High River, Alberta – The Western Investment Company of Canada Limited (“WICC”) (TSXV:WI) confirms its financial statements and MD&A for the quarter and six months ended June 30, 2019 are available for viewing on SEDAR.
In a message to shareholders, CEO Scott Tannas provided the following commentary: “We are pleased with the overall result of the first half of 2019. While we have two retail focused businesses facing some headwinds, we more than made up the difference with stellar contributions from our food and insurance businesses, and steady income from our senior care investment.
Overall, our year to date net income came in at $329,161 – up significantly from last year, with our operations providing NPIO net income of $164,012 – we discuss the significance of this figure in our MD&A. In addition to the income from operations, we had an immediate investment gain of $230,358 at Fortress Insurance related to the incentive purchase price we paid in recognition of our value added activities.
Portfolio Company Reports
In the Second Quarter, Ocean Sales continued to struggle with supressed sales arising from their partnership in the USA and Canada with a leading global retailer. While some new product testing underway in both Canada and the USA is showing some very promising results, Ocean’s management continues to monitor this portion of their business very closely. Q3 is by far the busiest for Ocean sales with multiple shows, exhibitions and fairs across North America in full swing.
Our Seniors Care homes at Golden Healthcare remained at or near full capacity and provided our expected share of earnings in the quarter.
GlassMasters had a mixed quarter given the seasonality of their business with sales rising into the peak summer season. Sales are ahead of last year overall, but down slightly on a same store basis. Increased labour costs and exchange rates have put pressure on margins. The new store in Saskatoon is nearing profitability while other newer stores continue to develop. GlassMasters’ opportunity for sales and profits has increased correspondingly with the additional capacity going into a busy Q2 and Q3, and management are working to maximize the opportunity.
Foothills Creamery had an enormous quarter, breaking records for sales and profit. Cathy Sanders and her team have responded to the increasing demand for Foothills products with exceptional skill and enthusiasm. They are well ahead of budget, with their Q3 high season underway.
As mentioned earlier, our new investment in Fortress Insurance already has positive results for us as a result of a one-time gain. We continue to make progress toward the launch of expanded operations, and hope to report our first new policy in the coming days and weeks.
In the third quarter, GlassMasters, Ocean Sales and Foothills experience their highest sales activities. Our financial goal for 2019 is to grow our net income by at least 10% over 2018 results. While there have been unexpected ups and downs in the first half of the year, we continue to strive toward that goal. We look forward to reporting on our progress in the weeks and months to come.”
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
This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to future plans, acquisitions, financings and earnings. Statements containing the words: ‘believes’, ‘intends’, ‘expects’, ‘plans’, ‘seeks’ and ‘anticipates’ and any other words of similar meaning are forward-looking. All statements included herein involve various risks and uncertainties because they relate to future events and circumstances beyond Western’s control. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Western’s disclosure documents on the SEDAR website at www.sedar.com. Any forward looking statements are made as of the date of this news release and Western does not undertake to update any forward-looking information except in accordance with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.