Arriscraft International Income Fund
TSX : AIN.UN

Arriscraft International Income Fund

March 13, 2007 09:51 ET

Arriscraft International Income Fund Announces Additional Special Distribution in Respect of Year Ended December 31, 2006

CAMBRIDGE, ONTARIO--(CCNMatthews - March 13, 2007) - Arriscraft International Income Fund (the "Fund") (TSX:AIN.UN) announced today that it will pay an additional special distribution related to its 2006 fiscal year in an amount of $1.2 million or approximately $0.17 per unit. The payment will be made to unitholders of record on December 29, 2006 as soon as practicable through the payment of $600,000 in cash and $600,000 in additional units. Upon the payment of the additional units there will be an automatic consolidation such that each unitholder will hold after the consolidation the same number of units as the unitholder held before the distribution of additional units subject to applicable withholding tax, if any. The reason for the additional payment is that the Fund's auditors have reconsidered their review of the Fund's calculation of taxable income subsequent to the completion and issuance of the Fund's fiscal 2006 financial statements on March 7, 2007. The Fund also announced that it will file amended financial statements for the year ended December 31, 2006 to reflect the additional special distribution, which affects only certain balance sheet items. Management does not anticipate that the restatement of the Fund's financial statements will affect the Fund's net income or Adjusted EBITDA (defined below) for fiscal 2006.

Arriscraft International Income Fund

The Fund owns the Arriscraft International manufactured stone, brick and natural stone masonry products business conducted through Arriscraft International Limited Partnership, Arriscraft International LLC and certain affiliates in Canada and the United States. Arriscraft produces manufactured stone masonry products in Canada and the United States using its proprietary The Natural Edge ® manufacturing process. Arriscraft also produces brick, cast stone and natural stone masonry products and distributes its masonry products across Canada and most of the United States.

Additional information concerning the Fund is available on the Fund's web site at www.arriscraft.com and on SEDAR at www.sedar.com.

This press release contains forward-looking statements. The statements that are not historical facts contained in this press release are forward-looking statements that 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 the forward-looking statements. Examples of such statements include: payment of the additional special distribution and the intention to file amended financial statements for the year ended December 31, 2006 and the impact of such restatement on any of the information contained in such financial statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the impact of the additional special distribution on other items in the Fund's financial statements for the year ended December 31, 2006. While the Fund anticipates that subsequent events and developments may cause the Fund's views to change, the Fund specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Fund's views as of any date subsequent to the date of this press release. Although the Fund has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the Fund. Additional factors are noted in Management's Discussion and Analysis of the Fund for the quarter and year ended December 31, 2006 under "Risks and Uncertainties".

"Adjusted EBITDA" is determined by making adjustments to earnings before interest, taxes, depreciation and amortization ("EBITDA") for certain items that Management believes do not affect Arriscraft's cash flow, principally unrealized foreign exchange gains and losses and the non-controlling interest in the Fund's consolidated gains and losses. EBITDA and Adjusted EBITDA are not recognized measures under Canadian generally accepted accounting principles ("GAAP"); however, Management believes EBITDA and Adjusted EBITDA are useful supplemental measures to net earnings as they provide investors with an indication of cash available for distribution prior to debt service, capital expenditures and income taxes.

Contact Information

  • Arriscraft International Limited Partnership
    David Boles
    President and CEO
    (519) 653-3275
    Website: www.arriscraft.com