Wilmington Capital Management Inc.
TSX : WCM

Wilmington Capital Management Inc.

November 11, 2005 17:19 ET

Wilmington Announces 2005 Third Quarter Results

TORONTO, ONTARIO--(CCNMatthews - Nov. 11, 2005) - Wilmington Capital Management (TSX:WCM) today announced net income of $8.7 million for the three months ended September 30, 2005, compared with $0.7 million for the same period in 2004. Net income per Class A and Class B share for the quarter was $1.07, compared to $0.04 per share in the same period last year.

Net income for the nine months ended September 30, 2005 was $10.1 million or $1.24 per Class A and Class B share, compared to $4.3 million or $0.31 per share in the same period last year. The current quarter includes an income tax recovery of $8.1 million which arose in connection with the distribution of Parkbridge securities as described below. The results for the first nine months of 2004 included a gain of $2.7 million on the disposition of securities.

Wilmington owns an 8% interest in Parkbridge Lifestyle Communities Inc. (PRK-TSX), an owner-operator of manufactured home and recreational communities. During the quarter, Wilmington distributed to its Class A and Class B shareholders 12.8 million shares of Parkbridge with a value of $64 million, reducing its interest in Parkbridge from 34%. Wilmington also holds 1.5 million Class A shares of Brookfield Asset Management Inc. (formerly Brascan Corporation) (BAM - TSX; NYSE), an asset management company. In addition, Wilmington owns lands leased to commercial property owners which are located at 181 University Avenue in Toronto, Ontario and 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, distribution 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 December 31, 2005 to shareholders of record on December 15, 2005.

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 BALANCE SHEETS

(unaudited)
September 30 December 31
In thousands 2005 2004
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Assets
Cash and cash equivalents $ 10,261 $ 10,665
Investment in Brookfield Asset
Management Inc.(1) 28,500 28,500
Investment in Parkbridge Lifestyle
Communities Inc.(2) 5,664 25,307
Income producing properties 39,987 40,716
Other assets 1,311 1,594
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$ 85,723 $ 106,782
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Liabilities & Shareholders' Equity
Accounts payable and other liabilities $ 10,478 $ 10,395
Secured debt 39,530 40,470
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50,008 50,865
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Shareholders' equity
Preferred securities 720 768
Class A and Class B shares 34,995 55,149
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35,715 55,917
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$ 85,723 $ 106,782
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(1) Investment in Brookfield Asset Management Inc. consists of 1.5
million Class A shares with a market value on November 10, 2005 of
$82.3 million.

(2) Investment in Parkbridge Lifestyle Communities Inc. consists of
3.2 million common and 0.2 million non-voting shares with a market
value of $16.1 million as at November 10, 2005.


CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited) Three months ended Nine months ended
In thousands, except per September 30 September 30
share amounts 2005 2004 2005 2004
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Income
Income producing properties
Revenue $ 668 $ 679 $ 1,993 $ 2,042
Investment and other income 348 354 988 1,717
Disposition gain 11 447 11 2,740
Equity accounted income
(loss) from Parkbridge 175 (150) 905 (448)
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1,202 1,330 3,897 6,051
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Expenses
Operating 81 106 467 310
Interest 441 559 1,328 1,388
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522 665 1,795 1,698
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Income before income taxes 680 665 2,102 4,353
Income tax (recovery) expense (8,002) - (7,948) 11
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Net income $ 8,682 $ 665 $ 10,050 $ 4,342
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Net income per Class A and
Class B share(3) $ 1.07 $ 0.04 $ 1.24 $ 0.31
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(3)Net income per Class A and Class B share is after payment of
preferred security distributions.


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