The Western Investment Company of Canada (WI) Q3 2024 earnings summary

Executive summary

• Achieved strongest third quarter in five years, with equity income meeting expectations and outperforming the same quarter last year.

• Transition to a property and casualty insurance and investment holding company is progressing, with increased ownership in Fortress Insurance to 83.57% after quarter-end.

• Private Placement upsized to $30 million is expected to close in December, and Rights Offering has been well received.

Financial highlights

• Third quarter income from equity investments rose 48% year-over-year to $1.01 million; finance income up 16% to $188,269.

• Net income for the third quarter was $521,104, up 7% year-over-year; normalized income (excluding one-time items) was $781,454, a 60% increase.

• For the nine months, income from equity investments fell 34% to $1.18 million, while finance income rose 22% to $566,013.

• Uncapitalized transaction costs were $260,530 for the quarter and $277,528 for the nine months.

Outlook and guidance

• Financial results and reporting will change significantly with Fortress consolidation as a subsidiary from October 1, 2024.

• Fourth quarter equity income from remaining associates expected to align with normal seasonality, typically a modest quarter.

• Transaction-related costs will continue in the fourth quarter.