Business & Finance
Business and Finance
Business and Finance
Fri, August 10, 2012
Thu, August 9, 2012 
August 09, 2012 20:00 ET
Wilmington Announces 2012 Second Quarter Results
TORONTO, ONTARIO--(Marketwire - Aug. 9, 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 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 | |||||||||
| 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 | |||||
| Unaudited (Thousands of Canadian Dollars) | June 30, 2012 | December 31, 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) | ||||||||||||||||
| Unaudited | Three months ended June 30 | Six months 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.
