Toronto Stock Exchange Symbol: CLC.UN
MISSISSAUGA, ON, Aug. 9 /CNW/ - CML Healthcare Income Fund (the "Fund"),
(TSX: CLC.UN) today reported its financial results for the three and six-month
periods ended June 30, 2005.
2005 Second Quarter Highlights
- Revenue increased to $69.5 million from $67.2 million in the
comparable period in 2004
- EBITDA(xx) increased to $27.8 million from $26.0 million in the
comparable period in 2004
- The Fund generated distributable cash(x) of $26.3 million and
declared distributions to unitholders and dividends to non-
controlling interest totaling $20.0 million, representing a payout
ratio of 76% for the quarter
- Appointment of Paul Bristow, CFO, as President and Chief Operating
Officer
- Appointment of Waldemar Zimmerman, Trustee of the Fund, as Vice
Chairman and lead Trustee
"We are pleased to report continued growth in revenue, EBITDA and
distributable cash in the second quarter of 2005. As we move ahead with the
transition of CML's overall, day-to-day management responsibilities to Paul
Bristow, I am confident in the strength of our operations, financial
performance and our ability to continue building value for our stakeholders,"
said Dr. John Mull, Chairman and CEO of CML HealthCare Income Fund. "As we
await the outcome of negotiations with the Ontario Ministry of Health for a
new funding agreement regarding our community-based laboratory services, Paul
and I are working closely together on identifying strategic opportunities to
further strengthen our business both through organic growth and acquisitions."
"We are focused on expanding our laboratory services and medical imaging
businesses, and exploring opportunities to broaden our network of healthcare
services, while maintaining our commitment to quality service and strong
operating margins," said Paul Bristow, President and COO. "As part of our
growth plan and ongoing management transition, we are initiating the process
of reviewing candidates to assume the roles of Chief Financial Officer and
Vice President, Corporate Development."
Financial Results
Concurrent with the Plan of Arrangement which resulted in the creation of
the Fund on February 23, 2004, the Fund's fiscal year-end was changed from
September 30 to December 31. As a result, the Fund's 2004 fiscal year included
five quarters from October 1, 2003 to December 31, 2004. Due to the change in
its fiscal year-end, the Fund's 2005 second quarter financial results are
presented in comparison to the corresponding three-month period ended June 30,
2004, and the Fund's fiscal 2005 first six month results are presented in
comparison to the Fund's financial results for the nine months ended June 30,
2004.
In January 2005, the Emerging Issues Committee issued EIC 151,
Exchangeable Securities Issued by Subsidiaries of Income Trusts. The EIC was
further clarified during February 2005. EIC 151 requires that in certain
circumstances such as those pertaining to the Fund, exchangeable shares issued
by a subsidiary of an income trust be presented as non-controlling interest in
the subsidiary company and not as part of unitholders' equity. In accordance
with the transitional provisions of EIC 151, during the quarter ended June 30,
2005, the Fund retroactively restated the financial statements to reclassify
the exchangeable shares from unitholders' equity to non-controlling interest
and apply fair value accounting to the conversions of exchangeable shares to
units of the Fund. There is no cash impact on the Fund resulting from the
adoption of EIC 151 provisions.
During the second quarter, the Fund generated distributable cash(x) of
$26.3 million, of which it declared distributions and dividends totaling
$20.0 million, representing 76% of normalized cash available for
distributions. The Fund paid distributions to unitholders totaling
$18.9 million and dividends to non-controlling interest (exchangeable
shareholders) totaling $1.1 million during the second quarter of 2005.
Year-to-date, the Fund has generated distributable cash of $46.6 million, of
which it has declared total distributions to unitholders of $37.7 million and
total dividends to non-controlling interest of $2.2 million, representing 86%
of normalized cash available for distributions.
<<
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April 1, January 1,
2005 to 2005 to
Distributable cash(x) June 30, June 30,
($000s) (unaudited) 2005 2005
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Cash flow from operating activities
from continuing operations 33,355 48,883
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Add (less): normalizing items in working
capital(1) (4,706) 2,230
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Less: non-recurring revenue(2) (550) (550)
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Add: non-recurring expenses(3) 378 378
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Less: capital expenditures
Cash (654) (1,148)
Capital lease pay down (301) (606)
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Normalized cash from operations before reserves 27,522 49,187
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Less: reserve for part VI tax (549) (1,100)
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Less: change in capital expenditure reserve (670) (1,496)
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Normalized cash available for distributions 26,303 46,591
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Distributions to unitholders 18,861 37,717
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Payments to non-controlling interest 1,098 2,199
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Total distributions/payments to
non-controlling interest 19,959 39,916
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Distributions/payments to non-controlling
interest as a percentage of cash available
for distribution 75.9% 85.7%
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(1) Comprised primarily of timing differences related to interest
payments on long term debt and MOH holdbacks.
