Business
The DATA Group Income Fund announces first quarter results for 2010
The DATA Group Income Fund announces first quarter results for 2010
About this update from Data Communications Management Corp.
[{"type":"text","content":"\n\n\n\n May 6, 2010 (Canada NewsWire Group) -- \n >\n\n\n The DATA Group Income Fund (TSX: DGI.UN) ("the Fund") today announced financial and operating results for the first quarter ended March 31, 2010, which include the results of operations for The Data Group Limited Partnership (the "Data Group").\n"The current economic environment, in our view, continues to be very fluid, volatile and difficult to predict. Despite occasional glimmers of hope, the first quarter of 2010 results suggest that the recovery will be slow in arriving. Consequently, we continue to manage on a more of the same basis", said David Odell, President and Chief Executive Officer.\n\nOutlook\n\nThe first quarter of 2010 continued to be uncertain. While the Data Group continued to benefit from new business wins achieved in 2009, many of its traditional customers continued to experience lower activity levels. As a result, the Data Group experienced a 5.4% reduction in first quarter revenues compared to the same period in 2009. The Fund's Board of Trustees will continue to closely monitor the Fund's monthly distribution levels in light of the current economy and the Fund's on-going cash available for distribution and cash resources. Management believes the Data Group is well positioned to benefit from an economic recovery.\nOn April 27, 2010, the Fund issued $45 million aggregate principal amount of 6.00% convertible unsecured subordinated debentures (the "6.00% Convertible Debentures"). The 6.00% Convertible Debentures bear interest at a rate of 6.00% payable semi-annually, in arrears, on June 30 and December 31 in each year commencing on December 31, 2010. The 6.00% Convertible Debentures mature on June 30, 2017 and are convertible into trust units of the Fund, at the option of the holder prior to maturity or redemption at a conversion price of $12.20 per unit, subject to adjustment in certain events. The net proceeds of the offering will be used to reduce the Data Group's outstanding bank indebtedness. Principal amounts repaid by the Data Group under its credit facilities may be redrawn under those credit facilities.\n\n\n >\n\n\nResults of Operations\n\nThe DATA Group Income Fund\n\nOverview\n\nThe Data Group is a leading provider of total document management solutions, including printed products, and operates as th...