Canexus Income Fund
TSX : CUS.UN

Canexus Income Fund

March 03, 2010 20:25 ET

Canexus Income Fund Announces Fourth Quarter and Year-End Results

2009 Record Cash Flow Performance on Guidance

CALGARY, ALBERTA--(Marketwire - March 3, 2010) - Canexus Income Fund (TSX:CUS.UN) (the "Fund") today announced its results for the fourth quarter and year ended December 31, 2009. Unless otherwise noted, the Fund is reporting the 100 percent results of Canexus Limited Partnership ("Canexus LP"), of which the Fund indirectly owns 34.2 percent.

Highlights:

- Fund declared cash distributions of $18.2 million during 2009, for a payout ratio of 64 percent for the year, consistent with guidance.

- Six strategic growth projects anticipated to come on stream in the second and third quarters of 2010; expected to generate an incremental $50 million of operating cash flow on an annual basis.

- North America sodium chlorate sales revenues for 2009 were stable compared to 2008, with increased realized prices offset by decreased volumes; annual gross margin increased to 36 percent, reflecting a higher percentage of total production from our low-cost Brandon plant; fourth quarter revenue decreased from the prior quarter and the same period last year, primarily due to lower realized prices in part from a stronger Canadian dollar; fourth quarter gross margin percent decreased from the prior quarter as a result of planned maintenance activity at all three of our North American plants; price increases have been announced for the second quarter.

- North America chlor-alkali annual sales revenues increased two percent from 2008 due to caustic soda volume increases partially offset by decreased selling prices and lower chlorine volumes and prices; gross margin was down two percent due to a decrease in realized MECU selling prices and higher maintenance costs in preparation for startup of the Technology Conversion Project (TCP) at our North Vancouver plant; fourth quarter sales revenues and gross margin decreased compared to the same period last year and the third quarter, primarily due to lower realized selling prices for caustic soda; caustic soda price increases have been announced for the second quarter; TCP is on schedule for second quarter startup.

- South America business unit gross margins improved on an annual basis and for the comparable fourth quarter period; strong demand from our primary customer expected during 2010.

- North American Terminal Operations rail infrastructure project is on schedule for completion in the second quarter.

- Call option contracts in place protect approximately 80 percent of our US dollar exposure in first half of 2010 at or below US$0.9479.

- Total borrowings under our committed credit facilities at December 31, 2009, were $285 million, with remaining available capacity of approximately $219 million; no debt maturing before August 2011; at December 31, 2009, Canexus had cash on hand of $13.2 million.

"Canexus delivered strong performance for 2009 that was in line with our expectations for the year," said Gary Kubera, President and CEO. "Against a backdrop of economic uncertainty and volatile markets, we efficiently managed our operations while advancing a portfolio of strategic growth projects that will enhance our low-cost advantages and increase cash flow for the long term."

"Results from our North American sodium chlorate business generally reflected price and inventory improvements in pulp markets as the industry reduced capacity with mill closures earlier in the year. Stable fourth quarter chlorate demand supported operating rates, although there was some downward price pressure on 2010 new contract settlements. However, we believe that the first quarter of 2010 represents the trough for pricing and have announced price increases for the second quarter. Scheduled maintenance at each of our three plants during the fourth quarter affected maintenance spending and margins."

"Economic conditions that reduced chlorine demand in North America were a significant factor for our chlor-alkali business in 2009. For the year, we saw higher caustic soda sales volumes with lower prices, along with lower volumes and prices for chlorine. In the fourth quarter, seasonal factors reduced chlorine demand from the third quarter, with some price softening for both chlorine and caustic. We believe we are currently seeing the chlor-alkali price trough. Supply constraints from reduced industry capacity and improving economic conditions support the caustic price increase we have announced for the second quarter. We continue to expect stronger chlor-alkali demand in the second half of the year coinciding with the startup of TCP expanding our capacity and reducing our costs. Our North Vancouver facility should operate at high rates in advance of the TCP 21-day transition shutdown scheduled to begin in May."

"In South America, we recorded improved margins on lower revenues for the year, primarily due to no longer purchasing caustic for resale to our primary customer. Strong demand for Brazilian-produced pulp supported high mill operating rates and sodium chlorate volumes in the fourth quarter continuing into 2010. Economic improvements in Brazil are beginning to drive demand for chlorine and equivalents. We look forward to the startup of our chlorate expansion and hydrochloric acid project later this year, along with an initiative to sell our excess hydrogen - the added cash flow from these projects should more than offset the impact of the stronger Canadian dollar on our fixed US dollar margin contract with our major customer."

