NORFOLK, Va., Feb. 14 /PRNewswire-FirstCall/ -- Waterside Capital Corp.
(Nasdaq: WSCC), a Small Business Investment Company (SBIC), today reported
financial results for the six months ended December 31, 2007.
The company's net increase in stockholders' equity resulting from
operations (which includes net operating income plus realized and
unrealized gains or losses on investments) was $161,000 or $.08 per share
for the six months ended December 31, 2007, compared to a decrease of
$1,707,000 or $.89 per share for the six months ended December 31, 2006.
The per share performance was calculated using weighted average shares
outstanding of 1,915,548.
The company prepaid $5.3 million of SBA debenture debt with an average
of 8.4% interest rate in September 2007, which will reduce interest expense
and improve operating performance. Management continues to focus on expense
control, harvesting investments, and ramping up business development
activities to generate new, risk appropriate investments.
At December 31, 2007, Waterside's loans and investments had a fair
value of $21.6 million compared with $21.2 million reported at June 30,
2007. For the six months ended December 31, 2007, the company originated
new investments of $5.1 million and received proceeds from sale of
investments and principal collected on notes receivable and debt securities
of $3.8 million. This compared to the company's funding of $1.8 million in
new investments for the six months ended December 31, 2006, and receiving
proceeds from the sale of investments, principal collected on debt
securities, and proceeds from collection of notes receivable of $3 million.
The net asset value of the common shares increased to $5.04 per share at
December 31, 2007 from the $4.95 reported at June 30 2007. The increase in
net asset value was due to the above mentioned $161,000 increase in
shareholders equity resulting from operations.
About Waterside Capital Corporation
Waterside Capital Corporation is a Small Business Investment Company
(SBIC) headquartered in Norfolk, Virginia with a portfolio of approximately
$21 million of loans and investments in 16 companies located primarily in
the Mid-Atlantic region. Waterside Capital's individual investments range
from $500,000 to over $3 million. Visit Waterside's web site at
Except for historical information, all of the statements, expectations
and assumptions contained in the foregoing are "forward-looking statements"
including Waterside's optimism regarding the growth of its portfolio
companies (within the meaning of the Private Securities Litigation Reform
Act of 1995) that involve a number of risks and uncertainties. It is
possible that the assumptions made by management -- including, but not
limited to, investment opportunities, results, performance or
expectations-may not materialize. Actual results may differ materially from
those projected or implied in any forward-looking statements. In addition
to the above factors, other important factors including the risks
associated with the performance of the Company's portfolio companies,
dependencies on key employees, delays, interest rates, the level of
economic activity, and competition, as well as other risks described from
time to time in the Company's filings with the Securities Exchange
Commission, press releases, and other communications.
WATERSIDE CAPITAL CORPORATION
(In thousands except per share data)
Six Months Ended
Statement of Operations data:
Total operating income $1,262 $1,076
Interest expense 703 855
Other operating expenses 604 1,120
Net operating income (loss) (45) (899)
Realized gain (loss) on investments 146 (1,078)
Change in unrealized appreciation
(depreciation) on investments 60 270
Net increase (decrease) in stockholders'
equity resulting from operations $161 $(1,707)
Per share data (basic):
Net operating income (loss) $(0.02) $(0.47)
Net increase (decrease) in stockholders'
equity resulting from operations $0.08 $(0.89)
At December 31, At June 30,
Balance Sheet data: 2007 2007
Cash $3,673 $9,569
Loans and investments, at fair value
Debt securities 6,528 9,332
Equity securities 9,328 5,966
Options and warrants 2,066 2,343
Notes receivable and other 3,728 3,571
Total loans and investments 21,650 21,212
Debentures payable 16,100 21,400
Stockholders' equity 9,650 9,489
Net asset value per common share $5.04 $4.95
SOURCE Waterside Capital Corporation