VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 9, 2010) - This document corrects and replaces the advisory sent earlier today at 7:52 PM EST.
The Honourable James Moore, Minister of Canadian Heritage and Official Languages, will attend the flag-raising ceremony at the Vancouver Olympic Village, on Wednesday.
This advisory is subject to change without notice.
The details are as follows:
Date: Wednesday, February 10, 2010
Time: 7:00 p.m. PST
Place: Athletes' Village
(southeast side of False Creek)
Vancouver, British Columbia
FOR FURTHER INFORMATION PLEASE CONTACT:
Office of the Minister of Canadian Heritage
and Official Languages
Deirdra McCracken - Director of Communications
deirdra.mccracken@pch.gc.ca
Source: Canadian Heritage
Enabling 3D Graphics Processing for Portable Multimedia Devices Using NEC Electronics' Lower Power Technology
KAWASAKI, Japan & DUESSELDORF, Germany & SANTA CLARA, Calif.--(BUSINESS WIRE)-- NEC Electronics (TSE: 6723) today announced the availability of new systems-on-chip (SoCs) in the EMMA Mobile(TM) series. EMMA Mobile/EV is capable of processing high-definition (HD) content and 3D graphics with very low power consumption. The new EMMA Mobile/EV SoCs, optimized for the portable device market including portable multimedia players and mobile tablets, integrate ARM's high-end Cortex(TM)-A9 CPU core and a high-performance HD-capable audio-visual (A/V) engine for decoding a multitude of digital video and audio formats. Two versions of the device are available: EMMA Mobile/EV1 with one embedded Cortex-A9 CPU core and EMMA Mobile/EV2 with two embedded Cortex-A9 CPU cores.
According to Techno Systems Research 2009, the global market for portable multimedia devices has grown to 250 million units in 2010 and is expected to increase continuously as evidenced by the variety of portable devices recently released to the market. In addition, embedded systems are becoming multi-functional with high performance, and the mobile market is expected to evolve into a market of multimedia data processors with higher performance.
As part of its core business, NEC Electronics has been actively expanding its portable device lineup. In November 2008, the company introduced the EMMA Mobile 1 SoC as part of its well-received mobile multimedia processor product line. The company added to the lineup of its EMMA Mobile 1 series with the EMMA Mobile 1-D product, and also expanded collaboration with Wind River and developed a Linux-based Software Development Kit (SDK) for the market of portable devices.
The new EMMA Mobile/EV SoCs offer the following features:
(1) Capable of HD format decoding in various formats
Through a dedicated A/V engine, EMMA Mobile/EV can decode H.264, MPEG2, MPEG4, VC-1 content up to full-HD (1920 x 1080 pixels) on portable devices.
(2) Incorporates built-in advanced interface with 3D graphics engine
The EMMA Mobile/EV2 chip integrates a high-performance POWERVR(TM) SGX(TM) 3D graphics core from Imagination Technologies Ltd., realizing 3D processing at 14.7 megapolygons per second and pixel-filtrate performance of 500 megapixels per second sustained under realistic operating conditions. This feature brings advanced effects that enable the creation of more realistic and compelling images.
(3) Reduced power consumption when playing back multimedia data
The new products incorporate various technologies such as automatic clock control, on-chip power switch and quick recovery (Note 1). Using those features, EMMA Mobile/EV reduces power consumption by up to 30 percent compared to EMMA Mobile 1, thereby contributing to longer battery life.
(4) Supports mobile DDR and DDR2 memory
The new products support mobile DDR and DDR2 as the main memory. System designers can choose either mobile DDR with low power consumption, or apply DDR2 to develop non-portable devices at low cost.
NEC Electronics considers EMMA Mobile/EV as a strategic product in the field of portable audio-visual devices and plans to market it actively.
Pricing and Availability
Samples of the new EMMA Mobile/EV chips are scheduled to be available in July 2010 priced at US$50 per unit. Mass production is scheduled for December 2010 and expected to reach one million units per month by 2011. More information about NEC Electronics' EMMA Mobile series can be found at http://www.necel.com/mobile/en/emma_mobile/index.html. (Pricing and availability are subject to change without notice.)
Exhibition at MWC
NEC Electronics plans to exhibit EMMA Mobile EV chips in NEC's booth (Hall 8, Stand 8A125) at the Mobile World Congress 2010 (MWC 2010) to be held in Barcelona, Spain, from February 15 to 18.
(Note 1)
-- Automatic clock control: Technology that supplies the most suitable
frequency clock to only the operating blocks.
-- On-chip power switch technology: Technology that divides several power
blocks in a chip and controls the power supply by a control switch.
-- Quick recovery technology: Technology that enables speedy, continuous
processing by restoring the pre-powered-off condition.
About NEC Electronics Corporation
NEC Electronics Corporation (TSE: 6723) specializes in semiconductor products encompassing advanced technology solutions for the high-end computing and broadband networking markets; system solutions for the mobile handset, PC peripheral, automotive and digital consumer markets; and multi-market solutions for a wide range of customer applications. NEC Electronics Corporation has subsidiaries worldwide including NEC Electronics America, Inc. (www.am.necel.com) and NEC Electronics (Europe) GmbH (www.eu.necel.com). More information about NEC Electronics worldwide can be found at www.necel.com.
Cortex is a trademark of ARM Limited. EMMA Mobile is a trademark or registered trademark of NEC Electronics Corporation in Japan, Germany, United States of America, and other countries. POWERVR and SGX are trademarks of Imagination Technologies Ltd. Other names of products and services mentioned in this text are the trademarks or registered trademarks of their respective owners.
Source: NEC Electronics Corporation
ALBUQUERQUE, NM -- (MARKET WIRE) -- 02/09/10 -- EMCORE Corporation (NASDAQ: EMKR), a leading provider of compound semiconductor-based components, subsystems, and systems for the fiber optics and solar power markets, today announced unaudited financial results for its first quarter ended December 31, 2009.
Revenue:
Revenue for the first quarter of fiscal 2010 ended December 31, 2009 was $42.4 million, an increase of $1.9 million, or 5%, from $40.5 million reported in the immediately preceding quarter ended September 30, 2009.
On a segment basis, revenue for the Photovoltaics segment was $16.8 million, an increase of $0.4 million, or 3%, from $16.4 million reported in the immediately preceding quarter with the increase due to a 14% increase in revenue from satellite solar power products offset by a decrease in revenue from terrestrial concentrated photovoltaic (CPV) products. The Photovoltaics segment accounted for 40% of the Company's consolidated quarterly revenue for both the three months ended December 31, 2009 and September 30, 2009.
