CanWel Building Materials Group Ltd.
TSX : CWX.UN

CanWel Building Materials Group Ltd.

June 19, 2009 08:30 ET

CanWel Building Materials Income Fund Declares June Cash Distribution and Change to Annual Distributions

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 19, 2009) -

NOT FOR RELEASE OR DISSEMINATION INTO THE UNITED STATES

CanWel Building Materials Income Fund (the "Fund") (TSX:CWX.UN) today announced it would change its annual distributions to $0.50 per unit from $0.70 per unit. The Fund also declared a cash distribution of $0.04166 per trust unit for the period from June 1, 2009 to June 30, 2009.

Amar Doman, Chairman of the Fund, commented, "Due to the housing and construction market slowdown in Canada, the Board of Trustees has made a decision to adjust the Fund's annual distributions to $0.50 per year. I feel this is a responsible level for the Fund in the current economic environment we are facing."

"This adjustment to distributions helps to ensure long-term value and sustainable cash flow for our unitholders. It also preserves our financial resources allowing us to act on opportunities to maintain and grow the Fund's leadership position in its respective markets," noted Tom Donaldson, President and CEO of the Fund.

The June cash distribution will be paid on July 20, 2009 to unitholders of record at the close of business on June 30, 2009. The Fund's policy is for unitholders of record on the last business day of a calendar month to receive distributions on or about the 20th day following the end of such month.

The Fund trades on the Toronto Stock Exchange under the symbol CWX.UN and is one of Canada's largest national distributors in the building materials and related products sector, operating 16 distribution centres across Canada. The Fund distributes a wide range of hardware, building materials, lumber and renovation products.

Further information can be found in the disclosure documents filed by CanWel Building Materials Income Fund with the securities regulatory authorities, available at www.sedar.com.

Certain statements in this press release may constitute "forward-looking" statements. When used in this press release, such statements use words, including but not limited to, "may", "will", "expect", "believe", "plan", "intend", "anticipate" and other similar terminology. These forward-looking statements reflect the current expectations of the Fund's management regarding future events but involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund, including the performance of, and distributable cash generated by, its subsidiaries, on a consolidated basis, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual events could differ materially from those projected herein and depend on a number of factors. These factors include the risk that acquisitions will not be integrated successfully; the risk that any cost savings and any synergies from transactions may not be fully realized or may take longer to realize than expected; and disruption from acquisitions making it more difficult to maintain relationships with customers, employees or suppliers. Additional risks and uncertainties include, among others: general economic and business conditions, product selling prices, commodity price fluctuations, information systems risk, environmental risk, interest rate changes, operating costs, and competitive conditions. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. The foregoing risk factors are not exhaustive and are merely illustrative; additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the periodic and other reports filed by the Fund with Canadian Securities Commissions and available on Sedar (http://www.sedar.com). The Fund does not undertake, and specifically disclaims, any obligation to update or revise any forward looking information, whether as a result of new information, future developments or otherwise.

Reference is made above to distributable cash. We define distributable cash as net earnings before depreciation, amortization, gain or loss on sale of fixed assets, goodwill impairment loss, provision for future income taxes, unit based compensation and after maintenance of business capital expenditure and contributions to any reserves the Board of Trustees of the Fund deem to be reasonable and necessary for the operations of the Fund.

Contact Information

  • CanWel Building Materials Income Fund
    Ali Mahdavi
    Investor Relations
    416-962-3300 or +1(866) 430-6247
    am@spinnakercmi.com