Business
Richards Packaging Income Fund announces 2019 Results and Normal course issuer bid
Richards Packaging Income Fund announces 2019 Results and Normal course issuer bid ...
About this update from Richards Group Inc.
[{"type":"text","content":"\n\n\n\nRichards Packaging Income Fund announces 2019 Results and Normal course issuer bid\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\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, March 6, 2020\n\n\n\nTORONTO, March 6, 2020 /CNW/ - Richards Packaging Income Fund (TSX: RPI.UN) (the \"Fund\") announced today results for the fourth quarter and the year ended December 31, 2019 and a continuation of the normal course issuer bid.\n\"Due to the weak Canadian GDP in the fourth quarter we were not able to make up for the lost two large customers ($2 million) from the Trump China tariff.  Even though it was a volatile year, our overall sales growth exceeded expectations with revenue growth of 5%.\nRevenue for the first quarter to date is growing double digits due to the spike in demand for healthcare products associated with combatting the coronavirus.  As well, inventory levels have shielded our performance to date associated with the Canadian rail blockades.  The shocks created by a new China countervailing tariff coming up in April will cause the US market to keep adjusting until it finds equilibrium.  It is unclear what the impacts of these factors will be for the remainder of 2020.\nSignificant changes to the balance sheet include a $12.5 million payment on the debt and a $13.7 million conversion of exchangeable shares to units offset by $6.7 million mark to market loss.\nOne key thing to note is that the new lease accounting policy required under IFRS was implemented effective January 1st with the impact outlined in the notes to the financial statements. After discussions with our bank we also modified the definition of adjusted EBITDA and distributable cash flow to reverse the effects of these changes as outlined in the MD&A.\" commented Gerry Glynn, Chief Executive Officer.\nThe Fund also announces that it intends to continue the normal course issuer bid to acquire up to 500,000 of its outstanding trust units representing approximately 4.4% of its issued and outstanding units.  Under the previous normal course issuer bid ending March 14, 2020, 500...