Toronto Stock Exchange Symbol: CLC.UN
MISSISSAUGA, ON, Nov. 8 /CNW/ - CML Healthcare Income Fund (the "Fund"),
(TSX: CLC.UN) today reported its financial results for the three and nine-
month periods ended September 30, 2005.
2005 Third Quarter Highlights
- Revenue increased to $66.9 million from $65.4 million in the
comparable period in 2004
- EBITDA(xx) totaled $26.6 million compared to $27.1 million in the
comparable period in 2004
- The Fund generated distributable cash(x) of $24.6 million and
declared distributions to unitholders and dividends to
non-controlling interest totaling $20.0 million, representing a
payout ratio of 81.1% for the quarter
"Our business continued to perform in-line with expectations as 2005
third quarter revenue increased $1.5 million compared to the corresponding
period a year ago and EBITDA margins remained in the range of 40 percent,"
said Dr. John Mull, Chairman and CEO of CML HealthCare Income Fund. "We
continue to await a decision from the Ontario Ministry of Health concerning a
new funding agreement and hope to be in a position to announce the terms of a
new agreement as soon as possible. In the meantime, we continue to position
the business of CML Healthcare for future opportunities in the current
healthcare environment. This positioning includes the recruitment of
additional senior level talent to round out our management team and the
pursuit of targeted growth opportunities as they become available."
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 third quarter financial results are
presented in comparison to the corresponding three-month period ended
September 30, 2004, and the Fund's fiscal 2005 first nine month results are
presented in comparison to the Fund's financial results for the twelve months
ended September 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 third quarter, the Fund generated distributable cash(x) of
$24.6 million, and declared distributions and dividends totaling $20.0
million, representing 81.1% 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 third quarter of 2005. Year-to date, the Fund has
generated distributable cash of $71.2 million, of which it has declared total
distributions to unitholders of $56.6 million and total dividends to non-
controlling interest of $3.3 million, representing 84.1% of normalized cash
available for distributions.
<<
-------------------------------------------------------------------------
Distributable cash(x) July 1, January 1,
($000s) 2005 to 2005 to
(unaudited) September September
30, 2005 30, 2005
-------------------------------------------------------------------------
Cash flow from operating activities from
continuing operations 28,503 77,386
-------------------------------------------------------------------------
Less: normalizing items in working capital(1) (2,960) (730)
-------------------------------------------------------------------------
Less: non-recurring revenue(2) - (549)
-------------------------------------------------------------------------
Add: non-recurring expenses(3) - 378
-------------------------------------------------------------------------
Add: LTIP payment 1,250 1,250
-------------------------------------------------------------------------
Less: capital expenditures
Cash (354) (1,502)
Capital lease pay down (270) (876)
-------------------------------------------------------------------------
Normalized cash from operations before reserves 26,169 75,357
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Less: reserve for part VI tax (549) (1,649)
-------------------------------------------------------------------------
Less: change in capital expenditure reserve (1,001) (2,497)
------- -------
-------------------------------------------------------------------------
Normalized cash available for distributions 24,619 71,211
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Distributions to unitholders 18,863 56,576
-------------------------------------------------------------------------
Payments to non-controlling interest 1,098 3,300
----- -----
-------------------------------------------------------------------------
Total distributions/payments to non-controlling
interest 19,961 59,876
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Distributions/payments to non-controlling interest
as a percentage of cash available for distribution 81.1% 84.1%
-------------------------------------------------------------------------
(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.
Included in distributable cash is $5.8 million of tax refunds pertaining
to fiscal 2004 received during the third quarter of fiscal 2005. These refunds
are partially offset by installment payments of $1.9 million made during the
third quarter pertaining to prior quarters of fiscal 2005. Excluding the net
impact of these tax refunds and installment payments, the Fund's payout ratio
would have been 96.3% and 91.5% respectively for the three and nine-month
periods ended September 30, 2005.
For the third quarter of 2005, revenue for the Fund increased to
$66.9 million from revenue of $65.4 million in the three months ended
September 30, 2004. The Fund's increased revenue in the third quarter of 2005
resulted from growth in non-cap revenue, an increase in cap revenue based on
the Ontario Ministry of Health ("MOH") fiscal 2004 final reconciliation, and a
2% price increase in certain professional fee codes effective April 1, 2005.
Operating, general and administrative expenses for the third quarter of
2005 were $40.3 million, or 60.2% of revenue, compared to operating, general
and administrative expenses of $38.3 million, or 58.6% of revenue, for the
comparable period in the prior year. Increased operating, general and
administrative expenses for the three months ended September 30, 2005 were due
to increased billings and expenses associated with the Fund's Long-Term
Incentive Plan (LTIP), partially offset by further operating efficiencies
realized in the Company's laboratory and imaging businesses.
