Welcome!

News Feed Item

Wilmington Announces 2014 First Quarter Results

TORONTO, ONTARIO -- (Marketwired) -- 05/13/14 -- Wilmington Capital Management Inc. ("Wilmington" or the "Corporation") (TSX: WCM.A)(TSX: WCM.B) reported a net loss attributable to shareholders for the three months ended March 31, 2014 of $191,000 or ($0.02) per share compared to a net loss of $57,000 or ($0.01) per share for the same period in 2013.

To view a full copy of the Corporation's unaudited condensed interim financial results for the period ended March 31, 2014 including the Corporation's unaudited condensed interim consolidated financial statements and accompanying Management Discussion and Analysis ("MD&A"), please refer to SEDAR's website at www.sedar.com.

FIRST QUARTER 2014 FINANCIAL HIGHLIGHTS

During the first quarter 2014, the Corporation completed strategic plans for each of its three operating platforms - self-storage facilities, private equity funds and natural gas assets and the focus is centered on building upon the foundation in and adding scale to each of the operating platforms. The Corporation achieved the following during the three months ended March 31, 2014:


--  Generated $583,000 in cash flow from operations;

--  Recorded an unrealized gain of $405,000 on investments of Network 2012
    Fund;

--  Received a distribution of $75,000 from Real Storage Private Trust
    representing the Corporation's share of a 3% per annum distribution on
    invested capital which is paid quarterly;

--  Generated an operating netback of $2.22 per mcf from the Shackleton
    Partnership 2011 LP; and

--  Brought on stream Northpoint Resources Ltd.'s first horizontal well with
    production levels of approximately 2,300 mcf per day.

As at March 31, 2014, Wilmington had assets under management in its operating platforms of approximately $148.0 million ($56.0 million representing Wilmington's share).

STRATEGIC PLAN

Wilmington continues to advance its 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.

OPERATIONS REVIEW

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 period over period improvements in 2014 as the facilities in Western Canada, which were for the most part in the initial lease up stage, achieved stabilized occupancy levels. During the first quarter of 2014, same store occupancy levels averaged 82%, compared to 78% in 2013; same store operating margins improved to 52% in the first quarter of 2014 from 51% in the comparable quarter of 2013.

During the third quarter 2013, the Trust commenced quarterly distributions to its unit holders equivalent to 3% per annum on invested capital. For the three months ended March 31, 2014, the Trust declared a distribution of $178,000 (Corporation's share - $75,000). During 2014, the Trust plans on increasing the net rentable area of its property portfolio to over 1.0 million square feet.

Private Equity

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

NCI (50% owned) has funds under management now totaling approximately $41.5 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. The Corporation invested $8.0 million of capital in the Network 2012 Fund and has received cumulative distributions of $716,000 to date. Plans are in place for NCI to raise an additional fund in 2014, which would represent the 16th fund raised by NCI since inception.

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 Shackleton Partnership's natural gas production volumes amounted to 595 boe per day for the first quarter of 2014. The weighted average price realized during the first quarter of 2014 was $4.30 per mcf and operating netbacks averaged $2.22 per mcf (realized price of $3.18 per mcf and netbacks of $1.90 per mcf for the comparable period in 2013). Of its 2014 production, approximately 50% has been hedged under fixed price contracts with an average price of $3.61 per GJ.

Given the improved natural gas pricing environment, the Partnership is focused on production optimization through well workovers and introducing new technology.

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. 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, the Corporation acquired $798,000 of a 10%, $5.0 million debenture issue by Northpoint which matures on August 1, 2017. Northpoint's achieved oil and natural gas sales volumes of 1,283 boe per day for the first quarter of 2014 compared to 1,286 boe per day during Q1 2013. During December 2013, Northpoint drilled its first horizontal well which is producing approximately 2,300 mcf per day (383 boe per day). Although the production fell short of original expectations, no significant rates of decline in production are being experienced. Plans call for drilling a second well in Q3 or Q4 of 2014.

The weighted average price realized during the first quarter of 2014 was $4.65 per mcf and operating netbacks averaged $1.66 per mcf (realized price of $3.52 per mcf and netbacks of $1.59 per mcf for the comparable period in 2013).

