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 ---
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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
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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 --- --- ---
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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
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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) ---
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(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
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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
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8,296 12,647
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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
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----------------------------------------------------------------------------
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
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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
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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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