Vicwest Income Fund Reports Strong Third Quarter Results

Toronto Stock Exchange: VIC.UN

OAKVILLE, ON, Nov. 10, 2009 /CNW/ - Vicwest Income Fund (the "Fund") (TSX: VIC.UN) today reported financial results for the three and nine months ended September 30, 2009.

 Highlights: - Third quarter revenue of $110.4 million, down $16.0 million or 12.7% from the same period in 2008. Year to date, revenues were $297.1 million, down 1.0% from 2008. - Gross profit for the quarter was $28.5 million or 25.8% of revenues compared to $29.8 million or 23.5% of revenues in the same period of the prior year. Year to date, gross profit was $68.6 million or 23.1% of revenues, up 1.6% from the 21.5% reported in 2008. - EBITDA(1) for the quarter was $16.7 million, compared to $19.3 million in 2008, a decrease of $2.6 million. Year to date, EBITDA was $35.6 million, down from $36.2 million in 2008. - Distributable cash(1) for the quarter was $15.4 million, or $0.88 per unit, compared to $17.4 million or $1.00 per unit in the third quarter of 2008. Year to date, distributable cash was $31.6 million or $1.81 per unit, compared to $31.8 million or $1.75 per unit in the prior year. - Net income for the quarter was $14.5 million or $0.83 per unit, compared to $16.3 million or $0.94 per unit in the third quarter of 2008. Year to date, net income was $28.5 million or $1.64 per unit compared to $29.4 million or $1.62 per unit in 2008. - Net debt-to-EBITDA ratio remained conservative with the quarter end ratio at 0.5 to 1, driven by strong cash flows from operations. ------------------------- (1) For more information, refer to Non-GAAP measures described below. 

 RESULTS OF OPERATIONS Comparative Statements of Income For the periods ended September 30, 2009 and 2008 (Thousands of Canadian dollars) ------------------------------------------------------------------------- Three months ended Nine months ended September 30, September 30, 2009 2008 2009 2008 ------------------------------------------------ $ $ $ $ Revenue 110,439 126,374 297,071 300,053 Cost of goods sold 81,903 96,616 228,436 235,520 ------------------------------------------------------------------------- Gross profit 28,536 29,758 68,635 64,533 ------------------------------------------------------------------------- Gross margin 25.8% 23.5% 23.1% 21.5% ------------------------------------------------------------------------- Selling, general and administrative 11,489 10,461 32,772 28,361 Foreign exchange loss 304 35 277 11 Amortization of property, plant and equipment 1,113 1,028 3,224 3,046 Amortization of intangible assets 335 256 1,063 769 Net interest and financing 425 733 1,507 2,022 ------------------------------------------------------------------------- Income before income taxes 14,870 17,245 29,792 30,324 Provision for income taxes 400 940 1,248 963 ------------------------------------------------------------------------- Net income 14,470 16,305 28,544 29,361 EBITDA (see Non-GAAP Measures) $16,743 $19,262 $35,586 $36,161 As a percentage of revenue 15.2% 15.2% 12.0% 12.1% ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 DISTRIBUTABLE CASH (see Non-GAAP Measures) Statement of Distributable Cash For the periods ended September 30, 2009 and 2008 (Thousands of Canadian dollars except unit and per unit amounts) ------------------------------------------------------------------------- Three months ended Nine months ended September 30, September 30, 2009 2008 2009 2008 ------------------------------------------------ $ $ $ $ Net income 14,470 16,305 28,544 29,361 Amortization of property, plant and equipment 1,113 1,028 3,224 3,046 Amortization of intangible assets 335 256 1,063 769 Net interest and financing 425 733 1,507 2,022 Provision for income taxes 400 940 1,248 963 ------------------------------------------------------------------------- EBITDA (see Non-GAAP Measures) 16,743 19,262 35,586 36,161 Net interest expense (365) (682) (1,327) (1,868) Cash income taxes (20) (159) (425) (203) Maintenance capital additions (see Non-GAAP Measures) (978) (1,000) (2,240) (2,287) ------------------------------------------------------------------------- Distributable cash (see Non-GAAP Measures) 15,380 17,421 31,594 31,803 ------------------------------------------------------------------------- Cash distributions declared 6,794 6,794 20,382 21,197 ------------------------------------------------------------------------- Average units outstanding 17,419,468 17,419,468 17,419,468 18,167,112 Net income per unit $0.83 $0.94 $1.64 $1.62 Distributable cash per unit $0.88 $1.00 $1.81 $1.75 Cash distributions declared per unit $0.39 $0.39 $1.17 $1.17 ------------------------------------------------------------------------- -------------------------------------------------------------------------