Dominion Citrus Income Fund

Dominion Citrus Income Fund

March 26, 2009 13:22 ET

CORRECTION FROM SOURCE: Dominion Citrus Income Fund Fiscal 2008 Report to Unitholders

TORONTO, ONTARIO--(Marketwire - March 26, 2009) - A correction from source is being issued with respect to the press release issued March 25, 2009 at 18:07 ET. Fully diluted earnings per unit three months ended December 31, 2007 should read $0.02 and twelve months ended December 31, 2007 should read $0.10. EBITDA for three months ended December 31, 2008 should read $779, and the Distributable cash for three months ended December 31, 2008 should read $705. The complete and corrected version follows.

Dominion Citrus Income Fund ("Dominion", the "Fund")(TSX:DOM.UN) reports net loss of $1,685,000 or ($0.08) per unit for the year ended December 31, 2008 compared to a net earnings of $1,891,000 or $0.09 per unit for the same period in 2007.

The highly competitive nature of the segments of the food industry in which the Fund participates has resulted in continuing volume and margin pressures. The movement of the Canadian dollar against the US dollar had an impact on the Fund's revenue and margins. During 2008 the average exchange rate was marginally lower than 2007, however the US dollar ended the year stronger.

The Fund commenced a review of strategic options for the Trust including but not limited to the sale of all or parts of the business, the wind up of certain operations, merger of the business or a "going private" transaction. During the review process, the Trust will not reinstate distributions to the unitholders. Accordingly, the directors of Dominion Citrus Limited have decided to defer the payment of dividends on the Series A preference shares (DMN.PR.A).

To counter these challenges of the business environment the Fund has initiated the restructuring of its operations. Staff and operating cost reductions have begun to have an impact on the later two quarters of 2008.

After selling certain assets of Delta Foods International, its maple syrup processing division, the Fund commenced the process of selling the Brockville facilities consisting of two buildings totaling approximately 44,000 square feet. The proceeds of disposition should have no material impact on future financial results.

Currently there are two initiatives at the forefront of the review; the sale of the renewable lease for two type "A" selling units located at the Ontario Food Terminal and the sale of certain assets of Apple Valley Juice. A definitive agreement on the sale of the Apple Valley Juice assets was signed on March 24, 2009.

The three operations, Delta, Fresh Cut (Nature's Best) and Apple Valley Juice have been classified as discontinued operation and assets held for sale.

The fourth quarter and year to date results of the continuing operations are summarized below (all figures in $000's except per unit):

Three months ended Twelve months ended
------------------ -------------------
Dec 31 Dec 31 Dec 31 Dec 31
2008 2007 2008 2007
---- ---- ---- ----

Revenue $27,695 $23,192 $93,550 $96,482
Net earnings $174 $459 ($33) $2,114
Fully diluted earnings per unit $0.01 $0.02 ($0.00) $0.10
EBITDA $779 $862 $529 $3,602
Distributable cash $705 $762 ($721) $2,397

Fiscal 2009 Outlook

The highly competitive nature of the segments of the food industry in which the Fund participates will result in continuing volume and margin pressures. The fluctuations of the Canadian dollar as against the US dollar will impact the Fund's revenues and margins.

The Fund will continue its' restructuring and staff and operating cost reductions in 2009. The Fund will continue to market the sale of its' Brockville facilities consisting of two buildings totaling approximately 44,000 square feet.

Caution Regarding Forward-Looking Statements

This Management Discussion & Analysis ("MD&A") 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 MD&A 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.

Dominion has introduced certain non-GAAP measures to assess performance. Securities regulators require that companies caution readers that earnings and other measures adjusted to a basis other than GAAP do not have standardized meanings under GAAP and are unlikely to be comparable to similar measures used by other companies. In addition to providing income measures in accordance with Canadian Generally Accepted Accounting Principles (GAAP), the Fund presents earnings before interest, income taxes, amortization and certain other items (EBITDA) as a supplementary income measure. EBITDA does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. EBITDA is provided to assist investors in determining the Fund's ability to generate cash from operations. The Fund also presents a uniform comparability of earnings arising from its operating activities and from those extraneous to its operating activities, although they include non-GAAP measurements and these are outlined below under the heading 'Other Selected Annual Information'. Lastly, the Fund presents distributable cash flow generated as a supplemental measure of operating performance as it provides an indication of cash available for distribution.

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

Contact Information

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