XS Cargo Income Fund
TSX : XSC.UN

XS Cargo Income Fund

August 11, 2005 15:33 ET

XS Cargo Income Fund Reports Results for its Initial Reporting Period

EDMONTON, ALBERTA--(CCNMatthews - Aug. 11, 2005) - XS Cargo Income Fund (the
"Fund") (TSX: XSC.UN) announced its results for its initial reporting period
which included results of operations from May 17, 2005 to June 30, 2005. The
Fund reported earnings before non-controlling interest of $1,466,724 or $0.122
per unit outstanding as of June 30, 2005. The business had combined sales for
the second quarter of $22,675,993 compared to sales $16,238,817 for the second
quarter of 2004, an increase of 40%. Gross margin for the second quarter was
$8,468,982 compared to gross margin of $5,913,631 for the second quarter of
2004, an increase of 43%. The Fund indirectly acquired the business from Famous
Brands (Edmonton) Inc. (the "Vendor") on May 17, 2005 so the combined sales and
gross margin figures include the operations of the Fund combined with those of
the Vendor for the second quarter of 2005, compared to the operations of the
Vendor for the second quarter of 2004.

Distributable cash for the Fund's initial period of business operations
from May 17, 2005 to June 30, 2005 was $0.1475 per unit and the Fund declared
cash distributions of $0.1387 per unit.

Michael McKenna, President and Chief Executive Officer of the Fund
stated, "We are very pleased that, in spite of the seasonal nature of our
business, our current distributable cash exceeds our cash distributions.
Although our cash distributions are made evenly throughout the year,
historically 40% of our annual distributable cash has been generated in the
fourth quarter. Our growth in sales and distributable cash reflects the
positive results of our cross-Canada expansion strategy, which included four
new store openings in the second quarter. We also opened a new distribution
centre in Mississauga, Ontario which has positioned us well for continued
expansion in Ontario and Eastern Canada."

About XS Cargo Income Fund

The Fund is an open-ended trust that holds, indirectly, a 51% interest in
XS Cargo Limited Partnership ("XS Cargo LP"). XS Cargo LP is one of the
largest broadline closeout retailers in Canada with 23 stores in the provinces
of Alberta, British Columbia, Saskatchewan, Manitoba and Ontario. The Fund's
trust units are listed on the Toronto Stock Exchange under the symbol
"XSC.UN".

Additional information about XS Cargo Income Fund is available at
www.sedar.com and the Fund's website at www.xscargo.com.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

This management's discussion and analysis ("MD&A") should be read in
conjunction with the unaudited consolidated interim financial statements and
accompanying notes (the "Interim Financial Statements") of XS Cargo Income
Fund (the "Fund") for the initial period from April 6, 2005 to June 30, 2005,
which includes business operations from May 17, 2005 to June 30, 2005. Results
are reported in Canadian dollars unless otherwise stated and have been
prepared in accordance with Canadian generally accepted accounting principles
("GAAP"). Certain dollar amounts have been rounded to the nearest thousand
dollars, while other amounts have been rounded to the nearest hundred thousand
dollars. References to the notes are to the notes of the Interim Financial
Statements of the Fund unless otherwise stated.

This MD&A is dated August 11, 2005.

OVERVIEW OF THE FUND

Issuance of Fund Units and Acquisition

XS Cargo Income Fund is an unincorporated open-ended trust established
under the laws of the Province of Alberta pursuant to a Declaration of Trust
dated April 6, 2005. The Fund has been created to invest in the broadline
closeout retail business, through an indirect acquisition of the controlling
interest of XS Cargo Limited Partnership ("XS Cargo LP") and its general
partner ("GP") (collectively "XS Cargo"), and such other investments as the
Trustees may determine.

The Fund commenced business operations on May 17, 2005, when it completed
an initial public offering (the "IPO") of 6,106,000 trust units ("Fund
Units"), at a price of $10 per unit, for aggregate gross proceeds of
$61,060,000. Concurrent with the closing of the IPO, the Fund acquired a 51%
indirect interest in XS Cargo LP (note 3) and XS Cargo LP acquired the net
assets (the "Acquired Business") of Famous Brands (Edmonton) Inc. (the
"Vendor").