"The construction of expanded rail infrastructure at our North American Terminal Operations site at Bruderheim remains on schedule for the second quarter when it will begin contributing to the approximately $2.0 million in incremental annual operating cash flow expected from the initial phases of this project. We continue to have discussions with parties interested in the significant advantages of this site to use our existing cavern storage and pipeline proximity for accessing the oilsands region."

"Our outlook for the year ahead is unchanged from the guidance we provided in December. We continue to expect that our results will improve as the year progresses - our annual payout ratio should be around 90 percent, although the ratio is expected to exceed 100 percent in the first half of 2010 with the TCP transition shutdown in the second quarter. Our 2010 priority is to complete the six growth projects that will boost our annual cash flow by approximately $50 million, with TCP accounting for the majority, and to progress the next phase of our terminal operations at Bruderheim," said Mr. Kubera.



Statement of Distributable Cash

Three Months Ended Years Ended
December 31 December 31
CAD thousands, except as noted 2009 2008 2009 2008
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Canexus LP
Net Income (Loss) 12,407 (16,910) 73,652 (6,035)
Realized Foreign Exchange (Gains)
Losses on Cash 78 (1,803) 1,240 (1,803)
Charges and Credits to Income Not
Involving Cash:
Future Income Taxes 392 (3,128) 6,939 (5,089)
Amortization 11,159 11,594 46,321 43,408
Unrealized (Gains) Losses on
Currency Translation (5,963) 39,792 (46,323) 61,558
Change in Fair Value of Foreign
Exchange Options 4,877 (3,478) 8,905 (1,799)
Change in Fair Value of Foreign
Exchange Forward - (3,167) 3,796 (3,797)
Change in Fair Value of Interest
Rate Swaps (344) 4,428 (696) 2,803
Accrual for Future TCP Severance
Costs - - (981) 7,310
Impairment of Sodium Chlorate
Assets - - 17,227 -
Other 641 1,338 4,246 6,560
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Total Charges and Credits to
Income Not Involving Cash 10,762 47,379 39,434 110,954
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Contributions to / Payments for
Defined Benefit Plans (462) (1,922) (2,989) (4,366)
Interest Income on Restricted
Investments (20) (88) (262) (349)
Purchase of Foreign Exchange
Options (1,798) (5,015) (1,798) (6,117)
Expenditures on Asset Retirement
Obligations (651) (675) (869) (1,121)
Changes in Non-Cash Operating
Working Capital and Due from
Affiliates 12,162 (8,243) 8,855 (19,023)
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Cash From Operating Activities 32,478 12,938 117,263 72,140
Changes in Non-Cash Operating
Working Capital and Due from
Affiliates (12,162) 8,243 (8,855) 19,023
Maintenance Capital Expenditures (6,747) (9,166) (20,102) (15,100)
Amortization of the Purchase Cost
of Foreign Exchange Options (1,254) (279) (5,015) (1,221)
Realized Foreign Exchange (Gains)
Losses on Cash (78) 1,803 (1,240) 1,803
Operating Non-Cash Items 1,829 6,277 833 6,644
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Distributable Cash within
Canexus LP (1) 14,066 19,601 82,884 83,289
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Canexus Income Fund
Share of Canexus LP's
Distributable Cash 4,807 7,237 28,978 31,462
Trust Administration Expenses (73) (63) (348) (297)
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Distributable Cash available to
Canexus Income Fund (1) 4,734 7,174 28,630 31,165
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Cash Distributions Declared 4,611 5,927 18,225 19,048
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Payout Ratio (1) 97% 83% 64% 61%
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Note:

(1) See comments concerning non-GAAP Measures at end of release.


Operations Highlights

Canexus has a total of five manufacturing plants - four in Canada and one in South America - organized into three business units. Highlights for each unit are as follows:

- North America Sodium Chlorate:

-- Annual sales revenue for the North America sodium chlorate segment decreased one percent to $216.6 million in 2009 from $219 million in 2008 due to a 13 percent decrease in sales volumes partially offset by a 12 percent increase in realized selling prices. The increase in realized selling prices was due to price increases and to the weaker Canadian dollar relative to the US dollar (US$0.87 in 2009 vs. US$0.96 in 2008). The decline in sales volumes was due to the deterioration in global bleached pulp demand resulting from the economic downturn and the curtailment of pulp production to manage high inventory levels; pulp production rates began to recover in the third quarter of 2009. Gross margin percentage for 2009 increased to 36 percent from 31 percent for 2008 primarily due to the increase in realized selling prices, an increase in the percentage of total production from our low-cost Brandon, Manitoba facility, lower electricity costs and lower fixed costs due to the closure of our Bruderheim, Alberta sodium chlorate facility in the second quarter, partially offset by lower production volumes.