Revenue for the Fiber Optics segment was $25.6 million, an increase of $1.5 million, or 6%, from $24.1 million reported in the immediately preceding quarter with the increase concentrated primarily in the Company's cable television (CATV) product lines. The Fiber Optics segment accounted for 60% of the Company's consolidated quarterly revenue for both the three months ended December 31, 2009 and September 30, 2009.
Gross Profit:
On a GAAP basis, the consolidated gross profit was $8.0 million, an improvement of $3.9 million, or 97%, from a $4.1 million gross profit reported in the immediately preceding quarter and an improvement of $6.4 million when compared to the prior year period. This represents the Company's best gross profit performance since the quarter ended June 30, 2008.
On a segment basis, the first quarter Photovoltaics GAAP gross margin was 22.1%, a decrease from the 28.5% GAAP gross margin reported in the preceding quarter, but an increase from the 13.6% GAAP gross margin reported in the prior year period. After excluding certain adjustments, as set forth in the attached non-GAAP tables, the Photovoltaics first quarter non-GAAP gross margin of 22.1% improved when compared to the 10.6% non-GAAP gross margin in the preceding quarter. As indicated in the attached non-GAAP tables, the Company reversed $2.9 million of inventory reserves in the preceding quarter relating to legacy CPV products that were sold during that period.
The Fiber Optics GAAP gross margin was 16.7%, a significant improvement from a negative 2.5% GAAP gross margin reported in the preceding quarter and a negative 1.1% GAAP gross margin reported in the prior year period. The improvement in the Fiber Optics gross margin was due to improved gross margins across the majority of the Company's product lines as well as lower inventory excess and obsolescence charges when compared to the preceding and prior year quarters.
Operating Loss:
On a GAAP basis, the consolidated operating loss was $11.9 million, an improvement of $2.0 million from an operating loss of $13.9 million reported in the preceding quarter. This represents the Company's best operating performance since the quarter ended June 30, 2008. During the quarter, the Company incurred approximately $4.2 million in legal expenses related to patent litigation and other corporate legal charges arising principally from two trials held in the first quarter and $1.3 million in non-cash stock-based compensation expense from the surrender of stock options. After excluding these expenses and certain other non-cash and other adjustments as set forth in the attached non-GAAP tables, the first quarter consolidated non-GAAP operating loss was $7.0 million, an improvement of $2.0 million, or 23%, from the non-GAAP operating loss of $9.0 million reported in the preceding quarter.
Net Loss:
On a GAAP basis, the consolidated net loss was $13.6 million, slightly above the net loss of $13.5 million reported in the preceding quarter. On October 1, 2009, the Company entered into a $25 million equity line of credit arrangement that met all the criteria of a financial derivative instrument. Non-cash costs incurred to enter into this derivative instrument of $1.4 million were expensed as incurred. After excluding this expense and certain other non-cash and other adjustments as set forth in the attached non-GAAP tables, the first quarter consolidated non-GAAP net loss was $7.1 million, a $2.0 million improvement from the $9.1 million non-GAAP net loss reported in the preceding quarter.
On a GAAP basis, the first quarter net loss per share was $0.17, representing no change from the $0.17 net loss per share reported in the preceding quarter. On a non-GAAP basis, the net loss per share was $0.09, an improvement of $0.02 per share from the $0.11 non-GAAP loss per share reported in the preceding quarter.
Order Backlog:
As of December 31, 2009, the Company had a consolidated order backlog of approximately $61.2 million, a $1.4 million, or 2%, decrease from the $62.6 million order backlog reported as of the end of the preceding quarter. On a segment basis, the quarter-end Photovoltaics order backlog totaled $42.3 million, a $5.4 million, or 11%, decrease from $47.7 million reported as of the end of the preceding quarter with the decrease due entirely to the rescheduling of a portion of a major customer's shipments beyond the Company's twelve month backlog reporting horizon. The quarter-end Fiber Optics order backlog totaled $18.9 million, a $4.0 million, or 26%, increase from $14.9 million reported as of the end of the preceding quarter with the increase being broad-based across customers and products. The order backlog is defined as purchase orders or supply agreements accepted by the Company with expected product delivery and / or services to be performed within the next twelve months.
Liquidity Update:
As of December 31, 2009, cash, cash equivalents, current restricted cash, and available-for-sale securities totaled approximately $16.5 million which represents a $0.4 million, or 2%, decrease from $16.9 million as of the end of the preceding quarter. As of December 31, 2009, net working capital totaled $32.0 million.
During the three months ended December 31, 2009, the Company consumed $1.2 million in cash from operations and, over the last three quarters, consumed only $189,000 in cash from operations due primarily to improved working capital management. The first quarter represents the fourth consecutive quarter that the Company has generated cash from the reduction of inventory. During the last twelve months, the Company monetized approximately $25.5 million of inventory, generated $16.9 million in cash from lowering its accounts receivable balances and achieved positive cash flow from operations during the quarters ended June 30, 2009 and September 30, 2009.
The Company maintains a $14 million credit facility with Bank of America and, on October 1, 2009, closed a two-year $25 million committed equity line of credit facility with the Commerce Court Small Cap Value Fund, Ltd. In addition, the Company continues to evaluate its capital requirements and alternative sources of capital. With respect to the separation of its Fiber Optics and Photovoltaics businesses, the Company announced on February 3, 2010 that it has entered into an agreement to sell 60% of its Fiber Optics business to and enter into a joint venture with the Tangshan Caofeidian Investment Corporation.
Business Outlook:
For the second quarter of fiscal 2010 ending March 31, 2010, the Company expects consolidated revenue to be in the range of $45 to $47 million with increases in both the Photovoltaics and Fiber Optics segments.
Conference Call:
EMCORE will discuss its unaudited results for its first quarter ended December 31, 2009 on a conference call to be held on Wednesday, February 10, 2010 at 4:30 pm ET. To participate in the conference call, U.S. callers should dial (toll free) 888-587-0613 and international callers should dial 719-325-2352. The access code for the call is 7863504. A replay of the call will be available beginning February 10, 2010 at 8:00 p.m. EST until February 17, 2010 at 11:59 p.m. EST. The replay call-in number for U.S. callers is 888-203-1112, for international callers it is 719-457-0820, and the access code is 7863504. The call also will be web cast via the Company's web site at http://www.emcore.com. Please go to the site beforehand to download any necessary software.
About EMCORE:
EMCORE Corporation offers a broad portfolio of compound semiconductor-based products for the broadband, fiber optics, satellite and solar power markets. EMCORE's Fiber Optics segment offers optical components, subsystems and systems for high speed data and telecommunications networks, cable television (CATV) and fiber-to-the-premises (FTTP). EMCORE's Photovoltaics segment provides products for both satellite and terrestrial applications. For satellite applications, EMCORE offers high efficiency gallium arsenide (GaAs) solar cells, covered interconnected cells (CICs) and panels. For terrestrial applications, EMCORE is adapting its high-efficiency GaAs solar cells for use in solar concentrator systems. For further information about EMCORE, visit http://www.emcore.com.
