Wilmington Capital Management Inc.
TSX : WCM.A
TSX : WCM
TSX : WCM.B

Wilmington Capital Management Inc.

March 24, 2011 16:32 ET

Wilmington Announces 2010 Fourth Quarter Results

TORONTO, ONTARIO--(Marketwire - March 24, 2011) - Wilmington Capital Management Inc. (TSX:WCM)(TSX:WCM.A)(TSX:WCM.B) today announced net income of $252,000 for the year ended December 31, 2010 compared to a net loss of $135,000 for the year ended December 31, 2009. Net income per Class A and Class B share for the year ended December 31, 2010 was $0.03, compared to a net loss of $0.02 per share for the year ended December 31, 2009.

Net income for the three months ended December 31, 2010 was $68,000 or $0.01 per Class A and Class B share, compared with net income of $86,000 or $0.01 per share for the same period in 2009.

As at December 31, 2010, Wilmington held an 8% fully diluted interest in Parkbridge Lifestyle Communities Inc. ("Parkbridge"), an owner operator of manufactured home and recreational communities. During the fourth quarter of 2010, Parkbridge announced that it had entered into an agreement with British Columbia Investment Management Corporation ("bcIMC") whereby bcIMC would acquire all the issued and outstanding common shares of Parkbridge for $7.30 in cash per common share. This equates to a value of $40.6 million for the investment in Parkbridge. Closing occurred on January 7, 2011 and loans payable of $14.6 million were repaid from the $40.6 million received.

Wilmington also owns land leased to commercial property owners which is located at 370 Third Street in San Francisco, California. During the fourth quarter, Wilmington reorganized its investment in this property and entered into a new secured credit facility on which $1.5 million net is drawn, bears interest at 4% per annum and is repayable on January 1, 2013. At maturity this credit facility is payable, at the borrower's discretion, in cash or in shares of the company's wholly owned subsidiary which owns the property.

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 December 31, 2010, the fair value of the company's investment in Parkbridge of $40.5 million reflects unrealized capital gains of $23.4 million.

Subsequent to year end, Wilmington acquired a 46.15% indirect interest in a portfolio of five self storage facilities and two development properties in Alberta, British Columbia and Ontario through the Real Storage Private Trust (the "Trust"). Wilmington's share of the cash consideration to complete the acquisition consisted of $2.5 million in additional equity to the Trust and a $1.625 million bridge loan to the Trust repayable upon demand bearing interest at 7% per annum.

CONSOLIDATED STATEMENTS OF OPERATIONS  
   
  Three months ended   Years ended  
(unaudited) December 31   December 31  
$ thousands, except per share amounts   2010     2009     2010   2009  
Income                      
  Investment and other $ 211   $ 10   $ 631 $ 17  
  Equity accounted income   42         65    
  Foreign exchange gain   34     19     62    
  Income producing property   299     310     1,219   1,334  
    586     339     1,977   1,351  
Expenses                      
  Operating   132     22     296   165  
  Foreign exchange loss             23  
  Interest   472     350     1,600   1,490  
    604     372     1,896   1,678  
Net (loss) income before income taxes   (18 )   (33 )   81   (327 )
  Income tax recovery   86     119     171   192  
Net income (loss) $ 68   $ 86   $ 252 $ (135 )
   
Net income (loss) per Class A and Class B share $ 0.01   $ 0.01   $ 0.03 $ (0.02 )
   
 
CONSOLIDATED BALANCE SHEETS        
 
(unaudited)        
As at December 31 ($ thousands)   2010   2009
Assets        
  Cash and cash equivalents $ 2,085 $ 1,569
  Investment in Parkbridge Lifestyle Communities Inc.   40,466   28,109
  Income producing property   18,031   19,013
  Investment in Real Storage Private Trust   5,065  
  Other assets   154   143
  $ 65,801 $ 48,834
Liabilities & Shareholders' Equity        
  Accounts payable and other liabilities $ 588 $ 700
  Future income taxes   3,462   1,933
  Secured debt   18,949   19,962
  Loans payable   16,103   10,501
      39,102   33,096
  Shareholders' equity   26,699   15,738
  $ 65,801 $ 48,834
   
   
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)              
   
  Three months ended   Years ended  
(unaudited) December 31   December 31  
$ thousands   2010     2009     2010     2009  
Net income (loss) $ 68   $ 86   $ 252   $ (135 )
Other comprehensive income (loss)                        
  Foreign currency translation   (23 )   (28 )   (55 )   (72 )
  Available-for-sale securities   9,407     6,624     12,357     13,765  
  Future income taxes on above items   (1,112 )   (997 )   (1,593 )   (2,170 )
    8,272     5,599     10,709     11,523  
Comprehensive income $ 8,340   $ 5,685   $ 10,961   $ 11,388  

Executive Officers of the company will be available at (403) 800-0869 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.
    Joe Killi
    President & Chief Executive Officer
    (403) 800-0869