Art In Motion Income Fund
TSX : AIM.UN
TSX : AIM

Art In Motion Income Fund

October 06, 2005 07:30 ET

Art In Motion Income Fund Announces Reduction in Cash Distribution

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 6, 2005) - Art In Motion Income Fund (the "Fund") (TSX: AIM.UN) today announced that its cash distributions on Fund units for the month of October 2005 (payable in November) will be reduced from the historical monthly amount of $0.10417 per Fund unit to $0.05 per Fund unit.

"In recent quarters the Fund reported lower than expected revenue partially due to lower US dollar denominated sales and further impacted by the drop in value of the US dollar relative to the Canadian dollar" says Garry Peters, Chief Executive Officer. "In our second quarter MD&A we reported that September and October are normally key months for shipments as our large retail customers get product into their distribution systems for the November and December holiday periods. One of our major customers has elected not to introduce any new products for the upcoming holiday season but will continue its replenishment program for their current collection. Other key customers have placed their orders but at lower levels than they had initially planned."

The Fund's policy is to make distributions of available cash to the maximum extent possible based on our estimate of Distributable Cash for the year less any reasonable reserves established by the Trustees.

"Although we are not using our bank line of credit and have sufficient cash on hand to make our normal distributions, given the lower sales volume the Board believes it is prudent to align monthly Fund distributions with the distributable cash the Fund expects to generate this year. Accordingly, the Fund has reduced its cash distributions on Fund units to $0.05 per month for the month of October, 2005 and does not anticipate declaring monthly distributions in excess of this amount until levels of distributable cash improve," said Peters. "We recognize the importance of regular distributions to our Unitholders and notwithstanding the recent challenges we have faced, we remain optimistic about the future of our business," added Peters.

The Fund will report its third quarter results on or about November 10, 2005 at which time the Fund will provide additional information on recent trends and its outlook for the balance of the year. Any shortfall in monthly distributions below $0.10417 per Fund unit accrues to the benefit of Unitholders for a period of twelve months in priority to any distributions on Class C subordinated units of Art In Motion Limited Partnership.

Forward looking statements

This document may contain forward-looking statements that reflect our current internal projections, expectations or beliefs and are based on information currently available to us. Although we believe that the forward-looking statements contained herein are based on reasonable assumptions, you cannot be assured that actual results will be consistent with such statements. Forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.

We are subject to a number of risks and uncertainties relating to our business and operations. These risks and uncertainties include but are not limited to: dependence on key personnel, our ability to renew contracts with existing artists or to secure contracts with new artists, our ability to anticipate consumer preferences and market trends and to create leading-edge products, sustaining our level of sales or EBITDA margins, loss of customers, seasonal and other fluctuations in our sales, decreases in the demand for wall decor, competition in our markets, failure to protect our intellectual property, labour disruptions, currency fluctuations, energy cost increases, dependence on key suppliers, the ability to fund future capital requirements, dependence on our management information systems, our ability to obtain insurance, exposure to foreign, political and economic instability, losses related to credit provided to our customers, failure to comply with regulatory requirements, and we may become involved in litigation.

The risks and uncertainties described above are not the only risks and uncertainties we face. Additional risks and uncertainties not currently known to us or that we currently deem immaterial also may impair our business operations.

About the Fund

The Fund is an unincorporated, open-ended limited purpose trust established under the laws of British Columbia to hold, indirectly, the securities of Art In Motion Limited Partnership. Art In Motion is a leading global publisher, framer and licensor of images and fine-art reproductions. Art In Motion designs, manufactures and markets fine-art reproductions based on proprietary artwork.

Contact Information

  • Art In Motion Income Trust
    Allan Achtemichuk
    Chief Financial Officer
    Toll Free: 1-877-AIM-3233 (1-877-246-3233)
    www.artinmotion.com