Outlook

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 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

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS


----------------------------------------------------------------------------
                                                                (unaudited)
                                                       For the three months
                                                            ended March 31,
(CDN $ Thousands, except per share amounts)                 2014       2013
----------------------------------------------------------------------------

Revenue
Natural gas sales                                          1,383      1,275
Royalties                                                   (340)      (177)
----------------------------------------------------------------------------
Natural gas revenue                                        1,043      1,098

Investment and other income                                   49         38
----------------------------------------------------------------------------
                                                           1,092      1,136
----------------------------------------------------------------------------

Expenses
Petroleum operations                                         328        334
General and administrative                                   300        340
Depletion, depreciation and amortization                     342        388
Stock-based compensation                                      28         46
Foreign exchange (gain) loss                                  (2)        28
Finance costs                                                 67         78
----------------------------------------------------------------------------
                                                           1,063      1,214
----------------------------------------------------------------------------
Income (loss) before share of equity accounted
 investments and income taxes                                 29        (78)

Share of net income from Real Storage Private Trust           85         23
Share of net income (loss) from Network Capital
 Management Inc.                                               5        (22)
Share of net loss from Network 2012 Fund                     (43)       (38)
Share of net loss from Northpoint Resources Ltd.            (325)       ---
----------------------------------------------------------------------------
Loss before income taxes from continuing operations         (249)      (115)
Income tax benefit                                          (148)       (16)
----------------------------------------------------------------------------
Net loss from continuing operations                         (101)       (99)
----------------------------------------------------------------------------

Income from discontinued operations, net of tax              ---         95
----------------------------------------------------------------------------
Net loss                                                    (101)        (4)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net loss attributable to:
  Owners of the Corporation                                 (191)       (57)
  Non-controlling interest                                    90         53
----------------------------------------------------------------------------
                                                            (101)        (4)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net loss per share from continuing operations
  Basic                                                    (0.02)     (0.02)
  Diluted                                                  (0.02)     (0.02)

Net loss per share
  Basic                                                    (0.02)     (0.01)
  Diluted                                                  (0.02)     (0.01)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

CONDENSED INTERIM CONSOLIDATED BALANCE SHEET


----------------------------------------------------------------------------
                                                   (unaudited)     (audited)
As at                                                March 31,  December 31,
(CDN $ Thousands)                                         2014          2013
----------------------------------------------------------------------------

Assets
Non-current assets
Investment in Real Storage Private Trust                10,089        10,079
Investment in Network Capital Management Inc.               72            67
Investment in Network 2012 Fund                          8,703         8,341
Investment in Northpoint Resources Ltd.                  1,494         1,819
Northpoint Debenture                                       798           798
Natural gas property, plant and equipment               16,348        16,597
----------------------------------------------------------------------------
                                                        37,504        37,701
----------------------------------------------------------------------------
Current assets
Loan to Network Capital Management Inc.                     25            25
Income tax receivable                                      483           299
Receivables and other assets                               984         1,451
Cash and cash equivalents                                1,150           730
----------------------------------------------------------------------------
                                                         2,642         2,505
----------------------------------------------------------------------------
Total assets                                            40,146        40,206
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Liabilities
Non-current liabilities
Decommissioning liabilities                                806           792
Deferred tax liabilities                                   140            65
----------------------------------------------------------------------------
                                                           946           857
----------------------------------------------------------------------------
Current liabilities
Accounts payable and accrued liabilities                   962           991
Revolving Loan Facility                                  4,800         5,200
----------------------------------------------------------------------------
                                                         5,762         6,191
----------------------------------------------------------------------------
Total liabilities                                        6,708         7,048
----------------------------------------------------------------------------

Equity
Shareholders' equity                                    29,243        29,053
Non-controlling interest                                 4,195         4,105
----------------------------------------------------------------------------
Total equity                                            33,438        33,158
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Total liabilities and equity                            40,146        40,206
----------------------------------------------------------------------------
----------------------------------------------------------------------------

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)


----------------------------------------------------------------------------
                                                                (unaudited)
                                                       For the three months
                                                            ended March 31,
(CDN $ Thousands)                                           2014       2013
----------------------------------------------------------------------------

Net loss                                                    (101)        (4)
Items that may subsequently be reclassified to net
 loss
  Share of other comprehensive income from Network
   2012 Fund                                                 405        261
  Deferred income taxes on above items                        52         34
----------------------------------------------------------------------------
Other comprehensive income from continuing operations        353        227
Items that may subsequently be reclassified to net
 loss
  Other comprehensive income from discontinued
   operations, net of tax                                    ---         15
----------------------------------------------------------------------------
Total other comprehensive income                             353        242
----------------------------------------------------------------------------
Comprehensive income                                         252        238
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Comprehensive income attributable to:
  Owners of the Corporation                                  162        185
  Non-controlling interest                                    90         53
----------------------------------------------------------------------------
                                                             252        238
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, will explore the value of Kibana 4 for log analysis and will give a real live, hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He will examine three use cases: IT operations, business intelligence, and security and compliance. This is a hands-on session that will require participants to bring their own laptops, and we will provide the rest.
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager - Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, reviewed next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discussed how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has been engaged in t...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International 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 wait for long developm...
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, will highlight the current challenges of these transformative technologies and share strategies for preparing your organization for these changes. This “view from the top” will outline the latest trends and developm...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...