Earnings Before Interest, Taxes, Depreciation, Amortization and Other
Expenses (EBITDA)(xx) in the third quarter of 2005 totaled $26.6 million, or
39.8% of revenue, compared to EBITDA of $27.1 million, or 41.4% of revenue,
for the three months ended September 30, 2004. EBITDA and EBITDA margin
declined slightly as a result of the revenue and operating, general and
administrative expense items discussed above.
For the nine months ended September 30, 2005 revenue for the Fund totaled
$203.5 million and EBITDA totaled $82.2 million or 40.4% of revenue.
Operating, general and administrative expenses for the nine months ended
September 30, 2005 totaled $121.2 million or 59.6% of revenue.
As at September 30, 2005, the Fund had working capital of $68.5 million
including cash and cash equivalents of $65.7 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 $193.7 million as at September 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 November 8, 2005 at
4:45pm to discuss the Fund's third 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.
Caution concerning forward-looking statements
---------------------------------------------
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 September 30 December 31
2005 2004
restated
(note 2)
ASSETS
Current assets
Cash and cash equivalents $ 65,700 $ 51,198
Accounts receivable 22,818 28,169
Income taxes receivable 2,181 6,677
Other current assets 2,636 1,878
Future income taxes 1,514 3,237
Due from related parties 168 904
-------------------------------------------------------------------------
95,017 92,063
Property and equipment 17,672 18,292
Licenses 430,376 429,729
Goodwill 153,678 153,300
Investments and other assets 3,040 3,356
Restricted cash 912 912
-------------------------------------------------------------------------
-------------------------------------------------------------------------
$ 700,695 $ 697,652
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 19,151 $ 22,716
Due to related party - 75
Distributions payable (note 7) 6,281 6,283
Current portion of long-term debt 1,108 1,148
-------------------------------------------------------------------------
26,540 30,222
Long-term debt 192,603 193,439
Future income taxes 60,160 59,840
-------------------------------------------------------------------------
279,303 283,501
Non-controlling interest (note 2) 9,201 7,113
UNITHOLDERS' EQUITY
Trust units (note 5) 407,028 407,492
Retained earnings (deficit) 5,163 (454)
-------------------------------------------------------------------------
412,191 407,038
-------------------------------------------------------------------------
-------------------------------------------------------------------------
$ 700,695 $ 697,652
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CML Healthcare Income Fund
Unaudited Consolidated Statements of Retained Earnings (Deficit)
(in thousands of dollars)
For the For the
nine months twelve months For the three months
ended ended ended
September September September 30
30 2005 30 2004 2005 2004
Retained earnings -
Beginning of period
as previously
reported $ 1,321 $ 166,594 $ 4,337 $ (4,610)
Change in accounting
policy (note 2) (1,775) - - (434)
-------------------------------------------------------------------------
Retained earnings -
Beginning of period
as restated (454) 166,594 4,337 (5,044)
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' (56,574) (44,787) (18,857) (18,626)
Net earnings for the
period 62,191 58,748 19,683 20,093
-------------------------------------------------------------------------
Retained earnings
(deficit) - End of
period $ 5,163 $ (3,577) $ 5,163 $ (3,577)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CML Healthcare Income Fund
Unaudited Consolidated Statements of Earnings
(in thousands of dollars, except for per unit amounts)
For the For the
nine months twelve months For the three months
ended ended ended
September September September 30
30 2005 30 2004 2005 2004
restated restated
(note 2) (note 2)
Revenue $ 203,460 $ 262,740 $ 66,863 $ 65,413
Expenses
Operating, general
and administrative 121,202 157,432 40,315 38,335
Amortization of
other assets 158 40 53 40
Amortization of
property and
equipment 2,122 3,176 689 757
-------------------------------------------------------------------------
123,482 160,648 41,057 39,132
-------------------------------------------------------------------------
79,978 102,092 25,806 26,281
-------------------------------------------------------------------------
Other expenses (note 1) - 7,893 - 1,315
-------------------------------------------------------------------------
Provision for impairment
of investment - 2,750 - -
-------------------------------------------------------------------------
Interest expense
Long-term 8,414 6,632 2,834 2,559
-------------------------------------------------------------------------
Earnings from continuing
operations before
income taxes 71,564 84,817 22,972 22,407
Provision for income
taxes (note 8) 3,944 17,868 1,572 548
-------------------------------------------------------------------------
Earnings before the
following 67,620 66,949 21,400 21,859
Non-controlling interest
(note 2) 5,429 4,087 1,717 1,766
-------------------------------------------------------------------------
Earnings from continuing
operations 62,191 62,862 19,683 20,093
Loss (income) from
discontinued operations - 4,114 - -
