Waterside Capital Announces Earnings Release
VIRGINIA BEACH, Va., Feb. 19 /PRNewswire-FirstCall/ -- Waterside Capital Corporation (Pink Sheets: WSCC), a Small Business Investment Company (SBIC), today reported financial results for the six months ended December 31, 2009.
The Company's net decrease in stockholders' equity resulting from operations (which includes net operating income plus realized and unrealized gains or losses on investments) was $962,000 or a $0.50 loss per share for the six months ended December 31, 2009, compared to a decrease of $385,000 or a $0.20 loss per share for the six months ended December 31, 2008. The per share performance was calculated using shares outstanding of 1,915,548. The decrease in stockholders' equity resulting from operations at December 31, 2008 included a one time expense of $113,000 representing financing costs related to the $16.1 million refinancing of Waterside's SBA debentures. Operating expenses have increased by $272,000 compared to December 31, 2008, excluding the one time expense related to the redemption of SBA debentures. The increase in operating expenses was primarily attributable to the Company contracting with consultants and corporate legal expenses associated with advising and evaluating strategic alternatives available to the Company. Additionally, the decrease in stockholders' equity from operations at December 31, 2009 included $354,000 of unrealized depreciation in the investment portfolio.
At December 31, 2009, Waterside's loans and investments had a fair value of $17.8 million, compared with $19.3 million reported at December 31, 2008. For the six months ended December 31, 2009, the Company originated new investments of $417,000 and received proceeds from principal collected on notes receivable, loans, debt, and equity securities of $498,000. This compared to the Company's funding of $517,000 in new investments for the six months ended December 31, 2008, and receiving proceeds from the sale of investments and principal collected on notes receivable and debt securities of $1,991,000. The net asset value of the common shares decreased to $2.29 per share at December 31, 2009 from the $3.63 reported at December 31, 2008. The decrease in net asset value was due to the above mentioned $962,000 decrease in stockholders' equity resulting from operations.
About Waterside Capital Corporation
Waterside Capital Corporation is a Small Business Investment Company (SBIC) headquartered in Virginia Beach, Virginia with a portfolio of approximately $17.8 million of loans and investments in 13 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 www.watersidecapital.com.
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, ability to cure the SBA Capital Impairment default, ability to close on transactions designed to enhance shareholder value, etc. -- 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
Financial Summary
(In thousands except per share data)
Six Months Ended
December 31,
2009 2008
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Statement of Operations data:
Total operating income $673 $983
Interest expense 526 529
Other operating expenses 769 607
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Net operating loss (622) (153)
Realized gain on investments 14 80
Change in unrealized appreciation
(depreciation) on investments (354) (312)
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Net decrease in stockholders' equity
resulting from operations $(962) $(385)
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Per share data (basic):
Net operating loss $(0.32) $(0.08)
Net increase (decrease) in stockholders' equity
resulting from operations (0.50) (0.20)
At December At December
31, 2009 31, 2008
Balance Sheet data: -------- --------
Cash and cash equivalents $730 $773
Invested idle funds 1,668 2,613
Loans and investments, at fair value
Loans 655 –
Debt securities 4,455 4,631
Equity securities 10,092 11,465
Options and warrants 1,695 1,960
Notes receivable and other 868 1,277
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Total loans and investments 17,765 19,333
Debentures payable 16,100 16,100
Stockholders' equity 4,381 6,961
Net asset value per common share $2.29 $3.63
SOURCE Waterside Capital Corporation
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