Forward-Looking Statements:
The information provided herein may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Exchange Act of 1934. These forward-looking statements are largely based on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Such forward-looking statements include, in particular, projections about our future results included in our Exchange Act reports, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate. These forward-looking statements may be identified by the use of terms and phrases such as "anticipates", "believes", "can", "could", "estimates", "expects", "forecasts", "intends", "may", "plans", "projects", "targets", "will", and similar expressions or variations of these terms and similar phrases. Additionally, statements concerning future matters such as the development of new products, enhancements or technologies, sales levels, expense levels and other statements regarding matters that are not historical are forward-looking statements. Management cautions that these forward-looking statements relate to future events or our future financial performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements of our business or our industry to be materially different from those expressed or implied by any forward-looking statements.
These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: (a) the impact on the Company, our customers and our suppliers from the current domestic and international economic and financial market conditions; (b) the success of our cost reduction efforts in achieving their expected benefits, due to, among other things, shifts in product mix, selling price pressures, costs and delays related to product transfers to lower cost manufacturing locations and associated facility closures, integration difficulties, and execution concerns; (c) delays and other difficulties in commercializing new products; (d) the failure of new products (i) to perform as expected without material defects, (ii) to be manufactured at acceptable volumes, yields, and cost, (iii) to be qualified and accepted by our customers, and, (iv) to successfully compete with products offered by our competitors; (e) we may not be successful in undertaking the steps currently planned in order to increase our liquidity; and (f) other risks and uncertainties described in our filings with the Securities and Exchange Commission such as cancellations, rescheduling or delays in product shipments; manufacturing capacity constraints; lengthy sales and qualification cycles; difficulties in the production process; changes in semiconductor industry growth; increased competition; delays in developing and commercializing new products; and other factors.
Neither management nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and subsequent facts or circumstances may contradict, obviate, undermine, or otherwise fail to support or substantiate such statements. We caution you not to rely on these statements without also considering the risks and uncertainties associated with these statements and our business that are addressed in our Annual Report on Form 10-K. Certain information included in this press release may supersede or supplement forward-looking statements in our other Exchange Act reports filed with the Securities and Exchange Commission. We assume no obligation to update any forward-looking statement to conform such statements to actual results or to changes in our expectations, except as required by applicable law or regulation.
EMCORE CORPORATION
Condensed Consolidated Statements of Operations
For the three months ended December 31, 2009 and 2008
(in thousands, except loss per share)
(unaudited)
For the Three Months
Ended December 31,
-------------------------
2009 2008
----------- -----------
Revenue $ 42,401 $ 54,056
Cost of revenue 34,397 52,467
----------- -----------
Gross profit 8,004 1,589
Operating expenses:
Selling, general, and administrative 12,423 12,159
Research and development 7,513 8,110
Impairments - 33,781
----------- -----------
Total operating expenses 19,936 54,050
----------- -----------
Operating loss (11,932) (52,461)
Other (income) expense:
Interest income (2) (50)
Interest expense 116 195
Foreign exchange loss 232 472
Loss from financing derivative instrument 1,360 -
Impairment of investment - 367
----------- -----------
Total other expense 1,706 984
----------- -----------
Net loss $ (13,638) $ (53,445)
=========== ===========
Per share data:
Net loss per basic and diluted share $ (0.17) $ (0.69)
=========== ===========
Weighted-average number of basic and diluted
shares outstanding 81,113 77,816
=========== ===========
EMCORE CORPORATION
Condensed Consolidated Balance Sheets
As of December 31, 2009 and September 30, 2009
(in thousands)
(unaudited)
As of As of
December 31, September 30,
2009 2009
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 15,138 $ 14,028
Restricted cash 4 1,521
Available-for-sale securities 1,350 1,350
Accounts receivable, net of allowance of $6,640
and $7,125, respectively 40,726 39,417
Inventory, net 31,454 34,221
Prepaid expenses and other current assets 4,550 4,712
----------- -----------
Total current assets 93,222 95,249
Property, plant and equipment, net 52,719 55,028
Goodwill 20,384 20,384
Other intangible assets, net 12,424 12,982
Long-term restricted cash 163 163
Other non-current assets, net 720 753
----------- -----------
Total assets $ 179,632 $ 184,559
=========== ===========
LIABILITIES and SHAREHOLDERS' EQUITY
Current liabilities:
Borrowings from credit facility $ 10,678 $ 10,332
Short-term debt 843 842
Accounts payable 28,632 24,931
Accrued expenses and other current liabilities 21,042 21,687
----------- -----------
Total current liabilities 61,195 57,792
Warrant liability 1,132 -
Other long-term liabilities 103 104
----------- -----------
Total liabilities 62,430 57,896
Commitments and contingencies
Shareholders' equity:
Preferred stock, $0.0001 par, 5,882 shares
authorized; no shares outstanding - -
Common stock, no par value, 200,000 shares
authorized; 81,900 shares issued and 81,741
shares outstanding as of December 31,
2009; 80,982 shares issued and 80,823 shares
outstanding as of September 30, 2009 692,942 688,844
Accumulated deficit (574,471) (560,833)
Accumulated other comprehensive income 814 735
Treasury stock, at cost; 159 shares as of
December 31, 2009 and September 30, 2009 (2,083) (2,083)
----------- -----------
Total shareholders' equity 117,202 126,663
----------- -----------
Total liabilities and shareholders' equity $ 179,632 $ 184,559
=========== ===========
Use of Non-GAAP Measures
The Company provides non-GAAP gross profit and gross margin, non-GAAP operating loss, and non-GAAP net loss and net loss per share as supplemental measures to GAAP regarding our operational performance. These financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. This press release also contains a reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure.
The Company believes that the additional non-GAAP measures are useful to investors in assessing the Company's financial condition and performance. In particular, management believes it is appropriate in evaluating the Company's operations to exclude gains or losses from specific accounts receivable and inventory write-downs, loss from firm purchase commitments, patent litigation and other corporate legal-related charges; impairment charges; foreign exchange gains and losses, losses from financial derivative instruments, and warranty, severance and restructuring-related expenses because these items would make results less comparable between periods. Management also uses these measures internally to evaluate the Company's operating performance, and the measures are used for planning and forecasting of future periods. In addition, financial analysts that follow our Company may focus on and publish both historical results and future projections based on non-GAAP financial measures. We also believe that it is in the best interest of our investors to provide non-GAAP information.
