Business
Sun Gro Horticulture Income Fund Releases 2006 Third Quarter Results - Fund Generates Strong Distributable Cash and Operating Income
Sun Gro Horticulture Income Fund Releases 2006 Third Quarter Results - Fund Generates Strong Distributable Cash and Operating Income.
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 2006 third quarter and nine-month results on November 7, 2006\nat 7:30 am Pacific Time (10:30 am Eastern). The call can be accessed by\ndialing: 1-800-814-4860 or 416-644-3417. A replay will be available\nthrough November 21, 2006 at: 1-877-289-8525 or 416-640-1917. (Passcode:\n21205830 followed by the number sign)\n\nTo access the live and archived webcast, please go to:\nhttp://www.vcall.com/IC/CEPage.asp?ID(equal sign)109992 or to the fund's\nwebsite at: www.sungro.com.\n\nVANCOUVER, Nov. 6 /CNW/ - Sun Gro Horticulture Income Fund (the \"Fund\")\ntoday reported financial results for the three and nine-month periods ended\nSeptember 30, 2006. The three-month period represents the third quarter of its\n2006 fiscal year.\nFor the third consecutive quarter, the Fund generated record\nyear-over-year distributable cash. In the three months ended September 30,\n2006, it earned $7.1 million, or $0.32 per unit, of distributable cash, up\nfrom $5.2 million, or $0.24 per unit, in the third quarter of 2005.\nDistributable cash for the nine-month period totalled $19.8 million, or $0.90\nper unit, up from $16.3 million, or $0.74 per unit, in 2005. Distributable\ncash paid to unitholders was unchanged at $5.0 million, or $0.225 per unit,\nfor the quarter and $14.9 million, or $0.675 per unit, for the nine months in\nboth years. This represents an annualized distribution rate of $0.90 per unit.\n\"The sustained improvement in our distributable cash generation is\nenabling us to reduce the Fund's payout ratio, which is one of our primary\ngoals,\" said Mitch Weaver, Sun Gro's President and CEO and a Trustee of the\nFund. \"We are extremely pleased with our performance in this area and remain\nconfident of our ability to maintain distributions at the current rate.\"\n\n>\n\nThree-Month Operating Results\n\nIn the third quarter of 2006, the Fund's wholly owned subsidiary, Sun Gro\nHorticulture Canada (\"Sun Gro\", or the \"company\"), continued the trend of\ngross margin improvement it began early in the year. For the three months,\ngross margin improved by 3% year-over-year, from 50% in 2005 to 53% in 2006.\nThe gain was primarily due to the positive effect of Sun Gro's price increases\nin offsetting...