Business
Hardwoods Distribution Income Fund Announces 2009 Second Quarter Results
Hardwoods Distribution Income Fund will hold a conference call and webcast to discuss second quar...
About this update from Adentra Inc
[{"type":"text","content":"\n\n\n\nHardwoods Distribution Income Fund will hold a conference call and\nwebcast to discuss second quarter and first half financial results on\nAugust 7, 2009 at 8:00 a.m. Pacific Time (11:00 am Eastern). The call can\nbe accessed by dialing: 1-866-250-4910 or 416-644-3434. A replay will be\navailable until August 21, 2009 at: 1-877-289-8525 or 416-640-1917\n(Passcode 21312100 followed by the number sign).\n\n\nLANGLEY, BC, Aug. 6 /CNW/ - Hardwoods Distribution Income Fund (the\n"Fund") today reported financial results for the second quarter and first half\nof 2009. The Fund's results are based on the performance of Hardwoods\nSpecialty Products LP and Hardwoods Specialty Products USLP (collectively\n"Hardwoods") - one of North America's largest wholesale distributors of\nhardwood lumber and related sheet good products. Hardwoods serves over 2000\nindustrial customers through a network of 27 distribution centres in the US\nand Canada.\n\n\nSecond Quarter Overview\n\n(For the three months ended June 30, 2009)\n\n- Second quarter revenue declined 25.6% to $49.5 million year-over-year\n\n- Gross profit percentage of 17.5% declined from 18.0% in Q2 2008\n\n- Selling and administrative expenses decreased by 4.4% to\n $8.8 million, from $9.2 million in Q2 2008\n\n- Second quarter EBITDA, net loss and Distributable Cash were lower\n year-over-year\n\n- The Fund amended its US credit facility to gain more covenant\n flexibility and ease financing risk in the US\n\n- Hardwoods continued to rationalize its distribution network with the\n closure of two additional satellite branches\n\n\n"We continued to feel the impact of reduced market demand and lower\nprices for hardwood lumber products during the second quarter," said Maurice\nPaquette, Hardwoods' President and CEO.\n\n\n"The Canadian and US economies remained weak, with housing starts at\nhistorically low levels. Hardwood lumber prices also continued to decline in\nreaction to lower demand. While we began to see indications that the US\nhousing market may finally be starting to stabilize, we do not expect to see\nany corresponding benefit in hardwood prices or demand for several more\nquarters. As we have noted previously, hardwood demand typically lags the\nresidential construction cycle because kitchen cabinets and furniture, which\nare key end...