While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. Our non-GAAP financial measures may not be reported by all of the Company's competitors and they may not be directly comparable to similarly titled measures of other companies due to potential differences in calculation. The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by providing reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.
Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
The Company has provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as indicated in the tables below:
Non-GAAP Table
Gross profit and margin
Unaudited For the Three Months For the Three Months
(in thousands, Ended December 31, 2009 Ended September 30, 2009
except percentages) ------------------------- -------------------------
Fiber Photo- Fiber Photo-
Optics voltaics Total Optics voltaics Total
------- ------- ------- ------- ------- -------
Gross profit (loss) -
GAAP $ 4,288 $ 3,716 $ 8,004 $ (598) $ 4,668 $ 4,070
Specific adjustments:
Inventory valuation - - - 1,985 (2,937) (952)
Product warranty - - - (245) - (245)
Loss on commitments - - - 1,991 - 1,991
------- ------- ------- ------- ------- -------
Gross profit -
Non-GAAP $ 4,288 $ 3,716 $ 8,004 $ 3,133 $ 1,731 $ 4,864
======= ======= ======= ======= ======= =======
Gross margin - GAAP 16.7% 22.1% 18.9% (2.5%) 28.5% 10.0%
======= ======= ======= ======= ======= =======
Gross margin -
Non-GAAP 16.7% 22.1% 18.9% 13.0% 10.6% 12.0%
======= ======= ======= ======= ======= =======
Non-GAAP Table For the Three For the Three
Operating Loss Months Ended Months Ended
Unaudited December 31, September 30,
(in thousands) 2009 2009
------------ ------------
Operating loss - GAAP $ (11,932) $ (13,915)
Specific adjustments:
Surrender of stock options 1,252 -
Provision for doubtful accounts (450) 225
Corporate legal expense 4,163 2,779
Severance and restructuring-related expense 8 1,082
Inventory valuation - (952)
Product warranty - (245)
Loss on commitments - 1,991
----------- -----------
Operating loss - Non-GAAP $ (6,959) $ (9,035)
=========== ===========
Non-GAAP Table For the Three For the Three
Net Loss Months Ended Months Ended
Unaudited December 31, September 30,
(in thousands) 2009 2009
------------ ------------
Net loss - GAAP $ (13,638) $ (13,532)
Specific adjustments:
Surrender of stock options 1,252 -
Provision for doubtful accounts (450) 225
Corporate legal expense 4,163 2,779
Severance and restructuring-related expense 8 1,082
Inventory valuation - (952)
Product warranty - (245)
Loss on commitments - 1,991
Foreign exchange loss (gain) 232 (481)
Loss from financing derivative instrument 1,360 -
----------- -----------
Net loss - Non-GAAP $ (7,073) (9,133)
=========== ===========
Net loss per basic and diluted share - GAAP $ (0.17) $ (0.17)
=========== ===========
Net loss per basic and diluted share -
Non-GAAP $ (0.09) $ (0.11)
=========== ===========
Contacts: EMCORE Corporation Silvia M. Gentile Executive Offices (505) 332-5000 Email Contact TTC Group Victor Allgeier (646) 290-6400 Email Contact
SAN FRANCISCO, Feb. 9 /PRNewswire/ -- Sky Holding Company, LLC is pleased to announce the delivery of one Airbus A320-214 to Aerovias del Continente Americano S.A. ("Avianca"), Colombia's leading airline. This transaction represents a continuation of Sky's long relationship with Avianca and the first sale/leaseback transaction of Sky's new fleet, which is being built in partnership with Oaktree Capital.
"We are thrilled to be able to execute another transaction with Avianca, which is one of Latin America's strongest carriers and has been a great partner with our firm for a long time," said Richard Wiley, Sky's founder and CEO. "We emphasize new, fuel-efficient aircraft on lease to leading airlines around the world. We have ambitious growth plans over the next couple of years, and with $500 million in support from Oaktree Capital this is the first of many such transactions for us."
"Avianca is pleased to have received its thirteenth Airbus A320, as a result of a sale and lease back transaction with Sky. With this new aircraft the airline will continue to provide its high quality service based on comfort and efficiency in its routes in Colombia, the Americas and Europe" said Gerardo Grajales, CFO for Avianca.
About Sky Holding Company, LLC: Sky is a full-service aircraft leasing company based in San Francisco with offices in Seattle, Miami, and Buenos Aires, with a European office opening in 2010. The management team, which had previously worked together at Pegasus Aviation, has over 90 years of combined industry experience. The team has collectively acquired over $10 billion of aircraft, has purchased and/or remarketed over 400 aircraft, and has developed relationships with over 30 commercial lenders and investment banks across Europe, Asia and North America. Sky is equity funded by its management team and Oaktree Capital Management, L.P., a premier global alternative and non-traditional investment manager with over US$70 billion in assets under management.
About Avianca: Avianca was the first airline founded in the Americas. Along with Ocean Air, in Brazil; and Vip S.A., in Ecuador, it is part of the Synergy Aerospace Group. With more than six thousand direct collaborators, and a fleet of 60 short, medium and long range aircraft, Avianca currently operates directly to 21 destinations in Colombia and 22 points in America and Europe. From its hub in Bogota, the company offers an average of 350 flights per day connecting its domestic and international destinations. Passengers have more than 6,000 options for connections between destinations operated both directly and through code share agreements with other internationally renowned companies. In addition to its passenger air transport services, Avianca provides tourism, mail, cargo, and courier transport services, as well as aeronautical assistance services, through its Business Units: Avianca Tours, Deprisa and Avianca Services. For additional information, please visit www.avianca.com.
www.skyholding.aero
SOURCE Sky Holding Company, LLC
VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 02/09/10 -- Acadian Timber Corp. (TSX: ADN) -
Investors, analysts and other interested parties can access Acadian Timber Income Fund's 2009 Fourth Quarter and Year-end Results conference call via webcast on Wednesday, February 10, 2010 at 10:00 a.m. ET at www.acadiantimber.com or via teleconference at 1-800-319-4610, toll free in North America. For overseas calls please dial +1-604-638-5340, at approximately 9:50 a.m. ET. The teleconference recorded rebroadcast can be accessed at 1-800-319-6413 or +1-604-638-9010 and enter passcode 2826.
Acadian Timber Corp. (the "Corporation") (TSX: ADN), formerly Acadian Timber Income Fund ("Acadian" or the "Fund"), today reported financial and operating results(1) for the three and twelve month periods ended December 31, 2009.
For the three months ended December 31, 2009 (the "fourth quarter"), Acadian generated net sales of $16.7 million on consolidated volumes of 343 thousand m3, compared with net sales of $19.7 million on consolidated volumes of 307 thousand m3 during the same period last year.
