FP Newspapers Income Fund
TSX : FP.UN

FP Newspapers Income Fund

March 12, 2008 06:00 ET

FP Newspapers Income Fund Reports Fourth Quarter 2007 Results

WINNIPEG, MANITOBA--(Marketwire - March 12, 2008) - FP Newspapers Income Fund (TSX:FP.UN) announces financial results for the quarter ended December 31, 2007. FP Newspapers Income Fund owns securities entitling it to 49 percent of the distributable cash of FP Canadian Newspapers Limited Partnership ("FPLP"), which owns the Winnipeg Free Press and Brandon Sun daily newspapers, Canstar Community News Limited ("Canstar") which operates five weekly newspapers in the Winnipeg area as well as delivery businesses in Winnipeg and Thunder Bay, and Rosebud Publications Ltd. ("Rosebud"), which publishes a weekly entertainment newspaper and a twice-monthly newspaper aimed at age 50-plus readers, both serving the Winnipeg area.

Total revenue for FPLP for the three months ended December 31, 2007 was $33.3 million, a $0.7 million or 2.2 percent increase over the same period last year. The increase in revenue is primarily due to growth in the display advertising and flyer distribution categories. Total EBITDA(1) of FPLP for the fourth quarter was $8.6 million, a $0.9 million or 12.0 percent increase from the same quarter last year, an amount that slightly exceeds the reduction in own-use newsprint cost. The partnership had net earnings of $4.6 million in the fourth quarter compared to $3.6 million or 26.7 percent increase from the same quarter last year. The increase in net earnings in the fourth quarter is primarily the result of the increase in EBITDA(1).

The Fund had net earnings of $3.2 million, or $0.469 per Unit, during the three months ended December 31, 2007, compared to net earnings of $2.6 million, or $0.380 per Unit, in the same quarter last year. The increase in net earnings in the fourth quarter is primarily due to the increase in the net earnings of FPLP.

Operations

Advertising revenue in the fourth quarter was $23.5 million, a $0.6 million or 2.7 percent increase over the same quarter last year. Our largest advertising revenue category, display advertising including colour, increased by $0.3 million for the quarter or 2.1 percent, compared to the same period last year. This increase is primarily due to increased spending in the automotive category. Flyer distribution revenues increased by $0.3 million or 7.3 percent, primarily due to increased rates and volumes as well as the addition of a new telephone directory distribution customer, over the same quarter in the prior year.

Operating expenses, excluding amortization for the fourth quarter were $24.7 million, a 0.8 percent decrease from $24.9 million in the fourth quarter last year. Employee compensation costs increased $0.7 million or 6.1 percent compared to the fourth quarter last year, primarily due to annual salary increases, an increase in the number of staff as well as an increase in the long-term incentive plan accrual. Newsprint expense for FPLP's own publications decreased by $0.8 million or 21.0 percent, as a result of lower newsprint prices as well as decreased consumption. Delivery costs increased by $0.1 million or 2.5 percent, primarily due to increased flyer volumes.

During the fourth quarter we continued to invest in both our printed and online products at all our businesses. In the quarter, the Winnipeg Free Press websites overall saw an increase of 50 percent in page-views over the same period last year. Traffic on the sites was boosted by increased public awareness that they are free of charge. As well, technical coding of the sites was changed so that they are easier to find on search engines. During the quarter, automated and breaking news e-mail alerts were launched at the Winnipeg Free Press providing scheduled and one-off news alerts to users who register for the service.

In Brandon during the fourth quarter, the management team planned and coordinated a reduction in the width of the daily paper by 1 inch to a 24-inch product. In addition, the Sunday edition and the Community News Edition products were converted from tabloid size to the broadsheet format. The new product sizes and designs, launched on January 2, 2008 were implemented to make the products look livelier and easier to read.

At Canstar Community News, during the first quarter of 2008, management completed the negotiation of initial contract language and wage levels covering 29 employees. The new language was incorporated in the existing collective agreement between the Winnipeg Free Press and the Media Union of Manitoba Local 191 which expires on September 30, 2008. Management of Canstar and the Winnipeg Free Press are working on an integration plan to move the majority of Canstar employees to the Mountain avenue facility in Winnipeg which is expected to reduce costs and should be completed by the second quarter of 2008. Talks continue on the renewal of an expired contract for the Canstar delivery agents.

Distributions

Distributable cash attributable to the Fund(2) for the three months ended December 31, 2007 was $3.5 million, or $0.508 per Unit compared to $3.1 million or $0.454 per Unit in the same quarter last year. For the twelve months ended December 31, 2007, FPLP has generated distributable cash attributable to the Fund(2) of $1.608 per Unit, and the Fund has declared distributions of $1.290 per Unit, resulting in a payout ratio of 80.2 percent.

The Fund declared distributions to Unitholders of $0.323 per Unit for the fourth quarter, unchanged from the fourth quarter last year.

Outlook

Overall advertising revenues increased by 2.8 percent in the twelve months ended December 31, 2007 compared to last year. Our largest revenue category, display advertising including colour increased by 2.5 percent, primarily due to small increases across many customers. Flyer distribution revenues increased by 4.6 percent, primarily due to increases in distribution rates. Classified advertising revenues increased by 1.8 percent largely due to increased employment advertising revenue. Circulation revenues for the year were 2.8 percent higher than last year, largely due to increases in home delivered subscription rates.

In 2008, we expect overall advertising growth of two to three percent compared to 2007. However, advertising spending is dependent on many factors outside the control of FPLP, including general economic conditions. In 2008, we expect circulation revenue growth of approximately one percent.

Employee compensation costs accounted for approximately 47 percent of our operating costs before amortization. In 2007 these costs increased by 3.6 percent, 0.9 percent of which related to increased costs under the long-term incentive plan as a result of increased distributable cash attributable to the Fund(2). We expect employee compensation to be approximately two to four percent higher in 2008 due to a combination of increased wage, salary and benefits rates and additional staffing. Newsprint prices were increased by our suppliers during the first quarter of 2008 and overall they are expected to be approximately 12 percent lower in the first quarter of 2008 compared to the same period last year. Although newsprint prices vary significantly from time to time based primarily on North American supply and demand, our current outlook is for an increase over the course of 2008 and an overall average price estimated to be approximately flat compared to the 2007 levels. Delivery costs are partly dependent on flyer volumes but we are forecasting a two to four percent increase in these costs.

In early 2008, the Winnipeg Free Press launched a new internet-based research tool which will utilize Free Press readers as panelists and request they provide feedback on topics we choose to poll. The process allows for virtually immediate feedback on any topic we determine is of value to our operation. Panelists who volunteer to participate will join the team known as "Free Press Insiders" and will have the ability to express their voices and aid in improving the products and services we deliver daily.

The Editorial Department launched its Continuous Newsroom on January 21, 2008 with an increased emphasis on our internet operations. The day began with a new 'startup editor' at 6 a.m., who directed a dedicated web team of one reporter and photographer. The startup editor and staff reported to the Online Editor, and the morning news meeting - after 135 years of print-focused discussions on the day's paper - began with an assessment of the day's website with each section editor reporting when breaking news would be posted. The result was a much newsier, fresher, ever-changing website, and reader response was instantaneous and gratifying. We experienced the second busiest day of traffic ever on the website, on a Monday when there was no significant news event. The rest of the week saw corresponding leaps in page-views, growing by several thousand hits a day. We expect our online audience will continue to grow. On the print side, this evolution has been both a challenge and an inspiration. We are rethinking how we approach the next-day news in ways we have only talked about before.

In 2008, we will be completing an upgrade started in 2007 to the editorial system at the Winnipeg Free Press which will improve reliability and work flow. Overall maintenance capital spending in 2008 is expected to be approximately $1.8 million. In addition to the Editorial system investment, we anticipate upgrading the display advertising system at the Winnipeg Free Press, and plan system hardware and software upgrades at the Brandon Sun.

Conference Call

FP Newspapers Income Fund invites you to participate in a conference call on Wednesday, March 12, 2008 at 12:00 p.m. Eastern (11:00 a.m. Central) to discuss results.

The dial-in number is 1-416-641-2140, or toll free at 1-800-952-4972. To ensure your participation, please dial in five minutes before the start of the conference call. The call will also be webcast at www.fpnewspapers.com. Management's presentation will be followed by a question and answer period.

For those unable to participate, a taped rebroadcast will be available to listeners upon completion of the call until March 26, 2008. To access the rebroadcast, please dial 1-416-695-5800 or dial toll free at 1-800-408-3053, and use the verbal passcode 3252594.

About FP Newspapers Income Fund

FP Canadian Newspapers Limited Partnership owns the Winnipeg Free Press, the Brandon Sun, and their related businesses, as well as Canstar Community News Limited, the publisher of seven community and special interest newspapers in the Winnipeg region. The Winnipeg Free Press newspaper publishes seven days a week, serving Winnipeg and Manitoba with an average seven-day circulation of approximately of 125,000 copies. The Brandon Sun also publishes seven days a week, serving the region with an average circulation of approximately 14,000 copies. Canstar Community News publishes weekly with an average circulation of approximately 206,000 copies. Based in Winnipeg, the businesses employ approximately 630 people in Winnipeg, Brandon and Thunder Bay. Further information can be found at www.fpnewspapers.com, and in the disclosure documents filed by FP Newspapers Income Fund with the securities regulatory authorities available at www.sedar.com.

