TORONTO, ONTARIO--(Marketwire - June 9, 2011) - Wilmington Capital Management Inc. (TSX:WCM.A)(TSX:WCM.B) today announced net income for the three months ended March 31, 2011 of $20.3 million compared to a net loss of $71,000 for the same period in 2010. Net income per Class A and Class B share for the three months ended March 31, 2011 was $2.56, compared to a net loss of $0.01 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.
During the three months ended March 31, 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"). 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 was fully repaid in the second quarter of 2011.
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's principal objective is to generate appreciation in value from its investments as opposed to current income. Accordingly, net income, excluding gains and losses, is expected to be minimal.
| FINANCIAL HIGHLIGHTS | ||||||
| As reported under International Financial Reporting Standards | ||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
| Unaudited | Three months ended March 31 | |||||
| (Thousands of Canadian Dollars, except per share amounts) | 2011 | 2010 | ||||
| Income | ||||||
| Investment and other income | $ | 82 | $ | 2 | ||
| Income from investment property | 292 | 304 | ||||
| Foreign exchange gain | 8 | --- | ||||
| 382 | 306 | |||||
| Expenses | ||||||
| Interest | 293 | 338 | ||||
| General and administrative | 66 | 42 | ||||
| Foreign exchange loss | --- | 20 | ||||
| 359 | 400 | |||||
| Income before gain, equity accounted investment and income tax expense (benefit) | ||||||
| 23 | (94 | ) | ||||
| Gain on sale of Parkbridge Lifestyle Communities Inc. | 23,581 | --- | ||||
| Share of net loss from equity account investment | (190 | ) | --- | |||
| Income (loss) before income taxes | 23,414 | (94 | ) | |||
| Income tax expense (benefit) | 3,086 | (23 | ) | |||
| Net Income (loss) | $ | 20,328 | $ | (71 | ) | |
| Net income (loss) per share - basic | $ | 2.56 | $ | (0.01 | ) | |
| Net income (loss) per share - diluted | $ | 2.56 | $ | (0.01 | ) | |
| CONSOLIDATED BALANCE SHEET | ||||
| Unaudited (Thousands of Canadian Dollars) | Mar 31, 2011 | Dec 31, 2010 | ||
| Assets | ||||
| Non-current assets | ||||
| Investment property | $ | 18,002 | $ | 18,507 |
| Investment in associate | 7,129 | 4,819 | ||
| Investments in Parkbridge Lifestyle Communities Inc. | --- | 40,466 | ||
| Deferred tax asset | 64 | --- | ||
| 25,195 | 63,792 | |||
| Current assets | ||||
| Loan to associate | 1,625 | --- | ||
| Receivables and other assets | 87 | 67 | ||
| Cash and cash equivalents | 24,073 | 2,085 | ||
| 25,872 | 2,239 | |||
| Total assets | $ | 50,980 | $ | 65,944 |
| Liabilities | ||||
| Non-current liabilities | ||||
| Secured debt | $ | 18,425 | $ | 18,949 |
| Loan payable | 1,478 | 16,103 | ||
| Deferred tax liabilities | --- | 3,431 | ||
| 19,903 | 38,483 | |||
| Current liabilities | ||||
| Accounts payable and accrued liabilities | 656 | 588 | ||
| Income taxes payable | 3,348 | --- | ||
| 4,004 | 588 | |||
| Total liabilities | 23,907 | 39,071 | ||
| Equity | ||||
| Shareholders' equity | 27,073 | 26,873 | ||
| Total liabilities and equity | $ | 50,980 | $ | 65,944 |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||
| Unaudited | Three months ended March 31 | |||||
| (Thousands of Canadian Dollars) | 2011 | 2010 | ||||
| Net income (loss) | $ | 20,328 | $ | (71 | ) | |
| Foreign currency translation | 1 | --- | ||||
| Available for sale securities | (23,414 | ) | 2,226 | |||
| Future income taxes on above items | 3,285 | (279 | ) | |||
| Other comprehensive income (loss) | (20,128 | ) | 1,947 | |||
| Comprehensive income | $ | 200 | $ | 1,876 | ||
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:
Francis Cooke
Treasurer
(403) 800-0869