The acquisition of the Fund's interest in the Acquired Business has been
accounted for using the purchase method.

The purchase has been allocated to the assets acquired and liabilities
assumed, as follows:



Property and equipment 2,373,558
Goodwill 102,440,975
Intangible assets 8,655,000
-------------------------------------------------------------------------

113,469,533

Net working capital 16,561,367
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130,060,900
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Consideration, being cash from IPO
and new credit facilities 71,396,400
XS Cargo LP Exchangeable LP Units 34,719,700
XS Cargo LP Subordinated LP Units 23,944,800
-------------------------------------------------------------------------

Total consideration 130,060,900
-------------------------------------------------------------------------
-------------------------------------------------------------------------


The Fund is in the process of finalizing its estimate of the costs of
issuance and the fair value of assets acquired and the liabilities assumed.
Working capital amounts as at May 17, 2005 have been estimated and, pursuant
to the purchase agreement with the Vendor, the purchase price will be adjusted
to reflect the actual amount of working capital purchased when it is
determined. The Fund expects to complete this process by December 31, 2005.

The Fund Units trade on the Toronto Stock Exchange under the symbol
XSC.UN.

Non-GAAP Measures

References to "EBITDA" are to earnings before interest, income taxes,
depreciation and amortization and references to "distributable cash" are to
cash available for distribution to Unitholders in accordance with the
distribution policies of the Fund. Management believes that, in addition to
income or loss, EBITDA is a useful supplemental measure of performance and
cash available for distribution before debt service, changes in working
capital, capital expenditures and income taxes. Specifically, management
believes that EBITDA is the appropriate measure from which to make adjustments
to determine the distributable cash of the Fund. Distributable cash of the
Fund is a measure generally used by open-ended trusts as an indicator of
financial performance. As one of the factors that may be considered relevant
by prospective investors is the cash distributed by the Fund relative to the
price of the Units, management believes that distributable cash of the Fund is
a useful supplemental measure that may assist prospective investors in
assessing an investment in the Fund.

Earnings from operations for disclosure under "Combined Second Quarter
Operating Results" has been calculated as described below. In the case of the
Fund, earnings from operations have been derived by adding interest expense,
amortization of property and equipment and intangible assets, unit-based
compensation and non-controlling interest to net earnings for the period. In
the case of the Vendor, earnings from operations have been derived by adding
amortization expense, employee profit sharing plan contributions, interest
expense, and income tax expense to net earnings (loss) for the period.

EBITDA, distributable cash and earnings from operations are not earnings
measures recognized by GAAP and do not have standardized meanings prescribed
by GAAP. Investors are cautioned that EBITDA, distributable cash and earnings
from operations should not replace net income or loss (as determined in
accordance with GAAP) as an indicator of the Fund's performance, of its cash
flows from operating, investing and financing activities or as a measure of
its liquidity and cash flows. The Fund's methods of calculating EBITDA,
distributable cash and earnings from operations may differ from the methods
used by other issuers may not be comparable to similar measures presented by
other issuers.

Basis of Management's Discussion and Analysis

The Fund was established on April 6, 2005 and acquired, indirectly, the
Acquired Business on May 17, 2005. Accordingly, the Fund's initial reporting
period only includes business operations from May 17, 2005 to June 30, 2005.

To provide more meaningful information, the following MD&A refers to the
combined operating results of the Fund and the Vendor for the three months
ended June 30, 2005. The combined second quarter operating results are
compared to the Vendor's results of operations for the three months ended June
30, 2004 (See "Non-GAAP Measures").

It is management's view that employee profit sharing plan contributions
incurred by the Vendor are not relevant when compared to the Fund because of
differences between the structure and policies of the Fund to those of the
Vendor

The Business of the Fund

XS Cargo LP operates 23 closeout retail stores in Alberta, British
Columbia, Manitoba, Saskatchewan and Ontario.

