Wilmington Announces 2012 Second Quarter Results
10 August 2012 - 2:00AM
Marketwired Canada
Wilmington Capital Management Inc. ("Wilmington" or the "Corporation")
(TSX:WCM.A)(TSX:WCM.B) today announced a net loss for the three months ended
June 30, 2012 of $262,000 or ($0.02) per share compared to a net loss of $87,000
or ($0.01) per share for the same period in 2011. For the six months ended June
30, 2012, the net loss amounted to $660,000 or ($0.05) per share compared to net
income of $20.2 million or $2.55 per share for the same period in 2011.
To view a full copy of the Corporation's unaudited condensed financial results
for the period ended June 30, 2012 including the Corporation's unaudited
condensed interim consolidated financial statements and accompanying MD&A,
please refer to the SEDAR website www.sedar.com.
OPERATING HIGHLIGHTS
2012 is a formative year for Wilmington and during the second quarter the
Corporation continued to take steps in solidifying the foundation of its three
newly formed operating platforms - self storage facilities, private equity funds
and natural gas assets.
Real Storage Private Trust (46.15% owned) continued to show operational
improvements across its portfolio of 17 self-storage facilities containing
648,978 square feet of rentable area and one development site. The five
properties located in western Canada, which were acquired in February, 2011, are
performing well and expected to reach stabilized occupancy levels in 2012. The
majority of the western facilities are newly constructed and in the initial
lease-up stage. Overall occupancy for the three months ended June 30, 2012
averaged 77% across the portfolio as compared to 73% for the same period in
2011. Operating margins for the three months ended June 30, 2012 increased to
55%, up from 47% achieved for the comparable period in 2011.
On the private equity front, Network Capital Management Inc. (50% owned)
successfully closed its $22.3 million 2012 fund. Network's funds under
management now total $50.3 million and Network continues to see good
opportunities to deploy available capital in junior oil and gas companies.
Wilmington committed $8 million of capital to the 2012 fund.
The natural gas assets owned through the Shackleton Partnership (59% owned) are
proving to be of high quality and present good opportunities for growth and
future development once we reach a more favorable natural gas pricing
environment. The weighted average price realized during the quarter amounted to
$1.92 per mcf and operating netbacks averaged $0.82 per mcf. Natural gas
production volumes averaged 5,346 mcf per day (891 boepd) for the second
quarter. Estimated proved plus probable reserves attributable to the Shackleton
assets as evaluated by GLJ Petroleum Consultants Ltd. with an effective date of
December 31, 2011 were 24,392 MMcf. The outlook for natural gas pricing has
improved significantly and a better pricing environment will be beneficial to
the future operating performance of the Shackleton assets.
OUTLOOK
In 2011, the Corporation took significant steps to put in place the foundation
for achieving future growth by investing in three operating platforms - the Real
Storage Private Trust, Network Capital Management Inc. and the Shackleton
Partnership. In 2012 and in the years ahead, the Corporation expects to add
scale to these operating platforms, improve valuations and earn attractive cash
flow and total returns for shareholders.
