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

Wilmington Capital Management Inc.

November 09, 2010 16:32 ET

Wilmington Announces 2010 Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2010) - Wilmington Capital Management Inc. (TSX:WCM)(TSX:WCM.A)(TSX:WCM.B) today announced net income of $176,000 for the three months ended September 30, 2010, compared to a net loss of $65,000 for the same period in 2009. Net income per Class A and Class B share for the three months ended September 30, 2010 was $0.02, compared to a net loss of $0.01 per share in the same period last year.

Wilmington holds an 8% fully diluted interest in Parkbridge Lifestyle Communities Inc. (PRK.TO), an owner and 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 periodically considers 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 provide its shareholders with an attractive total return consisting of capital appreciation on its investments and current income. In this regard, as at September 30, 2010, the fair value of the company's investment in Parkbridge of $31.1 million reflects unrealized capital gains of $14.1 million. During the three months ended September 30, 2010, Wilmington received dividends of $209,000 from Parkbridge. Subsequent to September 30, 2010, Parkbridge announced that it has entered into an agreement with a wholly-owned subsidiary of British Columbia Investment Management Corporation ("bcIMC") whereby bcIMC will acquire all the issued and outstanding common shares of Parkbridge for $7.30 in cash per common share. Closing will occur no earlier than January 4, 2011. At a price of $7.30 per common share, the value of the investment in Parkbridge is $40.6 million.

During the third quarter, Wilmington completed the acquisition (the "Acquisition") of a 45.45% indirect interest in a portfolio of 12 self-storage facilities in Southwestern Ontario (the "Property Portfolio") through the acquisition of units in a newly formed private real estate investment trust (the "Trust"). The aggregate cost of the Property Portfolio, including closing costs, amounted to approximately $20.7 million and was funded with proceeds from a $12.7 million term facility (the "Term Facility") and equity of approximately $8 million. An additional $3 million of equity was raised by the Trust for working capital to fund short term requirements and other investment opportunities. The Term Facility is secured by the Property Portfolio and a guarantee by Wilmington equal to 22.725% of the Term Facility.

Wilmington's share of the cash consideration to complete this initiative was $5 million which was mostly funded through borrowings under its credit facility.

Wilmington believes the Acquisition is a major step in meeting its principal objective of acquiring and holding assets that are capable of providing stable cash flows and capital appreciation over the longer term. Wilmington also believes that there will be further opportunities to invest in additional properties in the Canadian self-storage industry that meet its objectives.

 
CONSOLIDATED STATEMENTS OF OPERATIONS                
 
(unaudited) Three months ended September 30 Nine months ended September 30
$thousands, except per share amounts   2010   2009     2010   2009
Income                  
  Investment and other $ 210 $ 1   $ 420 $ 7
  Equity accounted income   23       23  
  Foreign exchange gain   39       28  
  Income producing properties   310   317     920   1,024
      582   318     1,391   1,031
 
Expenses                  
  Operating   63   22     164   143
  Foreign exchange loss     8       42
  Interest   448   357     1,128   1,140
      511   387     1,292   1,325
Net tax (loss) before income taxes   71   (69)     99   (294)
  Income tax recovery   105   4     85   73
Net income (loss) $ 176 $ (65)   $ 184 $ (221)
 
Net income (loss) per Class A and Class B share $ 0.02 $ (0.01)   $ 0.02 $ (0.03)
           
CONSOLIDATED BALANCE SHEETS   (unaudited)    
$thousands   September 30, 2010   December 31, 2009
Assets        
  Cash and cash equivalents $ 703 $ 1,569
  Investment in Parkbridge Lifestyle Communities Inc.   31,059   28,109
  Income producing property   18,593   19,013
  Investment in Real Storage Private Trust   5,023  
  Other assets   136   143
    $ 55,514 $ 48,834
           
Liabilities & Shareholders' Equity        
  Accounts payable and other liabilities $ 588 $ 700
  Future income taxes   2,435   1,933
  Secured debt   19,532   19,962
  Loan payable   14,600   10,501
      37,155   33,096
  Shareholders' equity   18,359   15,738
    $ 55,514 $ 48,834
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME            
 
(unaudited)   Three months ended September 30 Nine months ended September 30
$thousands   2010   2009   2010   2009
Net income (loss)  $ 176 $ (65) $ 184 $ (221)
Other comprehensive income (loss)                
  Foreign currency translation   (49)   (43)   (32)   (44)
  Available-for-sale securities   2,338   1,560   2,950   7,141
  Future income taxes in above items   (362)   (245)   (481)   (1,173)
      1,927   1,272   2,437   5,924
Comprehensive income  $ 2,103 $ 1,207 $ 2,621 $ 5,703

Joseph F. Killi, President and Chief Executive Officer will be available at 403-800-0869 to answer any questions on the company's financial results.

Forward Looking Statements

This news release contains forward looking statements. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

The forward looking statements contained in this press release are made as of the date hereof and Wilmington undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Reference should also 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
    403-800-0869