Wilmington Announces 2016 First Quarter Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 05/11/16 -- 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, 2016 of $0.5 million or ($0.05) per share compared to net loss of $0.3 million or ($0.03) per share for the same period in 2015.
To view a full copy of the Corporation's interim financial results for the three months ended March 31, 2016 including the Corporation's unaudited interim Consolidated Financial Statements and accompanying Management Discussion and Analysis ("MD&A"), please refer to SEDAR's website at .
FIRST QUARTER 2016 FINANCIAL HIGHLIGHTS
The financial highlights of the Corporation and those of its associated and controlled entities are set out below. Investments in associated and controlled entities account for the majority of the Corporation's financial results and are accounted for on a consolidated basis or using the equity method of accounting.
Self-storage facilities
Private equity
Natural gas assets
As at March 31, 2016, Wilmington had assets under management in its operating platforms of approximately $170 million ($67 million representing Wilmington's share).
OPERATIONS REVIEW
Self - Storage Facilities
Real Storage Private Trust
For the three months ended March 31, 2016, occupancy levels averaged 70% compared to 81% in the same period in 2015. The decrease in occupancy was due to the strategic acquisition of undermanaged assets in latter part of 2015 as well as a decline in occupancy of certain Alberta facilities as a result of the severe downturn in the energy sector.
Private Equity
Network Capital Management Inc. and Network 2012 Fund
Network Capital Management Inc.'s (50% owned - "NCMI") assets under management amounted to approximately $24.9 million as at March 31, 2016, a decrease of $4.6 million from December 31, 2015. The decrease was in part due to $2.8 million in distributions paid in the period to fund participants, the result of the divesture of underlying investments in certain funds and lower valuations attributed to the underlying investments remaining in the funds given the continued depression of oil and natural gas commodity prices. NCMI is focused on deploying capital raised in its most recent fund, Fund 16, which closed in the fall of 2014 and has $7.5 million of undeployed capital.
Natural Gas Assets
Shackleton 2011 Limited Partnership
The Shackleton Partnership owns and operates a 100% interest in natural gas assets in Southwestern Saskatchewan. Production during the period declined 6% compared to the same period in 2015 to 495 boe/d due to natural production decline. Shackleton Partnership realized a netback of $0.35 per mcf in Q1 2016, a decrease of $0.55 per mcf from Q1 2015 due to a 30% decline in realized natural gas prices.
Northpoint Resources Ltd.
Northpoint is a privately held natural gas producer with assets in the Altares region of Northeastern British Columbia. Northpoint's average production in the period was 992 boe/d, a decrease of 17% compared to the same period in 2015, due to the shut-in of select production to preserve reserves given the low natural gas commodity prices being realized. For the three months ended March 31, 2016, Northpoint's average realized price for natural gas was $1.54 per mcf, a decrease of 56% from the same period in 2015.
Outlook
The Corporation's long-term strategy of building shareholder value through its ownership in self-storage facilities and its private equity platform continue to be Wilmington's principal focus. The Trust's 2016 strategic plan which covers a three year period through to 2018, sees continued growth generated organically and through acquisitions. The private equity platform is being re-positioned to take advantage of the expected near term recovery in oil prices. In light of prolonged depressed natural gas prices continuing to be realized by Northpoint, the Corporation believes that it is unlikely that the impairment charges taken in respect of this investment will be reversed in the future.
CONSOLIDATED BALANCE SHEETS (unaudited)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited)
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
Certain statements included in this news release 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.
These risks and uncertainties include but are not limited to: the ability of management of Wilmington and its investee entities to execute its and their business plans; health, safety and environmental risks; uncertainties as to the availability and cost of financing; general economic and business conditions; the possibility that government policies or laws may change or governmental or regulatory approvals may be delayed or withheld; risks associated with existing and potential future law suits and regulatory actions against Wilmington; and other risks and uncertainties described in Wilmington's 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.
This new release contains natural gas volumes which have been converted on the basis of six thousand cubic feet of natural gas to one barrel of oil equivalent. Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Contacts:
Wilmington Capital Management Inc.
Executive Officers
403-705-8038
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Datum: 11.05.2016 - 22:51 Uhr
Sprache: Deutsch
News-ID 470476
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