Business
Richards Packaging Income Fund announces 2017 Third Quarter Results
Richards Packaging Income Fund announces 2017 Third Quarter Results Canada NewsWir...
About this update from Richards Group Inc.
[{"type":"text","content":"\n\n\n\nRichards Packaging Income Fund announces 2017 Third Quarter Results\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prngen3{\nBORDER-BOTTOM:1pt; BORDER-LEFT:1pt; PADDING-LEFT:0.50em; PADDING-RIGHT:0.50em; VERTICAL-ALIGN: BOTTOM; BORDER-TOP:1pt; BORDER-RIGHT:1pt\n}\n.prngen2{\nBORDER-BOTTOM:1pt; TEXT-ALIGN: LEFT; BORDER-LEFT:1pt; PADDING-LEFT:0.50em; PADDING-RIGHT:0.50em; VERTICAL-ALIGN: TOP; BORDER-TOP:1pt; BORDER-RIGHT:1pt\n}\n.prntblns{\nBORDER-BOTTOM: 1pt; BORDER-LEFT: 1pt; BORDER-COLLAPSE: collapse; BORDER-TOP: 1pt; BORDER-RIGHT: 1pt\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Oct. 26, 2017\n\n\n\nTORONTO, Oct. 26, 2017 /CNW/ - Richards Packaging Income Fund (TSX: RPI.UN) (the \"Fund\") announced today results for the quarter ended September 30, 2017.      \n\nAs expected, third quarter performance reflects a reversion to the long term exchange rates, as total revenue increased 2.4%, 3.8% organic growth offset by a U.S./Cdn. 3.2¢ strengthening of the dollar to 80¢, up 6¢ from the second quarter.  Organic growth was above our outlook but in line with GDP growth in both Canada and the United States.  Gross profit and EBITDA1 as a percent of sales were similar to the first half at 17.8% and 13.5% respectively.  EBITDA was up $0.4 million, or 4.7%, due to higher sales.  Net income was up $1.0 million, or 2.6¢ per Unit, with higher EBITDA and no repeat of contingent consideration revaluation for the Healthmark acquisition and a higher mark-to-market gain on exchangeable shares offset by increased income taxes.\n\nThe $0.9 million of free cash flow2 generated in the third quarter was deployed to pay down the debt by $1.0 million.  We have set aside $1.3 million of cash to fund the taxes associated with the refinancing of the US dollar denominated intercompany notes.  The Fund's leverage remained at 0.9x as it was at June 30, 2017.\n\nThe Fund paid monthly distributions of 11¢ per Unit during the third quarter, which represented an annualized yield of 4.6% on the September 30th ...