Dominion Citrus Income Fund

Dominion Citrus Income Fund

November 01, 2007 17:36 ET

Third Quarter 2007 Report to Unitholders

Nine months ended September 22, 2007 and September 23, 2006

TORONTO, ONTARIO--(Marketwire - Nov. 1, 2007) - Dominion Citrus Income Fund ("Dominion", the "Fund")(TSX:DOM.UN) reports net earnings of $1,588,000 or $0.07 per unit for the nine months ended September 22, 2007 compared to $1,670,000 or $0.08 per unit for the same period in 2006.

The year-to-date operating results reflect the solid year over year improvement in operations. EBITDA remains $489,000 ahead of last year and distributable cash is down $143,000 from last year. Third quarter revenue and margins were impacted by: rapid Canadian dollar appreciation against its US counterpart; changes in global market conditions including poor quality; the shortage of locally grown apples causing ingredient cost increases at Apple Valley; the professional training of new personnel associated with Dominion's reorganization; and refinancing costs relating to financing with a new lender.

The quarterly and year to date results are summarized below (all figures in $000's except per unit):

Three months ended Nine months ended
------------------ ------------------

Sept 22 Sept 23 Sept 22 Sept 23
2007 2006 2007 2006

Revenue $28,865 $30,251 $92,003 $85,518
Net earnings $17 $607 $1,588 $1,670
Fully diluted earnings per unit $0.00 $0.03 $0.07 $0.08
EBITDA $216 $1,144 $2,916 $2,427
Distributable cash $(285) $821 $1,630 $1,773

The Fund declared it tenth distribution of fiscal 2007 of one cent per unit for the period from October 1, 2007 to October 31, 2007, payable on November 30, 2007 to unitholders of record on November 16, 2007.

Fiscal 2007 Outlook

Management believes the segments of the food industry in which the Fund participates will remain highly competitive resulting in continuing volume and margin pressures. The Canadian dollar's appreciation against the US dollar, approximating 13.9% since January 1, 2007, will continue to act as a price deflator on commodity pricing going forward, thereby unfavourably impacting the Fund's revenue and margins.

Dominion has modified its organizational structure to drive revenue increases and better meet customer needs, expand product and process development, increase its supplier base and continue to make selective investments in its processing facilities. In addition, the Fund will continue to pursue acquisitions and alliances to advance its strategy of expanding as a diversified food supplier in the food industry.

About Dominion

The Fund is a publicly traded, unincorporated, open-ended limited purpose income trust. On January 1, 2006, all of the common shares of Dominion Citrus Limited ("DCL") were exchanged for trust units of the Fund. The trust units are listed on the TSX under the symbol DOM.UN. The Series A preference shares of DCL continue to be listed on the TSX under the symbol DMN.PR.A.

Dominion is a diversified food company supplying fresh produce, premium juices and maple syrup to a wide variety of customers in retail, foodservice and food distribution businesses. The Fund provides procurement, processing, repacking, sorting, grading, warehousing and distribution services to its major domestic markets being Ontario and Quebec. The Fund also supplies products to customers in the United States and Europe. The website may be accessed at

Caution regarding Forward-Looking Statements

This release contains statements, which, to the extent that they are not a recitation of historical fact, may constitute "forward-looking statements". Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, objectives or performance, or our underlying assumptions. The words "estimate", "anticipate", "believe", "expect", "intend" or other similar expressions of future or conditional verbs such as "will", "should", "would" and "could" are intended to identify forward-looking statements. Persons reading this press release are cautioned that such statements are only expectations, and that our actual results or performance may be materially different.

Forward-looking information involves certain risks, assumptions, uncertainties and other factors which may cause actual future results to differ materially from those expressed or implied in any forward-looking statements.

Readers should not place undue reliance on these forward-looking statements when making decisions, and should consider the date onto which the statements were made. Except as required by applicable security law, management disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Investors:
    Dominion Citrus Income Fund
    E. A. Atkinson
    VP Finance, CFO & Corporate Secretary
    (416) 242-8341
    Dominion Citrus Income Fund
    J.L. Lavergne
    President & CEO
    (416) 242-8341