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Wilmington Announces 2022 Third Quarter Results

CALGARY, Alberta, Nov. 08, 2022 (GLOBE NEWSWIRE) -- Wilmington Capital Management Inc. ("Wilmington" or the "Corporation") (TSX: WCM.A WCM.B) reported net income for the three months ended September 30, 2022 of $322,000 or $0.03 per share compared to net loss of $501,000 or $0.04 per share for the same period in 2021. For the nine months ended September 30, 2022, the Corporation reported a net income of $2,330,000 or $0.19 per share compared to a net loss of $505,000 or ($0.04) per share for the same period in 2021.

OPERATIONS REVIEW ? For the Period Ended September 30, 2022
As at September 30, 2022, Wilmington's assets under management in its operating platforms totaled approximately $373.3 million ($90.3 million representing Wilmington's share). A summary of the Corporation and the operations of its investee entities is set out below.

Maple Leaf Partnerships
During the nine months ended September 30, 2022, the Maple Leaf Partnerships acquired two marinas in Ontario having approximately 804 boat slips (including dry rack slips). The Maple Leaf Partnerships now own and operate 16 marinas in Ontario, having approximately 5,737 slips, which represents an increase of 26% in the number of slips owned a year ago.

Slip occupancies for the 2022 boating season was strong averaging 91% and we are anticipating strong customer retention for the 2023 boating season. The Maple Leaf Partnerships have historically distributed 10% on capital contributed to income producing properties.

Real Estate
Bow City Partnership
The Bow City Self Storage facility continues to lease up ahead of expectations with strong year to date move-ins and rental rates. Net move-ins have lagged recently in part due to typical seasonality and in part due to a slowing housing market.

Sunchaser Partnership
The Sunchaser Partnership experienced strong demand during the 2022 camping season. Customer retention remains high for the 2023 camping season and the transition of overnight sites to seasonal continues.

Private Equity
Northbridge, Northbridge Fund 2016, Northbridge Fund 2021 and Northbridge Fund 2022
The fair value of Northbridge Fund 2016 decreased 2%, reflecting a distribution of capital during the three months ended September 30, 2022. Northbridge Fund 2021 and Northbridge Fund 2022 had no change in value, however, the outlook remains positive given continued strength in energy prices and a strategy of investing in "best in class" energy companies.

During the third quarter, the Corporation continued to make progress in advancing its goal of investing in alternative asset classes having advanced follow-on opportunities for each business. The Maple Leaf Partnerships' negotiations are in the formative stages on a number of new marina acquisitions. The 84-unit waterfront residential development continues to progress, strong pre-sales are in hand, however, labor shortages have slowed the anticipated construction pace. Demand for boating remains strong and the marinas are enjoying high occupancies.

Lease up of Bow City Storage continues to exceed expectations and is a reflection in part of its unique location and management's experience in the self-storage business. Long term parking was recently added as an additional service offering.

The Sunchaser Partnership continues to benefit from pent up demand for camping showing an increase in year over year seasonal rentals and supports upcoming expansion plans. Final approval for the over 100 site expansion is expected to be received in the fall.

Northbridge and the various funds they manage continue to perform well and Northbridge is focused on seeking out new opportunities given the strong outlook for the energy sector.

The Corporation is well positioned to continue to grow organically and seek out new opportunities in each of its operating platforms.


For the Three Months ended September 30,Nine months ended September 30,
(CDN $ thousands, except per share amounts) 2022202120222021
Management fee revenue 133120378286
Interest, distributions and other income 6352061,621937
General and administrative (411)(409)(1,297)(1,053)
Amortization (7)(16)(21)(112)
Finance costs (2)---(7)(6)
Stock-based compensation (64)(155)(272)(408)
Fair value adjustments and other activities      
Fair value changes in Bow City Partnerships (220)304854304
Fair value changes in Sunchaser Partnership 350---350---
Fair value changes in Northbridge Fund 2021 ---(57)986(57)
Fair value changes in Northbridge Fund 2022 ------(70)---
Fair value changes in Energy Securities ---(503)235(526)
Realized loss in Energy Securities ------(146)---
Equity accounted income (loss) (7)(10)14666
Income (loss) before income taxes 407(520)2,757(569)
Current income tax recovery (expense) (70)6(87)97
Deferred income tax recovery (expense) (15)13(340)(33)
Provision for income taxes (85)19(427)64
Net income (loss) 322(501)2,330(505)
Other comprehensive income     
Items that will not be reclassified to net income (loss):    
Fair value changes in Maple Leaf Partnerships 2,200---2,750---
Fair value changes in Northbridge Fund 2016 (255)46148396
Related income taxes (247)(6)(334)(47)
Other comprehensive income, net of income taxes1,698402,564349 
Comprehensive income (loss) 2,020(461)4,894(156)
Net income (loss) per share     
Basic 0.03(0.04)0.19(0.04)
Diluted 0.03(0.04)0.19(0.04)


(unaudited)  September 30,December 31,
(CDN $ thousands)  20222021
Investment in Maple Leaf Partnerships  18,63715,887
Investment in Bow City Partnerships  3,8643,010
Investment in Sunchaser Partnership  1,7161,366
Investment in Northbridge and Energy Securities  6,5163,980
Note receivable  ---2,058
Right-of-use asset  99120
Cash  1,2291,924
Short term securities  29,00035,000
Amounts receivable and other assets  8,888676
Total assets  69,94964,021
Deferred income tax liabilities  133145
Lease liabilities  3819
Income taxes payable  12925
Amounts payable and other  618642
Total liabilities  2,1671,405
Shareholders' equity  51,17951,179
Contributed surplus  1,4261,154
Retained earnings  6,9164,586
Accumulated other comprehensive income  8,2615,697
Total equity  67,78262,616
Total liabilities and equity  69,94964,021

* * * *

Executive Officers of the Corporation will be available at 403-705-8038 to answer any questions on the Corporation's financial results.

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.

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News published on 8 november 2022 at 18:05 and distributed by: