Wilmington Capital Management Inc.
TSX : WCM

Wilmington Capital Management Inc.

August 13, 2008 16:31 ET

Wilmington Announces 2008 Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 13, 2008) - Wilmington Capital Management Inc. (TSX:WCM) today announced net income before tax of $357,000 for the six months ended June 30, 2008, compared to a net loss of $18,000 in the same period in 2007. Including tax provisions, the company recorded a net loss of $227,000 compared to a net loss of $73,000 in 2007. Net loss per Class A and Class B share for the six months ended June 30 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 during the first quarter of 2008 of minimum rent guarantee payments totalling $303,000 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 $466,000, reflecting a revaluation of the difference between book value and tax value of the company's net assets during the first quarter of 2008.

Net income for the three months ended June 30, 2008 was $14 thousand or $0.00 per Class A and Class B shares, compared with a net loss of $16,000 or $0.00 per share for the same period in 2007.

Wilmington holds a 5% fully diluted interest in Parkbridge Lifestyle Communities Inc. (TSX:PRK), an owner operator of manufactured home and recreational communities. Subsequent to the end of the second quarter the Company has acquired 1,932,944 shares (3%) of Parkbridge Lifestyle Communities Inc. at a price of $5.40 per share, which was financed from a revolving credit facility. 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 $18.0 million reflects unrealized capital gains of $12.4 million.



CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited) Three months ended Six months ended
$thousands, except per share June 30 June 30
amounts 2008 2007 2008 2007
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Income
Investment and other $ 28 $ 78 $ 62 $ 131
Income producing properties 300 279 903 575
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328 357 965 706
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Expenses
Operating 42 54 83 144
Interest 262 278 525 580
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304 332 608 724
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Net income (loss) before income
taxes 24 25 357 (18)
Income tax expense (10) (41) (584) (55)
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Net income (loss) $ 14 $ (16) $ (227) $ (73)
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Net loss per Class A and Class
B share $ 0.00 $ 0.00 $ (0.03) $ (0.01)
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CONSOLIDATED BALANCE SHEETS
(unaudited)
June 30 December 31
$thousands 2008 2007
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Assets
Cash and cash equivalents $ 3,540 $ 4,828
Investment in Parkbridge Lifestyle Communities Inc. 17,965 21,482
Income producing property 18,453 18,035
Other assets 382 235
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$ 40,340 $ 44,580
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Liabilities & Shareholders' Equity
Accounts payable and other liabilities $ 1,728 $ 3,161
Future income taxes 2,375 2,498
Secured debt 19,364 18,925
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23,467 24,584
Shareholders' equity 16,873 19,996
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$ 40,340 $ 44,580
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three months ended Six months ended
(unaudited) June 30 June 30
$thousands 2008 2007 2008 2007
---------------------------------------------------------------------------
Net income (loss) $ 14 $ (16) $ (227) $ (73)
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Other comprehensive income (loss)
Foreign currency translation 22 (34) 32 (51)
Increase (decrease) in value of
available-for-sale securities 1,861 2,262 (3,517) 3,221
Future income taxes in above
items (312) (396) 589 (563)
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1,571 1,832 (2,896) 2,607
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Comprehensive income (loss) $ 1,585 $ 1,816 $ (3,123) $ 2,534
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Joseph F. Killi, 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.
    Joseph F. Killi
    President and Chief Executive Officer
    (416) 867-9370