Dominion Citrus Income Fund

Dominion Citrus Income Fund

May 07, 2007 17:15 ET

Dominion Citrus Income Fund Announces First Quarter Results & 16th Distribution

Dominion Citrus Income Fund: First Quarter 2007 Report to Unitholders; Three Months Ended March 24, 2007

TORONTO, ONTARIO--(CCNMatthews - May 7, 2007) - Dominion Citrus Income Fund (TSX:DOM.UN) -

First Quarter Highlights

- Revenue of $30,955,000 was up 21.3%, or $5,439,000 due largely to
increased volume.
- Net earnings were $1,008,000 compared to $767,000 last year, or basic
earnings per unit of $0.05 vs. $0.04 last year.
- Fully diluted earnings per unit were $0.05 versus $0.04 last year.
- EBITDA of $1,662,000 versus $588,000 last year.
- Distributable cash of $1,132,000 versus $496,000 last year.
- Paid down convertible debentures by $500,000
- Paid down bank term debt by $350,000

Dominion Citrus Income Fund (TSX:DOM.UN) ("Dominion", the "Fund", the "Company") announced first quarter net earnings of $1,008,000 versus $767,000 for the same period last year. Fully diluted earnings per unit were $0.05 versus the $0.04 recorded in the first quarter last year.

"The 2007 first quarter earnings were up 31.4% relative to 2006," said Jacques Lavergne, President and CEO, "a reflection of stronger operating performance in both of our business segments. Our Produce Distribution and Processing business capitalized on supply issues in California by leveraging its offshore programs, successfully developed an opportunity in the US market, expanded its market share of certain key commodities while strengthening its gross margins. Our Other Food business benefited from many actions taken in 2006 that resulted in new business for the quarter, improved pricing and better process controls."

On May 3, 2007 the trustees announced a cash distribution of $0.01 (one cent) per unit for the period from April 1, 2007 to April 30, 2007, payable on May 31, 2007 to unitholders of record on May 15, 2007.

Dominion Citrus Income Fund First Quarter Results
three months ended

March 24, 2007 March 25, 2006
-------------- --------------

Revenue $30,955,000 $25,516,000

Gross Margin % 21.7% 18.7%

Earnings before other income (expense) 1,333,000 218,000

Other income (expense) (59,000) 680,000

Earnings Before Income Taxes 1,274,000 898,000

Net Earnings for the quarter 1,008,000 767,000

Earnings per Unit - Basic $0.05 $0.04

Earnings per Unit - Fully diluted $0.05 $0.04

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 Fund 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 to 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

  • Media:
    Dominion Citrus Income Fund
    J.L. Lavergne, President & CEO
    (416) 242-8341 Ext 250
    Dominion Citrus Income Fund
    E.A. (Ted) Atkinson, V.P. Finance & CFO, Corporate Secretary
    (416) 242-8341 Ext 249