-------------------------------------------------------------------------
Net earnings for the
period $ 62,191 $ 58,748 $ 19,683 $ 20,093
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic and diluted
earnings (loss) per
unit (note 6)
Continuing operations 0.78 0.79 0.25 0.25
Discontinued
operations - (0.05) - -
-------------------------------------------------------------------------
Basic $ 0.78 $ 0.74 $ 0.25 $ 0.25
CML Healthcare Income Fund
Unaudited Consolidated Statements of Cash Flows
(in thousands of dollars)
For the For the
nine months twelve months For the three months
ended ended ended
September September September 30
30 2005 30 2004 2005 2004
Cash provided by
(used in)
Operating activities
Earnings from
continuing
operations $ 62,191 $ 62,862 $ 19,683 $ 20,093
Items not affecting
cash
Amortization of
property and
equipment 2,122 3,176 689 757
Amortization of
other assets 158 40 53 40
Provision for
impairment of
investment - 2,750 - -
Loss on disposal
of property and
equipment - 433 - 433
Future income taxes 1,959 7,143 759 1,470
Non-controlling
interest 5,429 4,087 1,717 1,766
-------------------------------------------------------------------------
71,859 80,491 22,901 24,559
Net change in non-cash
working capital items 5,527 (10,209) 5,602 466
Discontinued operations - 393 - -
-------------------------------------------------------------------------
77,386 70,675 28,503 25,025
-------------------------------------------------------------------------
Investing activities
Purchase of property
and equipment (1,502) (1,337) (354) (219)
Decrease (increase)
in investments and
other assets 158 (837) 95 (1,266)
Acquisition of licences (199) - (199)
Discontinued operations - (898) - -
Contribution to
discontinued operations - (30,000) - -
-------------------------------------------------------------------------
(1,543) (33,072) (458) (1,485)
-------------------------------------------------------------------------
Financing activities
Principal repayment
of long-term debt (876) (210,804) (270) (190,388)
Proceeds from issuance
of long-term debt - 380,000 - 190,000
Increase in restricted
cash - (912) - (912)
Proceeds from exercise
of stock options - 9,674 - -
Distributions paid (56,576) (185,171) (18,863) (18,514)
Payments to non-
controlling interest (3,300) (2,772) (1,098) (1,328)
Treasury units acquired (1,250) - (1,250) -
Decrease (Increase)
in due from related
parties - net 661 58 224 75
Repurchase of share
capital - (68) - -
Discontinued operations - (1,790) - -
-------------------------------------------------------------------------
(61,341) (11,785) (21,257) (21,067)
-------------------------------------------------------------------------
Increase in cash and
cash equivalents 14,502 25,818 6,788 2,473
Cash and cash equivalents,
beginning of period 51,198 18,074 58,912 41,419
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 65,700 $ 43,892 $ 65,700 $ 43,892
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Supplementary information
Interest paid $ 11,147 $ 4,959 $ 5,567 $ 1,180
Income taxes paid $ 4,527 $ 19,720 $ 2,963 $ 571
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 23, 2004, a Plan of Arrangement (the "Arrangement") to re-
organize 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 twelve month period ended September 30, 2004, CML incurred
and expensed professional fees of $7,893,000 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:
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 September 30, 2005,
December 31, 2004 and September 30, 2004 was as follows:
Balance as
previously Balance as
reported Adjustment restated
$ $ $
Nine months ended
September 30, 2005
Non-controlling interest - 5,429 5,429
Fifteen months ended
December 31, 2004
Non-controlling interest - 6,023 6,023
Twelve months ended
September 30, 2004
Non-controlling interest - 4,087 4,087
3 Basis of presentation
The accompanying interim consolidated financial statements of CML
Healthcare Income 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 nine months ended
September 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 2.
On July 18, 2005 the Fund created a trust, administered by a third
party, to act as trustee for the Fund's Long-Term Incentive Plan
("LTIP"). On July 26, 2005, the Fund funded $1,250,000 to the trust
for exceeding certain 2004 defined distributable cash threshold
amounts, subsequent to which the trustee acquired 87,254 units of the
Fund on the open market. The Fund units held by the trust will be
distributed to the employees in accordance with the terms of the
LTIP. The trust is considered a variable interest entity ("VIE") as
the trust is unable to finance its activities without additional
support. The Fund holds a variable interest in the trust and has
determined that it is the primary beneficiary of the trust and,
therefore, the Fund has consolidated the trust in accordance with
Accounting Guideline 15 "Consolidation of variable interest
entities". The Fund has not guaranteed the value of the units held by
the trust should the market value of the Fund's units decrease from
the value at which the trust acquired the units. The Fund units held
by the trust have been classified as treasury units in these
consolidated financial statements. Distributions on the Fund units
are paid to employees and recorded as compensation expense.