Forward-Looking Statements

This document may contain forward-looking statements, relating to the Fund's operations or to the environment in which it operates, which are based on the Fund's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond the Fund's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in our most recent Annual Information Form, a copy of which is available under the Fund's name at www.sedar.com. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. FP Newspapers Income Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Management's Discussion and Analysis

Overview

Management's Discussion and Analysis is as at March 11, 2007 and provides a review of significant developments that have affected the Fund's performance in the three and twelve months ended December 31, 2007. This review is based on financial information contained in the consolidated financial statements. Factors that could affect future operations are also discussed. These factors may be affected by known and unknown risks and uncertainties that may cause the actual future results to be materially different from those expressed in this discussion.

The following information provides analysis of the operations and financial position of the Fund and FPLP and should be read in conjunction with the consolidated financial statements and accompanying notes. The interim financial statements have been prepared in accordance with Canadian generally accepted accounting principles ("GAAP").

Further information relating to the Fund is available at www.sedar.com.

Formation and Legal Entities

FP Newspapers Income Fund (the "Fund") was created on May 15, 2002 and commenced operations on May 28, 2002 when it completed an Initial Public Offering and purchased an interest in FP Canadian Newspapers Limited Partnership ("FPLP"). The Fund owns securities entitling it to 49% of the distributable cash of FPLP. The Fund is dependent on the operations of FPLP, its sole investment.

FPLP is a limited partnership formed on August 9, 1999. FPLP acquired the business and assets and assumed certain liabilities of the Winnipeg Free Press and Brandon Sun newspapers effective November 29, 2001. On July 13, 2004, FPLP acquired five weekly newspapers in the Winnipeg area, as well as delivery businesses in Winnipeg, Brandon and Thunder Bay and operates them under its wholly owned subsidiary Canstar Community News Limited ("Canstar"). In January 2006, the Canstar Brandon distribution operation was amalgamated within the Brandon Sun operations. On July 21, 2005 Canstar acquired the shares of Rosebud Publications Ltd. ("Rosebud"), the publisher of a weekly entertainment newspaper and a twice-monthly newspaper aimed at age-50 plus readers, serving the Winnipeg area.

FP Newspapers Income Fund

The Fund is dependent on the operations of FPLP, its sole investment. The Fund's net earnings were $3,237,000 and $7,968,000 for the three and twelve months ended December 31, 2007 compared to net earnings of $2,618,000 and $7,677,000 for the same periods last year. Interest income on the 11.5% Subordinated notes issued by FPLP to the Fund was $1,725,000 and $6,843,000 for the three and twelve months ended December 31, 2007 compared to $1,824,000 and $7,239,000 in the same periods last year. The Fund's equity interest from its Class A limited partnership Units was $1,385,000 and $3,085,000 for the three and twelve months ended December 31, 2007 compared to $858,000 and $721,000 in the same periods last year (see "FP Canadian Newspapers Limited Partnership - Results of Operations" below). The Fund's earnings for the twelve months ending December 31, 2007, were impacted by the requirement to record a future income tax expense of $1,682,000 resulting from the substantive enactment of Bill C-52 Budget Implementation Act 2007, which contains legislative provisions to tax publicly-traded income trusts in Canada (see "Taxation Changes" for further discussion). The increased earnings reported by FPLP more than offset the impact of this new income tax expense. Operating expenses incurred by the Fund were $73,000 and $289,000 for the three and twelve months ending December 31, 2007 compared to $64,000 and $287,000 in the same periods last year.

The Fund declared distributions to Unitholders of $2,225,000 or $0.323 per Unit and $8,904,000 for the three and twelve months ended December 31, 2007 which is unchanged from the same periods last year. Cash provided by operating activities of the Fund was $2,307,000 and $9,051,000 for the three and twelve months ended December 31, 2007 and $2,323,000 and $8,951,000 for the same periods last year.

Distributable Cash Attributable to the Fund(2)

Cash available for distribution attributable to the Fund(2) was $3,505,000 or $0.508 per Unit and $11,100,000 or $1.608 per Unit for the three and twelve months ended December 31, 2007 compared to $3,134,000 or $0.454 per Unit and $9,896,000 or $1.434 per Unit for the same periods in the prior year. The increase in cash available for distribution attributable to the Fund(2) is primarily due to higher EBITDA(1) in FPLP, partially offset by an increase in maintenance capital spending as explained later in this discussion.

The Fund monitors the cumulative cash available for distribution attributable to the Fund(2) as a factor in determining whether to make an adjustment to the level of monthly distributions. The Fund believes it is prudent to pay out less than 100% of cumulative cash available for distribution attributable to the Fund(2).

Since commencement of the Fund on May 28, 2002 until December 31, 2007 distributable cash attributable to the Fund(2) totals $7.946 per Unit and during that period the Fund declared distributions to Unitholders of $7.110 per Unit. Because the Fund makes an allowance for maintenance capital spending which is estimated to be sufficient to maintain the productive capacity of the business, when calculating distributable cash attributable to the Fund(2), and because cumulative distributions declared are less than the cumulative distributable cash attributable to the Fund(2), the Fund believes there has been no economic "return of capital".

Standardized Distributable Cash

In July 2007 the Canadian Institute of Chartered Accountants published an interpretive release concerning recommendations for certain Management's Discussion and Analysis disclosures entitled Standardized Distributable Cash in Income Trusts and Other Flow-Through Entities: Guidance on Preparation and Disclosure. This Management's Discussion and Analysis has not been prepared in all material respects in accordance with the CICA guidance.

The Fund believes that the computation of Standardized Distributable Cash of FPLP would be misleading and not comparable to other similar entities, since the payment of interest on the FPLP Notes by FPLP to the Fund would be deducted in arriving at Standardized Distributable Cash. As described elsewhere in this quarterly report and in other public filings of the Fund, the Fund owns securities entitling it to 49% of the distributable cash of FPLP (determined in accordance with the agreement of limited partnership and related agreements), including distributions in the form of interest paid on the FPLP Notes. The CICA guidance does not allow adjustments to Standardized Distributable Cash to reflect the underlying rights of the different classes of Unitholders in the capital structure of FPLP, and would therefore be misleading in these circumstances.

The Fund believes that the computation of Standardized Distributable Cash of the Fund would be of little value and not comparable to other similar entities, since the financial statements of the Fund do not consolidate the operations of FPLP.

Taxation Changes

On June 12, 2007 proposed legislation that implements a tax on distributions made by flow-through entities such as income trusts and limited partnerships was substantively enacted through the passing of Bill C-52 Budget Implementation Act 2007. The new tax is effective January 1, 2011 for the Fund, unless accelerated by the issuance of new equity, in certain circumstances. It is expected the new tax will reduce the amount of distributable cash otherwise available to the Fund for purposes of making distributions to Unitholders. Whether distributions to Unitholders will be reduced from current levels will depend on future events, including the results of operations during the years leading up to 2011 and the distributions to Unitholders during that period, the outlook for operations and expected cash flows for the year 2011 and beyond, the level of un-distributed distributable cash(2) on hand at the time the new tax becomes effective, and the distribution policy adopted by the Trustees of the Fund at that time.

The Fund will continue to review the expected impact of the new tax, and consider whether changes to the distribution policy or capital structure of the Fund are desirable. Because the legislation does not have any effect on the 51% interest in FPLP held by the General Partners, the Fund and the General Partners may have conflicting interests with respect to available options to mitigate the impact of the new tax on the Fund and its Unitholders. Similarly, because the new tax is expected to have no net impact on Unitholders of the Fund who are taxable Canadian entities, there may be a conflict of interests among investors in the Fund. There can be no assurance that the Fund will be able to minimize the impact of the new tax on the Fund or any of its Unitholders.

The Fund will evaluate alternatives as to the best legal structure for its Unitholders, including consideration of a corporate structure. However, at this time in Manitoba, where the Fund indirectly operates substantially all its business, a corporation is subject to a higher overall rate of tax than the 29.5 percent tax that will apply in 2011 and the 28.0 percent tax that will apply in 2012 and beyond under the new income trust tax effective January 1, 2011.

As at December 31, 2007, the Fund has a future income tax liability of $1,682,000, based on the Fund's share of FPLP's temporary differences between the accounting and tax basis of FPLP's net assets, and the Fund's investment in FPLP which begin to reverse in 2011 when the new tax becomes effective. The Fund has estimated its future income taxes based on its estimates of results of operations, tax deductions, and distributions in the future. Future income taxes will be recorded each quarter in the future based on the changes to temporary timing differences and related assumptions. The Fund's estimate of its future income tax liability will vary as do the Fund's assumptions pertaining to the factors described above, and such variations may be material.

Included in the future income tax liability is $201,000 related to the temporary timing differences on mastheads, which are non-amortizing intangible assets. Although the Fund has no reason to believe these temporary timing differences will reverse because the Fund has no reason to believe such balances will be written down for accounting purposes, a future tax liability has nonetheless been recorded in accordance with Canadian GAAP.

