PRT Announces Improved Results for the First Nine Months of 2011
(firmenpresse) - VICTORIA, BRITISH COLUMBIA -- (Marketwire) -- 11/10/11 -- PRT Growing Services Ltd. (TSX: PRT) today announced third quarter results for the PRT Forest Regeneration Income Fund (the "Fund"). This is the last quarterly report for the Fund as, on October 1, 2011, it completed a corporate conversion and currently operates as PRT Growing Services Ltd.
First-Three Quarter's Highlights
(For the nine months ended September 30, 2011, as reported under IFRS)
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.
The Fund reported operating earnings of $3,229,000 and total comprehensive income of $605,000 ($0.06 per Unit) for the first-nine months of 2011, compared with $1,203,000 and a loss of $1,138,000 ($0.12 per Unit), respectively for the same period in 2010. The improved performance reflects a 41% increase in seedling order volume over 2010, mainly attributable to improving forest seedling markets due to growth in Chinese lumber exports and stabilization of the US housing market. However, lower average pricing, particularly for new seedling products, has partially moderated revenue growth in 2011.
Operating margin improvement of 7.2% 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.
For the three months ended September 30, 2011, the Fund reported a total comprehensive loss of $1,050,000 ($0.10 per Unit) and negative Cash Available for Distribution of ($131,000) or ($0.01) per Unit). Aggregate results were in line with management's expectations given the seasonal nature of PRT's business.
President and CEO Rob Miller remarked, "The results over the first nine months of the year are in line with our expectations and demonstrate that our strategies to adapt to the forest industry downturn are working. 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 generate additional growth and stability. In addition to geographic expansion within forest seedling markets, we see opportunities to expand our product line as well, including in the energy crop sector. 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 shareholders of PRT Growing Services Ltd."
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 PRT Growing Services Ltd.
PRT Growing Services Ltd. (the Corporation) was formed on October 1, 2011 from the conversion of PRT Forest Regeneration Income Fund to a corporate structure. The Corporation 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. Shares of the Corporation are listed for trading on the Toronto Stock Exchange under the trading symbol PRT.
Conference Call and Taped Replay
The Corporation will host a conference call to further discuss the matters contained in this press release. The call will take place on Monday, November 14, 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#366586. This option is available through November 21, 2011. A recorded webcast of the call may also be accessed from the Corporation's website, at .
The Corporation's next earnings conference call is expected to take place on Friday, March 23, 2012, after the release of the Corporation's fourth-quarter and annual 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 order volumes, pricing, operating costs and other expenditures; the outlook for energy prices; plans and opportunities for capital spending; and other statements contained in this discussion that are not historical fact. Risks and uncertainties include, but are not limited to, agricultural risks and crop yield; future commodity prices; exchange rate risks; customer credit risks and customer insolvency; liquidity risk; the outlook for the forest industry; the impact of corporate conversion on reporting earnings and taxation; the impact of changes in financial reporting to IFRS; and other risks identified from time to time in the Fund's annual report and information return, prospectus, and other filing documents that are available in electronic form at or by contacting the Corporation directly.
Forward-looking statements are based on current expectations, and the Corporation assumes any obligation to update such information to reflect later events or developments, except as required by law.
Excerpts from the Fund's quarterly financial report (unaudited):
Contacts:
PRT Growing Services Ltd.
Tony Pollard
VP Finance/CFO
(866) 553-8733 ext. 229
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Datum: 10.11.2011 - 16:28 Uhr
Sprache: Deutsch
News-ID 1056109
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