Wilmington Capital Management Inc.
TSX : WCM

Wilmington Capital Management Inc.

May 15, 2008 16:31 ET

Wilmington Announces 2008 First Quarter Results

TORONTO, ONTARIO--(Marketwire - May 15, 2008) - Wilmington Capital Management Inc. (TSX:WCM) today announced net income before tax of $333 thousand for the three months ended March 31, 2008, compared to a net loss of $43 thousand in the same period in 2007. Including tax provisions, the company recorded a net loss of $241 thousand compared to a net loss of $57 thousand in 2007. Net loss per Class A and Class B share for the quarter was $0.03, compared to $0.01 per share in the same period last year. The increase in net income before taxes was due to the receipt of minimum rent guarantee payments totalling $303 thousand relating to 181 University Avenue prior to the sale of these assets by the company in 2006. Income tax expense included a non-cash charge of $466 thousand, reflecting a revaluation of the difference between book value and tax value of the company's net assets.

Wilmington holds a 5% fully diluted interest in Parkbridge Lifestyle Communities Inc. (TSX:PRK), 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 generate appreciation in value from its existing investments as opposed to current income. Accordingly, net income is expected to be minimal. In this regard, the fair value of the company's investment with Parkbridge of $16.1 million reflects unrealized capital gains of $10.5 million.



CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited) Three months ended March 31
$thousands, except per share amounts 2008 2007
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Income
Investment and other $ 34 $ 53
Income producing properties 603 296
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637 349
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Expenses
Operating 41 90
Interest 263 302
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304 392
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Net income (loss) before income taxes 333 (43)
Income tax expense (574) (14)
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Net loss $ (241) $ (57)
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Net loss per Class A and Class B share $ (0.03) $ (0.01)
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CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31 December 31
$thousands 2008 2007
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Assets
Cash and cash equivalents $ 3,728 $ 4,828
Investment in Parkbridge Lifestyle Communities Inc. 16,104 21,482
Income producing property 18,539 18,035
Other assets 239 235
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$ 38,610 $ 44,580
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Liabilities & Shareholders' Equity
Accounts payable and other liabilities $ 1,808 $ 3,161
Future income taxes 2,063 2,498
Secured debt 19,451 18,925
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23,322 24,584
Shareholders' equity 15,288 19,996
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$ 38,610 $ 44,580
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Three months
(unaudited) ended March 31
$thousands 2008 2007
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Net loss $ (241) $ (57)
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Other comprehensive income (loss)
Foreign currency translation 10 (17)
Increase (decrease) in value of available-for-sale
securities (5,378) 959
Future income taxes in above items 901 (167)
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(4,467) 775
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Comprehensive income (loss) $ (4,708) $ 718
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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