(2) Non-recurring revenue from MOH recorded in Q2 2005 as a result of 2%
price increase retroactive to April 1, 2004.
(3) Increase in professional fee expenses as a result of MOH 2% price
increase recorded in Q2 2005.
For the second quarter of 2005, revenue for the Fund increased to
$69.5 million from revenue of $67.2 million in the three months ended June 30,
2004. The Fund's increased revenue in the second quarter of 2005 resulted from
growth in non-corporate cap revenue, an increase in cap revenue based on the
Ontario Ministry of Health ("MOH") fiscal 2004 final reconciliation, and a
one-time increase in revenue of $0.6 million as a result of the 2% price
increase to certain professional fee codes. Earnings Before Interest, Taxes,
Depreciation, Amortization and Other Expenses (EBITDA)(xx) in the second
quarter of 2005 totalled $27.8 million, or 40% of revenue, compared to EBITDA
of $26.0 million, or 39% of revenue, for the three months ended June 30, 2004.
EBITDA and EBITDA margin improvement in the three months ended June 30, 2005,
resulted primarily from operating efficiencies realized in both the medical
laboratory and imaging businesses.
Operating, general and administrative expenses for the second quarter of
2005 were $41.7 million, or 60% of revenue, compared to operating, general and
administrative expenses of $41.2 million, or 61% of revenue, for the three
months ended June 30, 2004. Increased operating, general and administrative
expenses for the three months ended June 30, 2005 are in line with increased
billings during the period.
For the six months ended June 30, 2005 revenue for the Fund totalled
$136.6 million compared to revenue of $197.3 million for the nine months ended
June 30, 2004. Decreased revenue in the first half of 2005 compared to the
first half of 2004 was due to an additional three months of operations in
fiscal 2004 and $1.2 million of one-time funding received from the MOH in
2004, partially offset by a $0.6 million revenue adjustment received in the
second quarter of 2005 from the MOH as a result of a 2% increase to certain
professional fee codes. EBITDA for the first six months of 2005 totalled
$55.7 million (41% of revenue), compared to EBITDA of $78.2 million (40% of
revenue) in the first nine months of fiscal 2004. Decreased EBITDA in the
first half of 2005 was primarily attributable to the additional three months
of operations in fiscal 2004.
Operating, general and administrative expenses for the six months ended
June 30, 2005 totalled $80.9 million (59% of revenue), compared to operating,
general and administrative expenses for the nine months ended June 30, 2004 of
$119.1 million (60% of revenue). The decrease in operating, general and
administrative expenses for the six months ended June 30, 2005 was primarily
attributable to an additional three months of operations in fiscal 2004.
As at June 30, 2005, the Fund had working capital of $67.5 million
including cash and cash equivalents of $58.9 million, compared to working
capital of $61.8 million including cash and cash equivalents of $51.2 million
as at December 31, 2004. Long-term debt of the Fund, including the current
portion, was $194.0 million as at June 30, 2005, compared to $194.6 million as
at December 31, 2004.
Notice of Conference Call
Dr. John Mull, Chairman and CEO, and Paul Bristow, President and COO, of
CML HealthCare Income Fund will host a conference call on August 9, 2005 at
4:45pm to discuss the Fund's second quarter financial results. A live audio
webcast of the call will be available at www.cmlhealthcare.com. Webcast
attendees are welcome to listen to the conference in real-time or on-demand at
your convenience. A taped replay of the call will be archived for 90 days.
(x) Distributable Cash is not a recognized measure under Canadian
generally accepted accounting principles ("GAAP"); however, the Fund
believes that distributable cash is a useful measure as it provides
investors with an indication of cash available for distribution. The
Fund's method of calculating distributable cash may differ from that
of other issuers and, accordingly, distributable cash may not be
comparable to measures used by other issuers. Investors are
cautioned that distributable cash should not be construed as an
alternative to the statement of cash flows as a measure of liquidity
and cash flows of the Fund.
