TORONTO, ON / ACCESS Newswire / May 27, 2025 / The Western Investment Company of Canada Limited (TSXV:WI) ("Western" or the "Corporation") today reported its financial and operating results for the three months ended March 31, 2025. 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 period ended March 31, 2024.
In the fourth-quarter of 2024, Western completed the acquisition of the remaining shares of Fortress Insurance Company ("Fortress Insurance"), as a result, starting October 1, 2024, Fortress Insurance results are consolidated into Western's financial statements. Insurance specific results are discussed under the Fortress Insurance section below.
In the first quarter of 2025, Fortress Insurance contributed a positive insurance service result as well as positive investment income. Western's income from its equity-accounted investments was in line with prior years, with the first quarter of the year being generally slower for these seasonal businesses.
Net loss in the first quarter of 2025 increased to $998,858 compared with net loss of $475,132 in the prior-year period. Western's expenses now include consolidated expenses from Fortress Insurance and a comparison to previous periods is not currently meaningful.
On March 7, 2025, Western exercised its conversion option on the outstanding convertible debentures that were due to mature on December 31, 2025. Debentures with a face value of $5 million were converted into 10,582,007 common shares.
"Fortress Insurance delivered another quarter with strong insurance revenue growth. The on-boarding of two new clients in the second half of 2024 has helped strengthen and diversify the premium base and the business sustained this momentum in the first quarter with the addition of three new programs. We are also pleased with the resilience of our equity-accounted investments - Glassmasters, in particular, delivered a solid performance despite seasonal headwinds, a testament to the management team's continued strong execution." said Paul Rivett, Western's Chief Executive Officer.
Western financial highlights |
| Three Months Ended March 31, |
|
|
|
| ||||||
| $ | 2025 |
|
|
| 2024 |
|
| Change |
| ||
Total insurance service result 1 |
|
| 319,777 |
|
|
| - |
|
|
| 319,777 |
|
Investment income 1 |
|
| 129,736 |
|
|
| - |
|
|
| 129,736 |
|
Income (loss) from equity investments |
|
| (302,952 | ) |
|
| (271,751 | ) |
|
| (31,201 | ) |
Other finance income |
|
| 365,785 |
|
|
| 190,415 |
|
|
| 175,370 |
|
Net income |
|
| (998,858 | ) |
|
| (475,132 | ) |
|
| (523,726 | ) |
1 Fortress Insurance results are consolidated into Western from fourth-quarter 2024
Fortress Insurance
In the first quarter, Fortress Insurance grew Gross Written Premiums ("GWP") to $13.3 million from $5.2 million in the first quarter of 2024. Total investment portfolio, including cash and cash equivalents, grew 4% to $24.5 million compared to $23.5 million as of December 31, 2024. Insurance revenue increased 15% year-over-year but total insurance service result decreased by 1% due to the long-term policies written under the specialty programs, which have an end-tailed profitability. Profitability on these longer-term programs will increase gradually over their term. During the first quarter of 2025, Fortress Insurance added three additional programs to its offerings, including equine property coverage, a small and medium enterprise package, and transportation commercial general liability.
The trailing 12-month loss ratio as at March 31, 2025 (incurred losses, including incurred but not reported, over earned premium) was 50.2%, compared to 56.0% in the prior year period, with less claims events in comparison to the first quarter of 2024.
The trailing 12-month expense ratio and combined ratio increased from the prior year in part due to the first quarter of 2024 not yet including costs associated with the new specialty products which have end-tailed profitability and higher professional fees. As compared to fiscal 2024, the normalized expense and combined ratio increased to 60.4% and 110.7%, respectively.
| Three Months Ended March 31, |
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|
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| |||||||
| $ | 2025 |
|
|
| 2024 |
|
| Change |
| ||
Insurance revenue |
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| 6,575,869 |
|
|
| 5,718,658 |
|
|
| 857,211 |
|
Total insurance service result |
|
| 191,155 |
|
|
| 192,484 |
|
|
| (1,329 | ) |
Net Investment income (loss) |
|
| 172,784 |
|
|
| 157,798 |
|
|
| 14,986 |
|
Net income (loss) |
|
| (121,855 | ) |
|
| 118,354 |
|
|
| (240,209 | ) |
Gross written premiums1 |
|
| 13,328,460 |
|
|
| 5,217,772 |
|
|
| 8,110,688 |
|
1 Supplementary financial measure - total gross insurance premiums written during the year.
Note: The above table reflects stand-alone Fortress results, excluding consolidation adjustments for the Corporation
GlassMasters Autoglass revenue grew 14% year-over-year to $8.6 million in the first quarter of 2025, with organic growth of 15%-25% at each established location. Gross margin increased to 26.7% in the first quarter of 2025 compared to 23.4% in the prior-year period. EBITDA increased to $647,932 compared to $170,550 in 2024. For the first time, GlassMasters Autoglass recorded positive adjusted net income (excluding the shareholder note payable interest) in the first quarter of the year.
Foothills Creamery revenue was up 4% to $7.0 million compared to $6.7 million in the first quarter of 2024. EBITDA was $174,831 in the first quarter of 2025 compared to $570,997 in the prior-year period, Margins in the first quarter of 2024 benefited from an assembly cost credit. Ice cream sales were up 17% in this quarter, a trend the company anticipates will continue as they head into their busy season for frozen products. Inventory levels at March 31, 2025 were reduced by $1.4 million compared to the prior year, due to improved cream management.
Golden Health Care revenue grew 10% to $2.7 million compared with $2.4 million in the first quarter of 2024, as efforts to improve occupancy at underutilized homes yielded intended results. EBITDA increased 35% to $0.65 million compared with $0.48 million in the prior-year period. Net income for the quarter was $289,319 compared with $181,803 in the comparable quarter of last year.
About The Western Investment Company of Canada Limited
Western is an insurance and investments holding company focused on decentralized ownership of insurance businesses and centralized investment management. Western's shares are traded on the Toronto Venture Exchange under the symbol WI.
For more information on Western, please visit its website at www.westerninvest.ca.To add yourself to our email news alert subscription please visit this link.
CONTACT INFORMATION - The Western Investment Company of Canada Limited
Stacey Cross, Chief Financial Officer, scross@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, risks relating to regulatory compliance, risks relating to demand for the products and services provided by Fortress Insurance and other portfolio companies, risks relating to future growth prospects and business opportunities, risks that management is not able 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.com.
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.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
"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."
SOURCE: The Western Investment Company of Canada Limited
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/western-reports-first-quarter-financial-results-1032461
