Wilmington Capital Management Inc.
TSX : WCM

Wilmington Capital Management Inc.

March 27, 2007 17:35 ET

Wilmington Announces 2006 Year-End Results

TORONTO, ONTARIO--(CCNMatthews - March 27, 2007) - Wilmington Capital Management Inc. (TSX:WCM) today announced net income for the year ended December 31, 2006 of $16.7 million, compared to $20.6 million in 2005. Net income per Class A and Class B share for the year was $2.06, compared to $2.54 per share last year. Net income excluding the impact of discontinued operations, tax recoveries and expiry of contingent obligations established in prior years was $1.1 million in 2006 and $1.6 million in 2005.

The company paid a special dividend during the most recent quarter consisting of cash and public securities that gave rise to a $11.2 million income tax recovery. The twelve 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. Investment and other income for the fourth quarter of 2005 includes $10 million arising from the expiry of a contingent obligation for which a provision had previously been recorded.

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 at this time.



CONSOLIDATED STATEMENTS OF OPERATIONS
Three months
ended Years ended
December 31 December 31
thousands, except per share amounts 2006 2005 2006 2005
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Income
Investment and other income $ (10) $ 10,352 $ 1,421 $ 11,351
Income producing property revenue 281 294 1,127 1,214
Equity accounted income
from Parkbridge - - - 905
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271 10,646 2,548 13,470
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Expenses
Operating 34 140 229 518
Interest 310 337 1,217 1,315
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344 477 1,446 1,833
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Net income (loss) before income
taxes (73) 10,169 1,102 11,637
Income tax expense (recovery) 412 (291) (11,230) (8,468)
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Net income (loss) from continuing
operations (485) 10,460 12,332 20,105
Discontinued operations - 129 4,321 513
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Net income (loss) $ (485) $ 10,589 $ 16,653 $ 20,618
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Per share
Net income (loss) from
continuing operations $ (0.06) $ 1.29 $ 1.53 $ 2.48
Net income (loss) $ (0.06) $ 1.30 $ 2.06 $ 2.54
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CONSOLIDATED BALANCE SHEETS
December
December 31 31
thousands 2006 2005
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Assets
Cash and cash equivalents $ 5,733 $ 9,388
Investments
Brookfield Asset Management Inc. - 28,500
Parkbridge Lifestyle Communities Inc.(1) 5,614 5,664
Income producing property 21,159 20,977
Assets related to discontinued operations - 19,533
Other assets 997 1,770
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$ 33,503 $ 85,832
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Liabilities & Shareholders' Equity
Accounts payable and other liabilities $ 4,165 $ 375
Secured debt 22,230 22,040
Liabilities related to discontinued operations - 17,720
Preferred securities 701 714
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27,096 40,849
Shareholders' equity
Class A and Class B shares 6,407 44,983
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$ 33,503 $ 85,832
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(1) The investment in Parkbridge consists of 3.4 million common and
non-voting shares with a market value of approximately $19 million based
on stock market prices at December 31, 2006.


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