4 Acquisition of non-controlling interest
During the period ended September 30, 2005, 57,600 exchangeable
shares of CML Healthcare Inc. were converted to 57,600 units of the
Fund. The conversion of the exchangeable shares has been accounted
for as a step acquisition and has resulted in a reduction of the non-
controlling interest. The 57,600 units of the Fund were valued at
$786,000. The excess of the purchase price over the carrying value of
the non-controlling interest of $44,000 was allocated as follows (in
thousands):
$
Licences 448
Goodwill 378
Future tax liability (84)
-------
742
-------
As at September 30, 2005, 6,949,588 (December 31, 2004 - 7,007,188)
exchangeable shares of CML Healthcare Inc. are issued and outstanding
(excluding those held by the Fund and its affiliates).
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 58 786
Treasury units (note 3) (87) (1,250)
-------------------------
September 30, 2005 79,606 407,028
-------------------------
-------------------------
During the nine-month period ended September 30, 2005, 57,600
exchangeable shares of CML Healthcare Inc. were exchanged for 57,600
trust units.
6 Earnings per unit
Earnings per unit is calculated using the weighted average number of
units outstanding including the treasury units. The weighted average
number of units outstanding for the nine month period ended September
30, 2005 was 79,669,034 (twelve months ended September 30, 2004 -
79,964,782) and the three month period ended September 30, 2005 was
79,678,016 (three months ended September 30, 2004 - 78,527,998).
Diluted earnings per share reflects the 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
conversions Diluted
Basic of earnings
earnings per exchangeable per
Fund unit shares Fund unit
Nine months ended September 30, 2005
Net earnings for the period $ 62,191 $ 5,429 $ 67,620
Earnings per Fund unit $ 0.78 $ 0.78
Weighted average number of
Fund units outstanding 79,669,034 6,949,588 86,618,622
Twelve months ended September 30, 2004
Earnings from continuing
operations $ 62,862 $ 4,087 $ 66,949
Loss from discontinued
operations $ (4,114) $ - $ (4,114)
---------------------------------------
Net earnings for the period $ 58,748 $ 4,087 $ 62,835
Earnings per Fund unit:
Continuing operations $ 0.79 $ 0.79
Discontinued operations $ (0.05) $ (0.05)
------------- -------------
Earnings per Fund unit $ 0.74 $ 0.74
Weighted average number of
Fund units outstanding 79,964,782 4,205,513 84,170,295
Three months ended September 30, 2005
Net earnings for the period $ 19,683 $ 1,717 $ 21,400
Earnings per Fund unit $ 0.25 $ 0.25
Weighted average number of
Fund units outstanding 79,678,016 6,949,588 86,627,604
Three months ended September 30, 2004
Net earnings for the period $ 20,093 $ 1,766 $ 21,859
Earnings per Fund unit $ 0.25 $ 0.25
Weighted average number of
Fund units outstanding 78,527,998 7,009,188 85,537,186
7 Distributions and payments to non-controlling interest
During the nine-month period ended September 30, 2005 the Fund
declared total distributions to unitholders of $56,574,000 and total
dividends to non-controlling interest of $3,297,000.
The amounts and record dates of distributions and payments were as
follows (in thousands of dollars, except per unit and per share
amounts):
Trust Units Non-Controlling Interest
Amounts Amounts
Record Date $ per Unit $ per Share
---------------------------------------------------------------------
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
July 30, 2005 6,288 0.0789 366 0.0526
August 31, 2005 6,288 0.0789 366 0.0526
September 30, 2005 6,281 0.0789 366 0.0526
---------------------------------------------------------------------
56,574 0.7101 3,297 0.4734
---------------------------------------------------------------------
---------------------------------------------------------------------
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).
Nine months Twelve months
ended ended
September 30, September 30,
2005 2004
$ $
---------------------------------------------------------------------
Combined Canadian federal and provincial
income tax at statutory rate of 36.12% 25,849 30,636
Increase (decrease) in statutory income
tax resulting from the following:
Fund income not taxable (20,351) (15,682)
Increase in future income taxes resulting
from increases in enacted income tax rate - 2,688
Non-deductible expenses and other (1,554) 226
---------------------------------------------------------------------
Provision for income taxes 3,944 17,868
---------------------------------------------------------------------
---------------------------------------------------------------------
>>
%SEDAR: 00020333E
