Dominion Citrus Income Fund

Dominion Citrus Income Fund

March 28, 2007 11:07 ET

Dominion Citrus Income Fund Announces Fiscal 2006 Results

TORONTO, ONTARIO--(CCNMatthews - March 28, 2007) - Dominion Citrus Income Fund ("Dominion", the "Fund")(TSX:DOM.UN)(TSX:DMN.PR.A) -

2006 Report to Unitholders

Fiscal 2006 Highlights

- Distributable cash of $3,033,000 versus $2,134,000 last year.
- Annual distributions declared of $0.12 per unit for a total of
- Invested $1,281,000 of capital to improve the competitiveness and
performance of our facilities.
- Recruited experienced management to lead our production and warehouse
facilities and improve the focus of our market and sales development
- Revenue of $117,335,000 down $7,911,000, or 6.3% from last year.
- EBITDA of $4,020,000 versus $4,969,000 last year.
- Recorded a goodwill impairment charge of $2,788,000 or $0.14 per unit
resulting in a net loss was $93,000. 2005 net earnings of $2,321,000 as
reported last year preceded the conversion to an income trust.
- Fully diluted earnings per unit of ($0.00) versus $0.11 last year.

Fourth Quarter Highlights

- Revenue of $31,817,000 down $1,444,000, or 4.3% from last year.
- EBITDA of $1,593,000 versus $1,562,000 last year.
- Distributable cash of $1,260,000 versus $327,000 last year.

The Fund reports revenue of $117,335,000 for fiscal 2006, down 6.3% compared to $125,246,000 last year. The net loss was $93,000, after recording a goodwill impairment charge of $2,788,000, versus net income of $2,321,000 in the prior year. Fully diluted EPU were ($0.00) versus $0.11 last year. Net earnings from operations before the goodwill impairment in 2006 were $2,695,000 versus $2,300,000 in 2005, up 17.2% while the EPU on the same basis was $0.14 vs. $0.12 in the prior year.

Jacques Lavergne, President and CEO commented that "Adverse weather conditions in key U.S. production areas and intense competition and pricing pressures driven by consolidation and market share expansion by non-traditional retailers in the food industry resulted in volume pressures for Dominion in 2006".

"In the fourth quarter we recorded a charge against earnings in the amount of $2,788,000 in recognition of goodwill impairment primarily attributable to the underperformance of our maple syrup business."

He further commented: "The Fund has developed a highly focused strategy, recruited experienced management and will make further capital investments as it prepares itself to capitalize on evolving industry trends and opportunities".

The trustees announced a cash distribution of $0.01 (one cent) per unit for the period from March 1, 2007 to March 31, 2007, payable on April 30, 2007 to unitholders of record on April 9, 2007.

Dominion Citrus Limited Year End Results
12 months ended December 31

2006 2005
------------- --------------
Revenue $ 117,335,000 $ 125,246,000

Gross Margin % 19.4% 18.5%

Earnings before other income (expense) $2,590,000 $3,451,000

Other income (expense)
Foreign exchange gain 385,000 604,000
Net interest expense & amortization of
deferred financing costs (1,037,000) (997,000)
Goodwill impairment (2,788,000) -
Other income 757,000 406,000

Earnings (loss) before tax ($93,000) $3,464,000

Net earnings (loss) ($93,000) $2,321,000

EPU (Basic) ($0.00) $0.12

EPU (Fully diluted) ($0.00) $0.11

Non-GAAP Measures

Net earnings from operations before the
goodwill impairment & portfolio related
income (expense) $2,695,000 $2,300,000

EPU (Basic) from operations before the
goodwill impairment & portfolio related
income (expense) $0.14 $0.12

Weighted average units, common shares
outstanding 20,475,845 19,857,571


Management believes the segments of the food industry in which the Company participates will remain highly competitive and result in continuing volume and margin pressures.

The Fund is modifying it organizational structure to drive revenue increases and better meet customer needs, expand product and process development, increase its supplier base and will 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. In early January 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 Québec. 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 onto which the statements were made. Except as required by applicable security law, management disclaims any intention or obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

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