Wilmington Capital Management Inc.
TSX : WCM.A
TSX : WCM
TSX : WCM.B

Wilmington Capital Management Inc.

November 11, 2009 16:31 ET

Wilmington Announces 2009 Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 11, 2009) - Wilmington Capital Management Inc. (TSX:WCM)(TSX:WCM.A)(TSX:WCM.B) today announced a net loss before tax of $294 thousand for the nine months ended September 30, 2009, compared to net income of $242 thousand in the same period in 2008. Including tax provisions, the company recorded a net loss of $221 thousand compared to $294 thousand in 2008. Net loss per Class A and Class B share for the nine months ended September 30 was $0.03, compared to $0.04 per share in the same period last year. The decrease in net income before taxes was due to the receipt during the first quarter of 2008 of minimum rent guarantee payments totaling $303 thousand relating to the sale of 181 University Avenue by the company in 2006. In addition, income tax expense during the first quarter of 2008 included a non-cash charge of $466 thousand, reflecting a revaluation of the difference between book value and tax value of the company's net assets.

Net loss for the three months ended September 30, 2009 was $65 thousand or $0.01 per Class A and Class B shares, compared with a net loss of $67 thousand or $0.01 per share for the same period in 2008.

Wilmington holds an 8% fully diluted interest in Parkbridge Lifestyle Communities Inc. (PRK.TO), an owner operator of manufactured home and recreational communities. During the third quarter, Parkbridge completed an equity offering of 5,000,000 common shares at a price of $4 per common share. The company acquired 250,000 common shares of this equity offering. 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 investment, which could include the sale or restructuring of this holding.

The company's objective is to generate appreciation in value from its existing investments as opposed to current income. Accordingly, net income is expected to be minimal. In this regard, as at September 30, 2009, the fair value of the company's investment in Parkbridge of $21.5 million reflects unrealized capital gains of $4.4 million.

CONSOLIDATED STATEMENTS OF OPERATIONS                    
    Three months ended   Nine months ended 
(unaudited)     September 30      September 30 
$thousands, except per share amounts  2009   2008   2009   2008 
Income                    
 Investment and other $(7)$ 21  $(35)$ 83  
 Income producing properties   317   310    1,024   1,213  
    310   331    989   1,296  
Expenses                    
 Operating   22   35    143   118  
 Interest   357   411    1,140   936  
    379   446    1,283   1,054  
Net (loss) income before income taxes  (69)  (115)  (294)  242  
 Income tax recovery (expense)   4   48    73   (536)
Net loss$(65)$ (67)$(221)$ (294)
   
Net loss per Class A and Class B share$(0.01)$ (0.01)$(0.03)$ (0.04)
 
CONSOLIDATED BALANCE SHEETS                     
         (unaudited)         
         September 30    December 31 
$thousands          2009      2008 
Assets                     
 Cash and cash equivalents        $ 1,388    $ 3,542  
 Investment in Parkbridge Lifestyle Communities Inc.           21,485      13,344  
 Income producing property           19,328      22,088  
 Other assets           242      414  
 Future income taxes                 78  
         $ 42,443    $ 39,466  
Liabilities & Shareholders' Equity                     
 Accounts payable and other liabilities        $ 647    $ 1,269  
 Future income taxes           1,027       
 Secured debt           20,288      23,153  
 Loan payable           10,428      10,694  
            32,390      35,116  
 Shareholders' equity           10,053      4,350  
         $ 42,443    $ 39,466  
 
 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)            
 
    Three months ended    Nine months ended 
(unaudited)     September 30       September 30 
$thousands  2009   2008    2009   2008 
Net loss$(65)$ (67)$ (221)$ (294)
Other comprehensive income (loss)                      
 Foreign currency translation   (43)  49     (44)  81  
 Available-for-sale securities   1,560   (3,098)   7,141   (6,615)
 Future income taxes in above items   (245)  519  (1,173)  1,108  
    1,272   (2,530)   5,924   (5,426)
Comprehensive income (loss)$1,207 $ (2,597)$ 5,703 $ (5,720)

Joseph F. Killi, 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.
    Joseph F. Killi
    President and Chief Executive Officer
    416-867-9370