November 09, 2011 16:00 ET

TerraVest Income Fund Announces 2011 Third Quarter Financial Results

VEGREVILLE, ALBERTA--(Marketwire - Nov. 9, 2011) - TerraVest Income Fund (TSX:TI.UN) announced today its results for the third quarter of 2011.

For the three and nine months ended September 30, 2011, the Fund reported:

Three months Nine months
2011 2010 2011 2010
Sales from continuing operations $ 32,015 $ 19,923 $ 78,399 $ 60,806
Gross profit from continuing operations 6,705 3,330 14,823 8,889
Earnings from continuing operations 2,629 (10 ) 3,624 (335 )
Earnings (loss) from discontinued operations 126 616 (1,183 ) 3,366
Net earnings $ 2,755 $ 606 $ 2,441 3,031
Earnings (loss) per Unit, basic and diluted continuing operations $ 0.13 $ - $ 0.18 $ (0.02 )
(Loss) earnings per Unit, basic and diluted, discontinued operations $ 0.01 $ 0.03 $ (0.06 ) $ 7
Earnings per Unit, basic and diluted $ 0.14 $ 0.03 $ 0.12 $ 0.15
Total assets $ 108,721 $ 142,950

On a segmented basis sales from continuing operations for the three and nine months ended September 30, 2011 and 2010 were:

Three months Nine months
2011 2010 2011 2010
RJV $ 11,475 $ 3,942 $ 33,679 $ 12,465
Diamond 8,545 6,734 19,768 17,550
Beco 11,995 9,247 24,952 30,791
$ 32,015 $ 19,923 $ 78,399 $ 60,806

Additional segmented information can be found in the Fund's consolidated financial statements and MD&A which are available on SEDAR at www.sedar.com and through the Fund's website at www.terravestincomefund.com.

The Fund's management continues to actively review options for the maximization of value to the unitholders of their investment in the Fund. This includes the continuing evaluation of the remaining portfolio businesses, separately and the Fund as a whole, in order to determine fair values. The board of trustees and management have also reviewed the future strategic direction of the Fund, and, as a result of this review, the board of trustees has determined that it is in the best interests of the Fund and its unitholders that management continue to identify and negotiate with potential purchasers. This process may result in the future sale of one or more portfolio businesses or the assets thereof. Subject to the Fund's cash requirements at the relevant times, the Fund plans to use proceeds received from such sale of portfolio businesses to pay one or more special distributions to Unitholders.

About TerraVest Income Fund

The Fund has investments in three portfolio businesses:

  • RJV Gas Field Services ("RJV"), one of Canada's largest providers of wellhead processing equipment for the natural gas industry in western Canada;
  • Diamond Energy Services ("Diamond"), a market leader in providing well servicing to the oil and natural gas sector in south-western Saskatchewan; and
  • Beco Industries ("Beco"), one of Canada's largest designers and importers of home textile products.

Caution Regarding Forward-Looking Statements

This news release contains forward-looking statements. All statements other than statements of historical fact contained in this news release are forward-looking statements, including, without limitation, statements regarding our strategic direction and evaluation of the portfolio businesses and the Fund as a whole, the sale or potential sale of portfolio businesses or assets thereof, the availability of credit, special distributions, and other plans and objectives of or involving the Fund. Readers can identify many of these statements by looking for words such as "expects" and "will" and similar words or the negative thereof. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

By their nature, forward-looking statements require us to make assumptions and, accordingly, forward looking statements are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. We caution readers of this news release not to place undue reliance on our forward-looking statements because a number of factors may cause actual future circumstances, results, conditions, actions or events to differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements and the assumptions underlying the forward-looking statements.

Assumptions and analysis about the performance of the Fund as a whole and the Fund's portfolio businesses, the markets in which the portfolio businesses compete and the prospects and values of the portfolio businesses are considered in setting the business plan for the Fund, in evaluating and forecasting availability of credit and/or ability to pay distributions, tax horizon, capital investments, outlook for operations, financial position, results and cash flow, other plans and objectives and in making related forward-looking statements. Should any of these factors or assumptions vary, actual results may differ materially from the forward-looking statements.

The information set forth under "Risk Factors" in the annual information form of the Fund dated March 1, 2011 and under "Financial Instruments" in the MD&A of the Fund for the period ended September 30, 2011, identifies risk factors that could affect the operating results and performance of the Fund and its portfolio businesses and the values of the portfolio businesses and the Fund as a whole. We caution that the lists of factors discussed in such information is not exhaustive and that, when relying on forward-looking statements to make decisions with respect to the Fund, investors and others should carefully consider the factors discussed, as well as other uncertainties and potential events, and the inherent risks and uncertainties of forward-looking statements. The forward-looking statements herein are made based on the assumption that the Fund will not be affected by such risks, but that, if the Fund is affected by such risks, the forward-looking statements may become inaccurate.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release. Except as required by applicable securities laws, the Fund does not undertake to update such forward-looking statements.

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