Vicwest Income Fund (TSX: VIC.UN) today reported financial results for the third quarter ended September 30, 2008.
Highlights:
- Record quarterly revenues of $126.4 million, increased 25.1% over the third quarter of 2007. Year to date, revenues were $300.1 million, up 16.5% over the same period in the prior year.
- EBITDA(1) in the quarter was a record $19.3 million; an increase of 43.0% compared to $13.5 million in the same period in 2007, and was $36.2 million for the nine-month period compared to $26.3 million in the same period in 2007.
- Distributable cash(1) for the quarter was $17.4 million, or $1.00 per unit, an increase of 43.3% over the same period in 2007. Year to date, distributable cash was $31.8 million, up 40.7% compared to same period in the prior year.
- Net income per unit for the quarter was $0.94, representing a 62.1% increase over the $0.58 achieved in the same period in 2007. Year to date, net income per unit was $1.62, up from $1.07 for the nine-month period in the prior year.
"In the third quarter, the Fund achieved record results and continued to build on its strategy to position the Fund for future growth and ensure superior long-term returns to our unitholders," said Colin Osborne, President and Chief Executive Officer. "Through the implementation of lean and flexible manufacturing principles, we achieved record output from our agricultural storage segment and with effective material management and disciplined marketing initiatives we positively impacted the margin in our building construction products segment."
"Shortly after quarter-end, we further strengthened the Fund's building products business by purchasing the operating assets of RCA Metal Inc., Atlantic Canada's leading manufacturer and installer of aluminum composite panel, for approximately $9 million. This acquisition complements our existing panel operations on the west coast and establishes a national platform for greater market penetration. In addition, despite the recent uncertainty in financial capital markets, we enhanced our credit agreement in early October to increase our ability to borrow during our peak seasons and provide additional flexibility to take advantage of selective opportunities," said Osborne.
The Fund is obligated under its Declaration of Trust to distribute all taxable income earned within a calendar year. Results to date indicate that the Fund will be obligated to declare a special distribution in December to the extent that the Fund's 2008 taxable income exceeds the Fund's cumulative monthly distributions. Any such special distribution could be paid through a combination of cash and additional Fund units with the additional units being immediately consolidated with existing units such that the unitholder's number of units would remain unchanged after the consolidation. -- www.cnxmarketlink.com
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