Business
Sun Gro Horticulture Income Fund Releases 2010 First Quarter Results
Sun Gro Horticulture Income Fund Releases 2010 First Quarter Results
About this update from Coloured Ties Capital Inc
[{"type":"text","content":"\n\n\n\n May 10, 2010 (Canada NewsWire Group) -- Fund continues to strengthen balance sheet; Sun Gro posts 9% sales volume growth\n\nTRADING SYMBOL: Toronto Stock Exchange - GRO.UN\n\nSun Gro Horticulture Income Fund will hold a conference call and webcast to discuss 2010 first quarter financial results on Tuesday, May 11 at 7:30 am Pacific Time (10:30 am Eastern). The call can be accessed by dialing: 1-888-231-8191 or 647-427-7450 (Greater Toronto Area and International).\n\nA replay will be available through May 24, 2010 at: 1-800-642-1687 or 416-849-0833. Passcode 73267894.\n\nTo access the live and archived webcast, please go to: http://www.investorcalendar.com/IC/CEPage.asp?ID=158387 or to the Fund's website at: www.sungro.com.\n\n Sun Gro Horticulture Income Fund (the Fund) today reported financial results for the three months ended March 31, 2010, which represents the first quarter of its 2010 fiscal year. Sales volumes for the period increased by 9%, as measured in equivalent bales, or EBs (referring to 10 cubic feet of product), compared to the same three months of 2009. US dollar revenues increased by a similar amount. As expected, the stronger Canadian dollar reduced overall revenues and gross margin, but positively impacted selling, general and administrative expenses. Distribution costs were up due to the higher sales volumes and a slight increase in per-EB costs on shipments from US facilities. These factors drove a relatively modest 4% reduction in EBITDA from the quarterly record amount reported for the same three months of 2009. Net earnings increased by 76% from the first quarter of last year.\n"Given that the average value of the Canadian dollar compared to the US dollar appreciated by 20% from the first quarter of last year, we are pleased with our performance in the first three months of 2010," said Mitch Weaver, President and CEO of Sun Gro and a Trustee of the Fund. "Our cost structure benefited from the higher volumes as well as our ongoing focus on production efficiency. We continued to reduce our debt obligations, as well as our interest expense, and our senior leverage ratio remained well below the level permitted under our debt covenants."\n\nFirst Quarter Financial Results\n\nRevenue for the first quarter of 2010 was $64.2 million, down from $69.0 million in 2009. The average Cana...