Business
Sun Gro Horticulture Income Fund Releases 2009 First Quarter Results
Strong performance sustained; Fund delivers best ever quarterly EBITDA, more than doubles distrib...
About this update from Coloured Ties Capital Inc
[{"type":"text","content":"\n\n\n\nStrong performance sustained; Fund delivers best ever quarterly EBITDA,\nmore than doubles distributable cash, reduces term debt\n\nTRADING SYMBOL: Toronto Stock Exchange - GRO.UN\n\nSun Gro Horticulture Income Fund will hold a conference call and webcast\nto discuss 2009 first quarter results on Wednesday, April 29, 2009 at\n7:30 am Pacific Time (10:30 am Eastern). The call can be accessed by\ndialing: 1-800-814-4862 or 416-644-3430 (Greater Toronto Area and\nInternational).\n\nA replay will be available through May 14, 2009 at: 1-877-289-8525 or\n416-640-1917. Passcode 21304687 followed by the number sign.\n\nTo access the live and archived webcast, please go to:\nhttp://www.investorcalendar.com/IC/CEPage.asp?ID(equal sign)144212 or to\nthe fund's website at:\nwww.sungro.com.\n\n\nVANCOUVER, April 28 /CNW/ - Sun Gro Horticulture Income Fund (the Fund)\ntoday reported financial results for the three months ended March 31, 2009,\nwhich represents the first quarter of its 2009 fiscal year. The Fund's\nwholly-owned subsidiary, Sun Gro Horticulture Canada Ltd. (Sun Gro) recorded\noperating income of $8.6 million, up seven-fold from the first quarter of\n2008. Gross margin was maintained at the 46% achieved in the final quarter of\n2008, up from 39% in the first three months of 2008. Distributable cash for\nthe quarter was up by 143% year-over-year. At the Florida operations Sun Gro\nacquired in October 2007, sales and EBITDA improved by 17% and 273%, \nrespectively, in US dollars. Finally, first quarter net income improved to \n$3.3 million from a loss of $1.4 million in 2008.\n\n\nThe positive results were driven by a combination of factors. A much\nstronger US dollar improved revenue, while critical elements of Sun Gro's cost\nstructure, such as transportation and manufacturing, benefited from efficiency\n and cost-saving initiatives implemented in 2008. Lower energy prices also \ncontributed to reduced costs.\n\n\nFirst Quarter Financial Results\n\n\nRevenues for the first three months of the year increased by 14% over\n2008. US dollar product pricing was stable, while the average value of the US\ndollar strengthened by 24%, when compared to the first quarter of 2008. Sales\nvolumes declined in both the peat and bark-based growing mix, and straight\npeat moss product categories. Growing mix sales volumes were down by 8%\...