CanWel Building Materials Group Ltd.

CanWel Building Materials Group Ltd.

March 22, 2006 23:36 ET

CanWel Building Materials Income Fund Declares March Cash Distribution and Change to Annual Distributions

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 22, 2006) -


CanWel Building Materials Income Fund (the "Fund") (TSX:CWX.UN) today declared a cash distribution of $0.0817 per trust unit for the period from March 1, 2006 to March 31, 2006.

The March cash distribution will be paid on April 20, 2006 to unitholders of record at the close of business on March 31, 2006. The Fund's policy is for unitholders of record on the last business day of a calendar month to receive distributions on or about the 20th day following the end of such month.

Further, the Fund announced a change in its annual distributions from $0.9804 per unit to $0.70 per unit. Monthly distributions are expected to be $0.05833 per unit beginning with the April 2006 distribution which will be payable on May 20, 2006.

"This adjustment to distributions helps to ensure long-term value and sustainable cash flow for our unitholders. It also preserves our financial resources allowing us to act on opportunities to maintain and grow the Fund's leadership position in its respective markets," noted Tom Donaldson, president and CEO of CanWel Building Materials.

The Fund trades on the Toronto Stock Exchange under the symbol CWX.UN and is one of Canada's largest national distributors in the building materials and related products sector, operating 17 distribution centres across Canada. The Fund distributes a wide range of hardware, building materials, lumber and renovation products.

Further information can be found in the disclosure documents filed by CanWel Building Materials Income Fund with the securities regulatory authorities, available at

Certain statements in this press release may constitute "forward-looking" statements. When used in this press release, such statements use words, including but not limited to, "may", "will", "expect", "believe", "plan", "intend", "anticipate" and other similar terminology. These forward-looking statements reflect the current expectations of the Fund's management regarding future events but involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund, including the performance of, and distributable cash generated by, CanWel and Sodisco-Howden, on a consolidated basis, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual events could differ materially from those projected herein and depend on a number of factors. These factors include the risk that the Sodisco-Howden acquisition will not be integrated successfully; the risk that any cost savings and any synergies from the transaction may not be fully realized or may take longer to realize than expected; and disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers. Additional risks and uncertainties include, among others: general economic and business conditions, product selling prices, commodity price fluctuations, information systems risk, interest rate changes, operating costs, and competitive conditions. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the periodic and other reports filed by the Fund with Canadian Securities Commissions and available on Sedar ( The Fund does not undertake, and specifically disclaims, any obligation to update or revise any forward looking information, whether as a result of new information, future developments or otherwise.

Reference is also made to distributable cash of the Fund. This is a non-GAAP measure generally used by Canadian open-ended income funds as an indicator of financial performance. We define distributable cash as net earnings before depreciation, amortization, gain or loss on sale of fixed assets, provision for future income taxes, stock based compensation and after maintenance of business capital expenditure and contributions to any reserves the Board of Trustees deem to be reasonable and necessary for the operations of the Fund.

Contact Information

  • CanWel Building Materials Income Fund
    Ali Mahdavi
    Investor Relations
    (416) 962-3300 or +1 (866) 430-6247