Wilmington Capital Management Inc. (TSX:WCM.A)(TSX:WCM.B) today
announced a net loss for the three months ended September 30, 2011
of $35,000 compared to a net loss of $41,000 for the same period in
2010. The net loss per Class A and Class B share for the three
months ended September 30, 2011 was $(0.00), compared to $(0.00)
per share for the same period in 2010. For the nine months ended
September 30, 2011, net income amounted to $20.2 million or $2.52
per share compared to a net loss of $33,000 or $(0.00) cents per
share for the same period in 2010.
The Corporation has recently completed its 2011 strategic plan
and has taken 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.
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 used to subscribe for
additional equity in 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.
On August 17, 2011, the Corporation acquired 50% of the issued
and outstanding voting shares in NCI Management Ltd. ("NCI") for
consideration consisting of 589,673 Class A shares issued by the
Corporation. NCI is an investment company focused on private equity
having a mandate to identify and invest in early stage
opportunities in energy, energy services, real estate and special
situations. Pursuant to the transaction the vendor retains control
of day to day operations for a period of two years. During the
third quarter of 2011, the Corporation loaned $25,000 to NCI by way
of a non-interest bearing promissory note for working capital
purposes. The loan is due on demand.
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 $1.6 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.
Subsequent to the third quarter, the Corporation formed a
partnership which acquired 100% working interest in certain
petroleum and gas assets in the Shackleton Field in Saskatchewan.
The aggregate cost of the assets including closing costs amounted
to approximately 19.8 million and was funded by a combination of
cash and debt. The Corporation's ownership interest in the
partnership is 59% and its share of cash consideration to complete
the acquisition amounted to $6.215 million which was used to
subscribe for partnership units. In addition, the Corporation
advanced approximately $800,000 to the partnership to fund short
term capital needs of the partnership. The assets will be
professionally managed by an entity in which the Corporation has a
51% ownership interest.
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.
FINANCIAL HIGHLIGHTS
As reported under International Financial Reporting Standards
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
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Three months ended Nine months ended
Unaudited September 30 September 30
(Thousands of Canadian Dollars,
except per share amounts) 2011 2010 2011 2010
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Income
Investment and other income $ 72 $ 210 $ 233 $ 420
Income from investment property 288 310 866 920
Foreign exchange gain --- 39 --- 28
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360 559 1,099 1,368
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Expenses
Interest 293 448 872 1,128
General and administrative 44 63 239 164
Foreign exchange loss --- --- 59 ---
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412 511 1,170 1,292
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Income (loss) before gain on
sale, share of net loss from
equity accounted investment and
income tax expense (benefit) (52) 48 (71) 76
Gain on sale of investment in
Parkbridge Lifestyle Communities
Inc. --- --- 23,581 ---
Share of net loss from equity
accounted investments (25) (225) (229) (225)
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Income (loss) before income taxes (27) 177 23,281 (149)
Income tax expense (benefit) 8 (136) 3,075 (116)
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Net Income (loss) $ (35) $ (41) $ 20,206 $ (33)
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Net income (loss) per share -
basic $ (0.00) $ 0.00 $ 2.52 $ (0.00)
Net income (loss) per share -
diluted $ (0.00) $ 0.00 $ 2.52 $ (0.00)
CONDENSED INTERIM CONSOLIDATED BALANCE SHEET
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Unaudited September 30, December 31, January 1,
(Thousands of Canadian Dollars) 2011 2010 2010
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Assets
Non-current assets
Investment property $ 19,448 $ 18,507 $ 19,489
Investment in associate 7,104 4,819 ---
Investment in Parkbridge Lifestyle
Communities Inc. 1,814 40,466 28,109
Deferred tax asset 51 --- ---
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28,417 63,792 47,598
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Current assets
Loan to associate 25 --- ---
Receivables and other assets 79 67 56
Cash and cash equivalents 25,832 2,085 1,569
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25,936 2,152 1,625
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Total assets $ 54,353 $ 65,944 $ 49,223
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Liabilities
Non-current liabilities
Secured debt $ 19,937 $ 18,949 $ 19,962
Loan payable 1,639 16,103 10,501
Deferred tax liabilities --- 3,431 1,933
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21,576 38,483 32,396
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Current liabilities
Accounts payable and accrued
liabilities 654 588 700
Income taxes payable 3,315 --- ---
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3,969 588 700
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Total liabilities 25,545 39,071 33,096
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Equity
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Shareholders' equity 28,808 26,873 16,127
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Total liabilities and equity $ 54,353 $ 65,944 $ 49,223
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
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Three months ended Nine months ended
Unaudited September 30 June 30
(Thousands of Canadian Dollars) 2011 2010 2011 2010
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Net income (loss) $ (35) $ (41) $ 20,206 $ (33)
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Foreign currency translation 66 (49) 30 (32)
Reversal of the fair value increment
of available for sale securities --- 2,338 23,414 2,950
Future income taxes on above items --- (362) 3,285 (481)
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Other comprehensive income (loss) 25 1,927 20,099 2,437
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Comprehensive income $ 56 $ 1,886 $ 107 $ 2,404
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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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