Wilmington Announces 2020 First Quarter Results

CALGARY, Alberta, May 06, 2020 (GLOBE NEWSWIRE) -- 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, 2020 of $0.3 million or ($0.03) per share compared to a net loss of $0.2 million or ($0.02) per share for the same period in 2019.

OPERATIONS REVIEW – For the Period Ended March 31, 2020
As at March 31, 2020, Wilmington had assets under management in its operating platforms of approximately $135.5 million ($64 million representing Wilmington’s share).  A summary of the Corporation and its associated entities operations are set out below.

Real Estate
Bow City Partnership
On April 30, 2019, the Corporation, following a 2-year zoning approval process, acquired a 19.7% interest in the Bow City Partnerships for cash consideration of $2.475 million which owns two adjacent parcels of land. Construction is underway on a six-storey self-storage facility containing approximately 92,000 sq ft of net rentable area.  Below grade construction and a substantial portion of the steel structure has been completed.  The project is scheduled for completion in the winter of 2020.  The Eastern 51,000 sq ft parcel contains a 32,000 sq ft of warehouse leased to the vendor until May 2021.

Private Equity
Northbridge Capital Partners Ltd. (“Northbridge”) and Northbridge Fund 2016 Limited Partnership
The value of the Northbridge Fund 2016 decreased 48% from December 31, 2019 due to the steep decline in oil prices and the resultant valuation of energy securities.  The unprecedented drop in oil prices is a reflection of the collapse in global oil demand due to the impact of the coronavirus coupled with increased oil production by Russia and Saudi Arabia. Northbridge is examining strategic initiatives to capture the current low valuations of equities in the energy sector.  

Marinas
Maple Leaf Partnerships
In March 2020, the Corporation invested an additional $2.0 million in the Maple Leaf Partnerships being its proportionate share of capital raised to acquire four marinas in Ontario.  The acquisitions closed on April 7, 2020 and the Maple Leaf Partnerships now owns and operates seven marinas having over 2,300 boat slips which represents approximately a 50% increase in the number of slips owned last year.  The marina portfolio is arguably one of the finest freshwater portfolios assembled anywhere in Canada.

The start of the 2020 boating season has been delayed due to Ontario’s current lockdown of non-essential businesses.  Management is designing and implementing health and safety protocols to ensure the anticipated re-opening is safe for staff, consultants and boaters.

BOARD OF DIRECTORS
Mr. Manfred Walt informed the Corporation that, effectively May 6, 2020, he will no longer be able to serve as a director of Wilmington. The board and management would like to take this opportunity to thank Mr. Walt for his services to Wilmington and wish him continued success in his endeavours.   

OUTLOOK
The addition of four marinas to the Maple Leaf Partnerships reflects the continuation of the long-term plan of growing the marina platform both organically and through the acquisition of first-in class marinas.  The development of the Bow City self-storage facility in Calgary’s downtown is progressing well and is another example of the Corporation’s initial step to create long-term shareholder value.  The economic impact of the pandemic continues to evolve and will potentially unearth additional investment opportunities particularly in alternative real estate classes.  The Corporation enjoys significant liquidity and remains well positioned to build on its existing platforms and to seek out attractive investments in niche sectors and opportunistic situations. 

FINANCIAL RESULTS
STATEMENT OF LOSS AND COMPREHENSIVE LOSS

	For the three months ended March 31,
(CDN $ Thousands, except per share amounts)	2020		2019
Management fee revenue	40		39
Interest and other income	351		56
	391		95
Expenses
General and administrative	(322	)	(228	)
Amortization	(48	)	(48	)
Finance costs	(5	)	(6	)
Stock-based compensation	(116	)	(28	)
	(491	)	(310	)
Share of net income (loss) of equity accounted investees and fair value adjustments
Equity accounted income (losses)	(22	)	129
Fair value changes in energy securities	(214	)	---
	(236	)	129
Loss before income tax	(336	)	(86	)
Current income tax recovery	122		---
Deferred income tax expense	(117	)	(68	)
Net loss	(331	)	(154	)
Other comprehensive income
Items that will not be reclassified to net loss
Change in fair value of Northbridge Fund 2016	(387	)	---
Related tax	43		---
Other comprehensive loss, net of tax	(344	)	---
Comprehensive loss	(675	)	(154	)
Net loss per share
Basic	(0.03	)	(0.02	)
Diluted	(0.03	)	(0.02	)

BALANCE SHEETS

	(unaudited)	(audited)
As at	March 31,	December 31,
(CDN $ Thousands)	2020	2019
Assets
NON-CURRENT ASSETS
Investment in Bow City Partnerships	2,475	2,475
Investment in Northbridge and Energy Securities	1,163	1,786
Investment in Maple Leaf Partnerships	6,358	4,361
Amounts receivable	---	325
Right-of-use asset	257	305
Deferred income tax assets	102	176
	10,355	9,428
CURRENT ASSETS
Cash	2,694	5,074
Short term securities	45,000	45,000
Accounts receivables and other	2,336	1,757
Total assets	60,385	61,259
Liabilities
NON-CURRENT LIABILITIES
Lease liabilities	73	138
	73	138
CURRENT LIABILITIES
Lease liabilities	255	255
Income taxes payable	3,689	3,811
Accounts payable and other	546	674
Total liabilities	4,563	4,878
Equity
Shareholders’ equity	55,822	56,381
Total equity	55,822	56,381
Total liabilities and equity	60,385	61,259

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.