Dominion Citrus Income Fund

Dominion Citrus Income Fund

November 02, 2006 09:00 ET

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

Third Quarter 2006 Report to Unitholders Nine months ended September 23, 2006 and September 24, 2005

TORONTO, ONTARIO--(CCNMatthews - Nov. 2, 2006) - Dominion Citrus Income Fund (TSX:DOM.UN) -

Third Quarter Highlights

- Revenue of $30,232,000 down 1.3% from last year.
- Net earnings of $607,000. The 2005 net earnings of $448,000 reported last
year preceded the conversion to an income trust and are not comparable.
- Fully diluted earnings per unit of $0.03 versus $0.02 per unit from last
- EBITDA of $1,144,000 versus $1,141,000 last year.
- Distributable cash of $901,000 versus $719,000 last year.
- Cash from operating activities improved $5,096,000.
- The Fund declared distributions of $0.03 per unit.
- Subsequent to quarter end, successfully re-negotiated a 3-year agreement
with Teamsters Union Local 419 effective July 1, 2006 to June 30, 2009
for employees of Country Fresh and our new distribution centre.

Dominion Citrus Income Fund (TSX:DOM.UN)("Dominion", the "Fund") announced revenues of $30,232,000 for the third quarter, a decrease of 1.3% from the same period last year and net earnings of $607,000 ($0.03 per unit fully diluted) versus net earnings of $448,000 ($0.02 per share fully diluted) reported last year.

"While our food businesses continue to face competitive pressures and shifts in buying trends brought about by retail consolidation, our operating focus resulted in improved gross margins both in absolute and percentage terms." said Jacques Lavergne, President and CEO.

Lavergne continued, "Operating income improvements at both Delta and Apple Valley in the third quarter were driven by a combination of higher revenues, improved pricing and operating efficiencies. We continue to pursue other initiatives to improve their profitability".

Dominion also declared its eleventh cash distribution of fiscal 2006 of one cent per unit for the period from November 1, 2006 to November 30, 2006, payable on December 29, 2006 to unitholders of record on November 30, 2006.

At today's board meeting, the Directors declared a preference share dividend of $0.09 per Series A preference share payable January 19, 2007, to shareholders of record at the close of business on December 31, 2006.

Dominion Citrus Income Fund 3rd Quarter Results

3 months ended September 23, 2006 & September 24, 2005

2006 2005(a)
----------- ------------

Revenue $30,232,000 $30,620,000

Operating Income $757,000 $783,000

Other Income (Expense) $(150,000) $(96,000)

Income Before Portfolio Income $607,000 $687,000

Net Earnings $607,000 $448,000

Earnings Per Unit (Basic) $0.03 $0.03

Earnings Per Unit (Fully Diluted) $0.03 $0.02

9 months ended September 23, 2006 & September 24, 2005

2006 2005(a)
----------- ------------

Revenue $85,780,000 $92,178,000

Operating Income $1,354,000 $2,336,000

Other Income (Expense) $316,000 $74,000

Income Before Portfolio Income $1,670,000 $2,410,000

Portfolio Income - $21,000

Net Earnings $1,670,000 $1,683,000

Earnings Per Unit (Basic) $0.08 $0.09

Earnings Per Unit (Fully Diluted) $0.08 $0.08

(a) Restated, as a result of a change in accounting policy for the reclassification of Series A preference shares as a liability. Dividends on these Series A preference shares, which were shown as a charge to retained earnings, have been reclassified as interest expense in the Consolidated Statements of Earnings.

Fiscal 2006 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.

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