FP Canadian Newspapers Limited Partnership

Results of Operations



Revenue: Three Months Twelve months
Ended December 31, Ended December 31,
---------------------- --------------------
2007 2006 2007 2006
---------- ---------- --------- ---------
In thousands In thousands
Advertising $ 23,535 $ 22,912 $ 87,055 $ 84,707
Circulation 7,339 7,260 29,106 28,314
Commercial Printing 1,743 1,740 6,535 6,587
Promotions and Services 685 661 3,166 2,612
---------- ---------- --------- ---------
$ 33,302 $ 32,573 $ 125,862 $ 122,220
---------- ---------- --------- ---------
---------- ---------- --------- ---------


Revenue for the three months ended December 31, 2007 was $33.3 million, an increase of $0.7 million or 2.2% compared to the fourth quarter last year. Advertising revenues increased by $0.6 million or 2.7% compared to the same period last year. FPLP's largest advertising revenue category, display advertising including colour, increased by $0.3 million or 2.1%, primarily due to increased spending in the automotive category. Flyer distribution revenues increased by $0.3 million or 7.3%, primarily due to increased rates and volumes as well as the addition of a new telephone directory distribution customer over the same quarter in the prior year. Classified advertising remained virtually unchanged in the fourth quarter. Circulation revenue increased by $0.1 million or 1.1%, which is lower than the 3.4% growth for the nine months ended September 30 because the rate increases implemented during the fourth quarter of 2007 were lower than rate increases in the fourth quarter of last year. Promotion and services revenue increased by the 3.6% due to a 26.9% increase in internet revenue largely from employment advertising and banner advertising on our websites, but was offset by lower fourth quarter copyright royalties, leaving the overall promotions and services revenue slightly higher from the same period in the prior year.

Revenue for the twelve months ended December 31, 2007 was $125.9 million, an increase of $3.6 million or 3.0% compared to last year. Advertising revenues increased by $2.3 million or 2.8% compared to last year. FPLP's largest advertising revenue category, display advertising including colour increased by $1.3 million or 2.5%, primarily due to small increases across many customers. Flyer distribution revenues increased by $0.8 million or 4.6%, primarily due to increased rates and volumes as well as the addition of a new telephone directory distribution customer. Classified revenues increased by $0.3 million or 1.8% compared to the prior year, due to strong first and third quarter employment revenue growth. Circulation revenue increased by $0.8 million or 2.8%, primarily due to rate increases implemented in the fourth quarter of last year. Promotional and services revenue increased by $0.6 million or 21.2%, due to an increase in internet revenues from employment advertising and banner advertising on our websites, as well as increased revenue from the sale of the Hermetic Code book.



Operating expenses, Three Months Twelve months
excluding amortization: Ended December 31, Ended December 31,
---------------------- --------------------
2007 2006 2007 2006
---------- ---------- --------- ---------
In thousands In thousands
Employee Compensation $ 11,612 $ 10,948 $ 45,356 $ 43,763
Newsprint - Own Use 2,986 3,781 12,814 14,020
Newsprint -
Commercial Printing 460 617 1,947 2,392
Delivery of Newspapers 5,198 5,072 19,052 18,732
Other 4,451 4,483 18,176 17,846
---------- ---------- --------- ---------
$ 24,707 $ 24,901 $ 97,345 $ 96,753
---------- ---------- --------- ---------
---------- ---------- --------- ---------


Operating expenses, excluding amortization in the three months ended December 31, 2007 were $24.7 million, a decrease of $0.2 million or 0.8% compared to the fourth quarter last year. Employee compensation costs increased $0.7 million or 6.1% compared to the fourth quarter last year, primarily due to salary increases, an increase in the number of staff as well as an increase in the long-term incentive plan accrual. Newsprint expense for FPLP's own publications decreased by $0.8 million or 21.0%, of which approximately 80% is a result of lower newsprint prices and approximately 20% decreased consumption. Delivery costs increased by $0.1 million or 2.5%, primarily due to increased flyer volumes.

Operating expenses, excluding amortization in the twelve months ended December 31, 2007 were $97.3 million, an increase of $0.6 million or 0.6% over last year. Employee compensation costs increased $1.6 million or 3.6%, compared to the same period last year. This increase is consistent with our 2007 forecast of 3 - 4% growth. The increase from the prior year is due to wage and salary increases, increases in staff, as well as increased costs associated with the long-term incentive plan. Newsprint expense for FPLP's own publications decreased by $1.2 million or 8.6%, as a result of lower newsprint prices partially offset by slightly higher consumption. Newsprint expense for commercial printing decreased by $0.4 million or 18.6%, as a result of lower newsprint prices and decreased consumption. Delivery costs increased by $0.3 million or 1.7% compared to last year, largely the result of higher fuel costs and contracted rate increases. Other expenses increased by $0.3 million or 1.8%, primarily due to increases in professional development costs, consulting fees, and costs associated with the increased number of advertising supplements published.

EBITDA(1) for the three and twelve months ended December 31, 2007 was $8.6 million and $28.5 million, compared to $7.7 million and $25.5 million for the same periods in the prior year. EBITDA(1) margin was 25.8% and 22.7% for the three and twelve months ended December 31, 2007, compared to 23.6% and 20.8% in the same periods last year.

Interest expense on the notes payable, the subordinated notes and capital lease obligations for the three and twelve months ended December 31, 2007 was $2.7 million and $10.6 million, compared to $2.6 million and $10.5 million for the same periods last year. Interest expense increased from the prior year, due to the inclusion of amortization of the deferred financing costs accounted for within this line based on FPLP's adoption of the CICA 3855 and 3861 Financial Instruments Handbook sections (see "Accounting Policy Change" heading below), partially offset by the lower principal amount outstanding on the subordinated notes when compared to the same periods in the prior year.

Amortization of property, plant and equipment for the three and twelve months ended December 31, 2007 was $1.1 million and $4.2 million compared to $1.0 million and $3.7 million for the same periods last year. The increase in amortization of property, plant and equipment for the twelve months ended December 31, 2007 is primarily related to a full year of amortization on $5.1 million of press components which were temporarily removed from service in 2004 compared to three months of amortization for these components in 2006, as well as amortization on assets acquired during 2007. During the third quarter of 2006, FPLP recorded a non-cash loss of $1.3 million relating to the reduction of the carrying value of excess press components held for sale.

FPLP's net earnings were $4.6 million and $13.4 million for the three and twelve months ended December 31, 2007 compared to $3.6 million and $9.0 million for the same periods last year.

Newspaper publishing is, to a certain extent, a seasonal business with a higher proportion of revenues and operating earnings occurring during the second and fourth quarters of the calendar year. Revenue, EBITDA(1) and net earnings of FPLP by quarter for 2005, 2006 and 2007 was as follows:



2007 2006 2005
---------- ---------- ----------

Revenue In thousands
-------
Quarter 1 $ 29,829 $ 28,582 $ 26,805
Quarter 2 32,224 31,261 30,270
Quarter 3 30,507 29,804 28,005
Quarter 4 33,302 32,573 31,837
---------- ---------- ----------
$ 125,862 $ 122,220 $ 116,917
---------- ---------- ----------
---------- ---------- ----------

EBITDA(1)
--------
Quarter 1 $ 5,740 $ 4,746 $ 4,302
Quarter 2 7,611 7,196 7,094
Quarter 3 6,571 5,853 5,176
Quarter 4 8,595 7,672 7,503
---------- ---------- ----------
$ 28,517 $ 25,467 $ 24,075
---------- ---------- ----------
---------- ---------- ----------

Net earnings
------------
Quarter 1 $ 2,062 $ 1,038 $ 485
Quarter 2 3,925 3,492 3,320
Quarter 3 2,809 827(i) 1,420
Quarter 4 4,622 3,649 3,744
---------- ---------- ----------
$ 13,418 $ 9,006 $ 8,969
---------- ---------- ----------
---------- ---------- ----------


The distribution policy of FPLP is to make distributions in approximately equal monthly amounts based on expected operating results for each fiscal year.

(i) The decline in earnings in the third quarter of 2006 is due to the write-down in value of excess press components held for sale, which resulted in a $1,303,000 charge against net earnings.

Working Capital Position of FPLP

Total working capital at December 31, 2007 was $9.4 million, up from $5.0 million at December 31, 2006. The increase in working capital is primarily due to cash flow from operating activities exceeding cash used for capital expenditures and distributions to partners and the resulting increase in the cash balance.

Liquidity and Capital Resources of FPLP

Cash and cash equivalents at December 31, 2007 was $9.9 million compared to $3.7 million at December 31, 2006. Cash and cash equivalents may be used to pay future distributions, to reduce debt, to fund future capital expenditures, or for other general purposes. Operating activities provided $6.9 million during the fourth quarter, while $0.3 million was used for investing activities and $3.1 million was used for financing activities. Cash flow from operations, together with cash balances on hand and unutilized credit facilities, are expected to be sufficient to fund FPLP's operating requirements, capital expenditures and anticipated distributions.

Cash Flow from Operating Activities

During the three and twelve months ended December 31, 2007, cash generated from operating activities was $6.9 million and $20.6 million, compared to $4.4 million and $15.4 million for the same periods last year. The net change in non-cash working capital in the three and twelve months ended December 31, 2007 was $0.8 million and $2.0 million compared to ($0.6) million and $0.4 million for the same periods last year. The net change in non-cash working capital for the three and twelve month periods is primarily the result of the timing of receipts from customers and payments to suppliers.

Investing Activities

Total capital purchases, which were all for maintenance capital projects, totalled $0.3 million and $2.0 million for the three and twelve months ended December 31, 2007, compared to $0.3 million and $1.6 million in the same periods in the prior year. Maintenance capital spending during the fourth quarter of 2007 consisted of on-going upgrades to the Winnipeg Free Press editorial production and the financial accounting systems. In 2008, maintenance capital spending is expected to be approximately $1.8 million.

