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Vicwest Income Fund Reports Results for the Second Quarter 2010

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  Published in House and Home on Thursday, August 5th 2010 at 17:40 GMT by Market Wire
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 Results for the Three Months Ended June 30 - Revenue for the second quarter was $94.0 million compared to $102.3 million a year ago. - Gross profit was $15.7 million (16.7% gross margin) compared to $22.6 million (22.1% gross margin) in 2009. - EBITDA(1) was $6.1 million compared to $12.6 million a year ago. - Net income per unit was $0.22 compared to $0.58 a year ago. - The ratio of the last 12 months' EBITDA to net debt was 1.3 to 1. - Declared cash distributions were $0.39 per unit, consistent with last year's second quarter payout. 

 Results for the Six Months Ended June 30 - Revenue for the first six months of 2010 was $170.1 million compared to $186.6 million a year ago. - Gross profit was $29.9 million (17.6% gross margin) compared to $38.2 million (20.5% gross margin) in 2009. - EBITDA(1) was $10.5 million compared to $18.8 million a year ago. - Net income per unit was $0.37 compared to $0.81 a year ago. - Declared cash distributions were $0.78 per unit, consistent with last year's payout over the same time period. 

 RESULTS OF OPERATIONS Comparative Statements of Income For the periods ended June 30, 2010 and 2009 (Thousands of Canadian dollars, unaudited) ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, 2010 2009 2010 2009 ----------------------------------------------- $ $ $ $ Revenue 93,962 102,332 170,102 186,632 Cost of goods sold 78,259 79,732 140,213 148,411 ------------------------------------------------------------------------- Gross profit 15,703 22,600 29,889 38,221 ------------------------------------------------------------------------- Gross profit percentage 16.7% 22.1% 17.6% 20.5% ------------------------------------------------------------------------- Selling, general and administrative 11,279 11,224 22,489 22,244 Foreign exchange (gain) loss (8) 155 39 (27) Net interest and financing 445 478 789 1,082 ------------------------------------------------------------------------- Income before income taxes 3,987 10,743 6,572 14,922 Provision for income taxes 130 683 115 848 ------------------------------------------------------------------------- Net income 3,857 10,060 6,457 14,074 EBITDA (see Non-GAAP Measures) 6,067 12,550 10,525 18,843 As a percentage of revenue 6.5% 12.3% 6.2% 10.1% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Commencing in fiscal 2010, certain amounts in the prior period's financial statements have been reclassified to conform to the current period's presentation. Amortization of property, plant and equipment relating to the manufacturing of product has been reclassified to cost of goods sold. For the three and six month periods ended June 30, 2010, the Fund reclassified $1.2 million and $2.3 million of amortization to cost of goods (2009 - $0.9 million and $1.9 million). RESULTS BY SEGMENT Results of Operations (Thousands of Canadian dollars, unaudited) ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, 2010 2009 2010 2009 ----------------------------------------------- $ $ $ $ Vicwest BP Revenue 57,810 59,436 99,030 99,855 Net income (loss) 1,397 3,485 (2,889) 336 Westeel Revenue 36,152 42,896 71,072 86,777 Net income 2,849 7,563 10,042 15,524 Unallocated Costs Interest and Financing Expenses 445 478 789 1,082 Income tax (recovery) provision (56) 510 (93) 704 Consolidated Net Income 3,857 10,060 6,457 14,074 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Commencing in fiscal 2010, certain amounts in the prior period's financial statements have been reclassified to conform to the current period's presentation. Certain corporate costs which were classified as unallocated corporate costs have begun to be allocated to the divisions based on revenue of the prior year in recognition of the Fund adopting a shared services model for a number of Fund activities. For the three and six months ended June 30, 2010, the Fund allocated corporate costs of $1.4 million and $2.8 million to Vicwest BP (2009 - $1.5 million and $2.9 million), and the Fund allocated corporate costs of $0.9 million and $1.8 million to Westeel (2009 - $0.8 million and $1.6 million). DISTRIBUTABLE CASH (see Non-GAAP Measures) Statement of Distributable Cash For the three and six months ended June 30, 2010 and 2009 (Thousands of Canadian dollars except unit and per unit amounts, unaudited) ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, 2010 2009 2010 2009 ----------------------------------------------- $ $ $ $ Net income 3,857 10,060 6,457 14,074 Amortization of property, plant and equipment 1,279 1,041 2,452 2,111 Amortization of intangible assets 356 288 712 728 Net interest and financing 445 478 789 1,082 Provision for income taxes 130 683 115 848 ------------------------------------------------------------------------- EBITDA (see Non-GAAP Measures) 6,067 12,550 10,525 18,843 Net interest expense (385) (418) (668) (962) Cash income taxes (186) (434) (208) (405) Maintenance capital additions (see Non-GAAP Measures) (1,551) (860) (2,561) (1,262) ------------------------------------------------------------------------- Distributable cash (see Non-GAAP Measures) 3,945 10,838 7,088 16,214 ------------------------------------------------------------------------- Cash distributions declared 6,791 6,794 13,582 13,588 ------------------------------------------------------------------------- Average units outstanding 17,413,201 17,419,468 17,413,201 17,419,468 Net income per unit 0.22 0.58 0.37 0.81 Distributable cash per unit 0.23 0.62 0.41 0.93 Cash distributions declared per unit 0.39 0.39 0.78 0.78 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 --------------------------------------- (1) For more information, refer to Non-GAAP Measures described below.