OPERATIONS REVIEW – For the Period Ended
As at
Marinas
Maple Leaf Partnerships
During the nine months ended
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
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.
Private Equity
Northbridge,
The fair value of
Outlook
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.
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.
FINANCIAL RESULTS
STATEMENT OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (unaudited)
For the | Three Months ended | Nine months ended | ||||
(CDN $ thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||
Management fee revenue | 133 | 120 | 378 | 286 | ||
Interest, distributions and other income | 635 | 206 | 1,621 | 937 | ||
768 | 326 | 1,999 | 1,223 | |||
Expenses | ||||||
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) | ||
(484) | (580) | (1,597) | (1,579) | |||
Fair value adjustments and other activities | ||||||
Fair value changes in Bow City Partnerships | (220) | 304 | 854 | 304 | ||
Fair value changes in | 350 | --- | 350 | --- | ||
Fair value changes in | --- | (57) | 986 | (57) | ||
Fair value changes in | --- | --- | (70) | --- | ||
Fair value changes in | --- | (503) | 235 | (526) | ||
Realized loss in | --- | --- | (146) | --- | ||
Equity accounted income (loss) | (7) | (10) | 146 | 66 | ||
123 | (266) | 2,355 | (213) | |||
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 | (255) | 46 | 148 | 396 | ||
Related income taxes | (247) | (6) | (334) | (47) | ||
Other comprehensive income, net of income taxes | 1,698 | 40 | 2,564 | 349 | ||
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) |
BALANCE SHEETS
(unaudited) | ||||
(CDN $ thousands) | 2022 | 2021 | ||
Assets | ||||
NON-CURRENT ASSETS | ||||
Investment in Maple Leaf Partnerships | 18,637 | 15,887 | ||
Investment in Bow City Partnerships | 3,864 | 3,010 | ||
Investment in | 1,716 | 1,366 | ||
Investment in | 6,516 | 3,980 | ||
Note receivable | --- | 2,058 | ||
Right-of-use asset | 99 | 120 | ||
30,832 | 26,421 | |||
CURRENT ASSETS | ||||
Cash | 1,229 | 1,924 | ||
Short term securities | 29,000 | 35,000 | ||
Amounts receivable and other assets | 8,888 | 676 | ||
Total assets | 69,949 | 64,021 | ||
Liabilities | ||||
NON-CURRENT LIABILITIES | 1,249 | 574 | ||
Deferred income tax liabilities | 133 | 145 | ||
1,382 | 719 | |||
CURRENT LIABILITIES | ||||
Lease liabilities | 38 | 19 | ||
Income taxes payable | 129 | 25 | ||
Amounts payable and other | 618 | 642 | ||
Total liabilities | 2,167 | 1,405 | ||
Equity | ||||
Shareholders’ equity | 51,179 | 51,179 | ||
Contributed surplus | 1,426 | 1,154 | ||
Retained earnings | 6,916 | 4,586 | ||
Accumulated other comprehensive income | 8,261 | 5,697 | ||
Total equity | 67,782 | 62,616 | ||
Total liabilities and equity | 69,949 | 64,021 |
* * * *
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.
Source:
2022 GlobeNewswire, Inc., source