Shares outstanding: 28,857,282
TORONTO, June 1 /CNW/ - Augen Capital Corp. (the "Augen") (TSX-V: AUG) is
pleased to announce consolidated financial results for the first quarter
ending March 31, 2006.
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- Consolidated income rose 343% to $2.0 million for the quarter from
$0.4 million last year.
- Consolidated expenses were unchanged quarter over quarter at
$0.3 million.
- Consolidated net earnings for the quarter was $1.0 million, up from
$0.1 million last year.
- Consolidated assets at March 31, 2006 amounted to $5.4 million offset
by $0.3 million of current liabilities.
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Managed Products income was $1,253 thousand as compared to $70 thousand
in 2005. Annual fees related to managed products amounted to $145 thousand,
more than doubled, up 110% from $69 thousand in the same quarter last year
reflecting the increase in assets under administration resulting from the
flow-through limited partnership offerings in 2004 and 2005 as well as strong
market value appreciation in the limited partnership portfolios. Managed
Products performance fees for the quarter were $1,108 thousand and related to
strong performance in the 2004 and 2005 limited partnerships, as compared to
NIL for the same quarter ended 2005. Performance fees are recognized on an
accrual basis and adjusted quarterly for fluctuations above or below
performance thresholds and are only payable on the wind-up of the limited
partnerships to the extent that performance thresholds have been met. The 2004
limited partnership was wound up on May 1, 2006 - performance fees were paid
to the Company. No rollover or windup announcement has been made regarding the
2005 limited partnership.
Merchant Banking realized gains on the sale of securities in the merchant
banking portfolio were $632 thousand for the first quarter representing 39% of
total earnings before taxes, as compared to $370 thousand for the same quarter
last year, reflecting Augen's continued commitment to support merchant banking
opportunities as well as active trading of the merchant banking investment
portfolio in a strong resource market.
Consolidated expenses are unchanged quarter over quarter reflecting cost
containment measures undertaken to minimize ongoing expenses while continuing
to build a strong management team to support future growth in the Company.
"Augen is pleased to report the strongest fiscal quarter net earnings
since its inception. The exceptional investment performance in the limited
partnerships and merchant banking portfolio has contributed over 93% to gross
consolidated income. The Company continues to execute its mission of being
"Financier of First Resort" for emerging resource companies," said J. David
Mason, Chairman of Augen Capital Corp.
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.
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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
