Welcome!

News Feed Item

Wilmington Announces 2013 Fourth Quarter Results

TORONTO, ONTARIO -- (Marketwired) -- 03/18/14 -- 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         Years ended
                                           December 31,        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         Years ended
                                           December 31,        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.

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

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
"Loom is applying artificial intelligence and machine learning into the entire log analysis process, from start to finish and at the end you will get a human touch,” explained Sabo Taylor Diab, Vice President, Marketing at Loom Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...