EX-99.1 2 ex99_1.htm EXHIBIT 99.1 ex99_1.htm

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ENVOY CAPITAL GROUP INC. ANNOUNCES
THIRD QUARTER RESULTS FOR FISCAL 2010


TORONTO, ON – August 10, 2010 – Envoy Capital Group Inc. (NASDAQ: ECGI/ TSX: ECG) today announced its financial results for its third quarter of fiscal 2010.

For the quarter ended June 30, 2010, Envoy incurred a net loss of ($1.4) million or ($0.18) per fully diluted share compared with a net loss of ($1.8) million or ($0.21) per fully diluted share for the same quarter last year.  The per share calculations are based on fully diluted weighted average shares outstanding of approximately 8.0 million for the current quarter and 8.6 million for same period last year.

The Consumer and Retail Branding Division reported a second consecutive profitable quarter on increased revenue.  For the third quarter, the Consumer and Retail Branding Division earned a profit of approximately $250,000, compared to a net loss of approximately ($650,000) in the same period last year.

The Merchant Banking Division did not perform as well during the quarter due to challenging market conditions over the last several months. For the three months ended June 30, 2010, the Merchant Banking Division incurred a net loss of ($1.4) million, compared with a net loss of ($0.9) million in the same period last year.  Significant uncertainty weighed on the market during the Company’s fiscal third quarter, with index losses of (10%) on the DJIA, (11.8%) on the S&P500, and (6.2%) on the TSX.  The Company’s portfolio experienced losses of approximately (6.9%).  
 
Management's discussion and analysis, containing a full analysis of financial results, is available on EDGAR (www.sec.gov/edgar.shtml) and on SEDAR (www.sedar.com).
 

About Envoy Capital Group Inc.

Envoy Capital Group Inc. (NASDAQ:ECGI / TSX:ECG) is a merchant banking organization that focuses on providing financial services as well as equity and debt capital, to small and mid-cap companies. For more information on Envoy Capital Group Inc., visit our website at www.envoy.to
 

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Cautionary Statement
 
Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of Section 21E (i) (1) of the United States Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Envoy Capital Group’s actual results to be materially different from any future results expressed or implied by these statements. Such factors include the following: general economic and business conditions, changes in demand for Envoy Capital Group’s services, changes in competition, the ability of Envoy Capital Group to integrate acquisitions or complete future acquisitions, interest rate fluctuations, currency exchange rate fluctuations, dependence upon and availability of qualified personnel and changes in government regulation. In light of these and other uncertainties, the forward-looking statements included in this press release should not be regarded as a representation by Envoy Capital Group that Envoy Capital Group’s plans and objectives will be achieved.  These forward-looking statements speak only as of the date of this press release, and we undertake no obligation to update or revise the statements.
 

For further information, please call:
Envoy Capital Group Inc.
Contact: Andrew Patient
Tel: (416) 593-1212

Or contact our investor relations department at:  info@envoy.to

 
 
 

Envoy Capital Group Inc.
            
Consolidated Balance Sheet Highlights
            
Unaudited - Prepared by Management
            
(Expressed In Canadian dollars)
            
             
As at:
  
June 30
    
September 30
  
   
2010
    
2009
  
Current assets
   $ 17,586,599     $ 21,476,272  
Long-term assets
     1,740,878       2,118,932  
      19,327,477       23,595,204  
                 
Current liabilities
     2,883,957       1,958,762  
Long-term liabilities
     -       -  
      2,883,957       1,958,762  
                 
Minority interest
     6,378       12,408  
                 
Shareholders' equity
     16,437,142       21,624,034  
                 
    $ 19,327,477     $ 23,595,204  
                 

 
 
 

Financial Highlights
            
Envoy Capital Group Inc.
            
