32,400,614 shares outstanding
TORONTO, Dec. 4 /CNW/ - Augen Capital Corp. (the "Company" or "Augen") (TSX-V: AUG) is pleased to announce consolidated financial results for the third quarter ending September 30, 2006.
- Consolidated income rose to $0.7 million for the quarter (YTD $4.0 million) from $0.6 million for the same quarter last year (PYTD $1.3 million). - Consolidated expenses were $0.7 million for the quarter (YTD $2.4 million) from $0.4 million last year (PYTD $1.1 million). - Consolidated earnings before non-cash charges were $0.1 million for the quarter (YTD $1.5 million) as compared to $0.2 million last year (PYTD $0.2 million). - Cash flow from operations amounted to $1.0 million for the quarter as compared to $0.2 million last year. - Consolidated net assets at September 30, 2006 increased 60% to $5.9 million compared to $3.7 million last year.
Managed Products advisory and performance fee income for the quarter were $0.3 million ($1.8 million YTD) as compared to $0.4 million for the same quarter in 2005 (PYTD $0.3 million), the YTD amount reflecting the significant increase in assets under administration and performance fees.
Merchant Banking realized gains on the sale of investments were $0.2 million for the quarter ($1.7 million YTD) as compared to $0.1 million for the same quarter in 2005 ($0.4 million in PYTD gains), the YTD amount reflecting good resource deal flow and active trading of the investment portfolio in a strong resource market.
Managed Products and Merchant Banking expenses, prior to reimbursed limited partnership product setup expenses included in the top line income and one-time charges, amounted to $0.3 million for the current quarter, consistent with previously reported quarters during the current fiscal year.
The Company's merchant banking portfolio is reported at cost on the financial statements. The market value of the portfolio is $5.9 million at September 30, 2006 as compared to $2.2 million at December 31, 2005. The Company's total net assets at market value have substantially appreciated to $9.5 million as at September 30, 2006 as compared to $4.0 million at December 31, 2005. The Company continues to be one of the largest shareholders in Energy Fuels Inc., Polar Bear Explorations Inc., Augen Gold Corp., and other core holdings. Please see note 8 to the Q3 2006 interim financial statements for further details.
The Company is pleased to announce that it has acquired the remaining 17% non-controlling interest in Aumerco Limited ("Aumerco") during the quarter. The Aumerco merchant banking portfolio continues to experience exceptional performance, and Aumerco, now as a whole-owned subsidiary, will fully contribute to the Company's consolidated results. This provides Augen shareholders with additional exposure to significant holdings such as Energy Fuels Inc. held in the Aumerco portfolio. The Augen Capital Corp. portfolio holds the majority of the Energy Fuels Inc. position and fully contributes to the Company's consolidated results.
The Augen Managed Products have been made available on FundSERV effective September 1, 2006. The connectivity with FundSERV is an essential element in attracting large syndicate partners, improving distribution and overall product sales. The Company believes that this move will positively impact the future product offerings.
"There have been a number of meaningful developments during the quarter which well-positions the Company for strong managed product sales growth in 2007. The merchant banking portfolio continues to be rebalanced as new opportunities arise which meet our rigorous investment criteria. The Company's significant stake in a handful of core holdings is expected to continue to yield strong performance", said J. David Mason, Chairman of the Company.
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, three 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 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.
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