Gienow Windows & Doors Income Fund
TSX : GIF.UN

Gienow Windows & Doors Income Fund

August 02, 2006 16:01 ET

Gienow Windows & Doors Income Fund Announces the Results of Operations for the Three and Six Months Ended June 30, 2006

CALGARY, ALBERTA--(CCNMatthews - Aug. 2, 2006) -

NOT FOR DISTRIBUTION IN THE United States OR TO U.S. CITIZENS

Gienow Windows & Doors Income Fund (the "Fund") (TSX:GIF.UN) is pleased to provide the results of operations for the three and six months ended June 30, 2006. The Fund's unaudited interim consolidated financial statements and Management's Discussion and Analysis ("MD&A") for the three and six months ended June 30, 2006 are available on the Fund's website at www.gienowincomefund.ca. All numbers are expressed in thousands of dollars except per unit information.

Highlights and Major Events for the Quarter

- Cash distributions of $0.24 per unit matched our commitment for the quarter.

- The Fund's backlog, defined as committed orders and signed contracts expected to be delivered within the next 12 months, has grown to over $42 million, up approximately 23% over December 31, 2005, validating the continued strong demand for the Fund's products and services.

- Total sales for the three months ended June 30, 2006, were $57,575 up from $52,815 in the previous comparable quarter representing year over year growth of 9.0% and brings the YTD sales growth through the first six months to 16.8% over the previous comparable period.

- EBITDA for the three months ended June 30, 2006 was $10,513 compared to $9,996 in previous comparable period and represents year over year growth of 5.2% and brings the YTD EBITDA growth through the first six months to 10.5% over the previous comparable period.

- Gross profit for the three months ended June 30, 2006 was $17,831, or 31.0%, up from $16,921, or 32.0% in previous comparable quarter.

- Selling and G&A expenses were $7,160 or 12.4% of sales compared to $6,847 or 13.0% of sales in previous comparable quarter.

- The majority of the programs put in place to mitigate the impacts of the Western Canadian labor market and to increase Western Canadian plant capacity were implemented during the quarter.

Outlook

"Once again, our backlog exiting the quarter continued to grow over the end of the previous quarter, despite the nearly 17% growth in our sales volumes during the first two quarters of the year. The strength and continuity of our backlog is a positive indication that the core markets for our products and services remain very healthy," said David Munro, President and Chief Executive Officer. "We remain optimistic that the sales demands for our products and services will continue through the balance of the year."

"We have successfully delivered the first two quarters of positive year over year results." said Mark Weder, Chief Financial Officer. "We have achieved solid top line sales growth and our year to date EBITDA has increased by 10.5% over the same period last year. Rising borrowing costs and debt service obligations on a year over year basis hindered our ability to deliver an additional $0.04 of distributable cash. Accordingly, we remain committed to using the excess distributable cash to lower our debt servicing obligations. Our goal remains to position the Fund as a stable and viable long-term investment to our unitholders."

Conclusion

Mr. Munro concluded that "we are on track to deliver our previously stated goal of a 75% -80% payout ratio based on our current cash distributions to our unitholders."

"Our focus for the balance of year has not changed from our previously stated focus of delivering the successful implementation of the programs that we designed and developed to mitigate the effects of the Western Canadian labor market, while at the same time increasing our plant capacity. We are seeing the benefits of these programs as our capacity has increased over the past several weeks. Our challenges are manageable and we remain committed as a management team and organization to delivering further positive year over results to our unitholders," continued Mr. Munro.

Management will host a conference call today at 3:30 PM (MDT) to discuss the Fund's financial results for the year three and six months ended June 30, 2006. The conference call dial-in number is 1-800-729-5923. A replay of the conference call will be available by dialing either 1-416-626-4100 or 1-800-558-5253, pass-code 21299825#, until 5:00 p.m. (MST) on Friday August 11, 2006 or by listening to it at the Fund's website www.gienowincomefund.ca.


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