Business
Badger Income Fund announces results for the first quarter ended March 31, 2007 and acquisition of Benko Sewer Service in Eastern Canada
Badger Income Fund announces results for the first quarter ended March 31, 2007 and acquisition of Benko Sewer Service in Eastern Canada.
About this update from Badger Infrastructure Solutions Ltd
[{"type":"text","content":"\n\n\n\nCALGARY, May 15 /CNW/ - Badger Income Fund (the "Fund" or "Badger") is\npleased to announce its first-quarter results. Revenues increased by\napproximately seven percent to $27.6 million for the three months ended\nMarch 31, 2007 from $25.7 million for the same period in 2006, due to\nincreased activity in the United States. However, due to an early spring\nbreak-up in Western Canada and added personnel costs, net earnings, EBITDA and\nfunds generated from operations each decreased marginally in the first quarter\nof 2007 from the same period in 2006. Effective April 1, 2007 Badger purchased\nBenko Sewer Service, a well-managed company in Eastern Canada that provides\nsewer maintenance and hydrovac services. This acquisition provides Badger with\nmore complete hydrovac coverage in the southern Ontario market, an additional\nservice offering to customers in that specific region and a strong addition to\nBadger's management team. Benko's sales in the company's 2006 fiscal year were\napproximately $4 million.\n\n\nFINANCIAL HIGHLIGHTS\n\n($ thousands, except per unit and\n total units outstanding information)\n\n Three months Three months\n ended ended\n March 31, 2007 March 31, 2006\n --------------------------------\nRevenues 27,574 25,729\n\nEBITDA(1) 7,849 8,032\n\nEarnings before income taxes 5,217 5,916\n\nTaxes\n Current 187 185\n Future 801 711\n\nNet earnings 4,230 5,020\n\nNet earnings per unit - diluted 0.39 0.47\n\nFunds generated from operations(2) 7,585 7,750\n\nFunds generated from operations per unit\n - diluted 0.70 0.72\n\nMaintenance capital expenditures(3) 667 635\n\nLong-term debt repayments 27 27\n\nCash available for growth and distribution(4) 7,015 7,190\n\nCash distributions declared 3,389 3,158\n\nGrowth capital expenditures(3) 2,153 4,875\n\nTotal units outstanding, end of period 10,758,618 10,749,480\n--------------------------------------------------\n\nThe following financial measures do not have any standardized meaning\nprescribed by Canadian generally accepted accounting principles (GAAP) and may\nnot be comparable to similar measures as presented by other funds or entities:\n\n(1) Earnings before interest, taxes, depreciation and amortization\n(EBITDA) is a measure of the Fund's operating profitability and is\ntherefore useful to management and investors. EBITDA provides...