Dominion Citrus Income Fund

Dominion Citrus Income Fund

August 03, 2006 19:00 ET

Dominion Citrus Income Fund Announces Second Quarter Net Earnings & Declares a Distribution

TORONTO, ONTARIO--(CCNMatthews - Aug. 3, 2006) - Dominion Citrus Income Fund (TSX:DOM.UN) -

Second Quarter Highlights

- Revenue of $29,844,000 down $2,970,000, or 9.1% from last year.

- Net earnings of $296,000 down from net earnings of $632,000 reported last year.

- Fully diluted earnings per unit of $0.01 versus $0.03 per unit from last year.

- EBITDA of $695,000 versus $949,000 last year.

- Distributable cash of $456,000 versus $376,000 last year.

- The Fund declared distributions of $0.03 per unit.

Dominion Citrus Income Fund (TSX:DOM.UN) ("Dominion", the "Fund") announced revenues of $29,844,000 for the second quarter, a decrease of 9.1% from the same period last year and net earnings of $296,000 ($0.01 per unit fully diluted) versus net earnings of $632,000 ($0.03 per share fully diluted) reported last year.

"In the second quarter, the impact of the introduction of a new private label product was clouded by price deflation, poor growing conditions in key U.S. production areas and poor operating results at Delta" said Jacques Lavergne, President and CEO.

Lavergne continued, "We believe that we have stabilized revenues at Delta and Apple Valley and continue to pursue other initiatives to improve the profitability of the Delta operation".

Dominion also declared its eighth cash distribution of fiscal 2006 of one cent per unit for the period from August 1, 2006 to August 31, 2006, payable on September 29, 2006 to unitholders of record on August 31, 2006.

Dominion Citrus Income Fund 2ND Quarter Results

3 months ended June 24, 2006 & June 25, 2005

2006 2005
---- ----

Revenue $29,844,000 $32,814,000

Operating Income $379,000 $622,000

Other Income (Expense) $(214,000) $210,000

Income Before Portfolio Income $165,000 $832,000

Net Earnings $296,000 $632,000

Earnings Per Unit (Basic) $0.01 $0.03

Earnings Per Unit (Fully Diluted) $0.01 $0.03

6 months ended June 24, 2006 & June 25, 2005

2006 2005
---- ----

Revenue $55,547,000 $61,558,000

Operating Income $597,000 $1,553,000

Other Income (Expense) $466,000 $170,000

Income Before Portfolio Income $1,063,000 $1,723,000

Portfolio Income - $21,000

Net Earnings $1,063,000 $1,235,000

Earnings Per Unit (Basic) $0.05 $0.06

Earnings Per Unit (Fully Diluted) $0.05 $0.06

Fiscal 2006 Outlook

Management believes the segments of the food industry in which the Company participates will remain highly competitive resulting in continuing volume and margin pressures. In addition, the impact of weather, which has had a negative impact on the first half, is difficult to forecast.

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 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.

Contact Information

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