Business
Hardwoods Distribution Income Fund Announces 2010 First Quarter Results
Hardwoods Distribution Income Fund Announces 2010 First Quarter Results
About this update from Adentra Inc
[{"type":"text","content":"\n\n\n\n May 7, 2010 (Canada NewsWire Group) -- TRADING SYMBOL: Toronto Stock Exchange - HWD.UN\n\nHardwoods Distribution Income Fund will hold a conference call to discuss first quarter financial results on May 10, 2010 at 8:00 a.m. Pacific Time (11:00 am Eastern). The call can be accessed by dialing: (888) 231 - 8191 or (647) 427 - 7450. A replay will be available until May 24, 2010 at: 800-642- 1687 or 416-849-0833 (Passcode 71777571).\n\n Hardwoods Distribution Income Fund (the "Fund") today reported financial results for the three months ended March 31, 2010. 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 US and Canada.\n\n\n >\n\n\n"The first quarter of 2010 brought encouraging developments with signs of stabilization in demand, stronger hardwood lumber prices and improving EBITDA and Distributable Cash results for the Fund," said Maurice Paquette, Hardwoods' President and CEO.\n"Our underlying sales increased by 1.4% compared to the first quarter a year ago, and our total sales were 16.6% higher than the sales we reported in the fourth quarter of 2009. This was the first sequential quarter-over-quarter sales gain we've seen in our business in two years and it suggests that hardwood demand is starting to catch up with the stabilizing trend that emerged in the residential construction market midway through 2009. Demand for hardwood products typically lags the residential construction cycle by between six and twelve months because our products are used in the final stages of house construction," added Mr. Paquette.\n"Our sales also benefited from an increase in hardwood lumber pricing, which rose 8.7% compared to the same period in 2009. This increase was largely driven by mill supply shortages, as most manufacturers are operating with minimal inventories."\n"While strengthening our underlying sales, we continued to reduce our costs in the first quarter. Sales and administrative expense fell by 14.3%, reflecting a positive foreign exchange impact on costs at our US operations and the benefits of last year's branch ra...