Wilmington Announces Second Quarter Results for 2011
12 August 2011 - 2:00AM
Marketwired Canada
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
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Unaudited Three months ended June 30 Six months ended June 30
(Thousands of Canadian
Dollars, except per
share amounts) 2011 2010 2011 2010
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Income
Investment and other
income $ 79 $ 208 $ 161 $ 210
Income from investment
property 285 306 577 610
Foreign exchange gain 9 9 16 ---
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373 523 754 820
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Expenses
Interest 285 342 578 680
General and
administrative 131 59 197 101
Foreign exchange loss --- --- --- 11
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416 401 774 792
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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) ---
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Income (loss) before
income taxes (107) 122 23,307 28
Income tax expense
(benefit) (20) 43 3,066 20
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Net Income (loss) $ (87) $ 79 $20,241 $ 8
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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
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Unaudited
(Thousands of Canadian
Dollars) June 30, 2011 December 31, 2010 January 1, 2010
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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 --- ---
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24,973 63,792 47,598
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Current assets
Loan to associate --- --- ---
Receivables and other
assets 71 67 56
Cash and cash equivalents 25,653 2,085 1,569
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25,724 2,152 1,625
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Total assets $50,697 $65,944 $49,223
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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
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19,775 38,483 32,396
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Current liabilities
Accounts payable and
accrued liabilities 664 588 700
Income taxes payable 3,309 --- ---
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3,973 588 700
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Total liabilities 23,748 39,071 33,096
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Equity
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Shareholders' equity 26,949 26,873 16,127
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Total liabilities and
equity $50,697 $65,944 $49,223
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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
----------------------------------------------------------------------------
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Net income (loss) $ (87) $ 79 $ 20,241 $ 8
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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)
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Other comprehensive
income (loss) (37) (1,437) (20,165) 510
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Comprehensive
income $(124) $(1,358) $ 76 $ 518
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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.
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