Wilmington Announces 2013 Fourth Quarter Results

Marketwired

TORONTO, ONTARIO--(Marketwired - Mar 18, 2014) - Wilmington Capital Management Inc. ("Wilmington" or the "Corporation") (TSX:WCM.A)(TSX:WCM.B) reported net income attributable to shareholders for the three months ended December 31, 2013 of $466,000 or $0.05 per share compared to a net loss of $938,000 or ($0.11) per share for the same period in 2012. For the year ended December 31, 2013, the Corporation generated a net income attributable to shareholders of $723,000 or $0.08 per share compared to a net loss of $1.5 million or ($0.18) per share for the same period in 2012.

To view a full copy of the Corporation's audited financial results for the year ended December 31, 2013 including the Corporation's audited consolidated financial statements and accompanying MD&A, please refer to the SEDAR website www.sedar.com.

FOURTH QUARTER 2013 HIGHLIGHTS

During the fourth quarter, the Corporation took further steps to solidify and build upon the foundation of its three operating platforms - self storage facilities, private equity funds and natural gas assets. For the three months ended December 31, 2013, the Corporation:

  • Realized a distribution of $76,000 from Real Storage Private Trust representing the Corporation's share of a 3% per annum distribution on invested capital which is paid quarterly.
  • Realized a distribution of $716,000 from the Network 2012 Fund representing the Corporation's share of the distribution of proceeds on the sale of an oil and gas investment which $502,000 represents a return of capital.
  • Generated $1.0 million in revenue during the fourth quarter of 2013, compared to $1.2 million during the same period in 2012. This decrease was primarily due to decrease in natural gas production which was offset by higher natural gas prices.
  • Reported net income from continuing operations of $466,000 compared to a loss of $293,000 during the same period in 2012, of which $540,000 related to an income tax recovery.

As at December 31, 2013, Wilmington had assets under management in its operating platforms of approximately $144 million ($56 million representing Wilmington's share).

OPERATIONS REVIEW

Wilmington continues to execute it principal objectives of making 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.

Storage Facilities

Real Storage Private Trust ("Trust")

The Trust (42.13% owned) owns 20 self-storage facilities comprising 787,000 square feet of rentable area and one development property. The Trust recorded significant improvements in 2013 as the facilities in Western Canada, which were for the most part in the initial lease up stage, achieved stabilized occupancy levels. During 2013, same store occupancy levels averaged 82%, compared to 78% in 2012. Same store operating margins improved to 56% in 2013 from 52% in 2012.

During the third quarter 2013, the Trust commenced quarterly distributions to its unit holders equivalent to 3% per annum on invested capital. For the year ended December 31, 2013, quarterly distributions paid by the Trust were $336,000 (Corporation's share - $151,000).

Private Equity

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

NCI (50% owned) has funds under management now totaling approximately $39.4 million and the majority of Network's available capital has been successfully deployed in a strong mix of junior oil and gas and service companies. Wilmington invested $8.0 million of capital in the Network 2012 Fund.

During fourth quarter of 2013, the Network 2012 Fund distributed $2.0 million in proceeds from the disposition of an investment, net of fees to unit holders (Corporation's share - $716,000). Approximately $1.4 million represents a return of capital (Corporation's share - $502,000).

Natural Gas Assets

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

The Shackleton Partnership (59% owned) owns a 100% interest in natural gas wells in southwestern Saskatchewan. The weighted average price realized during 2013 was $3.16 per mcf and operating netbacks averaged $1.67 per mcf (realized price of $2.33 per mcf and netbacks of $0.98 per mcf for the comparable period in 2012). The Partnership's natural gas production volumes amounted to 4,170 mcf per day (695 boe per day) for the year. Of its 2014 production, approximately 50% has been hedged under fixed price contracts with an average price of $3.61 per GJ.

