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Sun Gro Horticulture Income Fund Releases 2006 First Quarter Results, Achieving Record Operating Income and Distributable Cash Flow
Sun Gro Horticulture Income Fund Releases 2006 First Quarter Results, Achieving Record Operating Income and Distributable Cash Flow.
About this update from Coloured Ties Capital Inc
[{"type":"text","content":"\n\n\n\n\nTRADING SYMBOL: Toronto Stock Exchange - GRO.UN\n\nSun Gro Horticulture Income Fund will hold a conference call and webcast\nto discuss its 2006 first quarter results on May 3, 2006 at 7:30 am\nPacific Time (10:30 am Eastern). The call can be accessed by dialing:\n1-866-249-2165 or 416-644-3416. A replay will be available through\nMay 18, 2006 at: 1-877-289-8525 or 416-640-1917. (Passcode: 21187172\nfollowed by the number sign) The live and archived webcast can be\naccessed at: http://www.vcall.com/IC/CEPage.asp?ID(equal sign)104350\n\nVANCOUVER, May 2 /CNW/ - Sun Gro Horticulture Income Fund (the \"Fund\")\ntoday reported financial results for the three-month period ended March 31,\n2006, which represents the first quarter of the Fund's 2006 fiscal year.\nSun Gro also announced today the appointment of John Zaplatynsky to the\nboard of directors of Sun Gro Horticulture Canada Ltd. (\"Sun Gro\", or the\n\"company\"), the Fund's wholly owned subsidiary. Mr. Zaplatynsky's appointment\nas a director of Sun Gro is effective May 2, 2006. He replaces Rod Senft, who\nresigned from the board effective April 24, 2006.\n\nOperating Results\nFor the three months ended March 31, 2006, Sun Gro recorded revenue of\n$58.3 million, down by 2% from the $59.6 million recorded in the first quarter\nof 2005. The $1.3 million revenue difference was primarily due to a reduction\nin professional growing mix sales volumes, offset by increased professional\npeat moss sales volumes and generally improved pricing performance.\nSun Gro's first quarter growing mix volumes, as measured in equivalent\nbales (or EBs, the company's standard unit of volume measurement, referring to\n10 cubic feet of peat), decreased by 10% while professional peat moss volumes\nwere up by 4%. During the quarter, one of Sun Gro's larger professional\ngrowing mix customers purchased greater volumes of peat moss and less mix. In\ncertain other large Sun Gro accounts, order patterns reduced the first quarter\nmix volume due to customers' inventory levels. At the same time, a few of the\ncompany's significant peat moss customers made large, additional peat\npurchases.\nDespite the lower volumes, Sun Gro recorded its highest ever quarterly\noperating income, due mainly to significantly lower distribution expenses. As\nin the final quarter of 2005, Sun Gro reduced its cross-re...