Wilmington Capital Management Inc.
TSX : WCM

Wilmington Capital Management Inc.

March 29, 2006 18:00 ET

Wilmington Announces 2005 Year-End Results

TORONTO, ONTARIO--(CCNMatthews - March 29, 2006) - Wilmington Capital Management Inc. (TSX:WCM) today announced net income for the year ended December 31, 2005 of $20.6 million or $2.54 per Class A and Class B share, compared to $12.0 million or $1.47 per share last year.

Net income for the three months ended December 31, 2005 was $10.6 million, up from $8.8 million for the same period in 2005. Net income per Class A and Class B share for the quarter was $1.30, compared to $1.08 per share in the same period last year.

The 2005 results include an income tax recovery of $9.5 million which arose in connection with the distribution of Parkbridge securities as described below, as well as the elimination of a $10 million provision previously established in respect of contingencies arising out of a prior disposition. The results for 2004 included a gain on the restructuring of the company's interests in Parkbridge and a gain of $2.7 million on the disposition of securities.

During the third quarter of 2005, Wilmington distributed to its Class A and Class B shareholders 12.8 million shares of Parkbridge Lifestyle Communities Inc. (PRK-TSX), an owner-operator of manufactured home and recreational communities, with a value of $64 million. As a result of this distribution, Wilmington's interest in Parkbridge was reduced from 34% to 7%.

Wilmington also holds 1.5 million Class A shares of Brookfield Asset Management Inc. (formerly Brascan Corporation) (BAM - TSX; NYSE), an asset management company, and owns lands leased to commercial property owners in Toronto, Ontario, and San Francisco, California. In December 2005, the company announced the sale of its land interests located at 181 University Avenue, Toronto, Ontario, for net proceeds of $6.1 million after repayment of associated debt and expenses. The transaction closed in January 2006 and the related assets, liabilities and net income are classified in the company's consolidated financial statements as Discontinued Operations. The company continues to hold land interests located at 370 Third Street, San Francisco, California.

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.



CONSOLIDATED BALANCE SHEETS
December 31 December 31
In thousands 2005 2004(1)
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Assets
Cash and cash equivalents $ 9,388 $ 10,665
Investment in Brookfield Asset
Management Inc.(2) 28,500 28,500
Investment in Parkbridge Lifestyle
Communities Inc.(3) 5,664 25,307
Income producing property 20,977 21,706
Assets related to discontinued
operations 19,533 19,580
Other assets 1,770 1,314
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$ 85,832 $ 107,072
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Liabilities & Shareholders' Equity
Accounts payable and other liabilities $ 375 $ 10,395
Secured debt 22,040 22,800
Liabilities related to discontinued
operations 17,720 17,960
Preferred securities 714 768
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40,849 51,923
Shareholders' equity
Class A and Class B shares 44,983 55,149
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$ 85,832 $ 107,072
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CONSOLIDATED STATEMENTS OF OPERATIONS


Three months ended Year ended
In thousands, except December 31 December 31
per share amounts 2005 2004(1) 2005 2004(1)
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Income
Income producing
property revenue $ 294 $ 308 $ 1,214 $ 1,309
Investment and other income 10,352 391 11,340 2,108
Disposition and dilution
gains - 10,460 11 13,200
Equity accounted income
(loss) from Parkbridge - (1,718) 905 (2,166)
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10,646 9,441 13,470 14,451
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Expenses
Operating 140 243 518 464
Interest 337 376 1,315 3,208
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477 619 1,833 3,672
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Income before income taxes 10,169 8,822 11,637 10,779
Income tax (recovery)
expense (291) 195 (8,468) (659)
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Net income from continuing
operations 10,460 8,627 20,105 11,438
Discontinued operations 129 149 513 513
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Net income $10,589 $ 8,776 $20,618 $11,951
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Per share
Net income from continuing
operations $ 1.29 $ 1.06 $ 2.48 $ 1.40
Net income $ 1.30 $ 1.08 $ 2.54 $ 1.47
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(1) Preferred securities have been reclassified as liabilities
in accordance with changes in accounting guidelines. This has
also resulted in conforming changes to dividends paid and
interest expense.
(2) Investment in Brookfield Asset Management Inc. consists of 1.5
million Class A shares with a market value on March 29, 2006 of
$95 million.
(3) Investment in Parkbridge Lifestyle Communities Inc. consists of
3.2 million common and 0.2 million non-voting shares with a
market value of $19 million as at March 29, 2006.


Contact Information

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