There was no strategic capital spending for the three and twelve months ending December 31, 2007. During the twelve months ending December 31, 2006, strategic capital of $0.2 million was invested on website costs at the Winnipeg Free Press.

Financing Activities

Distributions to partners of FPLP for the three and twelve months ended December 31, 2007 totalled $3.0 million and $12.1 million, of which $0.6 million and $2.4 million was paid to the Fund as holder of Class A limited partnership Units. This is compared to $2.9 million and $11.5 million in the same periods last year, of which $0.5 million and $1.9 million was paid to the Fund as holder of Class A limited partnership units. The distributions to partners have been determined in accordance with the Amended and Restated Agreement of Limited Partnership dated May 3, 2005.

Reserves Related to Distributable Cash Attributable to the Fund(2)

Under the terms of the Amended and Restated Agreement of Limited Partnership dated May 3, 2005, the Managing General Partner is required to determine reserves which are necessary or desirable to withhold from any distributions to Partners, including among other things for capital expenditures and operating expenses. A summary of the reserve for maintenance capital for the three and twelve months ended December 31, 2007 and 2006 is as follows:



Three Months Twelve months
Ended December 31, Ended December 31,
---------------------- --------------------
2007 2006 2007 2006
---------- ---------- --------- ---------
In thousands In thousands
Reserve at beginning of
period $ 167 $ 310 $ 370 $ 516
Increase in reserve 181 60 181 104
Decrease in reserve - - (203) (250)
---------- ---------- --------- ---------
Reserve at end of period $ 348 $ 370 $ 348 $ 370
---------- ---------- --------- ---------
---------- ---------- --------- ---------


Increases in the reserve for maintenance capital are shown as a deduction in determining distributable cash(2) of FPLP. Decreases in the reserve for maintenance capital are shown as an increase in determining distributable cash(2).

The use of a reserve for maintenance capital in calculating distributable cash attributable to the Fund(2) is intended to provide an allowance for estimated annual capital expenditures required to maintain the productive capacity of the business. The level of the annual allowance for maintenance capital is reviewed periodically based on historical spending levels and future plans, and adjusted based on reasonable and supportable assumptions. Actual future capital expenditures necessary to maintain the current productive capacity of the business may vary, perhaps materially, from the allowance used in determining distributable cash(2), due to technological change, unexpected equipment failure, changes in customer service expectations and other reasons.

During the second quarter of 2004 the Managing General Partner determined that it was desirable to establish a reserve in an amount of $1.0 million for purposes of future strategic capital, acquisitions and/or debt reduction. The amount of the reserve initially established was equal to the net proceeds received on the sale of surplus equipment in the third quarter of 2004, and was fully utilized in the third quarter of 2006. A summary of the reserve for strategic capital, acquisitions and/or debt reduction for the three and twelve months ended December 31, 2007 and 2006 is as follows:



Three Months Twelve months
Ended December 31, Ended December 31,
---------------------- --------------------
2007 2006 2007 2006
---------- ---------- --------- ---------
In thousands In thousands
Reserve at beginning of
period $ - $ - $ - $ 157
Increase in reserve - - - -
Decrease in reserve - - - (157)
---------- ---------- --------- ---------
Reserve at end of period $ - $ - $ - $ -
---------- ---------- --------- ---------
---------- ---------- --------- ---------


The reduction in the reserve in the twelve months ending December 31, 2006 relates to an investment in website development at the Winnipeg Free Press.

These reserves are non-GAAP measures established and utilized at the discretion of the board of directors of FPLP, and have no impact on the GAAP financial statements.

Productive Capacity Maintenance Strategy

The key sources of revenue of FPLP are dependent upon our ability to sell and publish display and classified advertising lineage, both in our newspapers and on our websites, our ability to distribute advertising flyers, and our ability to produce and distribute newspapers. The key capital assets used in these activities are premises, computer hardware and software, printing presses and distribution related machinery. The available capital assets are used by our staff to deliver the products and services which results in revenue to FPLP.

It is the complex interaction of asset utilization, staffing levels and contracted services which ultimately determine our productive capacity on any given day, but there is no single measure which would accurately portray the productive capacity of the business. Generally speaking, we manage the business to ensure there is excess capacity available that would allow us to comfortably increase the volume of lineage, circulation and flyer distribution to take advantage of market opportunities.

Therefore, the strategy of FPLP is to maintain a reasonable level of excess productive capacity to at least ensure we are able to produce and distribute products and services at the current peak volumes. This is accomplished by conducting capital and non-capital preventive maintenance programs for machinery and equipment, performing repairs when necessary, evaluating new technologies as they become available, and investing in new technologies when appropriate.

Debt Management Strategy

The strategy of FPLP is to refinance the $60 million core long-term debt prior to the June 5, 2010 maturity date, on a non-amortizing basis. The capital assets with the most significant estimated replacement costs are buildings and printing presses, which have very long expected remaining useful lives. If the EBITDA(1) of FPLP continues to grow, it is likely that the future borrowing capacity of FPLP will also grow, thereby reducing the risk of refinancing the core debt at maturity.

Debt Covenants

Under the terms of the $60 million Series A Senior Secured Notes and the $10 million credit facility (undrawn at December 31, 2007), FPLP is subject to various positive and negative covenants which must be maintained in order to avoid an accelerated termination of the agreements. These covenants include certain restrictions on the incurrence of additional debt, requirements to maintain insurance, certain restrictions on the sale of assets, and other requirements and restrictions common to lending agreements of this nature. FPLP is restricted from making distributions which cumulatively exceed by more than $1.4 million the total of distributable cash of FPLP(2) since May 28, 2002. FPLP is required to maintain a ratio of net debt to EBITDA(1) of no greater than 3.5 to 1.0, and a ratio of EBITDA(1) to net external interest expense of no less than 3.0 to 1.0, measured quarterly on a trailing twelve month basis. Financial amounts used in the calculations are specifically defined in the debt agreements, but are substantially equal to the corresponding terms used in the external financial reports filed by FPLP and the Fund, where applicable, except that the maximum cash balance allowable for the calculation of net debt under the debt agreements is $5.0 million. At December 31, 2007 FPLP was in compliance with all the terms and conditions of its debt agreements. The financial ratios calculated in accordance with the debt agreements for the five most recent twelve-month periods are as follows:



Net Debt/EBITDA(1) EBITDA(1) /Net Interest
----------------- -----------------------
December 31, 2007 1.92 9.59
September 30, 2007 1.99 9.13
June 30, 2007 2.06 8.75
March 31, 2007 2.12 8.51
December 31, 2006 2.23 8.08


Change in Accounting Policy

Effective January 1, 2007, the Fund and FPLP prospectively adopted the Canadian Institute of Chartered Accountants ("CICA") Handbook Section 1530 Comprehensive Income, Section 3855 Financial Instruments - Recognition and Measurement and Section 3865 Hedges. The adoption, in the first quarter of 2007, of these new standards resulted in changes in the accounting for financial instruments, as well as the recognition of a transition adjustment in both the Fund and FPLP. The comparative interim consolidated financial statements have not been restated. The principal change in the accounting for FPLP due to the adoption of these accounting standards is to net the deferred financing costs against the subordinated notes and notes payable, and implement the effective interest method with respect to these costs which resulted in a transition adjustment to opening cumulative earnings at January 1, 2007. As the Fund accounted for its investment in FPLP as an equity investment, in the first quarter of 2007, the Fund recorded its share of FPLP's transitional adjustment to the investment in FPLP as well as opening cumulative earnings.

The adoption of these Sections was done retroactively, in the first quarter of 2007, without restatement of the consolidated financial statements of prior periods.

Historical Distributions Paid Analysis



FPLP: Three Twelve Twelve Twelve
Months months Months Months
ended ended ended ended
December December December December
31, 2007 31, 2007 31, 2006 31, 2005
---------- ---------- --------- ---------
In thousands
Cash provided by operating
activities $ 6,908 $ 20,641 $ 15,387 $ 13,995
Net earnings 4,622 13,418 9,006 8,969
Distributions paid during
the period 3,035 12,143 11,527 10,822

Excess of cash provided by
operating activities over
cash distributions paid $ 3,873 $ 8,498 $ 3,860 $ 3,173
---------- ---------- --------- ---------
---------- ---------- --------- ---------

Excess (short-fall) of net
earnings over cash
distributions paid $ 1,587 $ 1,275 $ (2,521) $ (1,853)
---------- ---------- --------- ---------
---------- ---------- --------- ---------


Cash distributions paid in the twelve months ended December 31, 2006 and 2005 exceeded net earnings and comprehensive income. FPLP does not use net earnings and comprehensive income as a basis in determining the level of distributions to Class A and Class B Unitholders. Distributions are determined in accordance with the agreement of limited partnership. Because amortization charged as an expense in calculating net income in accordance with GAAP has exceeded capital expenditures charged as a reduction of distributable cash in all periods, this result is not unexpected.



