CALGARY, Alberta, Nov. 28, 2024 (GLOBE NEWSWIRE) — The Western Investment Company of Canada Limited (TSXV: WI) (Western or the Corporation) today reported its financial and operating results for the three and nine months ended September 30, 2024. The interim financial statements and management’s discussion and analysis have been filed on SEDAR+. Unless otherwise indicated, financial figures are expressed in Canadian dollars and comparisons are to the prior periods ended September 30, 2023.
Western had a strong third quarter, with equity income coming in at expectations, exceeding all third quarter results for the past five years. Western’s associate companies (Associates) are running smoothly, and the transactions that will transition Western to a property and casualty insurance and investment holding company are proceeding as planned. Subsequent to the end of the quarter, Western acquired the first tranche of shares in Fortress Insurance Company (Fortress) increasing the Corporation’s ownership in Fortress to 83.57% from 28.45%.
Uncapitalized transaction costs were $260,530 and $277,528 for the three and nine months ended September 30, 2024 respectively. Western’s portion of the $1.1 million gain on the sale of Foothills’ Kelowna warehouse for the nine months ended September 30, 2023, was $554,934. In the absence of these extraordinary items, it is apparent how the strong results in the third quarter allowed Western to make up for the cooler start to the summer that impacted seasonal businesses in the second quarter.
| Three months ended Sept 30, | Nine months ended Sept 30, | ||||||||
| ($ unless otherwise noted) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||
| Income from equity investments | 1,008,243 | 681,383 | 48 | % | 1,178,644 | 1,779,803 | -34 | % | |
| Finance income | 188,269 | 161,969 | 16 | % | 566,013 | 465,035 | 22 | % | |
| Gain on disposal | 22,978 | 486 | 4628 | % | 22,978 | 486 | 4628 | % | |
| Management fees | 37,500 | 37,500 | 0 | % | 112,500 | 112,500 | 0 | % | |
| Income | 1,256,990 | 881,338 | 43 | % | 1,880,135 | 2,357,824 | -58 | % | |
| Net income | 521,104 | 488,590 | 7 | % | 149,959 | 1,070,035 | -86 | % | |
| Remove one-time items: | |||||||||
| Extraordinary gain | (554,934 | ) | |||||||
| Uncapitalized transaction costs | 260,350 | 277,528 | |||||||
| Normalized Income | 781,454 | 488,590 | 60 | % | 427,487 | 515,101 | -17 | % | |
It has been an incredibly busy and focused time for Western and our Associates. Our Associates collectively delivered a strong third quarter, allowing Western to outperform relative to the same quarter last year despite some one-time transaction costs we had to absorb, said Scott Tannas,…
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