Business
Hardwoods Distribution Income Fund Announces 2009 Fourth Quarter and Year-End Results
Hardwoods Distribution Income Fund Announces 2009 Fourth Quarter and Year-End Results
About this update from Adentra Inc
[{"type":"text","content":"\n\n\n\nLANGLEY, BC, Mar. 29, 2010 (Canada NewsWire Group) -- /CNW/ -- Hardwoods Distribution Income Fund (the \"Fund\") today reported financial results for the three months and 12 months ended December 31, 2009. The Fund's results are based on the performance of Hardwoods Specialty Products LP and Hardwoods Specialty Products USLP (collectively \"Hardwoods\") - one of North America's largest wholesale distributors of hardwood lumber and related sheet good products. Hardwoods operates 27 distribution centres in the U.S. and Canada.2009 Overview(For the 12 months ended December 31, 2009)- Full-year revenue declined 25.5% to $190.9 million- Gross profit percentage increased to 18.1%, from 18.0% in 2008- Selling and administrative expenses were successfully reduced by$5.8 million, a 14.0% reduction from 2008- The Fund recorded an EBITDA loss of $1.2 million, compared to anEBITDA profit of $5.9 million in 2008- A net loss of $10.2 million was recorded, compared to a net loss of$36.2 million in 2008- The Fund continued to strengthen its balance sheet, reducing debt by$13.0 million and ending the year with just $4.5 million of bankindebtedness (net of cash)\"We maintained stable gross margins, reduced expenses and strengthened our financial position in the midst of extremely challenging market conditions,\" said Maurice Paquette, Hardwoods President and CEO in describing results for the fourth quarter and 12 months of fiscal 2009.\"As we anticipated, the collapse of the US housing market and recessionary conditions in the US and Canada continued to negatively affect demand and prices for our products. Although we saw indications of stability returning to the residential construction market in the second half of 2009, it remains uncertain to what extent market conditions will improve. We have not yet seen any corresponding improvement in demand for the hardwood products we sell, which normally lag changes in housing starts by six to twelve months. Fourth quarter and full-year sales and EBITDA results remained well below last year's levels,\" added Paquette.\"To help mitigate the short-term sales impact of these conditions, we implemented new incentive programs in 2009 that rewarded our sales force for identifying and winning new customer accounts and for implementing new product programs that produce sustained sales. Approximately 18%...