Wilmington Announces 2012 Fourth Quarter Results

Marketwired

TORONTO, ONTARIO--(Marketwire - Mar 19, 2013) - Wilmington Capital Management Inc. ("Wilmington" or the "Corporation") (TSX:WCM.A)(TSX:WCM.B) today announced a net loss attributable to shareholders for the three months ended December 31, 2012 of $938,000 or ($0.11) compared to a net loss attributable to shareholders of $398,000 or ($0.05) for the same period in 2011. For the year ended December 31, 2012, net loss attributable to shareholders amounted to $1.5 million or ($0.18) per share compared to a net income of $19.7 million or $2.43 per share for the same period in 2011.

To view a full copy of the Corporation''s audited financial results for the year ended December 31, 2012 including the Corporation''s audited consolidated financial statements, accompanying MD&A and Annual Information Form, please refer to the SEDAR website www.sedar.com.

Operations Review

Strategic Plan

The Corporation''s principal objectives are to make investments capable of generating appreciation in value as opposed to current income and to maximize shareholder returns by investing its own capital alongside partners and co-investors in hard assets and private equity funds. These assets are managed through the Corporation''s operating platforms where Wilmington can add scale and improve valuations.

During 2012, Wilmington continued to take steps to solidify the foundation of its three operating platforms - self-storage facilities, private equity funds and natural gas assets. Core management teams, operational, accounting and reporting systems as well as a pipeline of new opportunities are in place. As at December 31, 2012, Wilmington had assets under management in its operating platforms of approximately $135 million ($64 million representing Wilmington''s share).

Investment in Real Storage Private Trust (the "Trust")

The Trust (44.78% owned) owns 17 self-storage facilities comprising 645,978 square feet of rentable area and one development property. The Trust showed significant improvements in 2012 as the five properties in western Canada, which were for the most part in the initial lease up stage, approached stabilized occupancy levels. Across the portfolio of 17 properties, occupancy levels averaged 78%, compared to 73% in 2011. Operating margins improved to 52% up from 47% achieved in 2011.

Investment in Network Capital Management Inc. ("NCI") and Network 2012 Fund

NCI (50% owned) successfully closed its $22.3 million fund in early 2012 bringing total assets under management to $49 million. The majority of the capital in the 2012 fund was deployed during the year in a strong mix of junior oil and gas and service companies. Wilmington invested $8 million in the 2012 fund.

Investment in Shackleton 2011 Limited Partnership (the "Shackleton Partnership" or the "Partnership")

The natural gas assets owned through the Shackleton Partnership (59% owned) have proven 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 2012 was $2.33 per mcf and operating netbacks averaged $0.98 per mcf. Natural gas production volumes for the 100% interest in the Shackleton field amounted to 5,283 mcf per day (881 boepd) for the year. Estimated proved plus probable reserves attributable to the Shackleton assets as evaluated by GLJ Petroleum Consultants Ltd. with an effective date of December 31, 2012 were 19,702 MMcf. The outlook for natural gas pricing has improved significantly and a better pricing environment will be beneficial to the operating performance of the Shackleton assets. Of its 2013 production, approximately 50% has been hedged under fixed price contracts with an average price of $3.18 per mcf.

Discontinued Operations

During the fourth quarter, the Corporation took further steps to rationalize its core business and entered into an agreement to sell its interest in commercial land in San Francisco, California. The sale is scheduled to close during the second quarter of 2013.

2013 Outlook

The Corporation is pleased with the progress made in solidifying and building upon its three operating platforms - the Trust, NCI and the Shackleton Partnership. In 2013 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  
   
CONSOLIDATED STATEMENTS OF INCOME  
   
Unaudited Three months ended December 31     Years ended December 31  
(Thousands of Canadian Dollars, except per share amounts)   2012     2011     2012     2011  
                         
Income                        
Natural gas sales $ 1,403   $ 1,124   $ 4,498   $ 1,124  
Royalties   (269 )   (218 )   (822 )   (218 )
Natural gas revenue   1,134     906     3,676     906  
                         
Investment and other income   40     71     233     278  
Foreign exchange gain   ---     31     33     ---  
    1,174     1,008     3,942     1,184  
                         
Expenses                        
Petroleum operations   469     409     1,808     409  
Depletion, depreciation and amortization   419     303     1,628     303  
General and administrative   425     672     1,201     911  
Foreign exchange loss   9     ---     ---     40  
Stock compensation   71     30     210     30  
Operating loss   (219 )   (406 )   (905 )   (509 )
                         
