Wilmington Capital Management Inc.
TSX : WCM

Wilmington Capital Management Inc.

August 14, 2007 14:39 ET

Wilmington Announces 2007 Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 14, 2007) - Wilmington Capital Management Inc. (TSX:WCM) today announced a net loss of $16 thousand for the three months ended June 30, 2007, compared to net income of $0.4 million in the same period in 2006. Net loss per Class A and Class B share for the quarter was $nil, compared to an income of $0.05 per share in the same period last year.

Income from discontinued operations in the six months ended June 30, 2006 represents a gain on the disposition of the company's interest in 181 University Avenue, which was completed during the first quarter of that year. The net income from continuing operations in 2006 also included income tax recoveries of $0.9 million.

Wilmington holds a 5% fully diluted 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's objective is to provide shareholders with capital appreciation on its investments as opposed to income returns. Investment and property income is dedicated principally to paying interest and operating expense.



CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three months Six months
ended ended
June 30 June 30
$thousands, except per share amounts 2007 2006 2007 2006
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Income
Investment and other income $ 78 $ 518 $ 131 $ 934
Income producing property revenue 279 280 575 568
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357 798 706 1,502
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Expenses
Operating 54 104 144 171
Interest 278 299 580 604
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332 403 724 775
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Net income (loss) before income taxes 25 395 (18) 727
Income tax recovery (expense) (41) - (55) 948
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Net income (loss) from continuing
operations (16) 395 (73) 1,675
Discontinued operations - - - 4,321
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Net income (loss) $ (16) $ 395 $ (73) $ 5,996
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Per share
Net income (loss) from continuing
operations $ - $ 0.05 $ (0.01) $ 0.21
Net income (loss) $ - $ 0.05 $ (0.01) $ 0.74
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The company adopted accounting guidelines with respect to financial instruments and other items as required commencing January 1, 2007. This requires the company, among other things, to record its investment in Parkbridge Lifestyle Communities at market value, and to record changes in the value as other comprehensive income which forms a component of shareholders' equity. The impact of the changes resulted in an increase in the carrying value of the Parkbridge investment and a corresponding increase in the future tax liability and shareholders' equity.



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended Six months ended
(unaudited) June 30 June 30
$thousands 2007 2006 2007 2006
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Net income (loss) $ (16) $ 395 $ (73) $ 5,996
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Other comprehensive income (loss)
Foreign currency translation (34) (73) (51) (20)
Increase in value of
available-for-sale securities 2,262 - 3,221 -
Future income tax (396) - (563) -
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1,832 (73) 2,607 (20)
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Comprehensive income $ 1,816 $ 322 $ 2,534 $ 5,976
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CONSOLIDATED BALANCE SHEETS

(unaudited)
June 30 December 31
$thousands 2007 2006
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Assets
Cash and cash equivalents $ 4,303 $ 5,733
Investment in Parkbridge Lifestyle
Communities Inc. 21,800 5,614
Income producing property 19,256 21,159
Other assets 729 997
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$ 46,088 $ 33,503
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Liabilities & Shareholders' Equity
Accounts payable and other liabilities $ 4,063 $ 4,165
Future tax liability 2,751 -
Secured debt 20,190 22,230
Preferred securities - 701
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27,004 27,096
Shareholders' equity 19,084 6,407
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$ 46,088 $ 33,503
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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