-- Fourth quarter sales revenue for this segment compared to the same period in 2008 decreased 7 percent to $52.5 million from $56.6 million due to a decrease in realized selling prices of six percent and a two percent decline in sales volumes. The decrease in realized selling prices was primarily due to the stronger Canadian dollar relative to the US dollar in the fourth quarter of 2009 (US$0.94 in Q4/09 vs. US$0.87 in Q4/08). The decrease in sales volumes was due to lower demand from Asia in Q4/09. The gross margin percentage decreased to 29 percent from 33 percent due to the decrease in realized selling prices, partially offset by lower electricity costs, lower fixed costs, higher production volumes and a higher percentage of production from our Brandon plant.

-- Fourth quarter sales revenue for this segment compared to the third quarter of 2009 decreased 6 percent from $55.7 million to $52.5 million due to a decline in realized selling prices. The decline in realized selling prices was due to slightly lower delivered prices and the strengthening of the Canadian dollar. The gross margin percentage decreased from 37 percent to 29 percent as a result of lower realized selling prices and higher fixed costs. The increase in fixed costs was due to higher maintenance expenses incurred as a result of planned maintenance shutdowns at all three of our North American sodium chlorate facilities during the fourth quarter.

-- Sodium chlorate demand and the North America industry operating rate are expected to increase modestly in early 2010 in conjunction with strong pulp market conditions. Coupled with the capacity rationalization in 2009, gradual improvement in operating rates is projected to restore price stability and support some upward price movement in the first half of 2010, consistent with our price increase announcement for the second quarter.

- North America Chlor-alkali:

-- Annual sales revenue for the North America chlor-alkali segment increased two percent to $147.7 million in 2009 from $145.4 million in 2008 primarily due to nine percent higher caustic soda sales volumes and higher hydrochloric acid realized selling prices partially offset by six percent lower caustic soda realized selling prices and lower chlorine-equivalent sales volumes (four percent) and chlorine realized selling prices. The decline in chlorine-equivalent sales volumes (primarily hydrochloric acid) was due to the downturn in the North American economy while the decline in chlorine realized selling prices was due to increased chlorine freight costs. The increase in caustic soda sales volumes was due to an increase in market share despite an overall decline in North American caustic soda demand. Gross margin percentage decreased to 29 percent from 31 percent due to a decrease in realized MECU selling prices, higher fixed costs due to an increase in maintenance and other costs incurred in preparation for the startup of TCP and lower production, partially offset by lower natural gas and electricity costs.

-- Fourth quarter sales revenue for this segment compared to the same period in 2008 decreased 18 percent to $34.3 million from $41.8 million as a result of a 48 percent decrease in caustic soda realized selling prices on 26 percent higher caustic soda sales volumes, more than offsetting a 70 percent increase in chlorine realized selling prices and a six percent increase in chlorine sales volumes. The decrease in caustic soda realized selling prices was due to market price erosion resulting from excess supply. The increase in caustic soda sales volumes was due to increased demand from our pulp customers and an increase in our market share. The increase in chlorine sales volumes was due to improved chlorine derivative demand from improved economic conditions. The increase in chlorine realized selling prices was due to a price increase implemented in the fourth quarter of 2009 partially offset by the stronger Canadian dollar. Gross margins decreased to 20 percent from 36 percent last year primarily as a result of lower caustic soda realized selling prices, higher electricity costs, higher fixed costs and lower production partially offset by lower natural gas costs and higher chlorine realized selling prices. The increase in fixed costs was due to an increase in rail lease costs (as we put more rail cars into service to build inventory for our TCP transition shutdown and prepare for the increased production and sales volumes with TCP startup in the second quarter).