FP Fund: Three Twelve Twelve Twelve
Months months Months Months
ended ended ended ended
December December December December
31, 2007 31, 2007 31, 2006 31, 2005
---------- ---------- --------- ---------
In thousands
Cash provided by operating
activities $ 2,307 $ 9,051 $ 8,951 $ 8,714
Net earnings 3,237 7,968 7,677 7,811
Distributions paid during
the period 2,225 8,904 8,904 8,904

Excess (short-fall) of cash
provided by operating
activities over cash
distributions paid $ 82 $ 147 $ 47 $ (190)
---------- ---------- --------- ---------
---------- ---------- --------- ---------

Excess (short-fall) of net
earnings over cash
distributions paid $ 1,012 $ (936) $ (1,227) $ (1,093)
---------- ---------- --------- ---------
---------- ---------- --------- ---------


Cash distributions paid in all periods, except the three months ending December 31, 2007, exceeded net earnings and comprehensive income. The Fund does not use net earnings and comprehensive income as a basis in determining the level of distributions to Unitholders. Distributions are determined by the Trustees in accordance with Deed of Trust of the Fund and are primarily dependant upon the amount of interest and distributions received from FPLP. Because amortization charged as an expense in calculating net income of FPLP in accordance with GAAP has exceeded capital expenditures charged as a reduction of distributable cash of FPLP in all periods, this result is not unexpected. The excess of cash distributions paid over cash provided by operating activities in the year ended December 31, 2005 was funded by cash on hand at the beginning of the period, which was generated by an excess of cash provided by operating activities over cash distributions paid in prior periods.

Business Risks and Uncertainties

Revenue

Advertising revenue, which accounts for approximately 69% of total revenue, is historically dependent upon general economic conditions and the specific spending plans of high volume advertisers. A significant downturn in the national or regional economy would likely decrease advertising revenue earned by our newspapers. Similarly, a change in promotional strategy by significant users of newspaper advertising, such as the automotive industry, financial services industry and national retailers, could reduce or increase revenue.

Employee Relations

The majority of FPLP's employees are unionized and their employment is governed by the terms of collective agreements. A work stoppage could restrict or eliminate the ability of FPLP to earn revenue from its publishing business during the stoppage. Collective agreements are in place with unionized employees at the Winnipeg Free Press and Canstar Community News Limited office employees which expire on September 30, 2008 and collective agreements covering unionized employees at the Brandon Sun expire December 31, 2008. Talks continue on the renewal of the collective agreement covering unionized delivery contractors at Canstar Community News Limited, which expired on April 20, 2007.

Expenses

Newspaper publishing is both capital and labour intensive, and as a result newspapers have relatively high fixed cost structures. During periods of declining revenue, significant portions of costs may remain fixed, resulting in decreased earnings. Newsprint is a significant cost for FPLP, accounting for $14.8 million during 2007. Newsprint costs vary widely from time to time. If newsprint costs rise rapidly, there is no assurance that advertising and circulation revenues can be increased to offset the increased newsprint expense.

Taxation changes

On June 12, 2007 proposed legislation that implements a tax on distributions made by flow-through entities such as income trusts and limited partnerships, was substantively enacted through the passing of Bill C-52 Budget Implementation Act 2007. The new tax is effective January 1, 2011 for the Fund, unless accelerated by the issuance of new equity, in certain circumstances. It is expected the new tax will reduce the amount of distributable cash otherwise available to the Fund for purposes of making distributions to Unitholders. Whether distributions to Unitholders will be reduced from current levels will depend on future events, including the results of operations during the years leading up to 2011 and the distributions to Unitholders during that period, the outlook for operations and expected cash flows for the year 2011 and beyond, the level of un-distributed distributable cash(2) on hand at the time the new tax becomes effective, and the distribution policy adopted by the Trustees of the Fund at that time. Further changes to tax legislation could negatively affect the Fund and FPLP.

Outlook

The outlook for operations is described earlier in this document.

Non GAAP Measures

(1) EBITDA

EBITDA is not a recognized measure under Canadian generally accepted accounting principles (GAAP). FPLP believes that in addition to net earnings, EBITDA is a useful supplemental measure as it provides investors with an indication of cash available for distribution prior to debt service and capital expenditures. Investors are cautioned that EBITDA should not be construed as an alternative to net earnings determined in accordance with GAAP as an indicator of FPLP's performance. FPLP's method of calculating EBITDA may differ from that of other issuers and, accordingly, EBITDA may not be comparable to measures used by other issuers. FPLP determines EBITDA as follows:



Three Months Twelve months
Ended December 31, Ended December 31,
---------------------- --------------------
2007 2006 2007 2006
---------- ---------- --------- ---------
In thousands In thousands
Net earnings for the period $ 4,622 $ 3,649 $ 13,418 $ 9,006
Add (subtract):
Amortization of property,
plant and equipment 1,093 1,014 4,173 3,748
Amortization of
intangible assets 92 92 362 362
Interest expense 2,660 2,625 10,571 10,469
Amortization of deferred
financing costs - 140 - 562
Interest income (75) (31) (224) (78)
Gain on sale of property,
plant and equipment (1) - (18) (6)
Write down of property,
plant and equipment
held for sale - - - 1,303
Current income tax expense 7 5 38 39
Future income tax recovery 197 178 197 62
---------- ---------- --------- ---------
EBITDA $ 8,595 $ 7,672 $ 28,517 $ 25,467
---------- ---------- --------- ---------
---------- ---------- --------- ---------


(2) Distributable Cash Attributable to the Fund

The Fund believes that in addition to the disclosure of cash flow from operations, distributable cash attributable to the Fund is an important supplemental measure of cash flow because it provides investors with an indication of the amount of cash available for distribution to Unitholders and because such calculations are required by the terms of the partnership agreement governing FPLP and by the terms of the deed of trust governing the Fund. Distributable cash attributable to the Fund is not a defined term under Canadian GAAP and it should not be construed as an alternative to using net earnings or the statement of cash flows as measures of profitability and cash flow. Readers are cautioned that distributable cash as calculated by the fund may not be comparable to similar measures presented by other issuers. The Fund uses this measure as a factor to determine whether to adjust the monthly distributions to Unitholders. Management has determined distributable cash attributable to the Fund as follows:



Three Months Twelve months
Ended December 31, Ended December 31,
---------------------- --------------------
2007 2006 2007 2006
---------- ---------- --------- ---------
Distributable cash of FPLP: In thousands In thousands
EBITDA(1) $ 8,595 $ 7,672 $ 28,517 $ 25,467
Interest income 75 31 224 78
Interest expense on
Notes payable and capital
leases, excluding
amortization of related
deferred financing costs (796) (801) (3,197) (3,230)
Principal repayment of
capital leases (73) (49) (318) (261)
Maintenance capital
expenditures (319) (240) (2,022) (1,346)
(Increase) decrease in
reserve for future
maintenance capital (181) (60) 22 146
Strategic capital
expenditures - (22) - (204)
Decrease in reserve for
strategic capital - - - 157
Proceeds from sale of
property, plant and equipment 2 - 33 6
Current income and capital
taxes expense (7) (5) (38) (39)
---------- ---------- --------- ---------
$ 7,296 $ 6,526 $ 23,221 $ 20,774
---------- ---------- --------- ---------

49% attributable to the Fund $ 3,575 $ 3,198 $ 11,378 $ 10,179
Administration expenses (73) (64) (289) (287)
Interest income 3 - 11 4
---------- ---------- --------- ---------
Distributable cash
attributable to the Fund $ 3,505 $ 3,134 $ 11,100 $ 9,896
---------- ---------- --------- ---------
---------- ---------- --------- ---------
Distributable cash
attributable to the Fund -
per Unit $ 0.508 $ 0.454 $ 1.608 $ 1.434
---------- ---------- --------- ---------
---------- ---------- --------- ---------


A summary of distributable cash and distributions declared for the trailing twelve months to December 31, 2007 and for the period from commencement of the Fund on May 28, 2002 to December 31, 2007 is as follows:



Distributable Cash of FPLP:
Last Since
Twelve May 28,
Months 2002
----------- -----------
In thousands
EBITDA(1) $ 28,517 $ 139,729
Interest income 224 549
Interest expense on Notes payable and
capital leases, excluding amortization
of related deferred financing costs (3,197) (17,490)
Principal repayment of capital leases (318) (939)
Maintenance capital expenditures (2,022) (6,493)
Decrease (increase) in reserve for future
maintenance capital expenditures 22 (348)
Strategic capital expenditures - (650)
Increase in reserve for strategic capital,
acquisitions, and/or debt reduction - (353)
Proceeds on disposal of property, plant
and equipment 33 1,103
Current income and capital tax expense (38) (162)
----------- -----------

Distributable cash of FPLP $ 23,221 $ 114,946
----------- -----------
----------- -----------

Distributable Cash Attributable to the Fund:
Last Since
Twelve May 28,
Months 2002
----------- -----------
In thousands
49% of FPLP distributable cash $ 11,378 $ 56,324
Administration expenses (289) (1,507)
Interest income 11 34
----------- -----------

Distributable cash attributable to the Fund $ 11,100 $ 54,851
----------- -----------
----------- -----------

Distributable cash attributable to the
Fund per Unit $ 1.608 $ 7.946
Distributions declared by the Fund per Unit $ 1.290 $ 7.110

Payout Ratio 80.2% 89.5%


A reconciliation of FPLP's distributable cash to cash flows from operating activities, as reported in FPLP's fourth quarter Consolidated Statements of Cash Flows is as follows:



Three Months Twelve months
Ended December 31, Ended December 31,
---------------------- --------------------
2007 2006 2007 2006
---------- ---------- --------- ---------
In thousands In thousands
Cash flow from operating
activities of FPLP $ 6,908 $ 4,424 $ 20,641 $ 15,387
Add (subtract):
Interest on Subordinated
notes (i) 1,725 1,824 6,843 7,239
Net change in non-cash
working capital items (ii) (766) 649 (1,978) (350)
Maintenance capital
expenditures (319) (240) (2,022) (1,346)
(Increase) decrease in
reserve for future
maintenance capital(iii) (181) (60) 22 146
Strategic capital
expenditures - (22) - (204)
Decrease in reserve for
future strategic
capital (iii) - - - 157
Principal repayment of
capital leases (73) (49) (318) (261)
Proceeds from sale of
property, plant and
equipment (iiii) 2 - 33 6
---------- ---------- --------- ---------
Distributable cash of FPLP $ 7,296 $ 6,526 $ 23,221 $ 20,774
---------- ---------- --------- ---------
---------- ---------- --------- ---------


This reconciliation is provided by the Fund in order to comply with the guidance of the Canadian Securities Administrators National Policy 41-201. The Fund does not use this information for any purpose other than compliance.

