PRT Announces Improved Results for the First Half of 2011
(firmenpresse) - VICTORIA, BRITISH COLUMBIA -- (Marketwire) -- 08/05/11 -- PRT Forest Regeneration Income Fund (TSX: PRT.UN) (the "Fund") today announced results for its second quarter, ended June 30, 2011.
Forest seedlings generally take from six months to a year or more to grow, with most being grown and harvested within the calendar year. The Fund`s quarterly results generally reflect only a portion of the revenue that accrues over the full crop cycle, and, accordingly, PRT's results are best considered in an annual context. Excerpts from the Fund's financial report are included as part of this release.
First-Half Highlights
(For the six months ended June 30, 2011, as reported under IFRS)
The Fund reported operating earnings of $3,181,000 and total comprehensive income of $1,656,000 ($0.17 per Unit), compared with $1,725,000 and $154,000 ($0.02 per Unit), respectively, for the first-half of 2010. The improved performance reflects a 41% increase in seedling order volume over 2010, mainly attributable to improving forestry markets due to stabilization of the US housing market and growth in Chinese lumber exports. However, later seedling sowing schedules in 2011 caused revenue growth to lag order volume growth in the period, and lower average pricing, particularly for new seedling products, will partially offset revenue growth in 2011.
Cash Available for Distribution of $2,036,000 ($0.21 per Unit) compares with $1,705,000 ($0.17 per Unit) for the same period in 2010. The Fund's business is highly seasonal, with the second quarter typically being the highest revenue period. As such, Cash Available for Distribution realized in the first half of the year is expected to be used in the second half of the year to fund operations and capital maintenance programs. Operating earnings increased more than Cash Available for Distribution because of the effect of exit activities charged to earnings in the previous-year period, which do not affect the calculation of distributable cash. Gross and operating margin improvements of 2.6% and 5.8%, respectively, resulted from scale economies due to increased volumes, nursery cost containment, and continuous improvement efforts. In addition, margins benefited from operating leverage, as certain elements of operating costs remain fixed despite volume increases.
Operating earnings and Cash Available for Distribution are terms that do not have standardized meanings under IFRS and may not be comparable to similar measures provided by other reporting entities. Cash Available for Distribution is the Fund's measure of free cash flow from operating activities; however, in the current economic environment the Fund is not making distributions to finance capital expenditures and charges for business restructuring and corporate conversion. The Trustees of the Fund have announced their intention to consider dividend payments after PRT's proposed corporate conversion is complete and industry conditions show sustained improvement. Standardized Distributable Cash-a comparable measure of cash flow prepared under guidance issued by the Canadian Institute of Chartered Accountants-totaled $0.37 per Unit in the first half of 2011, compared with $0.34 per Unit in 2010.
For the three months ended June 30, 2011, the Fund reported total comprehensive income of $1,203,000 ($0.13 per Unit) and Cash Available for Distribution of $1,251,000 ($0.13 per Unit). Aggregate results were in line with management's expectations given the economic environment and the seasonal nature of PRT's business.
President and CEO Rob Miller observed, "Our results for the first half of the year are encouraging and demonstrate that our strategies to adapt to the forest industry downturn are paying off. The US housing market remains in difficult shape, and the timeline for its recovery is uncertain. At the same time, our customers have made significant headway in developing new markets in Asia, and this has brought an increase in harvesting activity to meet their needs. We have remained ready to respond to the resulting increase in silviculture work, allowing us to reopen our shuttered Kirkland Lake, Ontario, facility and to achieve margin improvements from the increased volume and improved capacity utilization.
While the future pace of the US housing market recovery is uncertain, midterm recovery prospects remain promising, and this will have further positive long-term effects on our business. Despite this prospect, we continue to believe it is prudent to diversify our business further to spawn additional growth and stability. In addition to geographic expansion within forest seedling markets, we see opportunities to expand our product line as well. Our strategy to pursue opportunities outside forestry, including in the energy crop sector, will enable us to develop significant new revenue streams over the long term. These present unique opportunities to expand and diversify our markets while levering off our core expertise in seedling propagation. By focusing on improving our key operational capabilities, managing our balance sheet, and developing new markets, we will maximize long-term value creation for Unitholders."
Adoption of IFRS
The Fund adopted International Financial Reporting Standards ("IFRS") for 2011, with a restatement of 2010 comparatives and a transition date of January 1, 2010. As a consequence, reported results are not directly comparable with the historical financial statements of the Fund that were prepared in accordance with Canadian generally accepted accounting principles ("GAAP") before the adoption of IFRS. Full reconciliations to GAAP were reported in the March 31, 2011, condensed consolidated interim financial statements of the Fund.
Management's discussion and analysis for the Fund and the information circular are available at .
About the Fund
PRT is the largest producer of container-grown forest seedlings in North America, with 13 nursery locations expected to produce more than 175 million seedlings in 2011. Units of the Fund are listed for trading on the Toronto Stock Exchange under the trading symbol PRT.UN.
Conference Call and Taped Replay
The Fund will host a conference call to further discuss the matters contained in this press release. The call will take place on Monday, August 8, 2011, at 11:00 AM PST, 2:00 PM EST. To participate in this conference call, please call 1-877-407-8031 or 201-689-8031.
Persons unable to participate in the conference call may listen to a recorded version by dialing 1-877-660-6853, account #286, conference ID#366585. This option is available through August 12, 2011. A recorded webcast of the call may also be accessed from the Fund's website, at .
The Fund's next earnings conference call is expected to take place on Thursday, November 10, 2011, after the release of the Fund's third-quarter 2011 earnings information.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, expectations for customer orders; the outlook for the forest industry, US housing markets, and reforestation programs; and other statements that are not historical fact. Risks and uncertainties include, but are not limited to, future commodity prices and exchange rates, agricultural risks, our ability to grow and supply products in accordance with defined specifications, customer credit risks, and other risks identified from time to time in the Fund's annual report and annual information return. These risks and uncertainties may cause actual results to differ materially from the expectations expressed herein. As such, readers are cautioned not to place undue reliance on forward-looking statements.
Forward-looking statements are based on current expectations, and neither the Fund nor PRT assumes any obligation to update such information to reflect later events or developments, except as required by law.
Contacts:
PRT Forest Regeneration Income Fund
Tony Pollard
VP Finance/CFO
(866) 553-8733 ext. 229
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 05.08.2011 - 14:00 Uhr
Sprache: Deutsch
News-ID 1028100
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
VICTORIA, BRITISH COLUMBIA
Phone:
Kategorie:
Forestry
Anmerkungen:
Diese Pressemitteilung wurde bisher 256 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"PRT Announces Improved Results for the First Half of 2011
"
steht unter der journalistisch-redaktionellen Verantwortung von
PRT Forest Regeneration Income Fund (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
