Pollard Banknote Income Fund (TSX Symbol PBL.UN) released the financial results of the Fund and Pollard Holdings Limited Partnership for the three and nine months ended September 30, 2008.
HIGHLIGHTS for Quarter ended September 30, 2008
Sales(1) - $ 44.1 million
EBITDA(1) - $ 8.0 million
Net Income(1) - $ 0.3 million
Adjusted Distributable Cash(1) - $ 6.2 million
Distributions(1) - $ 5.6 million
Adjusted Distributable Cash per unit(1) - $ 0.2644
Distributions per unit(2) - $ 0.2376
Payout ratio(3) - 89.9%
(1) Sales, EBITDA, Net Income, Adjusted Distributable Cash, Distributions and Adjusted Distributable Cash per unit are for Pollard LP for the three months ended September 30, 2008.
(2) Distributions per unit are for the Fund for the three months ended September 30, 2008.
(3) Payout ratio is calculated as Distributions per unit divided by Adjusted Distributable Cash per unit.
"We are pleased to announce our third quarter results which continue to reflect strong sales and production volumes," stated John Pollard, Co-Chief Executive Officer.
"Product demand continues to be very high and our EBITDA and gross margins reflect this demand. Our existing manufacturing facilities have been operating at or near capacity, which unfortunately during the quarter resulted in some inefficiencies and limitation on output, resulting in slightly lower than expected production and sales volumes. However, we continue to be very optimistic about the future growth in our sales and production."
"We have begun testing our new press line. The full impact of the new capacity will be realized in 2009 and we are looking forward to the increased capacity and improved productivity this state of the art press will provide. In addition, our manufacturing operations will benefit from the increased manufacturing flexibility the new press capacity will allow."
"We are very proud to retain our position as primary supplier to the Kansas Lottery with the recent award of a new contract won through a competitive procurement process and look forward to maintaining and growing our roster of lottery customers."
"The weakening of the Canadian dollar witnessed towards the end of the third quarter and in the beginning of the fourth quarter improves our competitive position and will ultimately impact positively on our cashflow. Combined with the ongoing demand for our products and increased production capacity about to come on stream, we are confident we will continue to meet or exceed our distributable cash targets for the remainder of 2008 and 2009." -- www.cnxmarketlink.com
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