Dominion Citrus Income Fund

Dominion Citrus Income Fund

April 30, 2009 17:30 ET

Dominion Citrus Income Fund-First Quarter 2009 Report to Unitholders

TORONTO, ONTARIO--(Marketwire - April 30, 2009) - Dominion Citrus Income Fund ("Dominion", the "Fund")(TSX:DOM.UN) reports net earnings from continuing operations of $265,000 or $0.01 per unit for the three months ended March 21, 2009 compared to $295,000 or $0.01 per unit for the same period in 2008. The net earnings from discontinued operations for the same periods were net earnings of $36,000 versus a net loss of $286,000 in 2008.

On March 24th, 2009 the Fund entered into a definitive agreement to sell certain assets of the Apple Valley Juice operations, a processor of apple juice. The Fund will receive $1,350,000 for the equipment and goodwill plus proceeds for inventory at cost upon closing. The Fund will be responsible for collecting accounts receivable and deposits, paying all liabilities and will be responsible to find a tenant to sublet the facility. The expected closing date of the transaction is on or about June 22, 2009. The results for Delta, Fresh Cut and Apple Valley for the quarter have been presented as discontinued operations.

First quarter revenue and margins from continuing operations were negatively impacted by substantially lower case volumes in offshore citrus, partially offset by higher pricing due to foreign exchange. Expenses declined as efforts initiated in July of 2008 to reduce costs continue to have an impact.

The quarterly results are summarized below (all figures in $000's except per unit):

Three months ending March 21, 2009 and March 22, 2008 2009 2008
Q1 Q1
-- --
Revenue, continuing operations ($000's) 19,046 20,791
Revenue, discontinued operations ($000's) 1,670 4,849
Net earnings (loss), continuing operations ($000's) 265 295
Net earnings (loss), discontinued operations ($000's) 36 (286)
Basic and diluted earnings (loss), continuing operations $0.01 $0.01
Basic and diluted earnings (loss), discontinued operations $0.00 ($0.01)
EBITDA(1), continuing operations ($000's) 297 461
EBITDA(1), discontinued operations ($000's) 60 (357)
Distributable cash(1), continuing operations ($000's) 185 (301)
Distributable cash(1), discontinued operations ($000's) 60 (47)

(1) Non-GAAP measures. 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.

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 is continuing its restructuring which includes 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. The discontinuance of operations due to the sale of the Apple Valley Juice assets is anticipated to be completed in June. The sale of the two type "A" stall at the Ontario Food Terminal is still an ongoing matter and has yet to be resolved.

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 forwardlooking 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
    Winston R. Ash
    President & COO