EBITDA for the fourth quarter was $2.0 million or 12% of sales as compared to EBITDA of $6.9 million or 35% of sales during the comparable period in 2008. Results in the quarter reflect a lower contribution from the management of the Crown licensed timberlands by New Brunswick Timberlands and soft pricing at Maine Timberlands. As a result of these market conditions, Acadian has continued to reduce near-term harvest levels of our high margin spruce-fir sawlogs allowing us to maximize opportunities when markets recover, thus preserving the long-term value of Acadian's resource. Additionally, the Fund incurred $0.9 million of non-recurring costs associated with the previously announced conversion to a corporation.
For the year ended December 31, 2009, Acadian generated net sales of $63.4 million as compared to net sales of $67.9 million in 2008. EBITDA was $12.1 million or 19% of sales as compared to EBITDA of $17.4 million or 26% of sales in the prior year.
"While 2009 was another very challenging year, we are pleased with what we have achieved this year at both corporate and operating levels. These accomplishments include successfully completing the conversion to a corporation and extending the maturity of our bank term credit facility," commented Reid Carter, Chief Executive Officer of Acadian. "While 2010 is expected to be another difficult year, we will focus on identifying and accessing market opportunities while keeping costs low," added Mr. Carter.
(1) This news release makes reference to earnings before interest, taxes, depletion, depreciation and amortization ("EBITDA") and distributable cash from operations. Management believes that EBITDA and distributable cash from operations are key performance measures in evaluating Acadian's operations and are important in enhancing investors' understanding of Acadian's operating performance. As EBITDA and distributable cash from operations do not have a standardized meaning prescribed by Canadian GAAP, they may not be comparable to similar measures presented by other companies. As a result, we have provided in this news release reconciliations of net income and cash flow from operations, as determined in accordance with Canadian GAAP, to EBITDA and distributable cash from operations.
New Chief Financial Officer Appointed
Brookfield Timberlands Management LP, as Manager of Acadian, announced that, after almost three years as Acadian's Chief Financial Officer, Mr. Joseph Cornacchia will be leaving Acadian to take on new responsibilities within Brookfield Asset Management. "The entire management team would like to thank Mr. Cornacchia for his hard work, dedication and very significant contributions to Acadian and wish him the best in his new endeavours" commented Mr. Carter. Effective February 10, 2010, Mr. Brian Banfill will replace Mr. Cornacchia as Acadian's Senior Vice-President and Chief Financial Officer. Mr. Banfill has been intimately involved with Acadian since its inception and is a Certified General Accountant with over 25 years of experience in the forest industry.
Review of Operations
2009 Financial and Operating Highlights
Three Months Ended Year Ended
December 31 December 31
------------------------------------------------
($millions except per unit
information) 2009 2008 2009 2008
----------------------------------------------------------------------------
Net sales $ 16.7 $ 19.7 $ 63.4 $ 67.9
EBITDA 2.0 6.9 12.1 17.4
Distributable cash from
operations 1.3 5.7 8.1 13.3
Distributions declared 1.4 3.4 11.7 13.7
Net income(1) - 15.8 9.3 18.9
Per unit - fully diluted
Net Income (loss)(1) - (0.14) 0.30 0.02
Distributable cash from
operations 0.08 0.34 0.49 0.80
Distributions declared -
Class A unitholders 0.08 0.21 0.70 0.83
Sales volume (000s m3) 343.0 306.6 1,258.3 1,251.0
----------------------------------------------------------------------------
(1) Net income includes the impact of the revaluation of the Class B
Interest Liability of a subsidiary, the future income tax
expense/recovery, and the depreciation and depletion expense, which are
non-cash items recorded in each respective period.
Included in the net income for the three and twelve month periods ended December 31, 2009 is a non-cash future income tax recovery of $0.3 million and $3.0 million, respectively (2008 - $6.1 million expense and $6.2 million expense, respectively). The future income tax liability of the Fund is based on differences between the financial reporting and tax basis of assets and liabilities of its subsidiaries, which have been measured using the substantially enacted tax rates and laws that are expected to be in effect at the time the differences are anticipated to reverse. The reduction in the future income tax liability, and related recovery, recorded during the year is largely a result of a decline in the substantially enacted tax rate expected to be in effect.
Also, included in net income for the year ended December 31, 2009 is a non-cash gain related to the Class B Interest Liability of a subsidiary. The settlement obligation of this interest was based on the trading value of Acadian's units at the time of settlement, which required recording the liability at its fair value at each balance sheet date with the corresponding gain arising from a decrease in Acadian's unit price or loss arising from an increase in Acadian's unit price included in the statement of operations. In addition, as this Canadian dollar liability was issued by a self-sustaining U.S. dollar subsidiary of the Fund, the obligation was required to be converted to U.S. dollars at each reporting period, with the corresponding gain or loss included in the statement of operations. These items resulted in a $4.7 million gain for the year ended December 31, 2009 (2008 - $22.2 million gain) comprised of a $4.1 million mark-to-market gain (2008 - $15.0 million gain) and a $0.6 million foreign exchange gain (2008 - $7.2 million gain).
On February 3, 2009, an affiliate of Brookfield Asset Management Inc. ("Brookfield") converted all units representing the Class B Liability of a subsidiary into Class A Units of the Fund on a one-for-one basis. Accordingly, the Class B Liability of a subsidiary was not outstanding during the fourth quarter and was not revalued at the end of the period.
New Brunswick Timberlands
The table below summarizes operating and financial results for New Brunswick Timberlands.
Three Months Ended Three Months Ended
December 31, 2009 December 31, 2008
--------------------------------------------------------------
Harvest Sales Results Harvest Sales Results
(000s m3) (000s m3) (millions) (000s m3) (000s m3) (millions)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood 57.4 68.0 $ 3.8 72.5 73.2 $ 4.4
Hardwood 148.7 143.9 7.6 81.7 78.2 4.6
Biomass 58.8 58.8 1.1 57.4 57.4 1.1
----------------------------------------------------------------------------
264.9 270.7 12.5 211.6 208.8 10.1
Other sales 0.8 3.2
----------------------------------------------------------------------------
Net sales $ 13.3 $ 13.3
----------------------------------------------------------------------------
EBITDA $ 2.5 $ 4.5
EBITDA margin 19% 34%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
--------------------------------------------------------------
Year Ended December 31, 2009 Year Ended December 31, 2008
--------------------------------------------------------------
Harvest Sales Results Harvest Sales Results
(000s m3) (000s m3) (millions) (000s m3) (000s m3) (millions)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood 336.5 328.9 $ 18.9 273.8 280.8 $ 17.0
Hardwood 444.0 432.7 22.1 389.6 413.5 23.8
Biomass 235.4 235.4 4.5 241.6 241.6 4.4
----------------------------------------------------------------------------
1,015.9 997.0 45.5 905.0 935.9 45.2
Other sales 3.3 4.8
----------------------------------------------------------------------------
Net sales $ 48.8 $ 50.0
----------------------------------------------------------------------------
EBITDA $ 10.8 $ 11.5
EBITDA margin 22% 23%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood, hardwood and biomass shipments were 68 thousand m3, 144 thousand m3 and 59 thousand m3, respectively, during the fourth quarter, representing a 30% increase in sales volumes as compared to same period in 2008. This increase reflects improved demand for hardwood pulpwood as compared to the fourth quarter of 2008. Approximately 30% of sales volumes were sold as sawlogs, 48% as pulpwood and 22% as biomass in the fourth quarter. This compares to 34% of sales volumes sold as sawlogs, 39% as pulpwood and 27% as biomass in the fourth quarter of 2008.
