Foremost Income Fund Reports 2015 Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 03/29/16 -- Foremost Income Fund ("Foremost" or the "Fund") announces the financial results for the twelve months ended December 31, 2015.
OVERVIEW
The Fund is an unincorporated open end mutual fund trust conducting its business through two operating segments, Foremost Energy Equipment ("FEE") and Foremost Mobile Equipment ("FME"). FEE''s overall business is focused on the oil and gas industry and includes activity from six manufacturing sites throughout Alberta. FME manufactures off-highway large wheeled and tracked vehicles, hydrovac and vacuum trucks, equipment for custom drilling, construction, water wells, and mining sectors. FME has three manufacturing facilities located in Alberta.
MESSAGE TO UNITHOLDERS
At this stage in the economic cycle, it is clear to us that we were fortunate to have acted much earlier than others in the energy marketplace by beginning a very comprehensive review of our cost structure and strategic positioning in the 2nd Quarter of 2014. Our 2015 full-year results continue to show cost performance improvements in the face of substantial softening of demand driven by the current energy market swoon.
The work over the last two years, combined with the strength of our balance sheet, has put us in a position to weather significant storms that may lie ahead. Today we are sitting on a strong cash position, have no material debt, and own all of our major facilities. We believe it is necessary and prudent to maintain this defensive posture while we continue to navigate an extremely low commodity-price cycle. We have taken steps to diversify our reliance on energy-focused products with our work in the Hydrovac truck market. Our US distributor of Hydrovac trucks has been developing the markets in a very positive manner, and this relationship will continue to bear fruit for Foremost in the years ahead. Our work in manufacturing Hydrovac trucks is helping achieve a goal for Foremost to broaden into other markets that will help us stabilize revenue and profit streams into the future. This will be particularly important in 2016 and 2017 as the entire energy marketplace struggles.
As we look to the future, we will continue to adjust Foremost''s size to match customer demand in all product categories while keeping an eye to our core offerings, capabilities, and talents essential to our long-term health. We also will use this downturn to assess where and how we can push forward with new offerings and drive efficiency projects and investments to help us strengthen operating performance now and for when markets improve.
As the board announced in September 2015, Kevin Johnson moved into his new role as President on January 1, 2016. I look forward to continuing to work with Kevin as I return to my role as Chairman of the Board of Trustees of the Fund. Kevin is a very talented manager with a good history at Foremost, and we look forward to great things from him and his management team in the years ahead.
Bevan May, Board Chairman
2015 Highlights:
TRUST UNIT REDEMPTIONS AND DISTRIBUTIONS
The Fund redeemed 78,996 (2014 - 125,003) Trust Units during the year through its redemption program resulting in cash payments of $400 (2014 - $443) and notes payable of $93 (2014 - $428).
On December 31, 2015 the Fund made a special non-cash distribution of $0.54 per unit, resulting in a distribution of 1.6 million units. Immediately following the distribution the number of outstanding trust units were consolidated, such that each unitholder held the same number of trust units as before the distribution. In 2014 the Fund distributed taxable income of $0.32 per unit, resulting in a cash payment of $5.9 million.
The Trustees have determined that, as of the date of March 24, 2016 the Fund will redeem tendered Trust Units $6.05 per unit.
On behalf of the Trustees Foremost Income Fund
Bevan May, Board Chairman
FORWARD-LOOKING STATEMENT
Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements include statements the Fund''s intention to proceed with a Unitholders'' meeting and information regarding the Trustees'' views of the future prospects and tax treatment of the Fund and tax treatment of the Special Redemption, the Fund''s expectations regarding the future availability of cash to meet redemption requests and the Trustee''s expectations for redemption prices in December 2011 and January 2012. These statements reflect management''s current expectations regarding future events and operating performance and speak only as of the date of this news release. These forward-looking statements involve a number of risks and uncertainties, including: the impact of general economic conditions, industry conditions, changes in laws and regulations, increased competition, fluctuations in commodity prices and foreign exchange, and interest rates and stock market volatility.
Contacts:
Investor Relations
Jackie Schenn, CA
(403) 295-5800 or toll free 1-800-661-9190 (Canada/US)
(403) 295-5832 (FAX)
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Datum: 29.03.2016 - 18:05 Uhr
Sprache: Deutsch
News-ID 1424682
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Oil & Gas
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