(i) Distributable cash of FPLP is determined before deduction of interest on the Subordinated notes, since these amounts are paid to the Fund as holder of the Subordinated notes.

(ii) While changes in non-cash working capital is a component in determining cash flow from operations in the statements of cash flows, changes in non-cash working capital are not normally included in the calculation of distributable cash, as these changes can often be financed with an available operating line of credit, or represent only a temporary source of cash, due to seasonal fluctuations.

(iii) Increase in the reserves for future capital is shown as a deduction in determining distributable cash. A decrease in the reserve is shown as an increase in the determination of distributable cash. Such reserves are non-GAAP measures established and utilized at the discretion of the board of directors of FPLP, and have no impact on the GAAP financial statements.

(iiii) Proceeds from sale of property, plant and equipment is a component of distributable cash, but is not included in cash flow from operating activities because it is classified as an investing activity in the statement of cash flows.



FP Newspapers Income Fund
Consolidated Balance Sheets
(unaudited, in thousands of Canadian dollars)

As at As at
December 31, December 31,
2007 2006
--------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 358 $ 221
Interest receivable from Subordinated notes 571 581
Due from FPCN Media Funding Inc. 26 26
Prepaid expenses 13 15
--------------------------------------------------------------------------
968 843

Investment in FPCN General Partner Inc. 30 20
Investment in FP Canadian Newspapers
Limited Partnership (note 3) 61,386 60,464
--------------------------------------------------------------------------
$ 62,384 $ 61,327
--------------------------------------------------------------------------

LIABILITIES AND UNITHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 127 $ 96
Distribution payable (note 4) 742 742
--------------------------------------------------------------------------
869 838
--------------------------------------------------------------------------

Long Term Liabilities:
Future income taxes (note 5) 1,682 -
--------------------------------------------------------------------------
2,551 838
--------------------------------------------------------------------------

Unitholders' Equity:
Trust Units 69,026 69,026
Cumulative earnings (note 2) 39,880 31,632
Cumulative distributions (49,073) (40,169)
--------------------------------------------------------------------------
59,833 60,489
--------------------------------------------------------------------------
$ 62,384 $ 61,327
--------------------------------------------------------------------------

(See accompanying notes)


FP Newspapers Income Fund
Consolidated Statements of Earnings, Comprehensive Income and Cumulative
Earnings
(unaudited, in thousands of Canadian dollars except per Unit amounts)

Three Months Twelve months
Ended December 31, Ended December 31,
2007 2006 2007 2006
--------------------------------------------------------------------------

Earnings from investment in FP
Canadian Newspapers Limited
Partnership
Interest from Subordinated
notes $ 1,725 $ 1,824 $ 6,843 $ 7,239
Equity interest from
Class A limited
partnership Units (note 3) 1,385 858 3,085 721
Other interest 3 - 11 4
--------------------------------------------------------------------------
3,113 2,682 9,939 7,964

Administration expenses (73) (64) (289) (287)
--------------------------------------------------------------------------
Earnings before income taxes $ 3,040 $ 2,618 $ 9,650 $ 7,677

Future income tax recovery
(expense) (note 5) 197 - (1,682) -
--------------------------------------------------------------------------
Net earnings and
Comprehensive income for
the period $ 3,237 $ 2,618 $ 7,968 $ 7,677

Cumulative earnings,
beginning of period 36,643 29,014 31,632 23,955
Transitional amount (note 2) - - 280 -
--------------------------------------------------------------------------
Adjusted Cumulative earnings,
beginning of period 36,643 29,014 31,912 23,955

Cumulative earnings,
end of period $ 39,880 $ 31,632 $ 39,880 $ 31,632
--------------------------------------------------------------------------

Number of trust Units
outstanding 6,902,592 6,902,592 6,902,592 6,902,592
--------------------------------------------------------------------------

Net earnings per trust Unit $ 0.469 $ 0.380 $ 1.154 $ 1.112
--------------------------------------------------------------------------


FP Newspapers Income Fund
Consolidated Statements of Unitholders' Equity
(unaudited, in thousands of Canadian dollars)

Three Months Twelve months
Ended December 31, Ended December 31,
2007 2006 2007 2006
--------------------------------------------------------------------------

Balance, beginning of period $ 58,821 $ 60,096 $ 60,489 $ 61,716
Transitional amount (note 2) - - 280 -
--------------------------------------------------------------------------
Adjusted balance -
beginning of period 58,821 60,096 60,769 61,716

Net earnings 3,237 2,618 7,968 7,677
Distributions to Unitholders (2,225) (2,225) (8,904) (8,904)
--------------------------------------------------------------------------
Balance, end of period $ 59,833 $ 60,489 $ 59,833 $ 60,489
--------------------------------------------------------------------------

(See accompanying notes)


FP Newspapers Income Fund
Consolidated Statements of Cash Flows
(unaudited, in thousands of Canadian dollars)

Three Months Twelve months
Ended December 31, Ended December 31,
2007 2006 2007 2006
--------------------------------------------------------------------------

Cash provided by (used in):
Operating activities:
Net earnings for the period $ 3,237 $ 2,618 $ 7,968 $ 7,677
Items not affecting cash:
Equity interest from
Class A Units of FP
Canadian Newspapers Limited
Partnership (note 3) (1,385) (858) (3,085) (721)
Future income tax expense
(note 5) (197) - 1,682 -
Distributions received on
Class A Units of FP Canadian
Newspapers Limited
Partnership (note 3) 617 518 2,443 1,946
Net change in non-cash
working capital items 35 45 43 49
--------------------------------------------------------------------------
2,307 2,323 9,051 8,951
--------------------------------------------------------------------------

Financing activities:
Distributions to
Unitholders (2,225) (2,225) (8,904) (8,904)
--------------------------------------------------------------------------

Investing activities:
Investment in FPCN General
Partner Inc. - - (10) (10)
--------------------------------------------------------------------------

Increase (decrease) in cash
and cash equivalents 82 98 137 37

Cash and cash equivalents,
beginning of period 276 123 221 184
--------------------------------------------------------------------------

Cash and cash equivalents,
end of period $ 358 $ 221 $ 358 $ 221
--------------------------------------------------------------------------

(See accompanying notes)


FP Newspapers Income Fund

Notes to Consolidated Financial Statements as at December 31, 2007

(unaudited, tabular amounts in thousands of dollars)

1. Basis of presentation

FP Newspapers Income Fund (the "Fund") was created on May 15, 2002 and commenced operations on May 28, 2002 when it completed an initial Public offering and purchased an interest in FP Canadian Newspapers Limited Partnership ("FPLP"). The Fund owns securities entitling it to 49% of the distributable cash of FPLP.

These interim consolidated financial statements of the Fund have been prepared by management in accordance with accounting principles generally accepted in Canada for interim financial statements and include the accounts of the Fund and its wholly-owned subsidiary, FPCN Holdings Trust. However, these interim financial statements do not include all the information and disclosures required for annual financial statements. These statements have been prepared following the same accounting policies and methods of computation as the consolidated financial statements of the Fund as at December 31, 2006, except as described below. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto and other financial information contained in the audited consolidated financial statements for the year ended December 31, 2006.

FPLP's revenues are seasonal. As FPLP is the Fund's sole investment, the fund's Equity interest is seasonal as well. The Fund's equity interest from Class A limited partnership Units is highest in the second and fourth quarters.

2. Summary of significant accounting policies

Change in Accounting Policy

Effective January 1, 2007, the Fund adopted the Canadian Institute of Chartered Accountants ("CICA") Handbook Section 1530 Comprehensive Income, Section 3855 Financial Instruments - Recognition and Measurement and Section 3865 Hedges. The adoption of these new standards resulted in changes in the accounting for financial instruments, as well as the recognition of a transition adjustment. The comparative interim consolidated financial statements have not been restated. The principal changes in the accounting for financial instruments due to the adoption of these accounting standards are described below.

Section 3855 Financial Instruments - Recognition and Measurement sets out the standards for the recognition and measurement of financial assets and financial liabilities. The standard prescribes when to recognize a financial instrument in the balance sheet and at what amount. Depending on their balance sheet classification, fair value or cost-based measures are used. This standard also prescribes the basis of presentation for gains and losses on financial instruments. Based on financial instrument classification, gains and losses on financial instruments are recognized in net earnings or other comprehensive income.

The Fund has made the following classifications:

a. Cash and cash equivalents are classified as "assets held for trading" and are measured at fair value. Gains and losses resulting from the periodic revaluation are recorded in net earnings.

b. Interest receivable from subordinated notes and due from FPCN Media Funding Inc. are classified as "loans and receivables" and are recorded at cost, which upon their initial measurement is equal to their fair value. Subsequent measurements are recorded at amortized cost using the effective interest rate method.

c. Accounts payable and accrued liabilities and distribution payable are classified as "other financial liabilities" and are initially measured at their fair value. Subsequent measurements are recorded at amortized cost using the effective interest rate method.

