Wilmington Announces 2021 First Quarter Results
| CALGARY, Alberta, May 05, 2021 (GLOBE NEWSWIRE) — Wilmington Capital Management Inc. (“Wilmington” or the “Corporation”) reported net loss attributable to shareholders for the three months ended March 31, 2021 of $0.03 million or $0.00 per share compared to a net loss of $0.3 million or ($0.03) per share for the same period in 2020. |
| OPERATIONS REVIEW – For the Period Ended March 31, 2021 |
| As at March 31, 2021, Wilmington had assets under management in its operating platforms of approximately $245 million ($75 million representing Wilmington’s share). A summary of the Corporation and the operation of its investments is set out below. |
| Marinas |
| Maple Leaf Partnerships |
| In March 2021, the Corporation invested an additional $1.1 million in the Maple Leaf Partnerships, being its proportionate share, of capital, to acquire a marina in Ontario and to fund future acquisitions. The acquisition closed on March 31, 2021 and the Maple Leaf Partnerships now owns and operates nine marinas having over 3,230 boat slips which represents a 40% increase in the number of slips owners in the past 12 months. |
| The Maple Leaf Partnerships are monitoring Covid – 19 restrictions and the impact on its business. Management implemented health and safety protocols in 2020, ensuring business operations continue to be safe for staff and boaters. |
| During the three months ended March 31, 2021, the limited partners of the Bay Moorings Marina Holdings Limited Partnership advanced $3.0 million (Corporations proportionate share – $0.5 million) to complete site servicing of the 84-unit Champlain Shores residential community. |
| Real Estate |
| Bow City Partnership |
| The Bow City Self Storage facility opened in January 2021, the lease up for the first three months of operations has exceeded expectations. The adjoining eastern parcel contains a 32,000 sq ft of warehouse whose lease with the previous owner was extended until October 2023 (previously April 2021). |
| Sunchaser Partnership |
| In March 2021, the Corporation invested in the Sunchaser Partnership which has a mandate to acquire opportunistic RV resorts and campgrounds in Canada. The Sunchaser Partnership raised $3.7 million by way of issuance of units in a newly formed limited partnership. The proceeds of the capital raise, together with vendor take back financing, were used to acquire a campground in Alberta, having approximately 220 campground sites. The acquisition closed on March 8, 2021. The Corporation’s proportionate share of the capital raise was $0.6 million. |
| Private Equity |
| Northbridge and Northbridge Fund 2016 |
| The value of the Northbridge Fund 2016 recovered substantially in Q1 2021 due to the recovery in energy prices amidst optimism that oil and gas demand will improve as Covid related restrictions are removed. |
| Subsequent to March 31, 2021, the Corporation invested $2.5 million in the Northbridge Fund 2021, a special purpose fund whose purpose is to invest in a specified private oil and gas company. |
| Outlook |
| In the first quarter, the Corporation made significant progress in advancing its goal of continuing to invest in alternative asset classes. The Maple Leaf Partnerships saw a 40% year over year increase in boat slips; began site servicing on the conversion of an existing marina into an 84-unit waterfront residential development and was in negotiation on a number of new marina acquisitions. While the boating season has been delayed, due to government mandated restrictions, boats are being launched at a record pace in anticipation of relaxed restrictions in the near-term and the outlook for the industry remains strong. |
| During the quarter, the Corporation added to its investment platforms with the formation of Sunchaser Partnership, which is focused on turnaround opportunities in the RV resort and campground industry. RV resorts and campgrounds are well known to the Corporation as it was an early investor in Parkbridge Lifestyles Communities Inc., the largest operator in the country, which was sold in 2010. |
| Bow City Storage, a self-storage facility in downtown Calgary, opened for operations in early January 2021 despite pandemic restrictions. Lease-up of the facility continues to exceed expectations and is a reflection of leveraging management’s experience in the self-storage businesses. |
| On the energy front, the Corporation participated in Northbridge’s newly formed energy fund which invested $13.5 million (Corporation’s share – $2.5 million) in a private oil and gas opportunity. The opportunity is unique in that it combines the use of natural gas with green initiatives in order to generate electrical power. |
| The Corporation is pleased with the new initiatives and investments made during the quarter and is well positioned to build on its existing platforms. |
FINANCIAL RESULTS
STATEMENT OF LOSS AND COMPREHENSIVE INCOME (LOSS) (unaudited)
| For the | Three months ended March 31, | |||||
| (CDN $ Thousands, except per share amounts) | 2021 | 2020 | ||||
| Management fee revenue | 61 | 40 | ||||
| Interest and other income | 251 | 351 | ||||
| 312 | 391 | |||||
| Expenses | ||||||
| General and administrative | (314 | ) | (322 | ) | ||
| Amortization | (48 | ) | (48 | ) | ||
| Finance costs | (3 | ) | (5 | ) | ||
| Stock-based compensation | (77 | ) | (116 | ) | ||
| (442 | ) | (491 | ) | |||
| Fair value adjustments and other activities | ||||||
| Fair value changes in Energy Securities | 30 | (214 | ) | |||
| Equity accounted loss | (22 | ) | (22 | ) | ||
| 8 | (236 | ) | ||||
| Loss before income taxes | (122 | ) | (336 | ) | ||
| Current income tax recovery | 83 | 122 | ||||
| Deferred income tax recovery (expense) | 12 | (117 | ) | |||
| Provision for income taxes | 95 | 5 | ||||
| Net loss | (27 | ) | (331 | ) | ||
| Other comprehensive income | ||||||
| Items that will not be reclassified to net loss: | ||||||
| Fair value changes in Northbridge Fund 2016 | 208 | (387 | ) | |||
| Related tax | (49 | ) | 43 | |||
| Other comprehensive income (loss), net of tax | 159 | (344 | ) | |||
| Comprehensive income (loss) | 132 | (675 | ) | |||
| Net loss per share | ||||||
| Basic | — | (0.03 | ) | |||
| Diluted | — | (0.03 | ) | |||
BALANCE SHEETS
| (unaudited) | (audited) | |
| March 31, | December 31, | |
| (CDN $ Thousands) | 2021 | 2020 |
| Assets | ||
| NON-CURRENT ASSETS | ||
| Investment in Maple Leaf Partnerships | 13,310 | 12,184 |
| Investment in Bow City Partnerships | 2,706 | 2,706 |
| Investment in Sunchaser Partnership | 576 | — |
| Investment in Northbridge and Energy Securities | 1,781 | 1,565 |
| Note receivable | — | 510 |
| 18,373 | 16,965 | |
| CURRENT ASSETS | ||
| Cash | 1,095 | 3,055 |
| Short term securities | 41,000 | 41,000 |
| Income taxes receivable | 72 | — |
| Amounts receivable and other assets | 1,778 | 1,240 |
| Total assets | 62,318 | 62,260 |
| Liabilities | ||
| NON-CURRENT LIABILITIES | ||
| Deferred income tax liabilities | 305 | 268 |
| 305 | 268 | |
| CURRENT LIABILITIES | ||
| Lease liabilities | 78 | 138 |
| Income taxes payable | — | 78 |
| Amounts payable and other | 531 | 581 |
| Total liabilities | 914 | 1,065 |
| Equity | ||
| Shareholders’ equity | 51,179 | 51,179 |
| Contributed surplus | 678 | 601 |
| Retained earnings | 5,020 | 5,047 |
| Accumulated other comprehensive income | 4,527 | 4,368 |
| Total equity | 61,404 | 61,195 |
| Total liabilities and equity | 62,318 | 62,260 |
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.