Wilmington Capital Management Inc.
TSX : WCM

Wilmington Capital Management Inc.

August 11, 2009 16:31 ET

Wilmington Announces 2009 Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2009) - Wilmington Capital Management Inc. (TSX:WCM) today announced net loss before tax of $225 thousand for the six months ended June 30, 2009, compared to a net income of $357 thousand in the same period in 2008. Including tax provisions, the company recorded a net loss of $156 thousand compared to a net loss of $227 thousand in 2008. Net loss per Class A and Class B share for the six months ended June 30, 2009 was $0.02, compared to $0.03 per share in the same period last year. The decrease in net income before taxes 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 June 30, 2009 was $130 thousand or $0.02 per Class A and Class B shares, compared with net income of $14 thousand or $0.00 per share for the same period in 2008.

Wilmington holds a 9% 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 June 30, 2009, the fair value of the company's investment in Parkbridge of $18.9 million reflects unrealized capital gains of $2.9 million.



CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)
$ thousands, except per Three months ended June 30 Six months ended June 30
share amounts 2009 2008 2009 2008
----------------------------------------------------------------------------

Income
Investment and other $ (50) $ 28 $ (28) $ 62
Income producing
properties 336 300 707 903
----------------------------------------------------------------------------
286 328 679 965
----------------------------------------------------------------------------
Expenses
Operating 74 42 121 83
Interest 368 262 783 525
----------------------------------------------------------------------------
442 304 904 608
----------------------------------------------------------------------------
Net (loss) income
before income taxes (156) 24 (225) 357
Income tax recovery
(expense) 26 (10) 69 (584)
----------------------------------------------------------------------------
Net (loss) income $ (130) $ 14 $ (156) $ (227)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net loss per Class A
and Class B share $ (0.02) $ 0.00 $ (0.02) $ (0.03)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



CONSOLIDATED BALANCE SHEETS
(unaudited)
June 30 December 31
$ thousands 2009 2008
----------------------------------------------------------------------------

Assets
Cash and cash equivalents $ 2,487 $ 3,542
Investment in Parkbridge Lifestyle Communities Inc. 18,925 13,344
Income producing property 21,018 22,088
Other assets 251 414
Future income taxes - 78
----------------------------------------------------------------------------
$ 42,681 $ 39,466
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Liabilities & Shareholders' Equity
Accounts payable and other liabilities $ 640 $ 1,269
Future income taxes 794 -
Secured debt 22,045 23,153
Loan payable 10,356 10,694
----------------------------------------------------------------------------
33,835 35,116
Shareholders' equity 8,846 4,350
----------------------------------------------------------------------------
$ 42,681 $ 39,466
----------------------------------------------------------------------------
----------------------------------------------------------------------------



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three months ended June 30 Six months ended June 30
$ thousands 2009 2008 2009 2008
----------------------------------------------------------------------------
Net (loss) income $ (130) $ 14 $ (156) $ (227)
----------------------------------------------------------------------------

Foreign currency
translation - 22 (1) 32
Increase (decrease)
in value of available-
for-sale securities 4,306 1,861 5,581 (3,517)
Future income taxes
in above items (714) (312) (928) 589
----------------------------------------------------------------------------
3,592 1,571 4,652 (2,896)
----------------------------------------------------------------------------
Comprehensive income (loss) $ 3,462 $ 1,585 $ 4,496 $ (3,123)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


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