Foremost Income Fund Reports Q3 Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 11/14/13 -- Foremost Income Fund ("Foremost" or the "Fund") announces the financial results for the period ended September 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.
CORPORATE - RESULTS OF OPERATIONS
The September 30, 2013 condensed consolidated interim financial statements are prepared in accordance with IFRS. The effects of the business conditions and operational responses by the Fund are found by comparing the 2013 and 2012 statements of comprehensive income. The 2013 results reflect weakened commodity prices, which have lowered product demands and margins for the following product lines; shop and field tanks, gas separation and compression equipment, along with slight decreases in both rental and part sales. Hydrovac products seen an increase in both sales and margin as Foremost continues to grow this product line. Although revenue for the vessel and drilling products decreased during 2013, due to customer demand, Foremost was able to strengthen the margins on these products as efficiencies in manufacturing were gained.
During the third quarter of 2013 the Fund completed an in depth re-assessment of the allowances, accruals and goodwill as a response to recent financial performance, industry conditions and future income projections. This resulted in an increase in the inventory obsolesce provision of $1.0 million and an impairment of goodwill for $3.1 million. These one-time, non-cash adjustments have been reflected in the results of the third quarter.
FINANCIAL RESULTS:
The key elements from Q3 2013 are:
The key elements for the year to date are as follows:
TRUST UNIT REDEMPTIONS AND DISTRIBUTIONS
For the nine month period ending September 30, 2013 the Fund redeemed 98,337 Trust Units at an average price of $8.17 through its normal redemption program resulting in cash payments of $803,000. The Trustees have determined that, as of the date of November 14, 2013 the Fund will redeem tendered Trust Units at tangible book value + 3.5% or $7.45 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)
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Datum: 14.11.2013 - 17:51 Uhr
Sprache: Deutsch
News-ID 316792
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contact information:
Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
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