(xx) EBITDA is not a recognized measure under Canadian generally accepted
accounting principles (GAAP). Management believes that in addition
to net income, EBITDA is a useful supplemental measure as it
provides investors with an indication of the Fund's performance.
Investors should be cautioned, however, that EBITDA should not be
construed as an alternative to net income. The Fund's method of
calculating EBITDA may differ from other companies' or income
trusts' and, accordingly, EBITDA may not be comparable to measures
used by other companies or income trusts.
About CML Healthcare Income Fund
CML Healthcare Income Fund is an unincorporated open-ended trust that
owns CML Healthcare Inc., one of Canada's largest healthcare services
businesses. CML is a leading provider of laboratory testing services in
Ontario and the largest private provider of medical imaging services in
Canada. CML Healthcare Income Fund is publicly traded on the Toronto Stock
Exchange under the symbol "CLC.UN" and has approximately 86.6 million units
outstanding (assuming the exchange for units of all of the outstanding
exchangeable shares of CML Healthcare Inc., excluding those held by the Fund
or its affiliates). To reach CML Healthcare Income Fund via the worldwide web
log on to www.cmlhealthcare.com.
Statements made in this news release, other than those concerning
historical financial information, should be considered forward-looking and
subject to various risks and uncertainties. Such forward-looking statements
are based on management's beliefs and assumptions regarding the information
currently available. The Company's actual results could differ materially from
those expressed in the forward-looking statements. Factors that could cause
results to vary include, among other things, those expressed in the Company's
filings with Canadian securities regulatory authorities. All information
presented herein should be read in conjunction with such filings.
CML Healthcare Income Fund
Unaudited Consolidated Balance Sheets
(in thousands of dollars)
As at June 30 December 31
2005 2004
restated
(note 2)
ASSETS
Current assets
Cash and cash equivalents $ 58,912 $ 51,198
Accounts receivable 27,425 28,169
Income taxes receivable 5,610 6,677
Other current assets 2,436 1,878
Future income taxes 1,448 3,237
Due from related parties 392 904
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96,223 92,063
Property and equipment 18,007 18,292
Licenses 430,058 429,729
Goodwill 153,560 153,300
Investments and other assets 3,188 3,356
Restricted cash 912 912
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$ 701,948 $ 697,652
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LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 21,385 $ 22,716
Due to related party - 75
Distributions payable (note 7) 6,287 6,283
Current portion of long-term debt 1,096 1,148
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28,768 30,222
Long-term debt 192,885 193,439
Future income taxes 59,310 59,840
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280,963 283,501
Non-controlling interest (note 2) 8,594 7,113
UNITHOLDERS' EQUITY
Trust units (note 5) 408,054 407,492
Retained earnings (deficit) 4,337 (454)
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412,391 407,038
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$ 701,948 $ 697,652
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CML Healthcare Income Fund
Unaudited Consolidated Statements of Earnings
(in thousands of dollars, except for per unit amounts)
For the For the
six months nine months
ended ended For the three months
June 30 June 30 ended June 30
2005 2004 2005 2004
restated restated
(note 2) (note 2)
Revenue $ 136,597 $ 197,327 $ 69,518 $ 67,228
Expenses
Operating, general
and administrative 80,887 119,097 41,690 41,224
Amortization of
other assets 105 - 52 -
Amortization of
property and
equipment 1,433 2,419 713 793
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82,425 121,516 42,455 42,017
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54,172 75,811 27,063 25,211
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Other expenses (note 1) - 6,578 - 350
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Provision for impairment
of investment - 2,750 - 2,750
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Interest expense
Long-term 5,580 4,073 2,790 2,197
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Earnings from continuing
operations before
income taxes 48,592 62,410 24,273 19,914
Provision for income
taxes (note 8) 2,372 17,320 4 1,660
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Earnings before the
following 46,220 45,090 24,269 18,254
Non-controlling
interest (note 2) 3,712 2,321 1,951 1,776
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Earnings from continuing
operations 42,508 42,769 22,318 16,478
Loss (income) from
discontinued operations - 4,114 - (297)
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Net earnings for the
period $ 42,508 $ 38,655 $ 22,318 $ 16,775
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Basic earnings (loss)
per unit (note 6)
Continuing operations 0.53 0.53 0.28 0.21
Discontinued
operations - (0.05) - -
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Basic $ 0.53 $ 0.48 $ 0.28 $ 0.21
Diluted earnings (loss)
per unit (note 6)
Continuing operations 0.53 0.53 0.28 0.21
Discontinued
operations - (0.05) - -
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Diluted $ 0.53 $ 0.48 $ 0.28 $ 0.21
CML Healthcare Income Fund
Unaudited Consolidated Statements of Retained Earnings (Deficit)
(in thousands of dollars)
For the For the
six months nine months
ended ended For the three months
June 30 June 30 ended June 30
2005 2004 2005 2004
Retained earnings -
Beginning of period
as previously
reported $ 1,321 $ 166,594 $ 3,315 $ (3,318)
Change in accounting
policy (note 2) (1,775) - (2,435) 9
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Retained earnings -
Beginning of period
as restated (454) 166,594 880 (3,309)
Excess of purchase
price of common shares
over book value - (62) - -
Transfer of investment
in Cipher
Pharmaceuticals Inc.