Net sales for the fourth quarter totaled $13.3 million, consistent with the same period in 2008. The increase in sales volumes was offset by a lower value species mix and a $2.4 million decrease in other sales. The decrease in other sales was primarily attributed to a reduced contribution from our management of Crown licensed timberlands as a result of lower harvesting activity. The weighted average selling price was $46.05 in the fourth quarter of 2009, compared to $48.79 in the same period of 2008.
Costs for the fourth quarter were $10.8 million, representing an increase of 23% compared to the same period of 2008. This was primarily a result of increased harvest volumes, longer hauling distances and cable logging.
EBITDA for the fourth quarter was $2.5 million, compared to $4.5 million in the same period in 2008, while EBITDA margin decreased from 34% to 19%.
NB Timberlands experienced no incidents among employees and three minor reportable incidents among contractors during the fourth quarter, from which the individuals have since fully recovered. We are pleased to report that there were no reportable environmental incidents during the fourth quarter.
Maine Timberlands
The table below summarizes operating and financial results for Maine Timberlands.
Three Months Ended Three Months Ended
December 31, 2009 December 31, 2008
--------------------------------------------------------------
Harvest Sales Results Harvest Sales Results
(000s m3) (000s m3) (millions) (000s m3) (000s m3) (millions)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood 43.7 43.6 $ 2.1 72.4 72.4 $ 4.8
Hardwood 21.2 21.2 1.1 18.1 18.7 1.4
Biomass 7.5 7.5 0.1 6.7 6.7 0.1
----------------------------------------------------------------------------
72.4 72.3 3.3 97.2 97.8 6.3
Other sales 0.1 0.1
----------------------------------------------------------------------------
Net sales $ 3.4 $ 6.4
----------------------------------------------------------------------------
EBITDA $ 0.7 2.5
EBITDA margin 21% 39%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
--------------------------------------------------------------
Year Ended December 31, 2009 Year Ended December 31, 2008
--------------------------------------------------------------
Harvest Sales Results Harvest Sales Results
(000s m3) (000s m3) (millions) (000s m3) (000s m3) (millions)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood 196.0 195.6 $ 11.7 234.4 234.2 $ 13.7
Hardwood 45.3 44.6 2.2 62.1 62.5 3.6
Biomass 21.1 21.1 0.3 18.4 18.4 0.2
----------------------------------------------------------------------------
262.4 261.3 14.2 314.9 315.1 17.5
Other sales 0.4 0.4
----------------------------------------------------------------------------
Net sales $ 14.6 $ 17.9
----------------------------------------------------------------------------
EBITDA $ 4.2 $ 6.5
EBITDA margin 29% 36%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Maine Timberlands experienced strong operating conditions during the fourth quarter, primarily as a result of favourable weather conditions. However, difficult market conditions resulted in a significant decline in the operation's financial performance. Softwood, hardwood and biomass shipments were 44 thousand m3, 21 thousand m3, and 7 thousand m3, respectively, with total sales volumes decreasing by 26% as compared to the fourth quarter of 2008. The decrease in sales volumes reflects particularly strong volumes in the fourth quarter of 2008 as the operation's largest contractor caught up on its contract volume after weather-related difficulties during the spring and early summer operating season. Approximately 43% of sales volumes were sold as sawlogs, 47% as pulpwood and 10% as biomass during the fourth quarter. This compares to 55% of sales volumes sold as sawlogs, 38% as pulpwood and 7% as biomass in the fourth quarter of 2008.
Net sales for the fourth quarter totaled $3.4 million, compared to $6.4 million for the same period last year. The year-over-year decline in net sales is a result of lower shipment volumes, a lower value species mix, and softer prices across all products. The weighted average price across all products was $45.27 in the fourth quarter, compared to $64.19 in the same period of 2008, reflecting a 29% decrease in Canadian dollar terms. Weighted average selling prices decreased 22% in U.S. dollar terms year over year.
Costs for the fourth quarter were $2.7 million, compared to $3.9 million for the same period in 2008. This decrease reflects lower sales volumes and lower variable costs per m3, partially due to lower diesel prices.
EBITDA for the fourth quarter was $0.7 million, compared to $2.5 million for the same period in 2008, while EBITDA margin decreased from 39% to 21%.
Maine Timberlands had no recordable safety incidents among employees and one minor reportable incident among contractors during the fourth quarter. The individual has since fully recovered. We are pleased to report that there were no reportable environmental incidents during the fourth quarter.
Market and Company Outlook
The following Market Outlook contains forward-looking statements about Acadian Timber Corp.'s market outlook for fiscal 2010. Reference should be made to the "Forward-looking Statements" section of this news release. For a description of material factors that could cause actual results to differ materially from the forward-looking statements in the following, please see the Risk Factors section of our Management's Discussion and Analysis (MD&A) in our most recent Annual Report and Annual Information Form available on our website at www.acadiantimber.com or filed with SEDAR at www.sedar.com.
Consensus forecasts for U.S. housing predict an increase in housing starts to only 675,000 units in 2010 and 910,000 in 2011 - a very slow recovery from 2009's post World War II low of 550,000 starts. While smaller, non-industrial timberland owners continue to withhold timber from the market, an ample supply of Crown and private timber has placed considerable pressure on timber prices resulting in price declines of approximately 20% from 2006 - 2007 averages. The fact that Fraser Papers Inc. is currently expected to operate its Edmundston Pulp mill and Plaster Rock sawmill provides some encouragement that demand for Acadian's spruce-fir sawlogs will be stronger in 2010 than in 2009, although prices are expected to remain low throughout the year. Despite current difficult softwood sawlog markets, Acadian continues to find markets for its key products while choosing to preserve value for those products that don't offer adequate market opportunities by reducing the near-term harvest levels of our high margin spruce-fir sawlogs. Weak softwood sawlog markets and relatively large inventories of softwood pulpwood and chips is also expected to result in uncertainties in regard to the level of activity on Fraser Papers Inc.'s Crown licensed timberlands which is managed by Acadian, reducing the contribution from these management services to Acadian's net income.
