Foremost Income Fund Reports Q2 2015 Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 08/13/15 -- Foremost Income Fund ("Foremost" or the "Fund") announces the financial results for the three and six months ended June 30, 2015.
OVERVIEW
The Fund is an unincorporated open end mutual fund trust conducting its business through two operating segments, Foremost Energy Equipment ("FEE") and Foremost Mobile Equipment ("FME"). FEE's overall business is focused on the oil and gas industry and includes activity from six manufacturing sites throughout Alberta. FME manufactures off-highway large wheeled and tracked vehicles, hydrovac and vacuum trucks, equipment for custom drilling, construction, water wells, and mining sectors. FME has three manufacturing facilities located in Alberta.
MESSAGE TO UNITHOLDERS
Under normal circumstances, the predominate effort and focus of Foremost's leadership team is finding ways to create long-term, sustainable growth while mitigating downside risks. 2015 however, is shaping up to be at least the start of a phase demanding a different focus: How to judiciously shrink the business by matching capacity to dropping demand, while preserving and protecting attributes of the business that are critical to our long-term future. This is our present challenge.
The current economic context in Western Canada and globally in the energy sector is indeed daunting. It is also unknowable as to its eventual depth and duration.
The Foremost management team however is up to the challenge as we continue to reduce the organization, most substantially in the Energy Equipment side.
Consistent with this effort and following the conclusion of the 2nd quarter, the Management Team began a review of opportunities to consolidate manufacturing capacity in fewer locations, thereby allowing us to continue to reduce overhead and operating costs. An initial step associated with this work is that we have announced the temporary shutdown of our Calgary South facility, and are transitioning work such that all new incoming applicable orders will be fulfilled from our Lloydminster facilities. We will be evaluating how to best use redundant real estate assets however it will not be our tendency to be selling assets into a low market.
Beyond this substantial step, we are also scrutinizing and assessing many other additional approaches to ensure Foremost effectively adapts to a new low-demand environment. For the foreseeable future we will be communicating these activities through each quarterly reporting cycle.
Many of Foremost's competitors who do not have the strength of our rock solid balance sheet and product portfolio diversity are suffering much more significantly. We will ensure Foremost remains strong through this cycle by acting decisively and on a timely basis. Although times are difficult in the energy sector today, we have a strong conviction that this will pass and as such, preserving and enhancing Foremost's strength will be the key to steering us through this and preparing for eventual better days ahead.
Bevan May
Interim CEO and Board Chairman
Highlights from Q2 2015:
Highlights for Year-to-Date 2015:
TRUST UNIT REDEMPTIONS AND DISTRIBUTIONS
The Fund redeemed 78,729 Trust Units during the six months ended June 30, 2015 through its normal redemption program resulting in cash payments of $400,000 and promissory notes payable equal to $91,229. During 2014 the Fund redeemed 87,650 Trust Units for $200,103 and promissory notes of $424,589.
The Trustees have determined that, as of the date of August 13, 2015, the Fund will redeem tendered Trust Units at a price of $5.65 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:
For further Investor Relations information please contact:
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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Unternehmensinformation / Kurzprofil:
Datum: 14.08.2015 - 00:11 Uhr
Sprache: Deutsch
News-ID 413682
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contact information:
Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
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