to shareholders
(note 1) - (37,403) - -
Payment to former
common shareholders
of CML Healthcare Inc.
(note 1) - (146,667) - -
Distributions declared
during the period to
unitholders' (note 7) (37,717) (26,161) (18,861) (18,510)
Net earnings for the
period 42,508 38,655 22,318 16,775
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Retained earnings
(deficit) -
End of period $ 4,337 $ (5,044) $ 4,337 $ (5,044)
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CML Healthcare Income Fund
Unaudited Consolidated Statements of Cash Flows
(in thousands of dollars)
For the For the
six months nine months
ended ended For the three months
June 30 June 30 ended June 30
2005 2004 2005 2004
Cash provided by
(used in)
Operating activities
Earnings from
continuing
operations $ 42,508 $ 42,769 $ 22,318 $ 16,478
Items not affecting
cash
Amortization of
property and
equipment 1,433 2,419 713 793
Amortization of
other assets 105 - 52 -
Provision for
impairment of
investment - 2,750 - 2,750
Future income taxes 1,200 5,673 (942) 1,132
Non-controlling
interest 3,712 2,321 1,951 1,776
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48,958 55,932 24,092 22,929
Net change in non-cash
working capital items (75) (10,675) 9,263 12,540
Discontinued operations - 393 - 59
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48,883 45,650 33,355 35,528
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Investing activities
Purchase of property
and equipment (1,148) (1,118) (654) (196)
Decrease (increase)
in investments and
other assets 63 429 (23) 81
Discontinued operations - (898) - -
Contribution to
discontinued operations - (30,000) - -
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(1,085) (31,587) (677) (115)
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Financing activities
Principal repayment
of long-term debt (606) (20,416) (301) (431)
Proceeds from issuance
of long-term debt - 190,000 - -
Proceeds from exercise
of stock options - 9,674 - -
Distributions paid (37,713) (166,657) (18,861) (19,990)
Payments to non-
controlling interest (2,202) (1,444) (1,098) (1,444)
Decrease (Increase)
in due from related
parties - net 437 (17) (29) 575
Repurchase of share
capital - (68) - -
Discontinued operations - (1,790) - -
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(40,084) 9,282 (20,289) (21,290)
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Increase in cash and
cash equivalents 7,714 23,345 12,389 14,123
Cash and cash equivalents,
beginning of period 51,198 18,074 46,523 27,296
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Cash and cash equivalents,
end of period $ 58,912 $ 41,419 $ 58,912 $ 41,419
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Supplementary
information
Interest paid $ 5,580 $ 3,779 $ 56 $ 2,710
Income taxes paid $ 1,564 $ 19,149 $ 121 $ 3,325
CML Healthcare Income Fund
Notes to Unaudited Consolidated Financial Statements
1 Organization and nature of operations
The CML Healthcare Income Fund (the "Fund") is a trust established
under the laws of Ontario pursuant to a declaration of trust dated
January 16, 2004. The Fund was created to invest in common shares and
$630,446,000 of 12% unsecured subordinated notes of CML Healthcare
Inc. ("CML"). Through its wholly-owned subsidiaries, the Fund
provides medical laboratory services in Ontario and medical imaging
services in the provinces of Ontario, Quebec, Manitoba, Alberta and
British Columbia.
