TORONTO, ONTARIO — (Marketwire) — 03/19/13 — Wilmington Capital Management Inc. (“Wilmington” or the “Corporation”) (TSX: WCM.A)(TSX: WCM.B) today announced a net loss attributable to shareholders for the three months ended December 31, 2012 of $938,000 or ($0.11) compared to a net loss attributable to shareholders of $398,000 or ($0.05) for the same period in 2011. For the year ended December 31, 2012, net loss attributable to shareholders amounted to $1.5 million or ($0.18) per share compared to a net income of $19.7 million or $2.43 per share for the same period in 2011.
To view a full copy of the Corporation-s audited financial results for the year ended December 31, 2012 including the Corporation-s audited consolidated financial statements, accompanying MD&A and Annual Information Form, please refer to the SEDAR website .
Operations Review
Strategic Plan
The Corporation-s principal objectives are to make 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.
During 2012, Wilmington continued to take steps to solidify the foundation of its three operating platforms – self-storage facilities, private equity funds and natural gas assets. Core management teams, operational, accounting and reporting systems as well as a pipeline of new opportunities are in place. As at December 31, 2012, Wilmington had assets under management in its operating platforms of approximately $135 million ($64 million representing Wilmington-s share).
Investment in Real Storage Private Trust (the “Trust”)
The Trust (44.78% owned) owns 17 self-storage facilities comprising 645,978 square feet of rentable area and one development property. The Trust showed significant improvements in 2012 as the five properties in western Canada, which were for the most part in the initial lease up stage, approached stabilized occupancy levels. Across the portfolio of 17 properties, occupancy levels averaged 78%, compared to 73% in 2011. Operating margins improved to 52% up from 47% achieved in 2011.
Investment in Network Capital Management Inc. (“NCI”) and Network 2012 Fund
NCI (50% owned) successfully closed its $22.3 million fund in early 2012 bringing total assets under management to $49 million. The majority of the capital in the 2012 fund was deployed during the year in a strong mix of junior oil and gas and service companies. Wilmington invested $8 million in the 2012 fund.
Investment in Shackleton 2011 Limited Partnership (the “Shackleton Partnership” or the “Partnership”)
The natural gas assets owned through the Shackleton Partnership (59% owned) have proven to be of high quality and present good opportunities for growth and future development once we reach a more favorable natural gas pricing environment. The weighted average price realized during 2012 was $2.33 per mcf and operating netbacks averaged $0.98 per mcf. Natural gas production volumes for the 100% interest in the Shackleton field amounted to 5,283 mcf per day (881 boepd) for the year. Estimated proved plus probable reserves attributable to the Shackleton assets as evaluated by GLJ Petroleum Consultants Ltd. with an effective date of December 31, 2012 were 19,702 MMcf. The outlook for natural gas pricing has improved significantly and a better pricing environment will be beneficial to the operating performance of the Shackleton assets. Of its 2013 production, approximately 50% has been hedged under fixed price contracts with an average price of $3.18 per mcf.
Discontinued Operations
During the fourth quarter, the Corporation took further steps to rationalize its core business and entered into an agreement to sell its interest in commercial land in San Francisco, California. The sale is scheduled to close during the second quarter of 2013.
2013 Outlook
The Corporation is pleased with the progress made in solidifying and building upon its three operating platforms – the Trust, NCI and the Shackleton Partnership. In 2013 and 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.
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