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

Wilmington Capital Management Inc.

August 11, 2011 20:00 ET

Wilmington Announces Second Quarter Results for 2011

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2011) - Wilmington Capital Management Inc. (TSX:WCM.A)(TSX:WCM.B) today announced a loss for the three months ended June 30, 2011 of $87,000 compared to net income of $79,000 for the same period in 2010. The net loss per Class A and Class B share for the three months ended June 30, 2011 was $(0.01), compared to net income of $0.01 per share for the same period in 2010. For the six months ended June 30, 2011, net income amounted to $20.2 million or $2.55 per share compared to $8,000 or NIL cents per share for the same period in 2010.

On January 7, 2011, all of the issued and outstanding common shares of Parkbridge Lifestyle Communities Inc. were acquired by the British Columbia Investment Management Corporation for $7.30 in cash per common share. Pursuant to this transaction, Wilmington received $40.6 million in proceeds, realized a pre-tax gain of $23.6 million and repaid its $14.6 million loan payable facility relating to the Parkbridge shares.

In February, 2011, 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"). The five operating properties are in the initial lease up stage and are expected to reach stabilized occupancy and cash flow in 2012. 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 and bearing interest at 7% per annum. The bridge loan and accrued interest have since been fully repaid with proceeds from the sale of one of the development properties. The Trust now owns 17 self-storage facilities comprising 645,978 square feet of rentable area and one development property.

Wilmington also owns land leased to commercial property owners which is located at 370 Third Street in San Francisco, California. During the fourth quarter of 2010, 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 Corporation's wholly owned subsidiary which owns the property.

Beginning January 1, 2011, the Corporation has prepared its financial statements in accordance with IFRS. Accordingly, certain adjustments were made to comply with IFRS for the current and comparable periods.

The Corporation has recently completed its 2011 strategic plan and will be taking steps to broaden its investment strategy to include selective investments in the real estate as well as the energy sectors. The Corporation's principal objective will continue to be aimed at generating appreciation in value from its investments as opposed to current income. Accordingly, net income, excluding gains and losses from investment dispositions, is expected to be minimal in any given year.

FINANCIAL HIGHLIGHTS

As reported under International Financial Reporting Standards

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited Three months ended June 30 Six months ended June 30
(Thousands of Canadian Dollars, except per share amounts) 2011 2010 2011 2010
Income
Investment and other income $ 79 $ 208 $ 161 $ 210
Income from investment property 285 306 577 610
Foreign exchange gain 9 9 16 ---
373 523 754 820
Expenses
Interest 285 342 578 680
General and administrative 131 59 197 101
Foreign exchange loss --- --- --- 11
416 401 774 792
Income (loss) before gain on sale, share of net loss from equity accounted investment and income tax expense (benefit)


(43
)


122



(20
)


28
Gain on sale of investment in Parkbridge Lifestyle Communities Inc. --- --- 23,581 ---
Share of net loss from equity accounted investment (64 ) --- (254 ) ---
Income (loss) before income taxes (107 ) 122 23,307 28
Income tax expense (benefit) (20 ) 43 3,066 20
Net Income (loss) $ (87 ) $ 79 $ 20,241 $ 8
Net income (loss) per share - basic $ (0.01 ) $ 0.01 $ 2.55 $ 0.00
Net income (loss) per share - diluted $ (0.01 ) $ 0.01 $ 2.55 $ 0.00

CONDENSED INTERIM CONSOLIDATED BALANCE SHEET

Unaudited
(Thousands of Canadian Dollars)
June 30, 2011 December 31, 2010 January 1, 2010
Assets
Non-current assets
Investment property $ 17,854 $ 18,507 $ 19,489
Investment in associate 7,065 4,819 ---
Investment in Parkbridge Lifestyle Communities Inc. --- 40,466 28,109
Deferred tax asset 54 --- ---
24,973 63,792 47,598
Current assets
Loan to associate --- --- ---
Receivables and other assets 71 67 56
Cash and cash equivalents 25,653 2,085 1,569
25,724 2,152 1,625
Total assets $ 50,697 $ 65,944 $ 49,223
Liabilities
Non-current liabilities
Secured debt $ 18,291 $ 18,949 $ 19,962
Loan payable 1,484 16,103 10,501
Deferred tax liabilities --- 3,431 1,933
19,775 38,483 32,396
Current liabilities
Accounts payable and accrued liabilities 664 588 700
Income taxes payable 3,309 --- ---
3,973 588 700
Total liabilities 23,748 39,071 33,096
Equity
Shareholders' equity 26,949 26,873 16,127
Total liabilities and equity $ 50,697 $ 65,944 $ 49,223

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Unaudited Three months ended June 30 Six months ended June 30
(Thousands of Canadian Dollars) 2011 2010 2011 2010
Net income (loss) $ (87 ) $ 79 $ 20,241 $ 8
Foreign currency translation (37 ) 17 (36 ) 17
Reversal of the fair value increment of available for sale securities --- (1,614 ) (23,414 ) 612
Future income taxes on above items --- 160 3,285 (119 )
Other comprehensive income (loss) (37 ) (1,437 ) (20,165 ) 510
Comprehensive income $ (124 ) $ (1,358 ) $ 76 $ 518

Executive Officers of the Corporation will be available at 403-800-0869 to answer any questions on the Corporation's financial results.

This news release contains forward-looking statements concerning the Corporation's business and operations. The Corporation cautions that, by their nature, forward-looking statements involve risk and uncertainty and the Corporation'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.
    Francis Cooke
    Treasurer
    (403) 800-0869