On February 22, 2004, a Plan of Arrangement (the "Arrangement") to
reorganize CML into (a) the Fund, an income trust and (b) Cipher
Pharmaceuticals Inc. ("Cipher"), a public entity, was completed. In
accordance with the Arrangement, the Fund issued to former CML common
shareholders one Series A note and four exchangeable shares and
related ancillary rights or one Series B note and four units of the
Fund for each CML common share transferred. Each Series A note and
Series B note was redeemed for one common share of Cipher and a cash
payment of $7. The transfer of the common shares of CML to the Fund
was recorded at the carrying values of CML's assets and liabilities
on February 22, 2004 in accordance with the continuity of interest
method of accounting as the Fund is considered to be a continuation
of CML. The transfer of the common shares of Cipher in exchange for
the Series A and Series B notes has been accounted for as a
distribution and a discontinued operation. Upon completion of the
Arrangement, the Fund changed its fiscal year-end from September 30
to December 31. Accordingly, the fiscal 2004 period is composed of
the period from October 1, 2003 to December 31, 2004.
During the nine month period ended June 30, 2004, CML incurred and
expensed professional fees of $6,578,000 in respect of the creation
of the Fund.
2 Change in accounting policy
In January 2005, the Emerging Issues Committee issued EIC 151,
Exchangeable Securities Issued by Subsidiaries of Income Trusts. The
EIC was further clarified during February 2005. EIC 151 requires that
in certain circumstances such as those pertaining to the Fund,
exchangeable shares issued by a subsidiary of an income trust be
presented as non-controlling interest in the subsidiary company and
not as part of unitholders' equity. In accordance with the
transitional provisions of EIC 151, during the quarter ended June 30,
2005, the Fund retroactively restated the financial statements to
reclassify the exchangeable shares of CML Healthcare Inc. from
unitholders' equity to non-controlling interest and apply fair value
accounting to the conversions of exchangeable shares to units of the
Fund.
The effect of this change in accounting policy on the consolidated
balance sheet as at December 31, 2004 was as follows (in thousands of
dollars):
Balance as
previously Balance as
reported Adjustment restated
$ $ $
Licences 196,618 233,111 429,729
Goodwill 5,027 148,273 153,300
Accounts payable and
accrued liabilities 22,347 369 22,716
Distributions payable 6,652 (369) 6,283
Future income tax liability 17,740 42,100 59,840
Non-controlling interest - 7,113 7,113
Trust units 68,204 339,288 407,492
Exchangeable shares 5,342 (5,342) -
Retained earnings (deficit) 1,321 (1,775) (454)
The effect of this change in accounting policy on the consolidated
statement of earnings for the periods ended June 30, 2005,
December 31, 2004 and June 30, 2004 was as follows (in thousands of
dollars):
Balance as
previously Balance as
reported Adjustment restated
$ $ $
Six-months ended June 30, 2005
Non-controlling interest - 3,712 3,712
Fifteen-months ended December 31, 2004
Non-controlling interest - 6,023 6,023
Nine-months ended June 30, 2004
Non-controlling interest - 2,321 2,321
3 Basis of presentation
The accompanying interim consolidated financial statements of CML
Healthcare Income Fund (the Fund) have been prepared in accordance
with accounting principles generally accepted in Canada for interim
reporting. Accordingly, these financial statements do not include all
of the disclosures required by generally accepted accounting
principles for annual financial statements and should be read in
conjunction with the annual financial statements of the Fund. In the
opinion of management, all adjustments considered necessary for fair
presentation have been included. All such adjustments are of a normal
recurring nature. Operating results for the six-months ended June 30,
2005 are not necessarily indicative of the results that may be
expected for the 12 months ending December 31, 2005.
There have been no changes to the accounting policies as described in
Note 1 to the consolidated financial statements for the fifteen month
period ended December 31, 2004 except for the adoption of EIC 151 as
described in note No. 2.
4 Acquisition of non-controlling interest
During the period ended June 30, 2005, 42,800 exchangeable shares of
CML Healthcare Inc. were converted to 42,800 units of the Fund. The
conversion of the exchangeable shares has been accounted for as an
acquisition of the non-controlling interest. The 42,800 units of the
Fund were valued at $562,000. The excess of the purchase price over
the carrying value of the non-controlling interest of $32,000 was
allocated as follows (in thousands):
$
Licences 329
Goodwill 260
Future tax liability (59)
----------
530
----------
As at June 30, 2005, 6,964,388 (December 31, 2004 - 7,007,188)
exchangeable shares of CML Healthcare Inc. are issued and
outstanding.
