Westshore Terminals Income Fund - 2005 first quarter report

About this update from Westshore Terminals Investment Corporation

[{"type":"text","content":"\n\n\n\n\nVANCOUVER, May 5 /CNW/ - Westshore Terminals Income Fund (TSX: WTE.UN)\nannounced today its earnings for the first quarter ending March 31, 2005.\nPlease see attached Report to Unitholders for details.\n\n\nWestshore Terminals Income Fund\nFirst Quarter Report\nFor the three months ended March 31, 2005\n-------------------------------------------------------------------------\n\nDear Unitholders:\n\nWestshore Terminals Income Fund (the \"Fund\") derives its cash inflows\nfrom its investment in the $645 million subordinated notes and common shares\nof Westshore Terminals Ltd. (\"Westshore\"). The earnings and distributable cash\nof the Fund are wholly dependent on the results of Westshore. Westshore's\nresults are determined largely by the volume of coal shipped by its coal mine\ncustomers for sale in the export market, the rate per tonne charged by\nWestshore and Westshore's costs. Higher prices for hard coking coal have\nresulted in much higher average settlement prices for the 2005/06 coal year\ncompared to 2004/05 coal year and higher settlement prices are expected to\ntake effect by June, 2005. As a result, Westshore's throughput charges for\nsome of the coal it handles are expected to increase significantly, which\nwould lead to materially higher anticipated distributions in the second half\nof 2005 compared to 2004. As Westshore has some exposure to exchange rates (as\na result of the pricing mechanisms on most of its customer contracts),\nWestshore has also undertaken a currency hedging program which is intended to\noffer partial protection to Westshore from material swings in the CDN/US\ndollar exchange rate.\n\nWestshore Terminals Income Fund\n- Management's Discussion and Analysis of Financial Condition\n and Results of Operations\n\nThis management's discussion and analysis refers to certain measures\nother than those prescribed by Generally Accepted Accounting Principles\n(\"GAAP\"). These measures do not have standardized meanings and may not be\ncomparable to similar measures presented by other trusts or corporations. They\nare however determined by reference to the Fund's financial statements. These\nnon-GAAP measures are discussed because the Fund believes they provide\ninvestors with valuable information in understanding the results of the Fund's\nand Westshore's operations and financial position. The ...

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