Western Investment Company Reports Financial Results for the Second Quarter of 2024

CALGARY, Alberta, Aug. 29, 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 six months ended June 30, 2024. Western also announced that it will delay its Annual General and Special Meeting of shareholders (the “Meeting”) to amend the terms of the transaction with Tevir Capital Corp. ("Tevir"), and other affiliates of Paul Rivett, that was previously announced on March 22, 2024 (the “Transaction”).

Transaction and Annual General and Special Meeting Update
Western is in the process of amending the Transaction terms and, once finalized, the new terms will be announced in a subsequent news release. As such, Western will delay its Shareholder Meeting which was to take place on August 30th, 2024. Western will provide the details of its revised meeting and record date in a subsequent news release and post a revised Notice of Meeting and Record Date to Sedar+ (www.sedarplus.ca) at that time.

Second Quarter of 2024 Financial Results
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 June 30, 2023.

Western’s associate companies (the “Associates”) are operating in-line with expectations as both of the seasonal Associates, GlassMasters and Foothills, prepare for peak revenues through the summer season. Equity income from Foothills was significantly lower than in 2023 due to the impact of a one-time gain on the sale of real estate that positively impacted their results in 2023. Removing this one-time gain would have resulted in equity earnings from Foothills comparable to the prior period.

	Three months ended June 30,				Six months ended June 30,
($ unless otherwise noted)	2024	2023	% Change		2024	2023		% Change
Income from equity investments	442,152	750,033	-41	%	170,401	1,098,421		-84	%
Finance income	187,329	144,725	29	%	377,745	303,074		25	%
Management fees	37,500	37,500	0	%	75,000	75,000		0	%
Income	666,981	932,258	-28	%	623,146	1,476,495		-58	%
Remove extraordinary gain						(554,934	)
Normalized Income	666,981	932,258	-28	%	623,146	931,561		-33	%

“While a cooler start to the summer impacted both of our seasonal businesses, Western was still able to post a modest second quarter, with equity income only slightly below expectations,” said Scott Tannas, President and Chief Executive Officer of Western. “Early indications are that the hot weather in July and August will help offset this with total revenues for the month of July at both GlassMasters and Foothills increasing 30% and 10% respectively over the prior year. We continue to make operational investments to drive long-term growth at our Associates, and all of them are running very smoothly and close to plan.”

Portfolio Company Report for the Six Months Ended June 30, 2024

Fortress Insurance Company (“Fortress”)
Business at Fortress continues to grow rapidly, with a 44% increase in gross written premiums from the comparative period of 2023. Overall, insurance service results at Fortress are comparable to the comparative period in 2023, as the company manages this growth with the increase in administrative expenses that come with it. Fortress is focused on diversification, expanding its product offerings into liability insurance and the Ontario market. Fortress is primed to become the key focus of Western.

Key Highlights:

Gross written premiums grew 44% to $15.8 million in the first six months of 2024 compared with $11.0 million in the comparative period 2023.
2024 results include three new programs which didn’t exist in 2023. Such programs add geographic diversity and class of insurance to the portfolio.
Fortress’s investment portfolio, including cash, grew 20% to $18.4 million compared to $15.4 million as at June 30, 2023.

For the six months ending June 30, 2024, Western recognized equity income of $31,604 from Fortress compared to $90,552 in equity income for the comparative period ended June 30, 2023.

	Three months ended June 30,				Six months ended June 30,
Financial results ($)	2024	2023	% Change		2024	2023	% Change
Insurance revenue	5,852,846	5,036,753	16	%	11,571,504	9,682,871	20	%
Insurance service result	888,982	639,083	39	%	1,081,466	1,099,380	-2	%
Investment income (loss)	222,233	46,750	375	%	487,511	355,195	37	%
Net income (loss)	52,634	224,752	-77	%	111,088	499,153	-78	%
Gross written premiums¹	10,559,993	7,262,622	45	%	15,777,765	10,981,840	44	%

1 Supplementary financial measure – total gross insurance premiums written during the year.

GlassMasters Autoglass (“GlassMasters”)
GlassMasters continues its growth trajectory with a 16% increase in sales for the six months ended June 30^th compared to the comparative period in 2023. The company is seeing growth occurring at current retail and warehouse locations and the regular addition of new locations. After adding three locations in 2023, GlassMasters opened its first location in Winnipeg in the second quarter of 2024, and the company expects to add a warehouse in Winnipeg in the coming months. GlassMasters serves as Western’s primary cash flow source, with regular interest payments occurring on the restructured shareholder notes.

Foothills Creamery (“Foothills”)
Operational and strategic improvements have given Foothills a significant boost in profitability over the last couple of years. Gross margins have improved by 2% from 2023. Sales of ice cream were impacted in the second quarter by an unseasonably cold and wet spring; however, thanks to this improved margin, gross profit remains comparable to the prior year. Foothills continues to innovate with new products and is expanding its customer base. The company holds high inventory levels, leaving it well-positioned to meet high summer demand, which should be enhanced in the third quarter by the good weather experienced in Foothills’ operational area.

Golden Health Care (“Golden”)
Golden Health Care revenue increased 11% compared to the comparative period 2023 thanks to improved occupancy. Inflation has impacted the cost of care, and attracting staff has been challenging. Management is focused on improving occupancy and is working to access government funding for senior care, which would allow more seniors in need to access their beds.

Outlook
The tremendous growth in gross written premiums at Fortress enjoyed so far this year is expected to continue as it navigates its entry into the Ontario marketplace. Fortress continues to work on adding new product offerings to its lineup. GlassMasters is expected to continue its trend of revenue growth, with revenues in July, one of its peak business months, increasing 30% compared with the same period in 2023. While the cool spring tempered Foothills’ performance, the return of hot weather though July and August was beneficial, driving a 10% increase in sales through the month of July compared to the same period in 2023.

About The Western Investment Company of Canada Limited
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. Western's shares are traded on the Exchange under the symbol WI.

For more information on Western, please visit its website at www.winv.ca.

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CONTACT INFORMATION - The Western Investment Company of Canada Limited

Scott Tannas President and Chief Executive Officer (403) 652-0408 stannas@winv.ca

Advisories
This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to future results and plans for Western and its associated companies, acquisitions, financings and returns. 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.

The forward-looking statements are based on certain key expectations and assumptions made by Western, including expectations and assumptions concerning the ability of Western to successfully implement its strategic plans and initiatives.

Although Western believes that the expectations and assumptions on which the forward-looking statements made by Western are based are reasonable, undue reliance should not be placed on the forward-looking statements because no assurance can be provided that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the ability of management to execute its business strategy, and the impact of general economic conditions in Canada and the United States. A description of additional 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.sedarplus.ca.

The forward-looking statements contained in this news release are made as of the date hereof and Western undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This news release also contains financial outlook information (“FOFI”) about prospective results of operations and book value, which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this news release was made as of the date of this news release to provide information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for any other purpose. Western disclaims any intention or obligation to update or revise any FOFI contained in this news release, whether as a result of new information, future events or otherwise, except as required by applicable law.

“Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”