Western posts strong third quarter results. Year-to-Date Net Income breaks $1 million mark. Adjusted Net Income (NPIO) at $1.44 million – 5 cents per share.
HIGH RIVER, Alberta, Nov. 16, 2018 (GLOBE NEWSWIRE) — Western Investment Company of Canada Limited (“Western”) (WI:TSXV) CEO Scott Tannas reported to shareholders: “With the release of our third quarter results, we are very pleased with our progress over the past three months. Western’s four foundation companies are all profitable with two of them achieving achieved growth in revenue on a year-over-year basis. Our year to date net income stands at $1.04 million (3.4 cents per share). When our one-time costs for 2018 acquisitions are deducted (we call this NPIO) our net income is $1.44 million (4.7 cents per share).
Portfolio Company Reports:
GlassMasters had a good quarter with strong sales in July and August, with September lower than expected due to snowstorms and cold weather that suppressed sales. GlassMasters revenue for the quarter increased 15% year-over-year partially due to new store openings and market share gains.
Similar circumstances for Foothills where a hot summer helped achieve record ice cream sales followed by an abrupt end to the season due to the weather. The folks there are gearing up for the high demand butter season (who knew!) in Q4 and the launch of Foothills’ 50th anniversary celebrations next year.
Ocean Sales had strong revenue and profits at their marquee shows, including the Stampede, PNE, CNE and a number of US State fairs. The in-store partnership with a major global retailer maintained strong sales in the USA, while Canadian sales are in transition as new products are introduced.
Golden Health Care saw growth in both revenue and profit as rent increases introduced earlier in the year take effect. It is expected that Golden will approve two expansion projects later this year which will add approximately 100 beds to the network of retirement homes.
In short, while we are pleased with the quarter, we see many ways in which we can help our companies grow sales and profit in 2019.
During the third quarter we also made significant progress toward a new and transformative transaction for Western which will launch us into the insurance business. We expect to report more on this in the coming weeks.
Given our financial results, it is obvious to us that our stock price is undervalued. Its current price is a discount to book value in addition to other metrics.
Directors and Management have added to their positions over the last number of months, and as we emerge from the quarterly trading blackout, a number of us will resume making purchases. We hope fellow shareholders and new investors will feel confident to do so as well.
We are proud and excited at the progress we have made in just two and a half years, and grateful for the support of shareholders. As 2019 approaches, our plans are developing for what we expect to be a significant year in the growth and development of our Company.
Western is a unique publicly traded, private equity company founded by a group of successful Western Canadian businesspeople, 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.
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