PRT Forest Regeneration Income Fund

PRT Forest Regeneration Income Fund

March 04, 2008 12:00 ET

PRT Announces Temporary Closure of Nursery Site

VICTORIA, BRITISH COLUMBIA--(Marketwire - March 4, 2008) - PRT Forest Regeneration Income Fund (TSX:PRT.UN) today announced its intention to temporarily discontinue production at its Coldstream, BC nursery site as a result of lower market demand in 2008.

The Coldstream nursery is one of PRT's smallest facilities, at approximately 90,000 seedling blocks, or less than 3% of PRT's total production capacity. Orders normally grown at this location will be relocated to PRT's other BC Okanagan region nurseries for 2008, subject to final customer approval.

The site was purchased in 2005 and is a key part of PRT's strategy to produce conifer crops outdoors that are traditionally grown in greenhouses. However, the current downturn in the Forest Industry has curtailed order volumes for 2008, and with excess capacity throughout the industry this nursery will be temporarily closed to reduce costs. Permanent staff at the nursery will continue to be employed at other PRT sites.

On February 28th PRT announced that it expects significantly lower order volumes this year, as a result of the current severe downturn in the Forest Industry. President and CEO John Kitchen commented: "We believe our decision to temporarily close the Coldstream nursery at this time makes sense in light of our reduced volumes this year. The closure gives us the chance to reduce some overhead costs during this difficult period, but we will retain the ability to restart production in future, once market conditions improve."

"While this closure is difficult, we remain committed to balancing our short-term financial performance with our ability to respond to the expected recovery in seedling demand in future periods. We also remain committed to balancing our operating capacity to market demand," Kitchen added. "We have an excellent group of nurseries in the Okanagan region, and affected customers will continue to receive the top quality services they have come to expect from PRT."

The PRT Forest Regeneration Income Fund, through its operating subsidiary, Pacific Regeneration Technologies Inc., is the largest producer of container grown forest seedlings in North America. PRT will operate 14 nurseries in 2008. The Fund's units are listed for trading on the Toronto Stock Exchange under the symbol PRT.UN.

Forward Looking Statements

Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. These statements include statements relating to estimated future production volumes, prices and revenues, as well as the financial impact of the site closure. Words such as "anticipate", "expect", "potential", "intends", "opportunity", "believes", "may", "will" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and actual events or results may differ materially.

There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements, including, but not limited to, our potential inability to successfully execute our site closure and property sale strategies or achieve planned overhead synergies.

Forward-looking statements are based on current expectations and the company assumes no obligation to update such information to reflect later events or developments, except as required by law.

Contact Information

  • PRT Forest Regeneration Income Fund
    Robert Miller
    VP Finance/CFO
    1-866-553-8733 ext. 227