5 Unitholders' equity
The authorized capital of the Fund consists of an unlimited amount of
trust units.
The following is a summary of changes in unitholder's equity (in
thousands):
Trust Units
Number $
December 31, 2004 79,635 407,492
Exchangeable shares exchanged for trust units 43 562
-----------------------
June 30, 2005 79,678 408,054
-----------------------
-----------------------
During the period ended June 30, 2005 42,800 exchangeable shares of
CML Healthcare Inc. were exchanged for 42,800 trust units.
6 Earnings per unit
Earnings per unit is calculated using the weighted average number of
units outstanding. The weighted average number of units outstanding
for the six month period ended June 30, 2005 was 79,664,518 (nine
months ended June 30, 2004 - 80,443,711) and the three month period
ended June 30, 2005 was 79,677,541 (three months ended June 30, 2004
- 78,192,386).
Diluted earnings per share reflect the dilutive effect of the
conversion of the exchangeable shares of CML Healthcare Inc. for
units of the Fund. The following table reconciles the basic and
diluted weighted average number of Fund units outstanding and basic
and diluted earnings per unit (in thousands of dollars, except per
unit amounts):
Adjustments for
Basic conversions of Diluted
earnings per exchangeable earnings per
Fund unit shares Fund unit
Six-months ended June 30, 2005
Net earnings for the period $ 42,508 $ 3,712 $ 46,220
Earnings per Fund unit $ 0.53 $ 0.53
Weighted average number of
Fund units outstanding 79,664,518 6,964,388 86,628,906
Nine-months ended June 30, 2004
Earnings from continuing
operations $ 42,769 $ 2,321 $ 45,090
Loss from discontinued
operations $ (4,114) $ (4,114)
Net earnings for the period $ 38,655 $ 2,321 $ 40,976
Earnings per Fund unit:
Continuing operations $ 0.53 $ 0.53
Discontinued operations $ (0.05) $ (0.05)
Earnings per Fund unit $ 0.48 $ 0.48
Weighted average number of
Fund units outstanding 80,443,711 3,920,528 84,364,239
Three-months ended June 30, 2005
Net earnings for the period $ 22,318 $ 1,951 $ 24,269
Earnings per Fund unit $ 0.28 $ 0.28
Weighted average number of
Fund units outstanding 79,677,541 6,964,388 86,641,929
Three-months ended June 30, 2004
Earnings from continuing
operations $ 16,478 $ 1,776 $ 18,254
Income from discontinued
operations $ 297 $ 297
Net earnings for the period $ 16,775 $ 1,776 $ 18,551
Earnings per Fund unit:
Continuing operations $ 0.21 $ 0.21
Discontinued operations $ - $ -
Earnings per Fund unit $ 0.21 $ 0.21
Weighted average number of
Fund units outstanding 78,192,386 8,427,592 86,619,978
7 Distributions and payments to non-controlling interest
During the six month period ended June 30, 2005 the Fund declared
total distributions to Unitholders of $37,717,000 and total dividends
to non-controlling interest of $2,199,000
The amounts and record dates of distributions and payments were as
follows (in thousands of dollars, except per unit and per share
amounts):
Non-Controlling
Trust Units Interest
Amounts Amounts
Record Date $ per Unit $ per Share
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January 31, 2005 6,283 0.0789 369 0.0526
February 28, 2005 6,286 0.0789 366 0.0526
March 31, 2005 6,287 0.0789 366 0.0526
April 30, 2005 6,287 0.0789 366 0.0526
May 31, 2005 6,287 0.0789 366 0.0526
June 30, 2005 6,287 0.0789 366 0.0526
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37,717 0.4734 2,199 0.3156
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8 Income Taxes
The effective income tax rate on consolidated earnings is influenced
by items such as non-taxable income and non-deductible expenses (in
thousands of dollars).
Six-months Nine-months
ended ended
June 30, June 30,
2005 2004
$ $
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Combined Canadian federal and provincial
income tax at statutory rate 17,551 22,542
Increase (decrease) in statutory income
tax resulting from the following:
Fund income not taxable (13,477) (9,004)
Increase in future income taxes resulting
from increases in enacted income tax rate - 2,676
Non-deductible expenses and other (1,702) 1,106
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Provision for income taxes 2,372 17,320
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%SEDAR: 00002914E