Markets for hardwood sawlogs and specialty products remain relatively stable, particularly for aspen. These markets are expected to remain stable into 2010. Markets for hardwood have improved since the first half of 2009 and Acadian's major hardwood pulpwood customers continue to operate and take deliveries with pricing improving modestly from the second and early third quarter. Acadian has been able to sell all of its biomass, although this market has also been under pressure due to low demand for electric power and reduced gas and oil prices. The Biomass Crop Assistance Program (BCAP) implemented in the U.S. during the fourth quarter of 2009 may provide limited additional opportunities for biomass sales by our Maine Timberlands although the impact of this two-year program on biomass sales by our New Brunswick Timberlands remains uncertain.
"During these challenging market conditions, we remained focused on preserving long-term value for shareholders and merchandising all of our products for their highest value, while seeking every opportunity to reduce costs. We continue to be confident in Acadian's long-term outlook and the quality of our asset base. We believe that our new tax effective corporate structure and steadily improving market conditions will lead to improved financial performance going forward" concluded Mr. Carter.
Acadian Timber Corp. is a leading supplier of primary forest products in Eastern Canada and the Northeastern U.S. With a total of 2.4 million acres of land under management, the Corporation is the second largest timberland operator in New Brunswick and Maine.
The Corporation owns and manages approximately 1.1 million acres of freehold timberlands in New Brunswick and Maine, and provides management services relating to approximately 1.3 million acres of Crown licensed timberlands. The Corporation also owns and operates a forest nursery in Second Falls, New Brunswick. Acadian's products include softwood and hardwood sawlogs, pulpwood and biomass by-products, sold to over 110 regional customers.
Acadian Timber Corp.'s shares are listed for trading on the Toronto Stock Exchange under the symbol ADN.
For further information, please visit our website at www.acadiantimber.com.
Forward-Looking Statements
This News Release contains forward-looking information and other forward-looking statements within the meaning of applicable Canadian securities laws that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Corporation and its subsidiaries (collectively, "Acadian"), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this News Release, such statements may contain such words as "may," "will," "intend," "should," "expect," "believe," "outlook," "predict," "remain," "anticipate," "estimate," "potential," "continue," "plan," "could," "might," "project," "targeting" or the negative of these terms or other similar terminology. Forward-looking information in this News Release includes, without limitation, statements regarding management's beliefs, intentions, results, performance, goals, achievements, future events, plans and objectives, business strategy, access to capital, liquidity and trading volumes, dividends, taxes, capital expenditures, projected costs, and anticipated benefits of the conversion from an income trust to a corporation, and similar statements concerning anticipated future events, results, achievements, circumstances, performance or expectations that are not historical facts. These statements reflect management's current expectations regarding future events and operating performance are based on information currently available to management and speak only as of the date of this News Release. All forward-looking statements in this News Release are qualified by these cautionary statements. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, should not be unduly relied upon, and will not necessarily be accurate indications of whether or not such results will be achieved. Factors that could cause actual results to differ materially from the results discussed in the forward-looking statements include, but are not limited to: general economic and market conditions; product demand; concentration of customers; commodity pricing; interest rate and foreign currency fluctuations; seasonality; weather and natural conditions; regulatory, trade or environmental policy changes; changes in Canadian income tax law; economic situation of key customers; failure to realize the anticipated benefits of the conversion from an income trust to a corporation; the risks associated with the availability and the amount of the tax basis in connection with the conversion from an income fund to a corporation;
and other risks and factors, to the extent they remain applicable to the Corporation, discussed under the heading "Risk Factors" in each of the Annual Information Form dated March 27, 2009 and the Management Information Circular dated November 23, 2009 of Acadian Timber Income Fund (the "Fund"), the predecessor reporting issuer to the Corporation, and other filings of the Fund and the Corporation with securities regulatory authorities, which are available on SEDAR at www.sedar.com. Forward-looking information is based on various material factors or assumptions, which are based on information currently available to Acadian. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: anticipated financial performance; business prospects; strategies; regulatory developments; exchange rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services and the ability to obtain financing on acceptable terms, which are subject to change based on commodity prices, market conditions for timber and wood products, the economic situation of key customers, and the utilization of the tax basis resulting from the conversion from an income trust to a corporation. Readers are cautioned that the preceding list of material factors or assumptions is not exhaustive. Although the forward-looking statements contained in this News Release are based upon what management believes are reasonable assumptions, the Corporation cannot assure readers that actual results will be consistent with these forward-looking statements. Certain statements in this New Release may also be considered "financial outlook" for the purposes of applicable Canadian securities laws, and such financial outlook may not be appropriate for purposes other than this News Release. The forward-looking statements in this News Release are made as of the date of this News Release, and should not be relied upon as representing Acadian's views as of any date subsequent to the date of this News Release. The Corporation assumes no obligation to update or revise these forward-looking statements to reflect new information, events, circumstances or otherwise, except as required by applicable law.
