Wilmington Announces 2012 First Quarter Results
11 May 2012 - 10:00AM
Marketwired
Wilmington Capital Management Inc. ("Wilmington" or the
"Corporation") (TSX:WCM.A)(TSX:WCM.B) today announced a net loss
for the three months ended March 31, 2012 of $398,000 or ($0.04)
per share compared to net income of $20.3 million or $2.56 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 March 31, 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
During the first quarter of 2012 the Corporation continued to
take steps in solidifying the foundation of its three newly
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 5 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 March
31, 2012 averaged 75% across the portfolio as compared to 70% for
the same period in 2011. Operating margins for the three months
ended March 31, 2012 increased to 43%, up from 37% 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 $50.4 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 $2.09 per mcf
and operating netbacks averaged $0.63 per mcfl. Natural gas
production volumes averaged 5,924 mcf per day (987 boepd) for the
first 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.
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
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Unaudited Three months ended March 31
(Thousands of Canadian Dollars, except per
share amounts) 2012 2011
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Income
Natural gas sales $ 1,130 $ ---
Royalties (191) ---
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Natural gas revenue 939 ---
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Income from investment property 292 292
Investment and other income 41 82
Foreign exchange gain 27 8
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1,299 382
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Expenses
Petroleum operations 602 ---
Interest 372 293
General and administrative 319 66
Depletion, depreciation and amortization 439 ---
Stock compensation 41 ---
Foreign exchange loss --- ---
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1,773 359
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Income (loss) before gain on sale, share of
net loss from equity accounted investment and
income tax expense (benefit) (474) 23
Gain on sale of investment in Parkbridge
Lifestyle Communities Inc. --- 23,581
Share of net loss from Real Storage Private
Trust (30) (190)
Share of net loss from Network Capital
Management Inc. (24) ---
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Income (loss) before income taxes (528) 23,414
Income tax expense (benefit) (130) 3,086
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Net Income (loss) $ (398) $ 20,328
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Net income (loss) attributable to:
Owners of the Corporation $ (324) 20,328
Non-controlling interest $ (74) ---
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(398) 20,328
Net income (loss) per share - basic $ (0.04) $ 2.56
Net income (loss) per share - diluted $ (0.04) $ 2.56
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CONSOLIDATED BALANCE SHEET
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Unaudited March 31, December 31,
(Thousands of Canadian Dollars) 2012 2011
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Assets
Non-current assets
Investment property $ 18,491 $ 18,933
Investment in Real Storage Private Trust 7,067 7,096
Investment in Network Capital Management Inc. 1,731 1,755
Investment in Network 2012 Fund 2,640 ---
Natural gas properties and equipment 18,997 19,436
Deferred tax asset 218 135
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49,144 47,355
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Current assets
Loan to Network Capital Management Inc. 50 50
Receivables and other assets 720 923
Cash and cash equivalents 12,302 18,688
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13,072 19,661
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Total assets $ 62,216 $ 67,016
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Liabilities
Non-current liabilities
Secured debt $ 18,941 $ 19,403
Loan payable 1,595 1,615
Asset retirement obligations 719 708
Deferred tax liabilities --- ---
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21,255 21,726
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Current liabilities
Accounts payable and accrued liabilities 1,192 1,481
Revolving loan facility 7,500 7,830
Income taxes payable --- 3,336
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8,692 12,647
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Total liabilities 29,947 34,373
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Equity
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Shareholders' equity 28,145 28,445
Non-controlling interest 4,124 4,198
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Total liabilities and equity $ 62,216 $ 67,016
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
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Unaudited Three months ended March 31
(Thousands of Canadian Dollars) 2012 2011
----------------------------------------------------------------------------
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Net income (loss) $ (398) $ 20,328
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Foreign currency translation (17) 1
Reversal of the fair value increment of
available for sale securities --- (23,414)
Future income taxes on above items --- 3,285
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Other comprehensive income (loss) (17) (20,128)
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Comprehensive income (loss) $ (415) $ 200
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Comprehensive income (loss) attributable to:
Owners of the Corporation $ (341) $ 200
Non-controlling interest (74) ---
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$ (415) $ 200
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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.
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.
Contacts: Wilmington Capital Management Inc. (403) 800-0869
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