Wilmington Capital Management Inc.
TSX : WCM

Wilmington Capital Management Inc.

November 14, 2007 16:31 ET

Wilmington Announces 2007 Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 14, 2007) - Wilmington Capital Management Inc. (TSX:WCM) today reported net income of $64,000 for the three months ended September 30, 2007, compared to $11.1 million in the same period in 2006. Net income per Class A and Class B share for the quarter was $0.01, compared to $1.38 per share in the same period last year.

The comparable quarter in 2006 included an income tax recovery of $10.7 million which arose in connection with the distribution of Brookfield Asset Management Class A Limited Voting shares to the company's Class A and Class B shareholders, as well as dividends from these shares earned prior to distribution. Income from discontinued operations in the nine months ended September 30, 2006 represents a gain on the disposition of the company's interest in 181 University Avenue, during the first quarter of 2006. The net income from continuing operations in 2006 also included an income tax recovery of $0.9 million, which reflected the value of previously unrecognized tax losses that were utilized to offset the gain on the sale of the 181 University land interest.

Wilmington holds a 5% fully diluted interest in Parkbridge Lifestyle Communities Inc. (TSX:PRK), an owner operator of manufactured home and recreational communities. 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 objective is to provide shareholders with capital appreciation on its investments as opposed to income returns. Investment and property income is dedicated principally to paying interest and operating expense.



CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited) Three months ended Nine months ended
September 30 September 30
$thousands, except per share amounts 2007 2006 2007 2006
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Income
Investment and other income $ 57 $ 497 $ 188 $ 1,431
Income producing property revenue 259 278 834 846
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316 775 1,022 2,277
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Expenses
Operating 25 24 169 195
Interest 272 303 852 907
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297 327 1,021 1,102
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Net income before income taxes 19 448 1 1,175
Income tax recovery (expense) 45 10,694 (10) 11,642
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Net income (loss) from
continuing operations 64 11,142 (9) 12,817
Discontinued operations - - - 4,321
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Net income (loss) $ 64 $ 11,142 $ (9) $ 17,138
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Per share
Net income from continuing
operations $ 0.01 $ 1.38 $ - $ 1.59

Net income $ 0.01 $ 1.38 $ - $ 2.12
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The company adopted accounting guidelines with respect to financial instruments and other items as required commencing January 1, 2007. This requires the company, among other things, to record its investment in Parkbridge Lifestyle Communities at market value, and to record changes in the value as other comprehensive income which forms a component of shareholders' equity. The impact of the changes resulted in an increase in the carrying value of the Parkbridge investment and a corresponding increase in the future tax liability and shareholders' equity.



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three months ended Nine months ended
(unaudited) September 30 September 30
$thousands 2007 2006 2007 2006
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Net income (loss) $ 64 $ 11,142 $ (9) $ 17,138
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Other comprehensive income (loss)
Foreign currency translation (63) (37) (114) (57)
Increase (decrease) in value of
available for-sale securities (1,174) - 2,047 -
Future income tax 235 - (328) -
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(1,002) (37) 1,605 (57)
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Comprehensive income (loss) $ (938) $ 11,105 $ 1,596 $ 17,081
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CONSOLIDATED BALANCE SHEETS

(unaudited)
September 30 December 31
$thousands 2007 2006
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Assets
Cash and cash equivalents $ 4,258 $ 5,733
Investment in Parkbridge Lifestyle
Communities Inc. 20,626 5,614
Income producing property 17,926 21,159
Other assets 729 997
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$ 43,539 $ 33,503
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Liabilities & Shareholders' Equity
Accounts payable and other liabilities $ 4,041 $ 4,165
Future tax liabilities 2,543 -
Secured debt 18,809 22,230
Preferred securities - 701
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25,393 27,096
Shareholders' equity 18,146 6,407
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$ 43,539 $ 33,503
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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