WICC CEO Scott Tannas provides the following commentary:
“Our portfolio companies gained significant revenue and earnings momentum in the second quarter, with each of our five companies in the black and setting second quarter sales records.
– The pace of growth at Fortress Insurance continues to accelerate, with Gross Written Premiums in the quarter up 2800% over the prior year, and up 125% over Q1. Gross Written Premiums in the first six months were at $2.28 million and rising. The trailing 12 month claims ratio was 28%. Fortress Insurance earned a small profit in Q2, many quarters ahead of plan. Management is moving quickly to seize on opportunities in the insurance market in Western Canada. We are honoured to be working with some of the best insurance brokers in the marketplace, and their support for a small, nimble regional insurance provider has resulted in exponential quarterly growth. CEO Shafeen Mawani and his team are working hard to build on the early success at Fortress Insurance.
– At GlassMasters, Roger Tulk and his team enjoyed a great start to their traditional spring/summer windshield replacement season, setting record high sales in June. Roger reports strong consumer demand has continued through July and August. GlassMasters’ inventory strategy provided a significant advantage this season, as less well stocked competitors were unable to respond to demand and remain vulnerable to a still recovering product supply chain.
– Ocean Sales continues its pandemic recovery with strong sales growth from their online channel and in their partnership with a big box retailer. As a result, Ocean Sales provided a contribution to net income, further highlighting the resiliency of the people and the company. While large public events have not yet returned to normal, Ocean Sales is participating in a select number of fairs and exhibitions over the summer and fall, and they expect this channel to be busy and fully productive again in 2022.
– Q2 results were much improved at Foothills Creamery. Seasonal ice cream sales are off to a strong start, and the prior issues around retail butter pricing have been largely resolved. Newly appointed CEO Bill McKenzie has moved swiftly in the early months of his mandate to understand the issues and opportunities and take decisive action in support of the 100 plus team members who produce, sell and distribute Foothills Creamery’s high quality dairy products. There is much work still to be done to ensure Foothills Creamery fully achieves its potential, but after a few quarters of difficulty, there is strong evidence that this company is back on the right track.
– Golden Health Care continued its steady, incremental growth of revenue and net income compared to the same quarter last year and reported strong occupancy in the three seniors care homes in which we hold an investment. CEO Heather Haupstein and her team continue to be lauded for their 100% patient recovery performance through the pandemic. As the public/private debate for seniors’ care begins to take shape, Golden Heath Care is a shining example of excellence.
At the beginning of this year, we communicated our ambition to deliver the best year-end financial result in Western’s five year operating history. We believe we are on track to achieve our goal. The economy and markets for our goods and services continue to expand. We have strong teams successfully growing their businesses. We have confidence in our ability to navigate whatever turbulence we might encounter in the coming months and we will continue to focus on seizing opportunities.
I look forward to providing progress reports in the coming weeks.”
About The Western Investment Company of Canada
Western is a unique publicly traded, private equity company founded by a group of successful Western Canadian business people, and dedicated to building and maintaining ownership in successful Western Canadian companies, and helping them to grow. The company’s shares are traded on the TSX Venture Exchange under the symbol WI. For more information on the company, please visit its website at www.winv.ca.
The Western Investment Company of Canada Limited
President and Chief Executive Officer
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