By:
CALGARY, Alberta, May 06, 2024 (GLOBE NEWSWIRE) — Wilmington Capital Management Inc. (“Wilmington” or the “Corporation”) reported net income for the three months ended March 31, 2024, of $1.3 million or $0.10 per share compared to net loss of $0.5 million or ($0.05) per share for the same period in 2023.
A summary of the Corporation’s activities and the operations of its investees is set out below:
Overview
As previously reported the Corporation has set its sights on simplifying its business and monetizing those investments where the embedded value has been substantially realized. In the preceding 9 months, the Corporation monetized its investment in the Bow City Partnerships, Northbridge and certain underlying energy funds and more recently its investment in the marina business.
Investees
Sunchaser Partnership
The success of the 2023 camping season is expected to continue into 2024 as the business continues to offer compelling value and experiences for its customers. Phase I of the 114-unit expansion of the Half Moon resort has been a resounding success. Application for the Phase II expansion of 112 units is underway. With the onset of higher interest rates, owners of RV resorts are adjusting their pricing expectations which are becoming more realistic. The Sunchaser Partnership continues to actively pursue opportunities to expand its footprint in the RV resort business.
Bay Moorings Partnership
The re-development of an existing Marina, Champlain Shores, continues to advance with the ongoing sale of homes and homesites. Of the 50 available home sites, 21 sites have been sold. The development, which is owned by the Bay Moorings Holdings Limited Partnership, is also zoned to accommodate an 88-condominium unit complex.
Bow City 2 Partnership (Land Held for Development)
The Corporation’s development plans for the Seton project, which consists of a 92,000 sqft self-storage facility, retail complex and a 17-bay car condo project, advanced during the first quarter. The tendering process has been substantially completed and discussions with lenders for construction financing are underway.
Special Dividend
On March 6, 2024, the Corporation declared a Special Dividend of $2.75 per Class A and Class B share, totaling $33.9 million and payable on May 7, 2024. Class A shareholders will receive $1.25 per Class A share as a return of capital and $1.50 as an eligible dividend. Class B shareholders will receive $1.12 per Class B share as a return of capital and $1.63 as an eligible dividend.
Outlook
The Corporation has taken great strides to reassess its business opportunities in the context of a changing economic environment, simplify its business, and reward shareholders for their support through the payment of dividends and a return of capital. The Corporation will continue to focus on streamlining its business, reassessing its ongoing liquidity needs and on potential opportunities to expand its footprint in the RV resort business.
FINANCIAL RESULTS
STATEMENT OF CONSOLIDATED INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (unaudited)
| For the | Three months ended March 31, | |
| (CDN $ thousands, except per share amounts) | 2024 | 2023 |
| Management fee revenue | 140 | 120 |
| Interest, distribution and other income | 548 | 626 |
| 688 | 746 | |
| Expenses | ||
| General and administrative | (625) | (467) |
| Amortization | (7) | (7) |
| Finance costs | (1) | (2) |
| Stock-based compensation | (18) | (49) |
| (651) | (525) | |
| Fair value adjustments and other activities | ||
| Fair value adjustments to investments | 194 | (610) |
| Gains on disposition of investments | 1,010 | — |
| Share of equity accounted loss | — | (13) |
| 1,204 | (623) | |
| Income (loss) before income taxes | 1,241 | (402) |
| Current income tax expense | (416) | (120) |
| Deferred income tax recovery (expense) | 429 | (52) |
| Provision for income taxes | 13 | (172) |
| Net income (loss) | 1,254 | (574) |
| Other comprehensive income | ||
| Items that will not be reclassified to net income (loss): | ||
| Fair value adjustments to investments | — | (170) |
| Related income taxes | 37 | 34 |
| Other comprehensive income (loss), net of income taxes | 37 | (136) |
| Comprehensive income (loss) | 1,291 | (710) |
| Net income (loss) per share – Basic | 0.10 | (0.05) |
CONSOLIDATED BALANCE SHEETS (unaudited)
| As at | March 31, | December 31, |
| (CDN $ thousands) | 2024 | 2023 |
| Assets | ||
| NON-CURRENT ASSETS | ||
| Investment in Maple Leaf Partnerships | 910 | 22,910 |
| Investment in Sunchaser Partnership | 4,700 | 4,700 |
| Investment in Energy Securities | 2,108 | 7,584 |
| Land held for development | 7,245 | 6,632 |
| Right-of-use asset | 57 | 64 |
| 15,020 | 41,890 | |
| CURRENT ASSETS | ||
| Cash | 41,861 | 10,664 |
| Short term securities | 13,000 | 17,000 |
| Amounts receivable and other assets | 5,349 | 4,616 |
| Total assets | 75,230 | 74,170 |
| Liabilities | ||
| NON-CURRENT LIABILITIES | ||
| Deferred income tax liabilities | 219 | 1,773 |
| Lease liabilities | 67 | 85 |
| 286 | 1,858 | |
| CURRENT LIABILITIES | ||
| Lease liabilities | 38 | 38 |
| Income taxes payable | 1,674 | 171 |
| Dividend payable | 33,896 | — |
| Amounts payable and other | 620 | 800 |
| Total liabilities | 36,514 | 2,867 |
| Equity | ||
| Shareholders’ equity | 36,046 | 51,324 |
| Contributed surplus | 1,150 | 1,132 |
| Retained earnings | 1,300 | 10,364 |
| Accumulated other comprehensive income | 220 | 8,483 |
| Total equity | 38,716 | 71,303 |
| Total liabilities and equity | 75,230 | 74,170 |
Executive Officers of the Corporation will be available at 403-705-8038 to answer any questions on the Corporation’s financial results.
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND OTHER MEASUREMENTS
Certain statements included in this document may constitute forward-looking statements or information under applicable securities legislation. Forward-looking statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial conditions, expected financial results, performance, opportunities, priorities, ongoing objectives, strategies and outlook of the Corporation and its investee entities and contain words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, or similar expressions and statements relating to matters that are not historical facts constitute “forward-looking information” within the meaning of applicable Canadian securities legislation.
While the Corporation believes the anticipated future results, performance or achievements reflected or implied in those forward-looking statements are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond the Corporation’s control, which may cause the actual results, performance and achievements of the Corporation to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.
Factors and risks that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include but are not limited to: the ability of management of Wilmington and its investee entities to execute its and their business plans; availability of equity and debt financing and refinancing within the equity and capital markets; strategic actions including dispositions; business competition; delays in business operations; the risk of carrying out operations with minimal environmental impact; industry conditions including changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; operational matters related to investee entities business; incorrect assessments of the value of acquisitions; fluctuations in interest rates; stock market volatility; general economic, market and business conditions; risks associated with existing and potential future law suits and regulatory actions against Wilmington and its investee entities; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities; changes in income tax laws, tax laws; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; and other risks, factors and uncertainties described elsewhere in this document or in Wilmington’s other filings with Canadian securities regulatory authorities.
The foregoing list of important factors that may affect future results is not exhaustive. When relying on the forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, the Corporation undertakes no obligation to publicly update or revise any forward-looking statements or information, that may be as a result of new information, future events or otherwise. These forward-looking statements are effective only as of the date of this document.
