Shares outstanding: 35,915,615
TORONTO, April 27 /CNW/ - Augen Capital Corp. ("Augen" or the "Company") (TSX-V:AUG) is pleased to announce its audited consolidated financial results for the year ended December 31, 2006. The highlights are as follows:
- Income was $7.1 million, up 223% from $2.2 million in 2005; - Net earnings were $2.9 million in 2006, up from $0.9 million in 2005, representing $0.09 per share as compared to $0.03 per share; - Assets increased 145% to $10.3 million at December 31, 2006 from $4.2 million in 2005.
"Augen's investment performance for both the managed products and merchant banking portfolio was strong in 2006 and our 2005 limited partnership offering set the benchmark for performance in the flow-through business. 2006 was our record year to date and the outlook in our specialist area of the natural resource sector is exceptionally favourable. The merchant banking portfolio has been realigned into five significant positions including Augen Gold Corp., Energy Fuels Inc, Polar Bear Explorations, Uravan Minerals, and a previously announced uranium play. Augen is a financier of first resort for emerging resource companies and the contribution of our Merchant Banking division should see significant growth in the current year, underpinned by the recurring cash flow of the Managed Products division," said J. David Mason, Chairman of Augen.
The Company restated its consolidated quarterly results for the first three quarters of 2006 to reflect a change in timing of the recognition of performance fee income and incentive compensation. The restatement has no impact on the cash flow of the Company. The impact of these restatements have been disclosed in further detail in the 2006 Management's Discussion and Analysis and is summarized in the following table:
-------------------------------------------------------------------------
$000's (except per Q4 2006 Q3 2006 Q2 2006
share data) Reported Reported Restated Reported Restated
-------------------------------------------------------------------------
Performance fees
income (YTD) 875 691 89 833 89
Income (YTD) 7,128 3,936 3,334 3,234 2,490
Incentive compensation
(YTD) 508 650 52 535 70
Expenses before income
taxes (YTD) 3,109 2,536 1,938 1,792 1,327
-------------------------------------------------------------------------
Net earnings (YTD) 2,902 983 980 1,038 860
EPS - basic and diluted
(YTD) 0.09 0.04 0.04 0.04 0.03
-------------------------------------------------------------------------
-------------------------------------------
$000's (except per Q1 2006
share data) Reported Restated
-------------------------------------------
Performance fees
income (YTD) 1,109 -
Income (YTD) 1,950 841
Incentive compensation
(YTD) - -
Expenses before income
taxes (YTD) 318 318
-------------------------------------------
Net earnings (YTD) 1,047 339
EPS - basic and diluted
(YTD) 0.04 0.00
-------------------------------------------
The Audited Consolidated Financial Statements for the years ended December
31, 2006 and 2005 are available at www.augencc.com or at www.sedar.com.
Attached below are extracts from the 2006 Consolidated Statements of Earnings
and Consolidated Balance Sheets:
-------------------------------------------------------------------------
AUGEN CAPITAL CORP.
Consolidated Statements of Earnings
-------------------------------------------------------------------------
For the years ended December 31, 2006 2005
$ $
-------------------------------------------------------------------------
Income 7,127,538 2,165,210
-------------------------------------------------------------------------
Expenses 3,095,813 1,746,213
-------------------------------------------------------------------------
Earnings before income taxes and amortization 4,031,725 418,997
-------------------------------------------------------------------------
Amortization 12,764 17,244
-------------------------------------------------------------------------
Earnings before income taxes 4,018,961 401,753
-------------------------------------------------------------------------
Income taxes
Current 456,742 -
Future 520,511 (572,925)
-------------------------------------------------------------------------
977,253 (572,925)
-------------------------------------------------------------------------
Earnings before non-controlling interest 3,041,708 974,678
-------------------------------------------------------------------------
Non-controlling interest 139,245 83,448
-------------------------------------------------------------------------
Net earnings 2,902,463 891,230
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings per share - basic and diluted 0.09 0.03
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
AUGEN CAPITAL CORP.
Consolidated Balance Sheets
-------------------------------------------------------------------------
As at December 31, 2006 2005
$ $
-------------------------------------------------------------------------
ASSETS
Current assets
Cash and equivalents 3,833,786 307,085
Prepaid expenses and deposits 54,000 27,013
Receivables 1,436,347 721,978
Due from related parties (note 10) 1,615,538 646,480
-------------------------------------------------------------------------
6,939,671 1,702,556
-------------------------------------------------------------------------
Investments (note 9) 2,659,709 1,853,449
-------------------------------------------------------------------------
Mineral properties and deferred costs (note 3) 509,044 -
-------------------------------------------------------------------------
Capital assets, net (note 4) 46,284 56,812
-------------------------------------------------------------------------
Future income taxes (note 8) 52,414 572,925
-------------------------------------------------------------------------
Goodwill (note 11) 62,014 -
-------------------------------------------------------------------------
Total assets 10,269,136 4,185,742
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 1,173,552 386,419
Income taxes payable (note 8) 456,742 -
-------------------------------------------------------------------------
1,630,294 386,419
-------------------------------------------------------------------------
Non-controlling interest (note 3 and note 11) - 144,529
-------------------------------------------------------------------------
1,630,294 530,948
-------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Capital stock (note 5) 6,772,575 4,979,218
Contributed surplus (note 6) 568,668 280,440
Retained earnings (deficit) 1,297,599 (1,604,864)
-------------------------------------------------------------------------
8,638,842 3,654,794
-------------------------------------------------------------------------
Total liabilities and shareholders' equity 10,269,136 4,185,742
-------------------------------------------------------------------------
-------------------------------------------------------------------------
About Augen Capital
Augen Capital is a Toronto-based merchant bank which finances early stage resource companies. Augen is an industry leader in tax-advantaged flow-through investments in Canada's resource sectors having raised over $44 million in flow-through limited partnership assets since inception. Augen manages a core portfolio of emerging resource stocks, 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 forward-looking statements. These statements are based on certain factors and assumptions as set forth in this new release including expected growth, results of operations, performance and business prospects and opportunities. While the Company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to results of exploration, project development, reclamation and capital costs of the companies in the merchant banking portfolios ("investee companies"), and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as; changes in general economic conditions and conditions in the financial markets; changes in demand and prices for the minerals the investee companies expect to produce; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company's and investee companies. Additional risks and uncertainties can be found in our 2006 Management's Discussion and Analysis and in filings with the Canadian provincial securities commissions. Forward-looking statements are given only as at the date of this news release and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
%SEDAR: 00008335E