-- Fourth quarter sales revenue for this segment compared to the third quarter of 2009 decreased four percent from $35.7 million to $34.3 million primarily due to a 13 percent decline in chlorine-equivalent sales volumes and to lower realized selling prices for chlorine (four percent) and caustic soda (three percent) partially offset by a three percent increase in caustic soda sales volume. The decline in chlorine sales volume was due to normal seasonal softening in chlorine demand used in water treatment with lower realized selling prices from lower demand and from the stronger Canadian dollar. The increase in caustic soda sales volumes was due to an increase in our market share and the decline in realized selling prices was due to market price erosion resulting from excess supply. Gross margin percentage decreased to 20 percent from 25 percent in the third quarter due to lower realized selling prices, higher electricity and natural gas costs and lower production volumes partially offset by lower fixed costs. Fixed costs were lower due to costs incurred in the third quarter in preparation for the startup of the TCP.

-- Industry startups and closures during 2009 resulted in a net reduction in North American chlor-alkali capacity of 200,000 MECU compared to 2008. Industry capacity utilization was approximately 74 percent in 2009, compared to 83 percent in 2008, reflecting the global economic collapse in late 2008. We continue to run our plant at higher rates than industry capacity utilization due to our regional market position and to allow for some inventory build in advance of the TCP transition shutdown.

- South America:

-- Annual sales revenue in South America decreased 14 percent to $94.2 million from $110.0 million for 2008. The decrease was primarily the result of lower sales volumes of caustic soda and slightly lower sodium chlorate sales volumes to our primary customer. Gross margin percentage increased to 27 percent from 21 percent primarily due to no longer purchasing caustic soda for resale to our primary customer as a service at no margin, to the positive impact of the weaker Canadian dollar on our fixed US dollar margins and lower fixed costs, partially offset by lower production.

-- Fourth quarter sales revenue for this segment compared to the same period in 2008 decreased nine percent to $23.7 million from $26.1 million due to lower caustic soda sales volumes and lower caustic soda and sodium chlorate realized selling prices, partially offset by higher sodium chlorate sales volumes. Gross margin percentage increased to 29 percent from 14 percent due to no longer purchasing caustic soda for resale to our primary customer at no margin, lower fixed costs and higher sodium chlorate production, partially offset by the impact of the stronger Canadian dollar on our fixed US dollar margins. The decrease in fixed costs was due to lower spending on business development activities, lower maintenance costs and to the cost of an environmental study performed in the fourth quarter of 2008.

-- Fourth quarter sales revenue for this segment compared to the third quarter of 2009 was consistent at $23.7 million. Lower sales volumes of sodium chlorate and lower chlorine-equivalent sales to the merchant market were partially offset by higher hydrochloric acid prices. Gross margin percentage declined to 29 percent from 32 percent in the third quarter as a result of higher fixed costs and the impact of the stronger Canadian dollar. The increase in fixed costs was due to higher maintenance costs in the fourth quarter.

-- The 4,400 MT sodium chlorate expansion and project to sell excess hydrogen are expected to startup at the beginning of the second quarter and our Brazil hydrochloric acid expansion project is expected to startup in August 2010.
o Canexus' major customer in Brazil, Fibria Celulose S.A. (formerly Aracruz Celulose S.A.), operated their mill adjacent to our plant at near capacity rates throughout the fourth quarter. Demand for Brazilian-produced pulp is projected to remain strong through the first quarter of 2010 and Fibria is expected to operate at high capacity utilization rates. Chlorine sales are projected to improve in the second half of 2010 consistent with increased demand from the 10-year hydrochloric acid contract customer.

Technology Conversion Project (TCP) Update

The TCP at the North Vancouver chlor-alkali facility is expected to contribute an estimated $35-$43 million in incremental annual operating cash flow commencing in the second quarter of this year. Sixty percent of the project value is generated by established cost savings. The current status and outlook for TCP includes:

- Over 1 million man hours worked without a lost time injury.

- Progress has improved as expected in January and February from changes we initiated in December, making us confident in a second quarter startup; the following milestones have been achieved:

-- the overall project progress is 80 percent complete.

-- construction focus continues to be on completing the work by systems and subsystems. We have identified and scoped the work into 53 systems/subsystems plus the final shutdown work. 22 of the 53 systems/subsystems are complete and have been turned over to the commissioning team.

- Our existing plant will continue to operate at full rates until the commissioning has been completed and a successful startup of TCP is reasonably assured. The projected final total expected cost for TCP continues to be approximately $270 million. TCP benefits remain highly attractive with an after-tax IRR in the mid-teens at the projected final total cost, due to stronger pricing than originally projected - Q4/09 MECU prices remain above those used in our preliminary project justification (a $50 MECU price movement equates to $10.5 million of operating cash flow on an annual basis). With 60 percent of the project benefits coming from established cost savings, we have a high degree of confidence in the project economics.

