligence fee income was $810 thousand down
from $1,086 thousand in 2004, primarily reflecting a decline in the gross fee
income related to the setup of the 2005 flow-through limited partnership as
compared to the 2004 offering. Due diligence fees earned on resource flow-
through investments by Augen Limited Partnership 2005 were $403 thousand, down
$480 thousand in 2004, reflecting increasing efficiency in the advisory board
review of potential projects and the move towards high capitalization stocks
with improved access to technical information and generally, more advanced
projects.
"Investment performance for the 2004 and 2005 limited partnerships have
been top-tier in the business. The expanded syndicate for the 2006 limited
partnership offering includes firms such as Berkshire Securities, IPC
Securities, HSBC Bank, Research Capital and Blackmont Capital, and well
positions Augen to raise the $30 million maximum offering, which will have a
positive lift on earnings in 2006", said J. David Mason, Chairman of Augen
Capital Corp.
Merchant Banking income was $953 thousand, up 148% from $384 thousand in
2004. Realized gains on the sale of investments were $664 thousand, up 185%
from $233 thousand in 2004. Consulting & due diligence fees amounted to
$30 thousand as compared to NIL in 2004, reflecting a more defined focus on
merchant banking activities. Fee income generated from CFO, corporate
secretarial and other investee company services for the year amounted to
$237 thousand as compared to $24 thousand in 2004, primarily reflecting
Augen's continued commitment to support Merchant Banking opportunities.
"Augen continues to focus on bottom-line growth for its shareholders and
key stakeholders, resulting in its strongest fiscal year since its inception.
As the outlook for the resource sector remains strong, it is expected that
Merchant Banking operations will be a significant contributor to Augen's
future underpinning of our mission of being "Financier of First Resort for
Emerging Resource Companies", said J. David Mason, Chairman of Augen Capital
Corp.
The Statements of Operations, Statements of Deficits, Consolidated
Balance Sheets, and Statements of Cash Flows, and information provided by
segment for the years ended December 31, 2005 and 2004 are available at
www.sedar.com.
About Augen Capital
Based in Toronto, Augen is a merchant bank specializing in the financing
of primarily early stage resource companies and is an industry leader in
tax-advantaged flow-through investments in Canada's resource sector. Our
Managed Products division earns fees related to the limited partnerships and
mutual funds including setup, due diligence, and annual and performance fees.
Our Merchant Banking division provides financing and strategic management
support to resource investee companies and strives to maximize net gains
realized on its core investment portfolio of emerging resource stocks. Augen
has over $30 million in assets under management, including its merchant
banking investment portfolio, four resource flow-through limited partnerships,
and its mutual funds.
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.
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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 are
disclosed in the Company's documents filed from time to time with the British
Columbia Securities Commission and the United States Securities & Exchange
Commission.
%SEDAR: 00008335E
