Drive Products Income Fund
TSX : DPI.UN

Drive Products Income Fund

January 15, 2008 08:08 ET

Drive Products Income Fund Announces January 2008 Cash Distributions

TORONTO, ONTARIO--(Marketwire - Jan. 15, 2008) - Drive Products Income Fund (TSX:DPI.UN) today announced a cash distribution of $0.04171 per unit for the month of January, 2008 (equivalent to $0.50052 per unit on an annualized basis). The distribution is payable to unitholders of record on January 31, 2008 and will be paid on February 15, 2008.

Unitholders who are non-residents of Canada will be required to pay all withholding taxes payable in respect of any distributions by the Trust.

"It is disappointing that we are announcing the reduction in distributions but Management and the Board of Trustees believe it to be a responsible decision. Operating activity in our Western branches is not expected to improve in 2008 and the Fund anticipates growth to be driven by acquisitions and increased economic activity in Eastern Canada. As such the revised distribution rate will provide additional cash flow to fund acquisitions and increase the Fund's long term value for unitholders," said Greg Edmonds, Chief Executive Officer. "The revised monthly distribution level of $0.04171 per unit represents an annual yield of 15.2% based on the January 11, 2008 closing price of $3.30. We just recently announced the addition of the Docap line of products and the acquisition of W.H. Green Specialties Inc. Acquisition activity has increased in the current marketplace and given the current market conditions, we are seeing acquisition opportunities at multiples not normally available. The revised distribution rate will allow us to capitalize on these opportunities as we believe this to be a more prudent use of funds and will enhance long term unitholder value. Management remains focused on our ongoing operations and will work diligently to manage our inventory levels and operating costs."

About Drive Products Income Fund

Founded in 1983, Drive Products is a Canadian leader in the design and installation of systems solutions that transform a conventional new truck chassis into a specialized vehicle that meets a customer's technical and performance requirements. To achieve this, Drive Products offers a wide variety of products such as PTOs, hydraulic pumps, motors and coolers, winches, cables and controls, drivelines, blowers and compressors, hoses and fittings, custom consoles, snowplows, spreaders and electronic spreader controls, from leading international manufacturers, in many instances as the sole distributor in Canada.

The Fund was created on August 25, 2006 and the Fund's units trade on the Toronto Stock Exchange under the symbol DPI.UN. Additional information on Drive Products, can be viewed at www.driveproducts.com.

Forward Looking Statements

This press release contains forward-looking statements relating to expected future events and financial and operating results of the Fund. These statements involve risks and uncertainties. Actual results may differ materially from those anticipated by such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed from time to time in the Fund's continuous disclosure documents filed with the Canadian securities regulatory authorities. The Fund disclaims 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.

Contact Information

  • Drive Products Income Fund
    Gregory Edmonds
    Chief Executive Officer
    (905) 564-5800
    Website: www.driveproducts.com