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General Donlee Income Fund Reports Third Quarter 2009 Results

^{Published on 2009-11-06 14:21:18 - Market Wire}
 

 - Sales of $8.6 million, down 36% from the Q3 2008 sales level of $13.4 million - Net Income at $0.2 million, down from the $1.4 million earned in Q3 2008 - Distributable cash(1) of $(0.6) million or $(0.120) per Unit, as compared to $2.3 million or $0.392 per Unit in the same period last year - $0.270 in distributions paid to Unitholders for the quarter 

 Financial Highlights for the Three and Nine Months Ended September 30, 2009 The following summary of financial data presents the consolidated results of operations of the Fund for the three-month and nine-month periods ended September 30, 2009, including comparative results for the same periods in 2008. Three Months Ended Nine Months Ended ($ millions, except Unit and ------------------ ----------------- per Unit amounts, unaudited) Sept 30/09 Sept 30/08 Sept 30/09 Sept 30/08 ---------- ---------- ---------- ---------- Operations ---------- Sales 8.6 13.4 32.9 39.1 Gross profit 1.0 3.7 8.2 10.9 Net income 0.2 1.4 5.0 5.1 Basic income per Unit $0.040(a) $0.237(b) $0.930(c) $0.744(d) Distributions ------------- Distributable cash(1) (0.6) 2.3 2.8 6.7 Distributable cash per Unit(1) $(0.120)(a) $0.392(b) $0.514(c) $0.983(d) Distributions paid 1.4 1.5 4.4 5.4 Distributions paid per Unit $0.270 $0.270 $0.810 $0.810 (1) Distributable cash is not a defined term under Canadian generally accepted accounting principles ("GAAP"), but is determined by the Fund as cash flow provided by operating activities (adjusted to remove changes in non-cash working capital items), less repayment of long-term bank debt and less the pro-rated reserve for maintenance capital expenditures, for which Management estimates $1.25 million for 2009. See reconciliation of distributable cash below. Management believes that this liquidity measure is a useful supplemental measure of performance, as it provides investors with an indication of the amount of cash available for distribution to Unitholders. Investors are cautioned, however, that distributable cash should not be construed as an alternative to using net earnings as a measure of profitability, or to using the statements of cash flows. Further, the Fund's method of calculating distributable cash may not be comparable to measures used by other companies or trusts. For details of distributable cash, see the table below. (a) Based on weighted average of 5,332,317 Units outstanding for the third quarter of 2009. (b) Based on weighted average of 5,830,392 Units outstanding for the third quarter of 2008. (c) Based on weighted average of 5,412,561 Units outstanding for year-to-date 2009. (d) Based on weighted average of 6,811,435 Units outstanding for year-to-date 2008. 

 Three Months Ended Nine Months Ended ($000, except per Sept 30 Sept 30 Sept 30 Sept 30 Unit amounts) 2009 2008 2009 2008 ---------- ---------- ---------- ---------- Cash provided by operating activities $3,561 $4,840 $8,864 $8,051 Adjust for net changes in non-cash working capital balances related to operations (3,645) (2,010) (4,421) (83) ------------------------------------------- Cash provided by operating activities before changes in non-cash working capital balances (84) 2,830 4,443 7,968 Repayment of long-term bank debt (245) (232) (725) (331) Reserve for maintenance capital expenditures (313) (313) (938) (938) ------------------------------------------- Distributable cash(1) $(642) $2,285 $2,780 $6,699 Distributions paid to Unitholders $1,440 $1,548 $4,379 $5,448 ------------------------------------------- Basic income per Unit $0.040 $0.237 $0.930 $0.744 Distributable cash(1) per Unit $(0.120) $0.392 $0.514 $0.983 Distributions paid per Unit $0.270 $0.270 $0.810 $0.810 Payout ratio(2) n/a 69% 158% 82% (2) Payout ratio is not a defined term under Canadian GAAP, but is determined as actual distributions divided by distributable cash. The Fund's method of calculating its payout ratio may not be comparable to measures used by other companies or trusts.