Foremost Income Fund Reports Q2 Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 08/13/13 -- Foremost Income Fund ("Foremost" or the "Fund") announces the financial results for the period ended June 30, 2013.
OVERVIEW
The Fund is an unincorporated open end mutual fund trust conducting its business through Foremost Universal LP ("Universal") and Foremost Industries LP ("Foremost"). The Fund derives its operational income from both Universal and Foremost. Universal's overall business is focused on the oil and gas industry and contains the business units located at:
Foremost is comprised of the Calgary, Alberta based business unit of Foremost Industries, a manufacturer of custom equipment used for the oil and gas, construction, water-well and mining industries.
FINANCIAL RESULTS:
During the second quarter of 2013 estimates of gross margin on three specific field jobs were reduced dramatically due to several factors. These include overrun of labour hours due to the complexity of site labour requirements and high turnover of staff. Also, all of these jobs were bid over two years ago when safety and QC requirements were not as stringent as today. The cumulative impact to net income for 2013 was a loss of $6.4M, $2.0M relating to Q1 2013 and $4.4M for Q2 2013. Net income for 2013 would have been $7.7M had the originally estimated margins been maintained, as compared to the actual net income of $1.3M. Note that only the large oilsand/field projects have been impacted by these reduced estimates and that two of out of these three jobs will still close with a positive gross margin, but below original estimate. Necessary controls and processes have been put in place to reduce the risk of estimating inaccuracies.
The key elements from Q2 2013 are:
The key elements for the year to date are as follows:
TRUST UNIT REDEMPTIONS AND DISTRIBUTIONS
For the period ending June 30, 2013 the Fund redeemed 21,886 Trust Units at an average price of $8.10 through its normal redemption program resulting in cash payments of $178,000. The Trustees have determined that, as of the date of August 7, 2013 the Fund will redeem tendered Trust Units at tangible book value + 10% or $8.20 per unit.
On behalf of the Trustees
Foremost Income Fund
Bevan May, Trustee
FORWARD-LOOKING STATEMENT
Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund 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 use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements include statements the Fund's intention to proceed with a Unitholders' meeting and information regarding the Trustees' views of the future prospects and tax treatment of the Fund and tax treatment of the Special Redemption, the Fund's expectations regarding the future availability of cash to meet redemption requests and the Trustee's expectations for redemption prices in December 2011 and January 2012. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this news release. These forward-looking statements involve a number of risks and uncertainties, including: the impact of general economic conditions, industry conditions, changes in laws and regulations, increased competition, fluctuations in commodity prices and foreign exchange, and interest rates and stock market volatility.
Contacts:
Foremost Income Fund
Jackie Schenn, CA
(403) 295-5800 or toll free 1-800-661-9190 (Canada/US)
(403) 295-5832 (FAX)
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 13.08.2013 - 15:15 Uhr
Sprache: Deutsch
News-ID 287301
Anzahl Zeichen: 0
contact information:
Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
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