FINANCIAL HIGHLIGHTS
As reported under International Financial Reporting Standards
CONSOLIDATED STATEMENTS OF INCOME
----------------------------------------------------------------------------
Unaudited Three months ended June 30 Six months ended June 30
(Thousands of
Canadian Dollars,
except per share
amounts) 2012 2011 2012 2011
----------------------------------------------------------------------------
Income
Natural gas sales $ 934 $ --- $ 2,064 $ ---
Royalties (170) --- (362) ---
----------------------------------------------------------------------------
Natural gas revenue 764 --- 1,702 ---
----------------------------------------------------------------------------
Income from
investment property 301 285 593 577
Investment and other
income 97 79 136 161
Foreign exchange gain --- 9 1 16
----------------------------------------------------------------------------
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1,162 373 2,432 754
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Expenses
Petroleum operations 376 --- 978 ---
Interest 375 285 745 578
General and
administrative 298 131 599 196
Depletion,
depreciation and
amortization 402 --- 841 ---
Stock compensation 41 --- 82 ---
Foreign exchange loss 10 --- --- ---
----------------------------------------------------------------------------
1,502 416 3,245 774
----------------------------------------------------------------------------
Income (loss) before
gain on sale, share
of net loss from
equity accounted
investment and
income tax expense
(benefit) (340) (43) (813) (20)
Gain on sale of
investment in
Parkbridge Lifestyle
Communities Inc. --- --- --- 23,581
Share of net income
(loss) from Real
Storage Private
Trust 77 (64) (47) (254)
Share of net loss
from Network Capital
Management Inc. (20) --- (4) ---
Share of net loss
from Network 2012
Fund (103) --- (103) ---
----------------------------------------------------------------------------
Income (loss) before
income taxes (346) (107) (873) 23,307
Income tax expense
(benefit) (84) (20) (213) 3,066
----------------------------------------------------------------------------
Net Income (Loss) $ (262) $ (87) $ (660) $ 20,241
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income (loss)
attributable to:
Owners of the
Corporation (139) $ (87) $ (463) $ 20,241
Non-controlling
interest (123) $ --- $ (197) ---
----------------------------------------------------------------------------
(262) (87) (660) $ 20,241
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income (loss)
per share - basic $ (0.02) $ (0.01) $ (0.05) $ 2.55
Net income (loss)
per share -
diluted $ (0.02) $ (0.01) $ (0.05) $ 2.55
----------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
----------------------------------------------------------------------------
June 30, December 31,
Unaudited (Thousands of Canadian Dollars) 2012 2011
----------------------------------------------------------------------------
Assets
Non-current assets
Investment property $ 18,842 $ 18,933
Investment in Real Storage Private Trust 7,143 7,096
Investment in Network Capital Management Inc. 1,752 1,755
Investment in Network 2012 Fund 4,935 ---
Natural gas properties and equipment 18,595 19,436
Deferred tax asset --- 135
----------------------------------------------------------------------------
51,267 47,355
----------------------------------------------------------------------------
Current assets
Loan to Network Capital Management Inc. 50 50
Receivables and other assets 1,039 923
Cash and cash equivalents 9,509 18,688
----------------------------------------------------------------------------
10,598 19,661
----------------------------------------------------------------------------
Total assets $ 61,865 $ 67,016
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities
Non-current liabilities
Secured debt $ 19,307 $ 19,403
Loan payable 1,648 1,615
Asset retirement obligations 729 708
Deferred tax liabilities 106 ---
----------------------------------------------------------------------------
21,790 21,726
----------------------------------------------------------------------------
Current liabilities
Accounts payable and accrued liabilities 1,046 1,481
Revolving loan facility 7,250 7,830
Income taxes payable --- 3,336
----------------------------------------------------------------------------
8,296 12,647
----------------------------------------------------------------------------
Total liabilities 30,086 34,373
----------------------------------------------------------------------------
Equity
----------------------------------------------------------------------------
Shareholders' equity 27,778 28,445
Non-controlling interest 4,001 4,198
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total liabilities and equity $ 61,865 $ 67,016
----------------------------------------------------------------------------
----------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
----------------------------------------------------------------------------
Three months Six months
Unaudited ended June 30 ended June 30
(Thousands of Canadian Dollars) 2012 2011 2012 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income (loss) $ (262) $ (87) $ (660) $ 20,241
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Foreign currency translation 12 (37) (5) (36)
Fair value increment of available for
sale securities --- --- --- (23,414)
Share of other comprehensive loss from
Network 2012 Fund (281) --- (281) ---
Future income taxes on above items --- --- --- 3,285
----------------------------------------------------------------------------
Other comprehensive income (loss) (269) (37) (286) (20,165)
----------------------------------------------------------------------------
Comprehensive income (loss) $ (531) $ (124) $ (946) $ 76
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Comprehensive income (loss)
attributable to:
Owners of the Corporation $ (408) $ (124) $ (749) $ 76
Non-controlling interest (123) --- (197) ---
----------------------------------------------------------------------------
$ (531) $ (124) $ (946) $ 76
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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.
Boe Conversion: Certain natural gas volumes have been converted to barrels of
oil equivalent ("boe") whereby 6,000 cubic feet (mcf) of natural gas is equal to
1 barrel (bbl) of oil. This conversion ratio (6:1) is based on an energy
equivalency conversion applicable at the burner tip and does not represent a
value equivalency at the wellhead.
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