- Financial Updates

- Foreign Exchange and Long-Term Debt:

-- The following foreign exchange call option contracts have been secured, protecting approximately 80 percent of US$ exposure in the first half of 2010:

--- option to sell US$5 million per month and acquire Canadian dollars at a price of US$0.9479 from January 1 to March 31, 2010.

--- option to sell US$5 million per month and acquire Canadian dollars at a price of US$0.9302 from January 1 to June 30, 2010.

-- For 2009, realized gains of $10.5 million and mark-to-market fair value losses of $8.9 million were recorded on foreign exchange call option contracts, for a net gain of $1.6 million. In the fourth quarter, mark-to-market fair value losses of $4.9 million and realized gains of $5.1 million were recorded on foreign exchange call option contracts for a net gain of $0.2 million.

-- We borrow in US dollars, which creates unrealized currency translation gains as the Canadian dollar strengthens. A substantial portion of our revenues are denominated in or referenced to the US dollar and are protected with call option contracts as explained above. For the year ended December 31, 2009, fluctuations in exchange rates resulted in unrealized gains of $46.3 million ($45.9 million on our US dollar denominated long-term debt) and realized losses of $0.5 million for a net gain of $45.8 million. During the fourth quarter of 2009, we recorded an unrealized currency translation gain of $6.8 million on our US dollar denominated long-term debt, compared to an unrealized currency translation loss of $38.4 million in the same period in 2008.

-- On August 31, 2009, the Fund issued $86 million of convertible unsecured subordinated debentures which mature December 31, 2014. The debentures bear interest at 8 percent payable semi-annually in arrears on June 30 and December 31 of each year.

-- Total borrowings under our committed credit facilities at December 31, 2009, were $285 million with remaining available capacity of approximately $219 million. We have no debt maturing before August 2011. At December 31, 2009, Canexus had cash on hand of $13.2 million.

- Capital Expenditures: Capital expenditures for the year ended December 31, 2009, were $214.3 million as compared to $88.5 million for 2008. This increase was due to increases in maintenance capital expenditures of $5 million, continuous improvement capital expenditures of $4.2 million and expansion capital expenditures of $113.1 million. The increase in maintenance capital expenditures was due to the acceleration of capital maintenance projects in support of the TCP at our North Vancouver chlor-alkali facility and to the replacement of a transformer at our Brazil facility. The increase in continuous improvement capital expenditures was primarily related to a combined caustic soda and hydrochloric acid rail-to-truck loading capacity expansion at our North American Terminal Operations site. The increase in expansion capital expenditures was related to the TCP and the hydrochloric acid growth projects at North Vancouver, the NATO hydrocarbon transloading projects and the sodium chlorate expansion and hydrochloric acid growth projects at our Brazil plant.

- Expenses and Other Income: General and administrative expense of $35.2 million for the year ended December 31, 2009, was $2.2 million higher compared to the previous year as a result of costs associated with preparation for the conversion to International Financial Reporting Standards ("IFRS") in 2011, the review and implementation of SAP chemicals best practice processes and to an increase in spending on business development activities. For the fourth quarter of 2009, general and administrative expense decreased by $0.7 million compared to the same period of 2008 primarily due to lower bonus amounts for 2009 and to general cost constraint exercised through the economic downturn.

-- Included in other income (expense) are the realized and unrealized currency translation gains and losses discussed above. We have not designated our US-dollar denominated long-term debt, foreign exchange option contracts, interest rate swaps or foreign exchange forward contracts as hedges for accounting purposes and hence the fair value impact of these items flows through other income (expense). For 2009, we recorded mark-to-market fair value gains of $0.7 million ($2.8 million loss in 2008) on interest rate swaps and realized losses of $1.3 million ($0.1 million gain in 2008) for a net loss of $0.6 million ($2.7 million net loss in 2008). In the fourth quarter of 2009, we recorded mark-to-market fair value gains of $0.3 million on interest rate swaps and realized losses of $0.4 million for a net loss of $0.1 million. During the year ended December 31, 2009, in addition to the impairment recorded of $17.2 million on the closure of the Bruderheim sodium chlorate plant, we incurred $3.3 million of severance and other closure related costs which are included in other income (expense).