Finance costs   95     87     377     87  
Loss before gain on sale, share of equity accounted investments and income taxes   (314 )   (493 )   (1,282 )   (596 )
                         
Gain on sale of investment   12     ---     12     23,581  
                         
Share of net income (loss) from Real Storage Private Trust   25     (8 )   163     (223 )
Share of net loss from Network Capital Management Inc.   (27 )   (59 )   (43 )   (73 )
Share of net loss from Network 2012 Fund   (39 )   ---     (147 )   ---  
(Loss) income before income taxes   (343 )   (560 )   (1,297 )   22,689  
Income tax benefit (expense)   50     81     327     (2,985 )
Net Income (loss) from continuing operations   (293 )   (479 )   (970 )   19,704  
Income from discontinued operations, net of tax   (944 )   (6 )   (938 )   17  
Net income (loss) $ (1,237 ) $ (485 ) $ (1,908 ) $ 19,721  
                         
Net income (loss) attributable to:                        
  Owners of the Corporation $ (938 ) $ (398 ) $ (1,524 ) $ 19,808  
  Non-controlling interest   (299 )   (87 )   (384 )   (87 )
  $ (1,237 ) $ (485 ) $ (1,908 ) $ 19,721  
                         
                         
Net (loss) income per share from continuing operations                      
   Basic $ ---   $ (0.03 ) $ (0.07 ) $ 2.43  
   Diluted $ ---   $ (0.03 ) $ (0.07 ) $ 2.43  
                         
Net (loss) income per share                        
  Basic $ (0.11 ) $ (0.05 ) $ (0.18 ) $ 2.43  
  Diluted $ (0.11 ) $ (0.05 ) $ (0.18 ) $ 2.43  
 
CONSOLIDATED BALANCE SHEET
 

(Thousands of Canadian Dollars)
December 31,
2012
December 31,
2011
         
Assets        
Non-current assets        
Investment property $ --- $ 18,933
Investment in Real Storage Private Trust   7,271   7,096
Investment in Network Capital Management Inc.   1,712   1,755
Investment in Network 2012 Fund   7,554   ---
Natural gas property, plant and equipment   17,840   19,436
Deferred tax asset   ---   135
    34,377   47,355
Current assets        
Loan to Network Capital Management Inc.   ---   50
Income taxes receivable   435   ---
Receivables and other assets   885   923
Cash and cash equivalents   6,601   18,688
    7,921   19,661
Assets held for sale   18,541   ---
    26,462   19,661
Total assets $ 60,839 $ 67,016
         
         
Liabilities        
Non-current liabilities        
Secured debt $ --- $ 19,403
Loan payable   ---   1,615
Asset retirement obligations   750   708
Deferred tax liabilities   259   ---
    1,009   21,726
Current liabilities        
Accounts payable and accrued liabilities   1,024   1,481
Revolving loan facility   6,700   7,830
Income taxes payable   ---   3,336
    7,724   12,647
Liabilities held for sale   21,432   ---
    29,156   12,647
Total liabilities   30,165   34,373
         
Equity        
Shareholders'' equity   26,860   28,445
Non-controlling interest   3,814   4,198
Total equity   30,674   32,643
         
Total liabilities and equity $ 60,839 $ 67,016
         
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)  
   
Unaudited Three months ended
December 31
  Year ended
December 31
 
(Thousands of Canadian Dollars) 2012     2011     2012     2011  
                       
Net income (loss) $ (1,237 ) $ (485 ) $ (1,908 ) $ 19,721  
Share of other comprehensive loss from Network 2012 Fund   81     ---     (299 )   ---  
Reversal of the fair value increment of available for sale securities   ---     ---     ---     (23,414 )
Future income taxes on above items   (9 )   ---     39     3,287  
Other comprehensive income (loss) from continuing operations   72     ---     (260 )   (20,127 )
Other comprehensive (loss) income from discontinued operations, net of tax   18     5     (11 )   33  
Comprehensive income (loss) $ (1,147 ) $ (480 ) $ (2,179 ) $ (373 )
                         
Comprehensive income (loss) attributable to:                        
  Owners of the Corporation $ (848 ) $ (393 ) $ (1,795 ) $ (286 )
  Non-controlling interest   (299 )   87     (384 )   (87 )
  $ (1,147 ) $ (480 ) $ (2,179 ) $ (373 )
                         

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:
Wilmington Capital Management Inc.
Executive Officers
(403) 800-0869

Rates

View Comments (0)