Northpoint Resources Ltd. ("Northpoint")

On July 30, 2013, the Corporation added to its natural gas platform by investing in Northpoint, a privately held oil and gas producer with assets in the Altares region of northeastern British Columbia. Northpoint's production during since July 30, 2013 was 6,862 mcfe per day (1,144 boe per day) and as at December 31, 2013 had total proved plus probable reserves totaling approximately 7,650 Mboe (45,900 Mmcfe). The Corporation acquired a 36.5% ownership interest in Northpoint for total cash consideration of $2.2 million. In addition and as part of an overall recapitalization plan, Wilmington acquired $798,000 of a 10%, $5.0 million debenture issue in Northpoint which matures on August 1, 2017. Northpoint is professionally managed by an experienced executive team. As part of the transaction, the Corporation is entitled to nominate three of the seven directors to the Northpoint board.

Discontinued Operations

On July 31, 2013, the Corporation completed the sale of its interests in commercial land in San Francisco, California. The Corporation received total proceeds of USD $20.0 million comprised of cash proceeds of USD $983,000 and the transfer of the secured debt of USD $19.0 million to the purchaser. Cash proceeds from the sale were used to settle certain loans payable. The sale was part of the steps in rationalizing the Corporation's core business.

Outlook

2012 and 2013 have been formative years and the Corporation believes that the foundation for achieving future growth through its three operating platforms - self-storage, private equity and oil and natural gas - is now in place. 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 RESULTS
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(unaudited) (audited)
Three months ended
December 31,
Years ended
December 31,
(CDN $ Thousands, except per share amounts) 2013 2012 2013 2012
Revenue
Natural gas sales 1,172 1,403 4,812 4,498
Royalties (220 ) (269 ) (801 ) (822 )
Natural gas revenue 952 1,134 4,011 3,676
Investment and other income 48 40 274 233
1,000 1,174 4,285 3,909
Expenses
Petroleum operations 387 469 1,463 1,808
General and administrative 320 425 1,325 1,201
Depletion, depreciation and amortization 375 419 1,498 1,628
Stock-based compensation 52 71 177 210
Foreign exchange loss (gain) 43 9 144 (33 )
Finance costs 67 95 317 377
1,244 1,488 4,924 5,191
Loss before share of equity accounted investments and income taxes (244 ) (314 ) (639 ) (1,282 )
Dilution gain of investment in Real Storage Private Trust 2 12 2 12
Share of net income from Real Storage Private Trust 154 25 422 163
Share of net loss from Network Capital Management Inc. (2 ) (27 ) (61 ) (43 )
Loss on revaluation of investment in Network Capital Management Inc. --- --- (1,584 ) ---
Share of net income (loss) from Network 2012 Fund 171 (39 ) 59 (147 )
Share of net loss from Northpoint Resources Ltd. (119 ) --- (359 ) ---
Loss before income taxes from continuing operations (38 ) (343 ) (2,160 ) (1,297 )
Income tax benefit 504 50 595 327
Net loss from continuing operations 466 (293 ) (1,565 ) (970 )
Income (loss) from discontinued operations, net of tax --- (944 ) 2,579 (938 )
Net income (loss) 466 (1,237 ) 1,014 (1,908 )
Net income (loss) attributable to:
Owners of the Corporation 466 (938 ) 723 (1,524 )
Non-controlling interest --- (299 ) 291 (384 )
466 (1,237 ) 1,014 (1,908 )
(CDN $ per share)
Net loss per share from continuing operations
Basic 0.05 --- (0.22 ) (0.07 )
Diluted 0.05 --- (0.22 ) (0.07 )
Net income (loss) per share
Basic 0.05 (0.11 ) 0.08 (0.18 )
Diluted 0.05 (0.11 ) 0.08 (0.18 )
CONSOLIDATED BALANCE SHEET
(audited)
As at December 31,
(CDN $ Thousands) 2013 2012
Assets
Non-current assets
Investment in Real Storage Private Trust 10,079 7,271
Investment in Network Capital Management Inc. 67 1,712
Investment in Network 2012 Fund 8,341 7,554
Investment in Northpoint Resources Ltd. 1,819 ---
Northpoint Debenture 798 ---
Natural gas property, plant and equipment 16,597 17,840
37,701 34,377
Current assets
Loan to Network Capital Management Inc. 25 ---
Income tax receivable 299 435
Receivables and other assets 1,451 885
Cash and cash equivalents 730 6,601
2,505 7,921
Assets held for sale --- 18,541
2,505 26,462
Total assets 40,206 60,839
Liabilities
Non-current liabilities
Decommissioning liabilities 792 750
Deferred tax liabilities 65 259
857 1,009
Current liabilities
Accounts payable and accrued liabilities 991 1,024
Revolving loan facility 5,200 6,700
6,191 7,724
Liabilities held for sale --- 21,432
6,191 29,156
Total liabilities 7,048 30,165
Equity
Shareholders' equity 29,053 26,860
Non-controlling interest 4,105 3,814
Total equity 33,158 30,674
Total liabilities and equity 40,206 60,839
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited) (audited)
Three months ended
December 31,
Years ended
December 31,
(CDN $ Thousands) 2013 2012 2013 2012
Net income (loss) 466 (1,237 ) 1,014 (1,908 )
Items that may subsequently be reclassified to net income (loss)
Share of other comprehensive income (loss) from Network 2012 Fund 1,009 81 1,444 (299 )
Deferred income (taxes) benefit on above items (130 ) (9 ) (190 ) 39
Other comprehensive income (loss) from continuing operations 879 72 1,254 (260 )
Items reclassified to net income (loss), net of tax 50 18 50 ---
Items that may subsequently be reclassified to net income (loss)
Other comprehensive income (loss) from discontinued operations, net of tax --- (14 ) (11 )
Total other comprehensive income (loss) 929 90 1,290 (271 )
Comprehensive income (loss) 1,395 (1,147 ) 2,304 (2,179 )
Comprehensive income (loss) attributable to:
Owners of the Corporation 1,395 (848 ) 2,013 (1,795 )
Non-controlling interest --- (299 ) 291 (384 )
1,395 (1,147 ) 2,304 (2,179 )

