Wilmington Capital Management Inc. (TSX: WCM.A)(TSX: WCM.B) today
announced a loss for the three months ended June 30, 2011 of
$87,000 compared to net income of $79,000 for the same period in
2010. The net loss per Class A and Class B share for the three
months ended June 30, 2011 was $(0.01), compared to net income of
$0.01 per share for the same period in 2010. For the six months
ended June 30, 2011, net income amounted to $20.2 million or $2.55
per share compared to $8,000 or NIL cents per share for the same
period in 2010.
On January 7, 2011, all of the issued and outstanding common
shares of Parkbridge Lifestyle Communities Inc. were acquired by
the British Columbia Investment Management Corporation for $7.30 in
cash per common share. Pursuant to this transaction, Wilmington
received $40.6 million in proceeds, realized a pre-tax gain of
$23.6 million and repaid its $14.6 million loan payable facility
relating to the Parkbridge shares.
In February, 2011, Wilmington acquired a 46.15% indirect
interest in a portfolio of five self-storage facilities and two
development properties in Alberta, British Columbia and Ontario
through the Real Storage Private Trust (the "Trust"). The five
operating properties are in the initial lease up stage and are
expected to reach stabilized occupancy and cash flow in 2012.
Wilmington's share of the cash consideration to complete the
acquisition consisted of $2.5 million in additional equity to the
Trust and a $1.625 million bridge loan to the Trust repayable upon
demand and bearing interest at 7% per annum. The bridge loan and
accrued interest have since been fully repaid with proceeds from
the sale of one of the development properties. The Trust now owns
17 self-storage facilities comprising 645,978 square feet of
rentable area and one development property.
Wilmington also owns land leased to commercial property owners
which is located at 370 Third Street in San Francisco, California.
During the fourth quarter of 2010, Wilmington reorganized its
investment in this property and entered into a new secured credit
facility on which $1.5 million net is drawn, bears interest at 4%
per annum and is repayable on January 1, 2013. At maturity this
credit facility is payable, at the borrower's discretion, in cash
or in shares of the Corporation's wholly owned subsidiary which
owns the property.
Beginning January 1, 2011, the Corporation has prepared its
financial statements in accordance with IFRS. Accordingly, certain
adjustments were made to comply with IFRS for the current and
comparable periods.
The Corporation has recently completed its 2011 strategic plan
and will be taking steps to broaden its investment strategy to
include selective investments in the real estate as well as the
energy sectors. The Corporation's principal objective will continue
to be aimed at generating appreciation in value from its
investments as opposed to current income. Accordingly, net income,
excluding gains and losses from investment dispositions, is
expected to be minimal in any given year.
FINANCIAL HIGHLIGHTS
As reported under International Financial Reporting
Standards
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
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Unaudited Three months ended June 30 Six months ended June 30
(Thousands of Canadian
Dollars, except per
share amounts) 2011 2010 2011 2010
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Income
Investment and other
income $ 79 $ 208 $ 161 $ 210
Income from investment
property 285 306 577 610
Foreign exchange gain 9 9 16 ---
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373 523 754 820
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Expenses
Interest 285 342 578 680
General and
administrative 131 59 197 101
Foreign exchange loss --- --- --- 11
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416 401 774 792
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Income (loss) before
gain on sale, share of
net loss from equity
accounted investment
and income tax expense
(benefit) (43) 122 (20) 28
Gain on sale of
investment in
Parkbridge Lifestyle
Communities Inc. --- --- 23,581 ---
Share of net loss from
equity accounted
investment (64) --- (254) ---
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Income (loss) before
income taxes (107) 122 23,307 28
Income tax expense
(benefit) (20) 43 3,066 20
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Net Income (loss) $ (87) $ 79 $20,241 $ 8
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Net income (loss) per
share - basic $(0.01) $0.01 $ 2.55 $0.00
Net income (loss) per
share - diluted $(0.01) $0.01 $ 2.55 $0.00
CONDENSED INTERIM CONSOLIDATED BALANCE SHEET
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Unaudited
(Thousands of Canadian
Dollars) June 30, 2011 December 31, 2010 January 1, 2010
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Assets
Non-current assets
Investment property $17,854 $18,507 $19,489
Investment in associate 7,065 4,819 ---
Investment in Parkbridge
Lifestyle Communities
Inc. --- 40,466 28,109
Deferred tax asset 54 --- ---
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24,973 63,792 47,598
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Current assets
Loan to associate --- --- ---
Receivables and other
assets 71 67 56
Cash and cash equivalents 25,653 2,085 1,569
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25,724 2,152 1,625
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Total assets $50,697 $65,944 $49,223
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Liabilities
Non-current liabilities
Secured debt $18,291 $18,949 $19,962
Loan payable 1,484 16,103 10,501
Deferred tax liabilities --- 3,431 1,933
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19,775 38,483 32,396
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Current liabilities
Accounts payable and
accrued liabilities 664 588 700
Income taxes payable 3,309 --- ---
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3,973 588 700
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Total liabilities 23,748 39,071 33,096
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Equity
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Shareholders' equity 26,949 26,873 16,127
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Total liabilities and
equity $50,697 $65,944 $49,223
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME (LOSS)
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Unaudited Three months ended June 30 Six months ended June 30
(Thousands of
Canadian Dollars) 2011 2010 2011 2010
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Net income (loss) $ (87) $ 79 $ 20,241 $ 8
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Foreign currency
translation (37) 17 (36) 17
Reversal of the
fair value
increment of
available for sale
securities --- (1,614) (23,414) 612
Future income taxes
on above items --- 160 3,285 (119)
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Other comprehensive
income (loss) (37) (1,437) (20,165) 510
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Comprehensive
income $(124) $(1,358) $ 76 $ 518
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Executive Officers of the Corporation will be available at
403-800-0869 to answer any questions on the Corporation's financial
results.
This news release contains forward-looking statements concerning
the Corporation's business and operations. The Corporation cautions
that, by their nature, forward-looking statements involve risk and
uncertainty and the Corporation's actual results could differ
materially from those expressed or implied in such statements.
Reference should be made to the most recent Annual Information Form
for a description of the major risk factors.
Contacts: Wilmington Capital Management Inc. Francis Cooke
Treasurer (403) 800-0869
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