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Labrador Iron Ore Royalty Income Fund - Results for the third quarter ended September 30, 2009

^{Published on 2009-10-29 15:20:03 - Market Wire}
 

 3 Months 3 Months 9 Months 9 Months Ended Ended Ended Ended Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2009 2008 2009 2008 ------------------------------------------ (Unaudited) Revenue (in millions) $ 15.84 $ 43.72 $ 52.10 $118.42 --------- --------- --------- --------- Adjusted cash flow (in millions) $ 18.81 $104.10 $ 42.50 $147.40 --------- --------- --------- --------- Adjusted cash flow per unit $ 0.59 $ 3.25 $ 1.33 $ 4.60 --------- --------- --------- --------- Net income (in millions) $ 13.63 $ 65.64 $ 47.94 $150.34 --------- --------- --------- --------- Net income per unit $ 0.43 $ 2.05 $ 1.50 $ 4.70 --------- --------- --------- --------- 

 3 Months 3 Months 9 Months 9 Months Year Ended Ended Ended Ended Ended Sept. 30, Sept. 30, Sept. 30, Sept. 30, Dec. 31, 2009 2008 2009 2008 2008 ----------------------------------------------------- Pellets 2.08 3.29 5.70 9.86 12.30 Concentrates 1.17 1.15 3.92 1.97 2.76 ----------------------------------------------------- Total 3.25 4.44 9.62 11.83 15.06 ----------------------------------------------------- 

 Bruce C. Bone Chairman and Chief Executive Officer October 29, 2009 

 Adjusted Distrib- Net Adjusted Cash utions Net Income Cash Flow per Declared Revenue Income per Unit Flow(1) Unit(1) per Unit -------- -------- -------- -------- -------- -------- (in millions except per Unit information) 2009 ---- First Quarter $ 16.6 $ 16.5 $ 0.52 $ 11.1 $ 0.35 $ 0.50 Second Quarter $ 19.7 $ 17.8 $ 0.55 $ 12.6 $ 0.39 $ 0.50 Third Quarter $ 15.8 $ 13.6 $ 0.43 $ 18.8(2) $ 0.59 $ 0.50 2008 ---- First Quarter $ 16.6 $ 10.8 $ 0.34 $ 10.4 $ 0.32 $ 0.35 Second Quarter $ 58.1 $ 73.9 $ 2.31 $ 32.9 $ 1.03 $ 1.00 Third Quarter $ 43.7 $ 65.6 $ 2.05 $104.1(3) $ 3.25 $ 3.00 Fourth Quarter $ 45.0 $ 26.2 $ 0.82 $ 27.5 $ 0.86 $ 0.50 2007 ---- First Quarter $ 13.1 $ 10.7 $ 0.34 $ 8.7 $ 0.27 $ 0.35 Second Quarter $ 15.7 $ 15.2 $ 0.47 $ 9.5 $ 0.30 $ 0.35 Third Quarter $ 20.1 $ 23.0 $ 0.72 $ 30.8(4) $ 0.96 $ 0.70 Fourth Quarter $ 18.7 $ 32.0 $ 1.00 $ 11.5 $ 0.36 $ 0.55 Notes: (1) "Adjusted cash flow" (see below) (2) Includes an $8.2 million IOC dividend (3) Includes a $77.9 million IOC dividend (4) Includes an $18.8 million IOC dividend 

 3 Months 3 Months 9 Months 9 Months Ended Ended Ended Ended Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2009 2008 2009 2008 ----------------------------------------------------- Standardized cash flow from operating activities $17,849,913 $122,172,571 $31,053,382 $146,858,827 Excluding: changes in amounts receivable, accounts payable and income taxes payable/ (recoverable) 961,659 (18,075,891) 11,448,989 542,625 ----------------------------------------------------- Adjusted cash flow $18,811,572 $104,096,680 $42,502,371 $147,401,452 ----------------------------------------------------- Adjusted cash flow per unit $0.59 $3.25 $1.33 $4.61 ----------------------------------------------------- 