The adoption of these Sections is done retroactively without restatement of the consolidated financial statements of prior periods. FPLP, the Fund's equity accounted for investment, was impacted by these new standards and recorded a transition adjustment of $571,000. Accordingly, as at January 1, 2007, the impact on the Fund's consolidated balance sheet from recording its equity share of the transition adjustment from FPLP is an increase in both the investment in FPLP and opening cumulative earnings of $280,000.

3. Investment in FP Canadian Newspapers Limited Partnership

On May 28, 2002, FPCN Holdings Trust subscribed for 6,573,897 Class A limited partnership Units of FPLP and $65,670,000 principal amount of subordinated notes of FPLP. On June 27, 2002, FPCN Holdings Trust subscribed for a further 328,695 Class A limited partnership Units of FPLP and $3,283,500 principal amount of subordinated notes of FPLP. FPCN Holdings Trust holds all of the Class A limited partnership Units of FPLP, which, together with the subordinated notes, entitles it to 49% of the distributable cash (as defined in the Partnership Agreement) of FPLP.

Future repayments of the subordinated notes will be applied as a contribution to the Class A limited partner Units of FPLP.

The investment in FPLP is summarized as follows:



Subordinated Class A limited
notes partner Units Total
$ $ $
Balance at September 30, 2007 59,504 1,114 60,618

Repayment of subordinated notes (1,050) - (1,050)

Additional Contribution - 1,050 1,050

Equity interest in the period - 1,385 1,385

Distributions received - (617) (617)

--------------------------------------------------------------------------
Balance at December 31, 2007 58,454 2,932 61,386
--------------------------------------------------------------------------


The change in equity interest for the three and twelve months ended December 31, 2007 and 2006 from the Fund's investment in Class A limited partnership Units of FPLP is calculated as follows:



Three months Twelve months
Ended December 31, Ended December 31,
2007 2006 2007 2006
---------- ---------- --------- ---------
Net earnings of FPLP $ 4,622 $ 3,649 $ 13,418 $ 9,006
Plus: Interest on
subordinated notes 1,725 1,824 6,843 7,239
--------------------------------------------------------------------------
Net earnings before interest
on subordinated notes $ 6,347 $ 5,473 $ 20,261 $ 16,245
--------------------------------------------------------------------------

49% interest attributable
to the Fund 3,110 2,682 9,928 7,960
Less: Interest from
subordinated notes (1,725) (1,824) (6,843) (7,239)
--------------------------------------------------------------------------
Equity interest from Class A
limited partnership Units $ 1,385 $ 858 $ 3,085 $ 721
--------------------------------------------------------------------------


4. Distribution Payable

The Fund recorded a distribution payable at December 31, 2007 of $0.1075 per Unit. The distribution was paid January 30, 2008 to Unitholders of record on December 31, 2007 and is in respect of the month of December 2007.

5. Future Income Taxes

On June 12, 2007, Bill C-52 Budget Implementation Act 2007 was substantively enacted by the Canadian federal government, which contains legislation to tax publicly traded trusts in Canada. As a result, a new tax will be applied to taxable distributions from Canadian public income trusts. The new tax is not expected to apply until 2011 as a transition period applies to publicly traded trusts that existed prior to November 1, 2006. As a result of this substantive enactment of trust taxation, the Fund recorded a $1,893,000 future income tax expense in the second quarter of 2007. The future income tax liability of $1,682,000 at December 31, 2007, represents the taxable temporary differences of the Fund expected to reverse after 2010, at 29.5% within 2011 and 28.0% within 2012 and beyond, which are the rates which will be applicable under the current legislation.

Based on its assets and liabilities as at December 31, 2007, and its share of the assets and liabilities of its investment in FPLP, the Fund has estimated the amount of its temporary differences which were previously not subject to tax, and has estimated the periods in which these differences are expected to reverse. Significant components of the future income tax assets and liabilities as at December 31, 2007 are as follows:



Future income tax liabilities:

Property, plant and equipment and amortizing intangible assets $ 3,844
Non-amortizing intangible assets 201
Other 130
--------------------------------------------------------------------------
Total future income tax liabilities $ 4,175
--------------------------------------------------------------------------

Future income tax assets:

Tax value of goodwill $ 3,000
Tax value in excess of accounting value of investment in FPLP 875
--------------------------------------------------------------------------
3,875

Less valuation allowance - goodwill (507)
Less valuation allowance - investment in FPLP (875)
--------------------------------------------------------------------------

Total future income tax assets 2,493
--------------------------------------------------------------------------

Net future income tax liabilities $ 1,682
----------
----------


As the legislation is new, future technical interpretations of the legislation could occur and could materially affect the Fund's estimate of future income taxes. The amount and timing of reversals of temporary differences will also depend on the Fund's future operating results, acquisitions and dispositions of assets and liabilities, and the distribution policy and will be expected to create adjustments to the future income tax assets and liabilities in future periods. A significant change in any of the preceding assumptions could materially affect the Fund's estimate of the future tax assets and liabilities.



FP Canadian Newspapers Limited Partnership
Consolidated Balance Sheets
(unaudited, in thousands of Canadian dollars)

As at As at
December 31, December 31,
2007 2006
--------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 9,920 $ 3,729
Accounts receivable 11,740 13,495
Income tax receivable - 10
Inventories 1,123 1,021
Prepaid expenses 823 690
Future income taxes 182 174
--------------------------------------------------------------------------
23,788 19,119

Equipment held for sale - 400

Property, plant and equipment 50,634 52,400

Future income taxes - 205

Deferred financing costs (note 2) - 2,728

Intangible assets 8,103 8,465

Goodwill 71,160 71,160
--------------------------------------------------------------------------

$ 153,685 $ 154,477
--------------------------------------------------------------------------

LIABILITIES AND UNITHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 11,017 $ 10,627
Income taxes payable 21 16
Prepaid subscriptions and deferred revenue 3,167 3,114
Current obligations under capital leases 197 318
--------------------------------------------------------------------------
14,402 14,075
--------------------------------------------------------------------------

Long-Term Liabilities:
Notes payable (note 2) 59,617 60,000
Subordinated notes (note 2) 56,069 59,504
Obligations under capital leases - 197
--------------------------------------------------------------------------
115,686 119,701
--------------------------------------------------------------------------
130,088 133,776
--------------------------------------------------------------------------

Unitholders' Equity:
Partner Units 41,293 40,243
Cumulative earnings (note 2) 53,117 39,128
Cumulative distributions (70,813) (58,670)
--------------------------------------------------------------------------
23,597 20,701
--------------------------------------------------------------------------

$ 153,685 $ 154,477
--------------------------------------------------------------------------

(See accompanying notes)


FP Canadian Newspapers Limited Partnership
Consolidated Statements of Earnings, Comprehensive Income and Cumulative
Earnings
(unaudited, in thousands of Canadian dollars)

Three Months Twelve months
Ended December 31, Ended December 31,
2007 2006 2007 2006
--------------------------------------------------------------------------

Revenue $ 33,302 $ 32,573 $ 125,862 $ 122,220

Operating expenses,
excluding amortization (24,707) (24,901) (97,345) (96,753)
--------------------------------------------------------------------------
8,595 7,672 28,517 25,467

Amortization of property,
plant and equipment (1,093) (1,014) (4,173) (3,748)
Amortization of
intangible assets (92) (92) (362) (362)
--------------------------------------------------------------------------

Earnings before the
under-noted 7,410 6,566 23,982 21,357

Interest (note 5) (2,660) (2,625) (10,571) (10,469)
Amortization of deferred
financing costs (note 2) - (140) - (562)
Interest income 75 31 224 78
Gain on sale of property,
plant and equipment 1 - 18 6
Write down of property,
plant and equipment
held for sale - - - (1,303)
--------------------------------------------------------------------------

Earnings before income taxes 4,826 3,832 13,653 9,107

Income tax expense:
- Current (7) (5) (38) (39)
- Future (197) (178) (197) (62)
--------------------------------------------------------------------------

Net earnings and Comprehensive
income for the period 4,622 3,649 13,418 9,006

Cumulative earnings -
beginning of period 48,495 35,479 39,128 30,122
Transitional amount (note 2) - - 571 -
--------------------------------------------------------------------------
Adjusted Cumulative earnings -
beginning of period 48,495 35,479 39,699 30,122

Cumulative earnings -
end of period $ 53,117 $ 39,128 $ 53,117 $ 39,128
--------------------------------------------------------------------------

(See accompanying notes)


FP Canadian Newspapers Limited Partnership
Consolidated Statements of Unitholders' Equity
(unaudited, in thousands of Canadian dollars)

Class A
General limited
partner partner
Units Units Total
$ $ $
--------------------------------------------------------------------------

Unitholders' equity - December 31, 2005 $ 15,443 $ 4,329 $ 19,772
Net earnings for the period 881 157 1,038
Distributions paid (2,303) (409) (2,712)
--------------------------------------------------------------------------

Unitholders' equity - March 31, 2006 14,021 4,077 18,098
--------------------------------------------------------------------------

Net earnings for the period 2,898 594 3,492
Distributions paid (2,415) (495) (2,910)
--------------------------------------------------------------------------

