Wilmington Capital Management Inc.
TSX : WCM

Wilmington Capital Management Inc.

November 13, 2006 15:39 ET

Wilmington Announces 2006 Third Quarter Results

TORONTO, ONTARIO--(CCNMatthews - Nov. 13, 2006) - Wilmington Capital Management Inc. (TSX:WCM) today announced net income from continuing operations of $11.1 million for the three months ended September 30, 2006, compared to $8.5 million in the same period in 2005. Net income per Class A and Class B share for the quarter was $1.38, compared to $1.05 per share in the same period last year.

The company paid a special dividend during the most recent quarter consisting of cash and public securities that gave rise to a $10.7 million income tax recovery. The nine month results include the gain on the sale of land assets that is presented on discontinued operations. The company distributed a significant portion of its investment in Parkbridge to shareholders in the third quarter of 2005 which gave rise to an income tax recovery of $8.1 million.

Wilmington continues to own a 6% interest in Parkbridge Lifestyle Communities Inc. (PRK.TO), 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 has distributed cash and securities with a total value of $187 million ($23 per share) since the beginning of 2005 and accordingly, is not contemplating any further dividends in 2006. The company will give consideration to its future dividend policy during 2007.



CONSOLIDATED STATEMENTS OF OPERATIONS
Three months
ended Nine months ended
(unaudited) September 30 September 30
thousands, except per share
amounts 2006 2005(1) 2006 2005(1)
------------------------------------------------------------------------
Income
Revenue from income producing
properties $ 278 $ 302 $ 846 $ 920
Investment and other income 497 348 1,431 988
Disposition and dilution gains -- 11 -- 11
Equity accounted income from
Parkbridge -- 175 -- 905
------------------------------------------------------------------------
775 836 2,277 2,824
------------------------------------------------------------------------
Expenses
Operating 24 51 195 378
Interest 303 321 907 978
------------------------------------------------------------------------
327 372 1,102 1,356
------------------------------------------------------------------------
Net income before income taxes 448 464 1,175 1,468
Income tax recovery 10,694 8,080 11,642 8,177
------------------------------------------------------------------------
Net income from continuing
operations 11,142 8,544 12,817 9,645
Discontinued operations -- 131 4,321 384
------------------------------------------------------------------------
Net income $ 11,142 $ 8,675 $ 17,138 $ 10,029
------------------------------------------------------------------------
------------------------------------------------------------------------
Per share
Net income from continuing
operations $ 1.38 $ 1.05 $ 1.59 $ 1.19
Net income $ 1.38 $ 1.07 $ 2.12 $ 1.24
------------------------------------------------------------------------
------------------------------------------------------------------------
1 Certain comparative information has been restated to conform with the
current year's presentation



CONSOLIDATED BALANCE SHEETS
(unaudited) December
September 30 31
thousands 2006 2005
------------------------------------------------------------------------
Assets
Cash and cash equivalents $ 6,223 $ 9,388
Investments
Brookfield Asset Management Inc. -- 28,500
Parkbridge Lifestyle Communities Inc. 5,614 5,664
Income producing property 20,248 20,977
Assets related to discontinued
operations -- 19,533
Other assets 1,005 1,770
------------------------------------------------------------------------
$ 33,090 $ 85,832
------------------------------------------------------------------------
------------------------------------------------------------------------
Liabilities & Shareholders' Equity
Accounts payable and other
liabilities $ 4,267 $ 375
Secured debt 21,280 22,040
Liabilities related to discontinued
operations -- 17,720
Preferred securities 701 714
------------------------------------------------------------------------
26,248 40,849

Shareholders' equity
Class A and Class B shares 6,842 44,983
------------------------------------------------------------------------
$ 33,090 $ 85,832
------------------------------------------------------------------------
------------------------------------------------------------------------


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