Business
Richards Packaging Income Fund announces Monthly Distribution Increase, 2016 Performance and Normal Course Issuer Bid
Richards Packaging Income Fund announces Monthly Distribution Increase, 2016 Performance a...
About this update from Richards Group Inc.
[{"type":"text","content":"\n\n\n\nRichards Packaging Income Fund announces Monthly Distribution Increase, 2016 Performance 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 2, 2017\n\n\n\nTORONTO, March 2, 2017 /CNW/ - Richards Packaging Income Fund (TSX: RPI.UN) (the \"Fund\") announced today a monthly distribution increase, results for the quarter and year ended December 31, 2016 and a continuation of the normal course issuer bid.\n\nThe trustees approved an 18% increase to the monthly distribution by 1.65¢ to 11¢ per Unit beginning with the distribution to unitholders of record at the close of business on March 31, 2017 payable on April 14, 2017.  \n\nFourth quarter results reflected organic growth of $2.1 million, or 3.1%, slightly ahead of GDP growth and the dollar flat at U.S./Cdn. $0.75.  EBITDA1 was up $0.8 million on higher revenues at 13% of sales.  Net income was up $0.2 million as the higher EBITDA and the $0.8 million excess of insurance proceeds were mostly offset by an increase in the contingent consideration for the Healthmark acquisition of $2.9 million and the $1.4 million loss on mark-to-market of exchangeable shares.\n\nOverall the 2016 performance exceeded our expectations with revenue growth of 15%.  The Healthmark acquisition and organic growth added 12.5% while the dollar depreciation of 3¢ to U.S./Cdn. $0.75 added an additional 2.5% to revenue.  EBITDA as a percentage of sales rose 0.8% to 13%, or by $7.9 million.  Net income was $7.9 million, or $0.73 per Unit, down $2.6 million from 2015 which mainly reflects higher EBITDA offset by contingent consideration for the Healthmark acquisition and the mark-to-market loss on exchangeable shares due to a $5.61/Unit appreciation.  \n\n\"What a difference a year makes…2015 was the sling shot effect of the foreign currency devaluation (U.S./Cdn. 12¢) while 2016 was all about the benefits of the Healthmark acquisition, in both cases leading to explosive value creation in excess of $5 per Unit annually...