Spinrite Income Fund

Spinrite Income Fund

March 16, 2005 08:30 ET

Spinrite Reports Third Quarter and Year-To-Date Results for 2004




MARCH 16, 2005 - 08:30 ET

Spinrite Reports Third Quarter and Year-To-Date
Results for 2004

LISTOWEL, ONTARIO--(CCNMatthews - March 16, 2005) - Spinrite Income Fund

Revenue and Gross Profit Increase in Both Periods


- Raised $203 million in successful IPO in February and listed on the TSX

- Posted third quarter revenue of $35.5 million, up 66%

- Third quarter gross profit increased by 41% to $10.8 million

- Generated year-to-date revenue of $92.5 million, up 76%

- Gross profit up 85% to $33.7 million year-to-date

Spinrite Limited Partnership, now Spinrite Income Fund (TSX:SNF.UN),
today announced its financial results for the third quarter and 39-week
year-to-date period ended December 31, 2004.

"Spinrite reported robust results for both the quarter and the
year-to-date period, which is proof of the underlying strength of our
business," said Dario Margve, President and Chief Executive Officer of
Spinrite Income Fund. "The craft yarn market remains healthy and we
intend to capitalize on our growing market share in the U.S. We
anticipate our momentum and the strength of our market will help us
deliver strong results in the first quarter of fiscal 2005."

Prior to the IPO, Spinrite Limited Partnership reported its annual
results based on a March 31 year-end. Therefore, the third quarter and
year-to-date periods presented in this press release represent the 13-
and 39-week periods ended December 31, 2004, respectively.

For the third quarter, Spinrite generated revenue of $35.5 million, an
increase of approximately 66 per cent compared to the same period in

Gross profit for the quarter was $10.8 million, compared to $7.7 million
in the third quarter of 2003. The increase in gross profit was mitigated
by the voluntary recall of Bernat Fur Out yarn in March 2005. Spinrite
Limited Partnership has made a provision of $2.5 million at December 31,
2004 relating to the recall. Spinrite Income Fund does not believe the
recall will have any effect on distributable cash as the $2.5 million
provision largely represents inventory acquired prior to the IPO in
addition to costs of product being recalled from customers.

Selling, general and administrative expenses for the quarter were $3.9

Year-to-date, revenues were $92.5 million, an increase of approximately
76 per cent compared to the same period last year. This increase was due
primarily to overall market growth and Spinrite's expanding share in the
U.S. market.

Gross profit for the year-to-date period was $33.7 million, an increase
of $15.5 million compared to the same period in 2003. Selling, general
and administrative expenses for the period were $10.8 million.

The Fund's full interim financial statements, notes to financial
statements and management's discussion and analysis are available at
www.sedar.com or at www.spinriteincomefund.com.

Spinrite is the largest producer and marketer of craft yarn in Canada
and one of the largest and fastest growing in the United States.
Established in 1952, Spinrite researches, develops, manufactures and
markets a broad variety of consumer craft yarns. The company also
supports its market with patterns that provide customers with creative
ideas for knitted products. Spinrite has approximately 600 employees at
its fully integrated manufacturing and distribution centre in Listowel,

Forward-Looking Statements

This press release may contain forward-looking statements relating to
expected future events and financial and operating results of the Fund
that involve risks and uncertainties. Actual results may differ
materially from management expectations as projected in such
forward-looking statements for a variety of reasons, including market
and general economic conditions and the risks and uncertainties detailed
from time to time in the Fund's prospectus filed with the Canadian
securities regulatory authorities. Due to the potential impact of these
factors, the 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, unless required by applicable


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