Business & Finance
Business and Finance
Business and Finance
Fri, May 11, 2012
Thu, May 10, 2012 
May 10, 2012 20:00 ET
Wilmington Announces 2012 First Quarter Results
TORONTO, ONTARIO--(Marketwire - May 10, 2012) - 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 |
| Unaudited | Three months ended March 31 | ||||||
| (Thousands of Canadian Dollars, except per share amounts) | 2012 | 2011 | |||||
| Income | |||||||
| Natural gas sales | $ | 1,130 | $ | --- | |||
| Royalties | (191 | ) | --- | ||||
| Natural gas revenue | 939 | --- | |||||
| Income from investment property | 292 | 292 | |||||
| Investment and other income | 41 | 82 | |||||
| Foreign exchange gain | 27 | 8 | |||||
| 1,299 | 382 | ||||||
| Expenses | |||||||
| Petroleum operations | 602 | --- | |||||
| Interest | 372 | 293 | |||||
| General and administrative | 319 | 66 | |||||
| Depletion, depreciation and amortization | 439 | --- | |||||
| Stock compensation | 41 | --- | |||||
| Foreign exchange loss | --- | --- | |||||
| 1,773 | 359 | ||||||
| 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 | ) | --- | ||||
| Income (loss) before income taxes | (528 | ) | 23,414 | ||||
| Income tax expense (benefit) | (130 | ) | 3,086 | ||||
| Net Income (loss) | $ | (398 | ) | $ | 20,328 | ||
| Net income (loss) attributable to: | |||||||
| Owners of the Corporation | $ | (324 | ) | 20,328 | |||
| Non-controlling interest | $ | (74 | ) | --- | |||
| (398 | ) | 20,328 | |||||
| Net income (loss) per share - basic | $ | (0.04 | ) | $ | 2.56 | ||
| Net income (loss) per share - diluted | $ | (0.04 | ) | $ | 2.56 | ||
| CONSOLIDATED BALANCE SHEET |
| Unaudited (Thousands of Canadian Dollars) | March 31, 2012 | December 31, 2011 | |||
| 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 | |||
| 49,144 | 47,355 | ||||
| Current assets | |||||
| Loan to Network Capital Management Inc. | 50 | 50 | |||
| Receivables and other assets | 720 | 923 | |||
| Cash and cash equivalents | 12,302 | 18,688 | |||
| 13,072 | 19,661 | ||||
| Total assets | $ | 62,216 | $ | 67,016 | |
| Liabilities | |||||
| Non-current liabilities | |||||
| Secured debt | $ | 18,941 | $ | 19,403 | |
| Loan payable | 1,595 | 1,615 | |||
| Asset retirement obligations | 719 | 708 | |||
| Deferred tax liabilities | --- | --- | |||
| 21,255 | 21,726 | ||||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | 1,192 | 1,481 | |||
| Revolving loan facility | 7,500 | 7,830 | |||
| Income taxes payable | --- | 3,336 | |||
| 8,692 | 12,647 | ||||
| Total liabilities | 29,947 | 34,373 | |||
| Equity | |||||
| Shareholders' equity | 28,145 | 28,445 | |||
| Non-controlling interest | 4,124 | 4,198 | |||
| Total liabilities and equity | $ | 62,216 | $ | 67,016 | |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
| Unaudited | Three months ended March 31 | ||||||
| (Thousands of Canadian Dollars) | 2012 | 2011 | |||||
| Net income (loss) | $ | (398 | ) | $ | 20,328 | ||
| 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 | |||||
| Other comprehensive income (loss) | (17 | ) | (20,128 | ) | |||
| Comprehensive income (loss) | $ | (415 | ) | $ | 200 | ||
| Comprehensive income (loss) attributable to: | |||||||
| Owners of the Corporation | $ | (341 | ) | $ | 200 | ||
| Non-controlling interest | (74 | ) | --- | ||||
| $ | (415 | ) | $ | 200 | |||
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.
