Wilmington Capital Management Inc.
TSX : WCM

Wilmington Capital Management Inc.

November 14, 2008 16:31 ET

Wilmington Announces 2008 Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 14, 2008) - Wilmington Capital Management Inc. (TSX:WCM) today announced net income before tax of $242 thousand for the nine months ended September 30, 2008, compared to $1 thousand in the same period in 2007. Including tax provisions, the company recorded a net loss of $294 thousand compared to $9 thousand in 2007. Net loss per Class A and Class B share for the nine months ended September 30 was $0.04, compared to $0.00 per share in the same period last year. The increase in income from producing properties was due to the receipt during the first quarter of 2008 of minimum rent guarantee payments totaling $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 during the first quarter of 2008.

Net loss for the three months ended September 30, 2008 was $67 thousand or $0.01 per Class A and Class B shares, compared with a net income of $64 thousand or $0.01 per share for the same period in 2007.

Wilmington holds an 8% fully diluted interest in Parkbridge Lifestyle Communities Inc. (TSX:PRK), an owner operator of manufactured home and recreational communities. During the third quarter the Company 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 investment, which could include the sale or restructuring of this holding.

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, as at September 30, 2008, the fair value of the company's investment with Parkbridge of $25.3 million reflects unrealized capital gains of $9.3 million.



CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited) Three months ended Nine months ended
$thousands, except September 30 September 30
per share amounts 2008 2007 2008 2007
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Income
Investment and other $ 21 $ 57 $ 83 $ 188
Income producing properties 310 259 1,213 834
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331 316 1,296 1,022
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Expenses
Operating 35 25 118 169
Interest 411 272 936 852
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446 297 1,054 1,021
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Net income (loss) before
income taxes (115) 19 242 1
Income tax recovery (expense) 48 45 (536) (10)
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Net income (loss) $ (67) $ 64 $ (294) $ (9)
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Net income (loss) per Class A
and Class B share $ (0.01) $ 0.01 $ (0.04) $ 0.00
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CONSOLIDATED BALANCE SHEETS

(unaudited)
September 30 December 31
$thousands 2008 2007
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Assets
Cash and cash equivalents $ 3,604 $ 4,828
Investment in Parkbridge
Lifestyle Communities Inc. 25,304 21,482
Income producing property 19,235 18,035
Other assets 429 235
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$ 48,572 $ 44,580
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Liabilities & Shareholders' Equity
Accounts payable and other
liabilities $ 1,685 $ 3,161
Future income taxes 1,856 2,498
Secured debt 20,181 18,925
Loan payable 10,574 -
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34,296 24,584
Shareholders' equity 14,276 19,996
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$ 48,572 $ 44,580
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three months ended Nine months ended
(unaudited) September 30 September 30
$thousands 2008 2007 2008 2007
----------------------------------------------------------------------------
Net income (loss) $ (67) $ 64 $ (294) $ (9)
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Other comprehensive income
(loss)
Foreign currency translation 49 (63) 81 (114)
Available-for-sale
securities (3,098) (1,174) (6,615) 2,047
Future income taxes
in above items 519 235 1,108 (328)
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(2,530) (1,002) (5,426) 1,605
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Comprehensive income (loss) $ (2,597) $ (938) $ (5,720) $ 1,596
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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