Exchange Industrial Income Fund today reported its financial results for the quarter ended June 30, 2008.
Adam Terwin, the CFO of the Fund stated, "Management is pleased with the second quarter results. In spite of challenging conditions in some of our manufacturing subsidiaries we were able to hit new quarterly milestones in a number of areas, but most importantly in profit and distributable cash. Our Aviation segment showed strong organic growth, and the completion of the rationalization of the fleet of aircraft is evident in the results. Fully diluted distributable cash per unit grew by 8% over the preceding year to $0.67 per unit. This is particularly impressive when you take into account that the second quarter of 2007 was a strong period for the Fund, and that we faced very high fuel prices and a weakening economy in 2008."
"The benefits of a diversified portfolio are evident in our quarterly results," stated Mike Pyle the CEO of the Fund. "While we are happy with the overall results, we still see opportunities for improvement. Our manufacturing segment has room to improve as the weaker economy, as well as internal issues at Jasper Tank, have resulted in the manufacturing segment falling short of its potential. In the second quarter our aviation investments performed very well, and enabled us to reach record profit levels, in spite of the challenges we faced in manufacturing. We believe more strongly than ever that diversification can be a valuable tool in achieving dependable growing distributions for our unitholders. The key to our success is discipline, and being willing to say no, if a transaction is not accretive to our unitholders."
Results for the Three Months ended June 30, 2008
For the quarter ended June 30, 2008 the Fund reported revenue of $41.0 million, up 46% from the $28.1 million reported in the same period in 2007. EBITDA and earnings grew by 24% and 54% to $5.7 million and $3.1 million respectively.
Earnings per unit were $0.53 and $0.50 fully diluted up from $0.45 and $0.42 respectively in the same period in 2007. Distributable cash per unit increased to $0.76 or $0.67 fully diluted which represented a payout ratio of 49% and 56% respectively which was an improvement from the $0.74 and $0.62 generated in the same period of 2007 (which resulted in a payout ratio of 49% and 58% respectively). Actual distributions per unit in the quarter increased by 4% to $0.375 from $0.36 in the previous year.
Results for the Six Months ended June 30, 2008
For the six months ended June 30, 2008 the Fund reported revenue of $75.4 million, up 51% from the $50.0 million reported in the same period in 2007. EBITDA and earnings grew by 36% and 50% to $9.5 million and $4.5 million respectively.
Earnings per unit were $0.77 and $0.75 fully diluted up from $0.75 and $0.72 respectively in the same period in 2007. Distributable cash per unit increased to $1.16 or $1.05 fully diluted which represented a payout ratio of 65% and 71% respectively which was an improvement from the $1.15 and $0.97 generated in the same period of 2007 (which resulted in a payout ratio of 63% and 74% respectively). Actual distributions per unit in the six months increased by 4% to $0.75 from $0.72 in the previous year. -- www.cnxmarketlink.com
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
