Wilmington Capital Management Inc.
TSX : WCM

Wilmington Capital Management Inc.

May 14, 2009 16:31 ET

Wilmington Announces 2009 First Quarter Results

TORONTO, ONTARIO--(Marketwire - May 14, 2009) - Wilmington Capital Management Inc. (TSX:WCM) today announced net loss before tax of $69 thousand for the three months ended March 31, 2009, compared to income of $333 thousand in the same period in 2008. Including tax provisions, the company recorded a net loss of $26 thousand compared to $241 thousand in 2008. Net loss per Class A and Class B share for the three months ended March 31, 2009 was $0.00, compared to $0.03 per share in the same period last year. The decrease in income from producing property, when compared to the previous year, was due to the receipt during the first quarter of 2008 of minimum rent guarantee payments totaling $303 thousand relating to 181 University Avenue for the period prior to the 2006 sale of these assets. Income tax expense in 2008 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 an 8% 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 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 March 31, 2009, the fair value of the company’s investment with Parkbridge of $14.6 million reflects an unrealized capital loss of $1.4 million.

 CONSOLIDATED STATEMENTS OF OPERATIONS 
   
 (unaudited)

Three months ended March 31

 $thousands, except per share amounts

 

2009

 

2008

  Income       
  Investment and other$22$34
  Income producing property  371  603
      393  637
  Expenses       
  Operating  47  41
  Interest  415  263
      462  304
  Net (loss) income before income taxes  (69)  333
  Income tax recovery (expense)  43  (574)
  Net loss$(26)$(241)
 
  Net loss per Class A and Class B share$0.00$(0.03)


   CONSOLIDATED BALANCE SHEETS         
      (unaudited)     
      March 31December 31 
   $thousands  2009  2008 
   Assets         
           Cash and cash equivalents $2,641$ 3,542  
           Investment in Parkbridge Lifestyle Communities Inc.   14,619  13,344  
           Income producing property   22,806  22,088  
           Other assets   261  414  
           Future income taxes     78  
    $40,327$ 39,466  
   Liabilities & Shareholders’ Equity         
           Accounts payable and other liabilities $649$ 1,269  
           Future income taxes   106   
           Secured debt   23,903  23,153  
           Loan payable   10,285  10,694  
      34,943  35,116  
           Shareholders’ equity   5,384  4,350  
    $40,327$ 39,466  
 
 
   CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)       
   (unaudited)Three months ended March 31 
   $thousands  2009  2008 
   Net loss$(26)$ (241)  
   Other comprehensive income (loss)          
 
           Foreign currency translation   (1)  10  
           Available-for-sale securities   1,275  (5,378)  
           Future income taxes in above items   (214)  901  
      1,060  (4,467)  
   Comprehensive income (loss)$1,034$ (4,708)  
 

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