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)

Recommended for You

  • Obama to GOP: 'Stop just hating all the time'

    KANSAS CITY, Mo. (AP) — Pointing the finger at Republicans for congressional inaction, President Barack Obama chided lawmakers Wednesday for spending the waning days before their month-long summer break trying to sue him rather than addressing economic issues that could boost the middle class.

    Associated Press
  • ARGENTINE STOCKS CRASH

    Argentina's stock market is tanking after the...

    Business Insider
  • Reverse Mortgage: How it Works (Age 62 Plus)

    Educate yourself! Understand how a reverse mortgage works. Learn more now.

    AdChoicesLendingTreeSponsored
  • Airbus adamant no room for more talks in cancelled Japan jet deal

    Airbus on Thursday said its decision to cancel a $2.2 billion jet order from Skymark Airlines was final, rejecting the Japanese carrier's suggestion that talks were still ongoing. The European aircraft maker said this week it had informed Skymark that its purchase of six A380 superjumbos "has been…

    AFP
  • In San Francisco real estate, $1M won't buy much

    SAN FRANCISCO (AP) — San Francisco Association of Realtors President Betty Taisch has two words of advice for those who want to live here and think $1 million will buy them their dream house: Think again.

    Associated Press
  • Tesla posts 2Q loss, prepares Nevada factory site

    PALO ALTO, Calif. (AP) — Electric car maker Tesla Motors widened its loss in the second quarter as it prepared for the launch of a new SUV and started work on a massive new battery plant.

    Associated Press
  • Asia stocks dip on Dow drop, China data cuts loss

    Most Asian stock markets dipped on Friday following a big sell-off on Wall Street but losses were limited by optimistic reports on China's economy. KEEPING SCORE: Japan's benchmark Nikkei 225 index dropped ...

    Associated Press17 mins ago
  • US warns against traveling to Ebola-hit countries

    NEW YORK (AP) — U.S. health officials on Thursday warned Americans not to travel to the three West African countries hit by an outbreak of Ebola.

    Associated Press
  • 4 Unusual Savings Strategies That Really Work

    It's just one of those facts of life: Saving money can be really hard. If you're trying to save and not getting ahead, it might be time to try one of these easy, everyday savings habits that will help you tighten your finances.

    U.S.News & World Report LP
  • Tycoon Worth $62.9 Billion Shares Money Secret

    This billionaire investing wizard has a dead-simple system for making money you can start using today.