 Bruce C. Bone Chairman and Chief Executive Officer Toronto, Ontario October 29, 2009 LABRADOR IRON ORE ROYALTY INCOME FUND CONSOLIDATED BALANCE SHEETS ------------------------------------------------------------------------- As at ----------------------------- September 30 December 31 2009 2008 ----------------------------- (Unaudited) Assets Current Cash and cash equivalents $ 10,848,952 $ 27,795,570 Amounts receivable 17,120,621 36,476,337 Income taxes recoverable 1,335,358 - -------------- -------------- 29,304,931 64,271,907 Deferred charges 330,666 392,666 Iron Ore Company of Canada ("IOC"), royalty and commission interests 298,824,331 302,198,099 Investment in IOC 196,557,418 187,452,133 -------------- -------------- $ 525,017,346 $ 554,314,805 -------------- -------------- -------------- -------------- Liabilities and Unitholders' Equity Current Accounts payable $ 3,657,159 $ 7,484,614 Income taxes payable - 25,641,892 Distributions payable to unitholders 16,000,000 16,000,000 -------------- -------------- 19,657,159 49,126,506 Future income tax liability 103,340,000 103,110,000 -------------- -------------- 122,997,159 152,236,506 Unitholders' equity Trust units 317,708,147 317,708,147 Undistributed income 84,312,040 84,370,152 -------------- -------------- $ 525,017,346 $ 554,314,805 -------------- -------------- -------------- -------------- LABRADOR IRON ORE ROYALTY INCOME FUND CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME AND UNDISTRIBUTED INCOME ------------------------------------------------------------------------- For the Three Months Ended September 30, 2009 2008 ----------------------------- (Unaudited) Revenue IOC royalties $ 15,514,566 $ 43,200,281 IOC commissions 320,284 437,089 Interest and other income 4,363 84,604 -------------- -------------- 15,839,213 43,721,974 -------------- -------------- Expenses Newfoundland royalty taxes 3,102,913 8,640,056 Amortization of royalty and commission interests 1,332,629 1,424,051 Administrative expenses (note 2) 447,476 (267,623) Interest expense 115,187 144,614 -------------- -------------- 4,998,205 9,941,098 -------------- -------------- Income before equity earnings and income taxes 10,841,008 33,780,876 Equity earnings in IOC 3,261,695 34,190,307 -------------- -------------- Income before income taxes 14,102,703 67,971,183 -------------- -------------- Provision for (recovery of) income taxes Current 1,582,827 9,063,062 Future (1,110,000) (6,730,000) -------------- -------------- 472,827 2,333,062 -------------- -------------- Net income and comprehensive income for the period 13,629,876 65,638,121 Undistributed income, beginning of period 86,682,164 104,550,599 Distributions to unitholders (16,000,000) (96,000,000) -------------- -------------- Undistributed income, end of period $ 84,312,040 $ 74,188,720 -------------- -------------- -------------- -------------- Net income per unit $ 0.43 $ 2.05 -------------- -------------- -------------- -------------- LABRADOR IRON ORE ROYALTY INCOME FUND CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME AND UNDISTRIBUTED INCOME ------------------------------------------------------------------------- For the Nine Months Ended September 30, 2009 2008 ----------------------------- (Unaudited) Revenue IOC royalties $ 51,016,686 $ 117,170,887 IOC commissions 947,045 1,164,218 Interest and other income 134,831 88,942 -------------- -------------- 52,098,562 118,424,047 -------------- -------------- Expenses Newfoundland royalty taxes 10,203,337 23,434,177 Amortization of royalty and commission interests 3,373,768 3,815,050 Administrative expenses (note 2) 1,346,269 1,266,865 Interest expense 342,479 497,175 -------------- -------------- 15,265,853 29,013,267 -------------- -------------- Income before equity earnings and income taxes 36,832,709 89,410,780 Equity earnings in IOC 17,305,381 84,726,196 -------------- -------------- Income before income taxes 54,138,090 174,136,976 -------------- -------------- Provision for (recovery of) income taxes Current 5,966,202 23,841,695 Future 230,000 (40,000) -------------- -------------- 6,196,202 23,801,695 -------------- -------------- Net income and comprehensive income for the period 47,941,888 150,335,281 Undistributed income, beginning of period 84,370,152 63,053,439 Distributions to unitholders (48,000,000) (139,200,000) -------------- -------------- Undistributed income, end of period $ 84,312,040 $ 74,188,720 -------------- -------------- -------------- -------------- Net income per unit $ 1.50 $ 4.70 -------------- -------------- -------------- -------------- LABRADOR IRON ORE ROYALTY INCOME FUND CONSOLIDATED STATEMENTS OF CASH FLOWS ------------------------------------------------------------------------- For the Three Months Ended September 30, 2009 2008 ----------------------------- (Unaudited) Net inflow (outflow) of cash related to the following activities Operating Net income for the period $ 13,629,876 $ 65,638,121 Items not affecting cash: Equity earnings in IOC (3,261,695) (34,190,307) Future income taxes (1,110,000) (6,730,000) Amortization of royalty and commission interests 1,332,629 1,424,051 Amortization of deferred charges 20,666 31,251 Common share dividend received from IOC 8,200,096 77,923,564 Change in amounts receivable, accounts and income taxes payable/recoverable (961,659) 18,075,891 -------------- -------------- Cash flow from operating activities 17,849,913 122,172,571 -------------- -------------- Financing Distributions paid to unitholders (16,000,000) (32,000,000) Repayment of long-term debt - (5,405,519) -------------- -------------- (16,000,000) (37,405,519) -------------- -------------- Increase in cash and cash equivalents during the period 1,849,913 84,767,052 Cash and cash equivalents, beginning of period 8,999,039 108,881 -------------- -------------- Cash and cash equivalents, end of period $ 10,848,952 $ 84,875,933 -------------- -------------- -------------- -------------- Cash income taxes paid $ 4,849,155 $ 1,896,000 -------------- -------------- -------------- -------------- Cash interest paid $ 93,493 $ 64,480 -------------- -------------- -------------- -------------- LABRADOR IRON ORE ROYALTY INCOME FUND CONSOLIDATED STATEMENTS OF CASH FLOWS ------------------------------------------------------------------------- For the Nine Months Ended September 30, 2009 2008 ----------------------------- (Unaudited) Net inflow (outflow) of cash related to the following activities Operating Net income for the period $ 47,941,888 $ 150,335,281 Items not affecting cash: Equity earnings in IOC (17,305,381) (84,726,196) Future income taxes 230,000 (40,000) Amortization of royalty and commission interests 3,373,768 3,815,050 Amortization of deferred charges 62,000 93,753 Common share dividend received from IOC 8,200,096 77,923,564 Change in amounts receivable, accounts payable and income taxes payable/recoverable (11,448,989) (542,625) -------------- -------------- Cash flow from operating activities 31,053,382 146,858,827 -------------- -------------- Financing Distributions paid to unitholders (48,000,000) (60,800,000) Repayment of long-term debt - (1,334,150) -------------- -------------- (48,000,000) (62,134,150) -------------- -------------- Increase (decrease) in cash and cash equivalents during the period (16,946,618) 84,724,677 Cash and cash equivalents, beginning of period 27,795,570 151,256 -------------- -------------- Cash and cash equivalents, end of period $ 10,848,952 $ 84,875,933 -------------- -------------- -------------- -------------- Cash income taxes paid $ 32,943,452 $ 4,056,000 -------------- -------------- -------------- -------------- Cash interest paid $ 280,480 $ 317,062 -------------- -------------- -------------- --------------