Unitholders' equity - June 30, 2006 $ 14,504 $ 4,176 $ 18,680
--------------------------------------------------------------------------

Net earnings for the period 681 146 827
Distributions paid (2,445) (524) (2,969)
--------------------------------------------------------------------------

Unitholders' equity - September 30,
2006 $ 12,740 $ 3,798 $ 16,538
--------------------------------------------------------------------------

Contributions - 3,450 3,450
Net earnings for the period 3,026 623 3,649
Distributions paid (2,418) (518) (2,936)
--------------------------------------------------------------------------

Unitholders' equity - December 31, 2006 $ 13,348 $ 7,353 $ 20,701
Transitional amount (note 2) 508 63 571
--------------------------------------------------------------------------

Adjusted Unitholders' equity -
January 1, 2007 $ 13,856 $ 7,416 $ 21,272
--------------------------------------------------------------------------

Net earnings for the period 1,661 401 2,062
Distributions paid (2,392) (578) (2,970)
--------------------------------------------------------------------------

Unitholders' equity - March 31, 2007 $ 13,125 $ 7,239 $ 20,364
--------------------------------------------------------------------------

Net earnings for the period 3,134 791 3,925
Distributions paid (2,445) (624) (3,069)
--------------------------------------------------------------------------

Unitholders' equity - June 30, 2007 $ 13,814 $ 7,406 $ 21,220
--------------------------------------------------------------------------

Net earnings for the period 2,237 572 2,809
Distributions paid (2,445) (624) (3,069)
--------------------------------------------------------------------------

Unitholders' equity - September 30,
2007 $ 13,606 $ 7,354 $ 20,960
--------------------------------------------------------------------------

Contributions - 1,050 1,050
Net earnings for the period 3,686 936 4,622
Distributions paid (2,418) (617) (3,035)
--------------------------------------------------------------------------

Unitholders' equity - December 31, 2007 $ 14,874 $ 8,723 $ 23,597
--------------------------------------------------------------------------

(See accompanying notes)


FP Canadian Newspapers Limited Partnership
Consolidated Statements of Cash Flows
(unaudited, in thousands of Canadian dollars)

Three Months Twelve months
Ended December 31, Ended December 31,
2007 2006 2007 2006
--------------------------------------------------------------------------
Cash provided by (used in)

Operating activities:
Net earnings for the period $ 4,622 $ 3,649 $ 13,418 $ 9,006
Items not affecting cash:
Amortization of property,
plant and equipment and
intangible assets 1,185 1,105 4,535 4,110
Amortization of deferred
financing costs (note 5) 139 141 531 562
Future income tax expense 197 178 197 62
Gain on disposal of property,
plant and equipment (1) - (18) (6)
Write down of property,
plant and equipment
held for sale - - - 1,303
--------------------------------------------------------------------------
6,142 5,073 18,663 15,037

Net change in non-cash
working capital items 766 (649) 1,978 350
--------------------------------------------------------------------------
6,908 4,424 20,641 15,387
--------------------------------------------------------------------------

Investing activities:
Purchases of property,
plant and equipment (319) (262) (2,022) (1,550)
Proceeds from sale of
property, plant and equipment 2 - 33 6
--------------------------------------------------------------------------
(317) (262) (1,989) (1,544)
--------------------------------------------------------------------------

Financing activities:
Distributions to partners (3,035) (2,936) (12,143) (11,527)
Principal repayment of
capital leases (73) (49) (318) (261)
--------------------------------------------------------------------------
(3,108) (2,985) (12,461) (11,788)
--------------------------------------------------------------------------

Increase in cash
and cash equivalents 3,483 1,177 6,191 2,055
Cash and cash equivalents -
beginning of period 6,437 2,552 3,729 1,674
--------------------------------------------------------------------------

Cash and cash equivalents -
end of period $ 9,920 $ 3,729 $ 9,920 $ 3,729
--------------------------------------------------------------------------

Supplemental Cash Flow
Information:
Interest paid during
the period $ 2,510 $ 2,639 $ 10,053 $ 10,478
Taxes paid during
the period 10 - 23 118

(See accompanying notes)


FP Canadian Newspapers Limited Partnership

Notes to Consolidated Financial Statements as at December 31, 2007

(unaudited, tabular amounts in thousands of dollars)

1. Basis of presentation

FP Canadian Newspapers Limited Partnership ("FPLP") is a limited partnership formed on August 9, 1999 in accordance with the laws of British Columbia.

These interim consolidated financial statements include the accounts of FPLP, Canstar Community News Limited ("Canstar"), and Rosebud Publications Ltd. ("Rosebud"). Rosebud is wholly owned by Canstar, which is wholly owned by FPLP. In addition, the FP Canadian Newspapers Limited Partnership Employee Benefits Plan Trust Fund ("Trust Fund") and FPCN Media Funding Inc. ("Funding") have been determined to be Variable Interest Entities ("VIE"), which also have been consolidated. The managing general partner of FPLP is FPCN General Partner Inc. These financial statements include only the assets, liabilities, revenues and expenses of FPLP and its subsidiaries and do not include the other assets, liabilities, revenues and expenses, including income taxes of the partners.

These interim consolidated financial statements are prepared in accordance with accounting principles generally accepted in Canada for interim financial statements and reflect all adjustments which are, in the opinion of management, necessary for fair statement of the results of the interim periods presented. However, these interim financial statements do not include all the information and disclosures required for annual financial statements. The accounting policies used in the preparation of these interim financial statements are the same as those used in the most recent annual financial statements, except as described below. These interim consolidated financial statements should be read in conjunction with the audited financial statements of FPLP for the year ended December 31, 2006.

The Partnership's advertising revenues are seasonal. Revenue and accounts receivable are highest in the second and fourth quarters while expenses are relatively constant.

2. Summary of significant accounting policies

Change in Accounting Policy

Effective January 1, 2007, FPLP adopted the Canadian Institute of Chartered Accountants ("CICA") Handbook Section 1530 Comprehensive Income, Section 3855 Financial Instruments - Recognition and Measurement and Section 3865 Hedges. The adoption of these new standards resulted in changes in the accounting for financial instruments, as well as the recognition of a transition adjustment. The comparative interim consolidated financial statements have not been restated. The principal changes in the accounting for financial instruments due to the adoption of these accounting standards are described below.

Section 3855 Financial Instruments - Recognition and Measurement sets out the standards for the recognition and measurement of financial assets and financial liabilities. The standard prescribes when to recognize a financial instrument in the balance sheet and at what amount. Depending on their balance sheet classification, fair value or cost-based measures are used. This standard also prescribes the basis of presentation for gains and losses on financial instruments. Based on financial instrument classification, gains and losses on financial instruments are recognized in net earnings or other comprehensive income.

FPLP has made the following classifications:

- Cash and cash equivalents are classified as "assets held for trading" and are measured at fair value. Gains and losses resulting from the periodic revaluation are recorded in net earnings.

- Accounts receivable are classified as "loans and receivables" and are recorded at cost, which upon their initial measurement is equal to their fair value. Subsequent measurements are recorded at amortized cost using the effective interest rate method.

- Accounts payable and accrued liabilities, subordinated notes and notes payable are classified as "other financial liabilities" and are initially measured at their fair value. Subsequent measurements are recorded at amortized cost using the effective interest rate method.

The adoption of these Sections is done retroactively without restatement of the consolidated financial statements of prior periods. As at January 1, 2007, the impact on the consolidated balance sheet of measuring the Subordinated notes and Notes payable using the effective interest rate method was a decrease in deferred financing costs of $2,728,000, a decrease in subordinated notes of $2,771,000, a decrease in notes payable of $528,000 and an increase in opening cumulative earnings of $571,000.

3. Allocation of net income

The amended and restated Agreement of Limited Partnership dated May 3, 2005 sets out the method for allocating net income between the general and limited partner Units. Net income is allocated to the general partner Units and the Class A limited partner Units in proportion to the distributions made to the partners over an annual basis ending December 31 each year. As the allocation is defined using an annual period, quarterly allocations are determined by using a proportionate share of cumulative distributions and cumulative net income to the end of each quarter.

4. Employee future benefit plans

The net future benefit plan costs included in operating expenses is as follows:



Three Months Twelve months
Ended December 31, Ended December 31,
2007 2006 2007 2006
---------- ---------- --------- ---------

Defined benefit pension plan $ 409 $ 374 $ 1,508 $ 1,538
---------- ---------- --------- ---------
---------- ---------- --------- ---------


5. Interest expense

Interest expense is summarized as follows:



Three Months Twelve months
Ended December 31, Ended December 31,
2007 2006 2007 2006
---------- ---------- --------- ---------

Subordinated notes $ 1,725 $ 1,824 $ 6,843 $ 7,239
Amortization of subordinated
notes deferred financing
costs 102 - 386 -
Notes payable 793 794 3,179 3,198
Amortization of notes payable
deferred financing costs 37 - 145 -
Capital lease obligations 3 7 18 32
---------- ---------- --------- ---------
$ 2,660 $ 2,625 $ 10,571 $ 10,469
---------- ---------- --------- ---------
---------- ---------- --------- ---------


6. Asset reclass

During the fourth quarter, the $400,000 of assets classified in the consolidated balance sheet as held for sale, were reclassified to property, plant and equipment.

Contact Information

  • FP Newspapers Income Fund
    Kevin Karr
    Vice President, Chief Financial Officer and Secretary
    (604) 646-3782
    (604) 681-8861 (FAX)
    Website: www.fpnewspapers.com