Acadian Timber Income Fund
Consolidated Balance Sheets
----------------------------------------------------------------------------
As at December 31
(CAD millions) 2009 2008
----------------------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents $ 2.1 $ 9.0
Accounts receivable and other assets 6.2 4.7
Note receivable 4.0 -
Inventory 1.8 1.4
----------------------------------------------------------------------------
14.1 15.1
Intangible assets 6.1 6.1
Timberlands, logging roads and fixed assets 190.0 207.8
----------------------------------------------------------------------------
$ 210.2 $ 229.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES AND UNITHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 4.3 $ 6.2
Distributions payable to unitholders - 0.8
----------------------------------------------------------------------------
4.3 7.0
Future income tax liability 13.9 17.7
Long-term debt 80.7 80.8
Class B Interest Liability of a subsidiary - 31.6
Unitholders' equity 111.3 91.9
----------------------------------------------------------------------------
$ 210.2 $ 229.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Acadian Timber Income Fund
Consolidated Statements of Operations and Deficit
----------------------------------------------------------------------------
For the Three Months For the Year Ended
Ended December 31 December 31
----------------------------------------------------------------------------
CAD millions 2009 2008 2009 2008
----------------------------------------------------------------------------
Net sales $ 16.7 $ 19.7 $ 63.4 $ 67.9
Operating costs and expenses
Cost of sales 12.1 11.1 43.3 44.8
Selling, administration and
other 2.6 1.7 8.6 6.4
Depreciation and depletion 1.6 2.2 7.1 7.4
----------------------------------------------------------------------------
16.3 15.0 59.0 58.6
----------------------------------------------------------------------------
Operating earnings 0.4 4.7 4.4 9.3
Gain on sale of timberlands - - (0.6) (0.7)
Gain on Class B Interest
Liability of a subsidiary - (19.1) (4.7) (22.2)
Interest:
Interest income - - - (0.2)
Interest expense 0.7 1.0 3.1 3.6
Class B Interest Liability
of a subsidiary - 0.9 0.3 3.7
----------------------------------------------------------------------------
Earnings (loss) before
income tax expense (0.3) 21.9 6.3 25.1
Future income tax recovery
(expense) 0.3 (6.1) 3.0 (6.2)
----------------------------------------------------------------------------
Net income for the period - 15.8 9.3 18.9
Deficit, beginning of period (21.6) (34.2) (20.9) (29.8)
Unitholders' distributions (1.4) (2.5) (11.4) (10.0)
----------------------------------------------------------------------------
Deficit, end of period $ (23.0) $ (20.9) $ (23.0) $ (20.9)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income per unit - basic $ - $ 1.31 $ 0.58 $ 1.57
Net income (loss) per unit
diluted $ - $ (0.14) $ 0.30 $ 0.02
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Acadian Timber Income Fund
Consolidated Statement of Comprehensive Income (Loss)
----------------------------------------------------------------------------
For the Three Months For the Year Ended
Ended December 31 December 31
----------------------------------------------------------------------------
CAD millions 2009 2008 2009 2008
----------------------------------------------------------------------------
Net income $ - $ 15.8 $ 9.3 $ 18.9
----------------------------------------------------------------------------
Other comprehensive income
(loss)
Unrealized foreign currency
translation gain (loss) (1.2) 1.7 (6.0) 1.5
----------------------------------------------------------------------------
Comprehensive income (loss) $ (1.2) $ 17.5 $ 3.3 $ 20.4
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Acadian Timber Income Fund
Consolidated Statements of Cash Flows
----------------------------------------------------------------------------
For the Three Months For the Year Ended
Ended December 31 December 31
----------------------------------------------------------------------------
CAD millions 2009 2008 2009 2008
----------------------------------------------------------------------------
Cash provided by (used for):
----------------------------------------------------------------------------
Operating activities
Net income $ - $ 15.8 $ 9.3 $ 18.9
Items not affecting cash:
Future income tax expense
(recovery) (0.3) 6.1 (3.0) 6.2
Depreciation and depletion 1.6 2.2 7.1 7.4
Gain on sale of timberlands - - (0.6) (0.7)
Gain on Class B Interest
Liability of a subsidiary - (19.1) (4.7) (22.2)
----------------------------------------------------------------------------
1.3 5.0 8.1 9.6
Net change in non-cash
working capital balances
and other (0.8) 1.6 (4.0) 4.5
----------------------------------------------------------------------------
0.5 6.6 4.1 14.1
----------------------------------------------------------------------------
Investing activities
Sale of timberlands, logging
roads and fixed assets - - 0.6 0.8
Additions to timberlands,
logging roads and fixed
assets - (0.2) (0.8) (0.5)
Silviculture expenditures - - (0.1) (0.3)
Issuance of note receivable (4.0) - (4.0) -
----------------------------------------------------------------------------
(4.0) (0.2) (4.3) -
----------------------------------------------------------------------------
Financing activities
Distributions paid to
unitholders (2.2) (2.5) (12.2) (10.0)
Borrowing from revolving
credit facility 5.5 - 5.5 -
----------------------------------------------------------------------------
3.3 (2.5) (6.7) (10.0)
----------------------------------------------------------------------------
Increase (decrease) in cash
and cash equivalents during
the period (0.2) 3.9 (6.9) 4.1
Cash and cash equivalents,
beginning of period 2.3 5.1 9.0 4.9
----------------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 2.1 $ 9.0 $ 2.1 $ 9.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Reconciliation to EBITDA and Distributable Cash from Operations
----------------------------------------------------------------------------
For the Three Months For the Year Ended
Ended December 31 December 31
----------------------------------------------------------------------------
CAD millions 2009 2008 2009 2008
----------------------------------------------------------------------------
Net income(1) $ - $ 15.8 $ 9.3 $ 18.9
Add (deduct)
Interest income - - - (0.2)
Interest expense 0.7 1.0 3.1 3.6
Distribution on Class B
Interest Liability of a
subsidiary - 0.9 0.3 3.7
Future income tax expense
(recovery) (0.3) 6.1 (3.0) 6.2
Depreciation and depletion 1.6 2.2 7.1 7.4
Non-cash gain on Class B
Interest Liability of a
subsidiary - (19.1) (4.7) (22.2)
----------------------------------------------------------------------------
EBITDA 2.0 6.9 12.1 17.4
Add (deduct)
Interest income - - - 0.2
Interest expense (0.7) (1.0) (3.1) (3.6)
Silviculture and capital
expenditures - (0.2) (0.5) (0.8)
Non-cash gain on sale of
timberlands - - (0.6) (0.7)
Proceeds from sale of
timberlands, logging roads
and fixed assets - - 0.6 0.8
Acquisition of timberlands - - (0.4) -
----------------------------------------------------------------------------
Distributable cash from
operations $ 1.3 $ 5.7 $ 8.1 $ 13.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Distributions declared $ 1.4 $ 3.4 $ 11.7 $ 13.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Net income includes the impact of the revaluation of the Class B
Interest Liability of a subsidiary, the future income tax
expense/recovery, and the depreciation and depletion expense, which are
non-cash items recorded in each respective period.
Reconciliation to Distributable Cash from Operations
----------------------------------------------------------------------------
For the Three Months For the Year Ended
Ended December 31 December 31
----------------------------------------------------------------------------
CAD millions 2009 2008 2009 2008
----------------------------------------------------------------------------
Cash flow from operating
activities $ 0.5 $ 6.6 $ 4.1 $ 14.1
Add (deduct):
Capital adjustments
Proceeds from sale of
timberlands, logging roads
and fixed assets - - 0.6 0.8
Acquisition of timberlands - - (0.4) -
Other adjustments
Change in non-cash working
capital balances and other 0.8 (1.6) 4.0 (4.5)
Distribution on Class B
Interest liability of a
subsidiary - 0.9 0.3 3.7
Silviculture and capital
expenditures - (0.2) (0.5) (0.8)
----------------------------------------------------------------------------
Distributable cash from
operations $ 1.3 $ 5.7 $ 8.1 $ 13.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Distributions declared $ 1.4 $ 3.4 $ 11.7 $ 13.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Contacts: Acadian Timber Corp. Robert Lee Investor Relations and Communications 604-661-9607 rlee@acadiantimber.com www.acadiantimber.com
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