Wilmington Capital Management Inc.
TSX : WCM

Wilmington Capital Management Inc.

May 12, 2006 17:25 ET

Wilmington Announces 2006 First Quarter Results

TORONTO, ONTARIO--(CCNMatthews - May 11, 2006) - Wilmington Capital Management Inc. (TSX:WCM) today announced net income from continuing operations of $1.3 million for the three months ended March 31, 2006, compared to $0.2 million in the same period in 2005. The company also recorded income from discontinued operations of $4.3 million during the quarter. Net income per Class A and Class B share for the quarter was $0.69, compared to $0.04 per share in the same period last year.

Income from discontinued operations represents a gain of $4.3 million on the disposition of the company's interest in 181 University Avenue, which was completed during the quarter. The increase in net income from continuing operations is due largely to improved investment returns and income tax recoveries.

Wilmington owns a 7% interest in Parkbridge Lifestyle Communities Inc. (PRK.TO), an owner operator of manufactured home and recreational communities, and 2.3 million Class A shares of Brookfield Asset Management Inc. (BAM - TSX; NYSE), an asset management company. Wilmington also owns land leased to commercial property owners which is located at 370 Third Street in San Francisco, California. Wilmington is considering alternatives to maximize the value for shareholders of its real estate investments, which could include the sale or restructuring of these holdings.

The company's Board of Directors declared a semi-annual dividend of $0.08 per Class A and Class B share payable on June 30, 2006 to shareholders of record on June 14, 2006.

Wilmington is a Canadian investment company whose principal objective is to acquire and hold assets which are capable of providing stable cash flows and value creation over the longer term.



CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited) Three months ended March 31
In thousands, except per share amounts 2006 2005(1)
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Income
Revenue from income producing properties $ 288 $ 309
Investment and other income 416 288
Equity accounted loss from Parkbridge - (23)
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704 574
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Expenses
Operating 67 158
Interest 305 325
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372 483
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Net income before income taxes 332 91
Income tax recovery (948) (74)
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Net income from continuing operations 1,280 165
Discontinued operations 4,321 123
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Net income $ 5,601 $ 288
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Per share
Net income from continuing operations $ 0.16 $ 0.02
Net income $ 0.69 $ 0.04
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(1) Certain comparative information has been restated to conform with
the current year's presentation


CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31 December 31
In thousands 2006 2005
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Assets
Cash and cash equivalents $ 12,444 $ 9,388
Investments:
Brookfield Asset Management Inc. 32,630 28,500
Parkbridge Lifestyle Communities Inc. 5,664 5,664
Income producing property 21,159 20,977
Assets related to discontinued operations - 19,533
Other assets 1,957 1,770
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$ 73,854 $ 85,832
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Liabilities & Shareholders' Equity
Accounts payable and other liabilities $ 290 $ 375
Secured debt 22,230 22,040
Liabilities related to discontinued
operations - 17,720
Preferred securities 714 714
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23,234 40,849

Shareholders' equity
Class A and Class B shares 50,620 44,983
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$ 73,854 $ 85,832
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Brian D. Lawson, President and Chief Executive Officer will be available at 416-867-9370 to answer any questions on the company's financial results.

This news release contains forward-looking statements concerning the company's business and operations. The company cautions that, by their nature, forward-looking statements involve risk and uncertainty and the company'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.

Contact Information

  • Wilmington Capital Management Inc.
    Brian D. Lawson
    President and Chief Executive Officer
    (416) 867-9370