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Richards Packaging Income Fund announces 2019 Second Quarter Results
Richards Packaging Income Fund announces 2019 Second Quarter Results Canada NewsWi...
About this update from Richards Group Inc.
[{"type":"text","content":"\n\n\n\nRichards Packaging Income Fund announces 2019 Second 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\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, July 29, 2019\n\n\n\nTORONTO, July 29, 2019 /CNW/ - Richards Packaging Income Fund (TSX: RPI.UN) (the \"Fund\") announced today results for the quarter ended June 30, 2019.      \n\"The shock created by the Trump China tariff will cause the US market to keep adjusting until it finds equilibrium.  We lost a large customer (US$4 million per annum) to a domestic glass manufacturer and a second large customer (CAD$4 million per annum) due to customer consolidation.  Although we experienced revenue growth of 6.5% for the second quarter, organic growth was 2.8%, down from 5.6% during the first quarter.  We mitigated the impact during the second quarter as the lost revenue from two large customers ($2.0 million) was offset by the sale of our extra inventory investment to large customers outside our base ($1.1 million or 1.4%) and organic growth.  The remaining 3.7% reflects the benefits of a weakening Canadian dollar to U.S./Cdn.$0.75.  At current exchange levels, no further gains from translation will be realized in 2019.    \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 paid return of capital of 33¢ per Unit during the second quarter, which represented an annualized yield of 3.1% on the June 30th closing price of $42.91 per Unit.  \nDetails of the Fund's results are currently available on Richards Packaging's website at www.richardspackaging.com and on SEDAR at www.sedar.com.\nAbout Richards Packaging Income Fund\nThe Fund owns Richards Packaging ...