-- Income taxes increased by $13.6 million for the year ended December 31, 2009, as compared to 2008, due to higher net income and to the recording of future tax expense in certain operating subsidiaries arising from the impact of exchange rate movements. At December 31, 2009, Canexus LP has approximately $350 million of future tax deductions resulting from capital expenditures which can be used to shelter future taxable income.



Operating Results for the Three-Months Ended and Years Ended
December 31, 2009 and 2008

Three Months Ended Years Ended
December 31 December 31
CAD thousands 2009 2008 2009 2008
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Revenues
Sales 110,508 124,493 458,447 474,357

Expenses
Cost of Goods Sold 81,657 87,129 312,280 339,060
Amortization 11,159 11,594 46,321 43,408
General and Administrative 8,519 9,198 35,173 32,986
Interest on Debentures 1,739 - 2,323 -
Interest 298 3,478 5,338 11,658
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103,372 111,399 401,435 427,112
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Income before Other Income
(Expense), Impairment 7,136 13,094 57,012 47,245
Other Income (Expense) 6,752 (33,391) 43,707 (57,056)
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Income (Loss) before Impairment
and Income 13,888 (20,297) 100,719 (9,811)
Impairment - - (17,227) -
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Income before Income Taxes 13,888 (20,297) 83,492 (9,811)
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Provision for (Recovery of) Income
Taxes
Current 1,089 (259) 2,901 1,313
Future 392 (3,128) 6,939 (5,089)
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1,481 (3,387) 9,840 (3,776)
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Net Income (Loss) 12,407 (16,910) 73,652 (6,035)
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Financial Statements, Conference Call and Webcast

Financial Statements and Management's Discussion and Analysis will be posted on the Canexus web site at www.canexus.ca and filed on SEDAR the week of March 8, 2010. Management will host a conference call at 10 a.m. ET on March 4, 2010 to discuss the results. Please call 416-644-3421 or 1-877-974-0447. The conference call will also be accessible via webcast at www.canexus.ca. A replay of the conference call will be available until midnight March 11, 2010. To access the replay, call 416-640-1917 or 1-877-289-8525, followed by passcode 4236009#.

Non-GAAP Measures

Gross margin, gross margin percentage, payout ratio, distributable cash and operating cash flow are non-GAAP financial measures, but management believes they are useful in measuring the Fund's performance. Readers are cautioned that these measures should not be construed as alternatives to net income or loss or other comparable measures determined in accordance with GAAP as an indicator of the Fund's performance or as a measure of the Fund's liquidity and cash flow. The Fund's method of calculating non-GAAP measures may differ from the methods used by other issuers and accordingly, the Fund's non-GAAP measures are unlikely to be comparable to similarly titled measures used by other issuers.

Forward-Looking Statements

This news release contains forward-looking statements and information relating to expected future events and financial and operating results of the Fund, Canexus LP and its subsidiaries, including with respect to pricing for sodium chlorate and chlor-alkali products, expected volumes of and demand for sodium chlorate or chlor-alkali products, expected currency exchange rates, the Fund's expected payout ratio, global caustic soda demand, expectations for MECU netbacks, expectations regarding North Vancouver facility operations, the timing of TCP completion, the expenses related thereto and its contribution to operating cash flow, the timing of completion and contribution to operating cash flow of growth projects, including NATO rail infrastructure and available tax deductions. The use of the words "expects", "anticipates", "continue", "estimates", "projects", "should", "believe", "plans", "intends", "may", "will" or similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including market and general economic conditions, future costs, treatment under governmental regulatory, tax and environmental regimes and the other risks and uncertainties detailed under "Risk Factors" in the Fund's Annual Information Form filed on the Fund's SEDAR profile at www.sedar.com. Management believes the expectations reflected in these forward-looking statements are currently reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Due to the potential impact of these factors, the Fund and Canexus LP disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. Financial outlook information contained in this press release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Such financial outlook information should not be used for purposes other than those for which it is disclosed herein.

About Canexus

Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and one in South America are reliable, low-cost, strategically-located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus also provides fee-for-service hydrocarbon transloading services to the oil and gas industry from its terminal at Bruderheim, Alberta. Canexus targets opportunities to maximize unitholder returns and delivers high-quality products and services to its customers. Canexus units and convertible debentures trade on the Toronto Stock Exchange under the symbol CUS. More information about Canexus is available at www.canexus.ca.

Contact Information

  • Canexus Limited
    Gary Kubera
    President and CEO
    (403) 571-7300
    or
    Canexus Limited
    Richard McLellan
    CFO
    (403) 571-7300
    www.canexus.ca