Mr. Scott Tannas reports

WESTERN INVESTMENT COMPANY FILES SECOND QUARTER STATEMENTS AND REPORTS STRONG REVENUE AND NET INCOME GROWTH

The Western Investment Company of Canada Ltd. has filed its second quarter financial statements and MD&A (management discussion and analysis) on SEDAR+.

Year-to-date net income of $581,444 is the best result in Western's six-year operating history. The third quarter is traditionally Western's strongest, owing to seasonal activities of three of Western's five investee companies.

In a message to shareholders, WICC chief executive officer Scott Tannas provided the following commentary:

"Investment income from our portfolio companies improved by $1.6-million compared to the first half of 2022. This welcome result was driven by a substantial turnaround at Foothills Creamery, and continued growth at Fortress Insurance and GlassMasters Autoglass. Double-digit sales growth at all three companies was achieved, but it's the strengthening profit margins that are most noteworthy."

Portfolio report

Growth at Fortress Insurance continues and the company is now consistently profitable after just two years of operations. Gross written premiums (GWP) in the first six months of 2023 are at $11-million, compared with $7.3-million this time last year. The trailing-12-month claims ratio is 39 per cent, an improvement over last year's 43 per cent. Management continues to pursue new growth opportunities in the insurance market in Western Canada and is on track to hit its year-end GWP goal of $23-million. Strong investment income also helped Fortress as equity markets regained values over the first half of 2023.

GlassMasters is on a roll. First half revenue is up 23 per cent. EBITDA (earnings before interest, taxes, depreciation and amortization) is up 62 per cent over this time last year. The GlassMasters team continue to drive growth through same store sales increases and expansion of the company's network of locations. The wholesale business is also growing its sales to automotive industry customers. New locations in North Battleford, Sask., and Okotoks, Alta., are operating now and a new wholesale facility in Kelowna, B.C., will open in the fourth quarter.

Ocean Sales continues to build its sales channels for its unique household product lineup. With a first half sales result 3.8 per cent above 2022, the company is now in its crucial summer exhibition and fair season with Ocean Sales booths at many events across Canada and the United States. On-line and TV home shopping sales continue to be important channels for fall and winter, and a number of new products are under development for 2024. While the company no longer incorporates Ocean Sales into its numbers as the value of its investment is not material, the company will continue to monitor and report on progress in its MD&A (management discussion and analysis).

The company is pleased to report on significant progress made so far this year at Foothills Creamery. All financial measurements have improved substantially over prior year, including an improvement of $2.6-million in EBITDA (earnings before interest, taxes, depreciation and amortization) and a $1.9-million positive swing in net income, coming from stronger profit margins and a gain on the sale of a non-core asset. The company carried this positive momentum into its busy summer months, with reports of demand for Foothills ice cream up 28 per cent over last July. While there is still plenty of room for improvement at Foothills, the trajectory is upward, and the company is grateful to the loyal staff and leadership team who stayed focused on taking the necessary steps to return the company to profitability.

So far in 2023, Golden Health Care has modest growth in revenue, countered by rising labour and other operating costs. Management is focused on filling vacancies at two of the company's three homes, and reports some success in June and July, with still more to be done. The Saskatchewan government's long-term care homes are approaching full capacity, and Golden Healthcare's facilities will be needed more than ever in the coming years.

Outlook

With the company's best start to the year in its history on the books, the company looks to help its investee companies finish strong in the second half. The company's early reports on Q3 confirm that positive momentum continues across the board.

About The Western Investment Company of Canada Ltd.

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 TSX Venture Exchange under the symbol WI.

We seek Safe Harbor.