Business
Sun Gro Horticulture Income Fund Releases 2009 Second Quarter Results
Sun Gro sustains improved performance; Fund delivers significantly improved net earnings, reduces...
About this update from Coloured Ties Capital Inc
[{"type":"text","content":"\n\n\n\nSun Gro sustains improved performance; Fund delivers significantly\nimproved net earnings, reduces debt by $6.1 million\n\nTRADING SYMBOL: Toronto Stock Exchange - GRO.UN\n\nSun Gro Horticulture Income Fund will hold a conference call and webcast\nto discuss 2009 second quarter results on Thursday, August 6, 2009 at\n7:30 am Pacific Time (10:30 am Eastern). The call can be accessed by\ndialing: 1-866-249-2157 or 416-915-5648 (Greater Toronto Area and\nInternational).\n\nA replay will be available through August 20, 2009 at: 1-877-289-8525 or\n416-640-1917. Passcode 21311453 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)146701 or to\nthe Fund's website at: www.sungro.com.\n\n\nVANCOUVER, Aug. 5 /CNW/ - Sun Gro Horticulture Income Fund (the Fund)\ntoday reported financial results for the three months ended June 30, 2009,\nwhich represents the second quarter of its 2009 fiscal year. The Fund's\nwholly-owned subsidiary, Sun Gro Horticulture Canada Ltd. (Sun Gro or the\ncompany) recorded operating income of $4.9 million, up from $0.4 million in\nthe second quarter of 2008. Year-over-year, revenues increased by 5% and\nEBITDA was up by 15%, while gross margin improved to 41% from 39% in 2008. Net\nearnings for the quarter also improved markedly, swinging from a loss of $21.2\nmillion in 2008 to a profit of $9.0 million in 2009.\n\n\nAs in the first quarter of the year, these positive results were achieved\ndespite lower sales volumes as a result of the difficult economic conditions.\nThe performance improvement was driven by a combination of factors. Revenues\nand gross margin benefited from a stronger US dollar, while the favourable\neffect of Sun Gro's 2008 productivity initiatives continued to be reflected in\ncritical elements of its cost structure, most notably transportation and\nmanufacturing. Lower energy prices also again contributed to reduced costs\nduring the quarter.\n\n\n"As demonstrated by our recent results and in line with our expectations,\nthe cash generating capacity of Sun Gro has continued to improve, even in the\ncurrent difficult market," said Mitch Weaver, President and CEO of Sun Gro and\na Trustee of the Fund. "Moving through the second half of the year, we will be\nmaintaining our foc...