Consolidated Statements of Operations
            
Unaudited - Prepared by Management
            
(Expressed In Canadian dollars)
            
             
For the nine months ended:
  
June 30
    
June 30
  
   
2010
    
2009
  
             
Net revenue from consumer branding business
   $ 6,201,260     $ 10,130,534  
Net investment gains (losses)
     197,710       (481,738 )
Interest and dividend income
     23,285       233,533  
      6,422,255       9,882,329  
                 
Operating expenses:
                
Salaries and benefits
     6,057,467       10,346,738  
General and administrative
     1,570,610       2,493,198  
Occupancy costs
     713,288       570,551  
      8,341,365       13,410,487  
                 
Depreciation
     211,850       517,573  
                 
Interest expense and financing costs
     24,205       50,660  
                 
      8,577,420       13,978,720  
                 
Loss before restructuring expense, income taxes and minority interest
     (2,155,165 )     (4,096,391 )
                 
Restructuring expense
     2,414,948       -  
                 
Loss before income taxes and minority interest
     (4,570,113 )     (4,096,391 )
                 
Income tax expense
     -       -  
                 
Loss before minority interest
     (4,570,113 )     (4,096,391 )
                 
Minority interest
     (3,379 )     (4,445 )
                 
Net loss
     (4,566,734 )     (4,091,946 )
                 
Loss per share
                
Basic
   $ (0.55 )   $ (0.48 )
Diluted
   $ (0.55 )   $ (0.48 )
                 
                 
Weighted average number of common shares outstanding - basic
     8,302,652       8,558,496  
Weighted average number of common shares outstanding - fully diluted
     8,302,652       8,558,496  

Envoy Capital Group Inc.
            
Consolidated Statements of Retained Earnings (Deficit)
        
Unaudited - Prepared by Management
            
(Expressed In Canadian dollars)
            
             
Deficit, beginning of period
   $ (17,539,820 )   $ (7,064,010 )
                 
Net loss
     (4,566,734 )     (4,091,946 )
                 
Deficit, end of period
   $ (22,106,554 )   $ (11,155,956 )

 
 
 

Financial Highlights
            
Envoy Capital Group Inc.
            
Consolidated Statements of Operations
            
Unaudited - Prepared by Management
            
(Expressed In Canadian dollars)
            
             
For the three months ended:
  
June 30
    
June 30
  
   
2010
    
2009
  
             
Net revenue from consumer branding business
   $ 2,560,295     $ 3,134,035  
Net investment losses
     (1,203,952 )     (226,762 )
Interest and dividend income
     10,797       25,378  
      1,367,140       2,932,651  
                 
Operating expenses:
                
Salaries and benefits
     2,156,140       3,508,366  
General and administrative
     339,582       856,744  
Occupancy costs
     233,251       180,316  
      2,728,973       4,545,426  
                 
Depreciation
     78,475       166,341  
                 
Interest expense and financing costs
     4,494       33,401  
      2,811,942       4,745,168  
                 
Loss before income taxes and minority interest
     (1,444,802 )     (1,812,517 )
                 
Income tax expense
     -       -  
                 
Loss before minority interest
     (1,444,802 )     (1,812,517 )
                 
Minority interest
     (1,665 )     (1,415 )
                 
Net loss
     (1,443,137 )     (1,811,102 )
                 
Loss per share
                
Basic
   $ (0.18 )   $ (0.21 )
Diluted
   $ (0.18 )   $ (0.21 )
                 
                 
Weighted average number of common shares outstanding - basic
     8,028,377       8,558,377  
Weighted average number of common shares outstanding - fully diluted
     8,028,377       8,558,377  

Envoy Capital Group Inc.
            
Consolidated Statements of Retained Earnings (Deficit)
        
Unaudited - Prepared by Management
            
(Expressed In Canadian dollars)
            
             
Deficit, beginning of period
   $ (20,663,417 )   $ (9,344,854 )
                 
Net loss
     (1,443,137 )     (1,811,102 )
                 
Deficit, end of period
   $ (22,106,554 )   $ (11,155,956 )