    AdChoicesThe Motley FoolSponsored
  • Play

    Why Do Millennials Prefer Cash to Investing Money?

    In the last year, the S&P 500 delivered 17% and cash investments delivered 1%. Which would you rather have? In a Bankrate study, millennials said they'd rather have the cash. The Mutual Fund Store's Senior Vice President of Investments Andy Smith joins Simon Constable on the News Hub to discuss.…

    WSJ Live
  • What SunPower Earnings Mean for First Solar and SolarCity

    After markets close Thursday, solar panel maker SunPower will report second-quarter results. Competitors First Solar and SolarCity are scheduled to report results next week.

    24/7 Wall St.
  • Wisconsin Supreme Court upholds 2011 union law

    MADISON, Wis. (AP) — The fight over Wisconsin Gov. Scott Walker's signature policy achievement, a law effectively ending collective bargaining for most public employees, ended Thursday with the state Supreme Court declaring it to be constitutional.

    Associated Press
  • Sanctions will damage Russia if not lifted quickly

    MOSCOW (AP) — U.S. and European sanctions against Russia's energy and finance sectors are strong enough to cause deep, long-lasting damage within months unless Moscow persuades the West to repeal them by withdrawing support for Ukrainian insurgents.

    Associated Press
  • Adidas shares plunge 13% after Russia warning

    Adidas shares tanked more than 13 percent after it cut its profit targets for 2014, warning "tensions" in Russia would hit its bottom line.

    CNBC
  • Play

    Tesla's Earnings: What to Watch For

    Electric-car maker Tesla is scheduled to be released after the bell Thursday, and Mike Ramsey joins MoneyBeat with Paul Vigna to preview the results.

    WSJ Live
  • Did You Know Every New Car Has a Secret Price?

    In the market for a new car? Don't pay MSRP. Save yourself both time and money. Find a great low price for your new car before you buy.

    AdChoicesCarPriceSecrets.comSponsored
  • Why You Should Prepare for the Next Bear Market Now

    The stock market is going gangbusters these days, with the S&P 500 close to surpassing 2,000 points. While the index may never fall back to that level, bear markets will one day hit us hard again. It's a good idea to develop a plan for the next bear market now, while your asset values aren't free…

    U.S.News & World Report LP
  • Bank of America ordered to pay $1.27 billion for 'Hustle' fraud

    By Jonathan Stempel NEW YORK (Reuters) - A federal judge on Wednesday ordered Bank of America Corp to pay a $1.27 billion penalty for fraud over shoddy mortgages sold by the former Countrywide Financial Corp. U.S. District Judge Jed Rakoff in Manhattan ruled after a jury last October found the…

    Reuters
  • Panasonic, Tesla to build giant battery plant in US

    Japanese electronics giant Panasonic and US electric vehicle maker Tesla Motors said Thursday they will jointly build and operate a huge lithium ion battery plant known as the Gigafactory. Under the deal, Tesla will run the operations at the proposed US-based plant, while its Japanese partner will…

    AFP
  • 5 Little-Known Ways to Boost Your Retirement Savings

    Saving for retirement is no easy task. Fortunately, we have several tools and strategies that can help us reach our retirement goals. Maintain your asset allocation. When you begin investing you typically select an asset allocation that suits your risk tolerance and investment goals.

    U.S.News & World Report LP
  • Alcatel-Lucent cuts losses but shares slump

    Telecommunication equipment group Alcatel-Lucent said Thursday it cut net losses by more than half in the second quarter as it battles to rebuild after years of setbacks. Alcatel-Lucent said its quarterly net loss was 298 million euros ($399 million), down from 885 million euros for the same period…

    AFP
  • Can a Repair Shop I Didn't Use Send Me to Collections?

    Are you obligated to pay for car parts that a repair shop ordered after they gave you an estimate? And can they send you to a debt collector if you don't pay?

    Credit.com
  • YOU could win $5,000.00 a Week "Forever"

    Publishers Clearing House will be ready to award $5,000.00 a Week "Forever" on August 28th. Click here to enter for free!

    AdChoicesPCH.comSponsored