Business
Swiss Water Decaffeinated Coffee Income Fund reports third quarter results, 29.7% year-to-date revenue increase
Swiss Water Decaffeinated Coffee Income Fund reports third quarter results, 29.7% year-to-date revenue increase.
About this update from Swiss Water Decaffeinated Coffee, Inc.
[{"type":"text","content":"\n\n\n\n\nTRADING SYMBOL: The Toronto Stock Exchange - SWS.UN\n\nSwiss Water Decaffeinated Coffee Income Fund will hold a conference call\nto discuss 2006 third quarter and nine-month results on November 7, 2006\nat 8:00 am Pacific Time (11:00 am Eastern). The call can be accessed by\ndialing: 1-800-733-7560 or 416-915-5651. A replay will be available\nthrough November 21, 2006 at: 1-877-289-8525 or 416-640-1917.\n(Passcode: 21209015 followed by the number sign.)\n\nVANCOUVER, Nov. 6 /CNW/ - Swiss Water Decaffeinated Coffee Income Fund\n(\"the Fund\") today reported financial results for the three and nine months\nended September 30, 2006. The Fund holds all the outstanding securities of\nSwiss Water Decaffeinated Coffee Company, Inc. (\"SWDCC\" or \"the company\") and\nits results are dependent on the operating results of SWDCC.\n\n>\n\nIn the three months ended September 30, 2006, SWDCC recorded a 12%\nyear-over-year increase in sales and a 10% increase in processing volumes. For\nthe first nine months of 2006, sales were up by 29.7% compared to the same\nperiod in 2005.\nThe processing volume increase is primarily attributable to new customer\nvolumes and the competitive pricing strategy implemented by SWDCC in January\n2006, coupled with normalized customer order patterns. The more normal order\npatterns resulted from this year's more stable New York 'C' (NYC) coffee\ncommodity price index.\nEBITDA for the three months was up by 19% year-over-year as a result of\nthe increased volume, partially offset by foreign exchange and the inclusion\nof marked-to-market commodity forward contract losses in income. The positive\nimpact of the volume growth was also partially offset by planned increases in\noverheads and minor key customer contract adjustments from 2005. For the\nnine-month period, EBITDA was up by 11% over 2005.\nThird quarter net income of $0.6 million was down by 31% year-over-year,\ndue in part to increased depreciation costs following the recent activation of\nthe company's second production line. For the first nine months of 2006, the\nFund recorded net income of $4.1 million, which was down by 9% over the\ncomparable period in 2005, also partially due to increased depreciation on the\nnew line.\nDistributions to unitholders in the third quarter were maintained at the\nlevel set in December 2005. During the three m...