Operating Highlights

The second quarter of 2005 was a period of significant growth and
milestones for the business of XS Cargo. The opening of a new distribution
centre in Mississauga, Ontario effectively doubled XS Cargo's distribution
infrastructure. Previously, all of XS Cargo's stores were supplied from its
Edmonton based distribution facilities. The addition of an eastern
distribution centre was a critical step for XS Cargo's continued expansion
plans in Ontario and will make expansion into the Maritime Provinces feasible.

Although the Mississauga distribution centre has only been open for a
short time, it has already allowed XS Cargo to distribute merchandise to all
of its stores each week, as opposed to the two-week distribution cycle used
previously.

Other than the costs of the products themselves, freight is XS Cargo's
most significant cost. Distributing merchandise to the Ontario stores from the
eastern distribution centre is expected to reduce freight costs as a
percentage of sales, however, net savings are not expected to be realized
until the third or fourth quarter due to the additional operating costs of the
distribution centre.

In addition to completing the IPO and opening the distribution centre, XS
Cargo opened four new retail stores during the quarter in Hamilton, Kingston,
Calgary and Lethbridge. All of the new store grand openings were successful
and the stores are contributing positively to gross margin, net earnings and
cash flow from operations.

Distributable Cash and Cash Distributions

The Fund's policy is to distribute annually to unitholders available cash
from operations after cash required for capital expenditures, working capital
reserve and other reserves considered advisable by the Trustees of the Fund.
The policy allows the Fund to make stable monthly distributions to its
unitholders based on its estimate of distributable cash for the year. The Fund
pays cash distributions on or about the 15th of the month to unitholders of
record on the last business day of the previous month.



The following table summarizes the distributions for the period:

Exchangeable
LP Units and
Subordinated
Fund Units LP Units Total
---------------- ---------------- ----------------
Record Payment Declared Paid Declared Paid Declared Paid
Date Date $ $ $ $ $ $

June 21, July 15,
2005 2005 846,902 - 815,304 - 1,662,206 -
--------------------------------------------------


Distributions are paid on Fund Units, XS Cargo LP Exchangeable LP Units
and XS Cargo LP Subordinated LP Units. As of June 30, 2005 the following
number of units were outstanding:

Fund Units (Note 9) 6,106,000
XS Cargo LP Exchangeable LP Units (Note 10) 3,478,914
XS Cargo LP Subordinated LP Units (Note 10) 2,399,269
----------------

11,984,183
----------------


During the period the Fund approved distributions of $0.1387 per Fund
Unit to unitholders. The distributions in the current period were funded from
cash-flow generated from operations since the Fund's inception. Distributions
during the period were consistent with the distributions contemplated in the
Fund's final prospectus dated May 6, 2005 (available on www.sedar.com.)
Subsequent to the initial distribution for the period from May 17, 2005 to
June 30, 2005, the Fund currently anticipates making equal monthly
distributions of $0.09375 per Fund Unit, or $1.125 per Fund Unit on an annual
basis.

It is the Fund's policy to review the monthly distributions on at least a
quarterly basis.

Distributable Cash per Unit (Fund Units, XS Cargo LP Exchangeable LP
Units, XS Cargo LP Subordinated LP Units)



May 17, 2005 to
June 30, 2005

Earnings before non-controlling interest 1,466,724
Add: Amortization of property and equipment 60,030
Add: Amortization of intangible assets 149,000
Add: Interest expense 85,676
----------------

EBITDA 1,761,430

Add: Stock based compensation 117,330
Less: Interest paid (85,676)
Less: Purchase of property and equipment (25,281)
----------------

Distributable cash 1,767,803

Average Units outstanding during the period 11,984,183
Distributable cash per Unit 0.1475

Distributions declared 1,662,206
Distributions declared per Unit 0.1387


For the period from May 17, 2005 to June 30, 2005, the Fund had
distributable cash per unit of $0.1475. Basic and diluted earnings per unit
for the period were $0.122 per unit.

Unitholders' Equity and Non-controlling Interest

The following table outlines the Fund Units and non-controlling interest
outstanding as of June 30, 2005.

Unit- Non-
Issue holders' controlling
Units Costs Equity Interest

Fund Units 6,106,000 4,663,600 56,396,400 -
Special Voting Units 5,878,183 - - -
Non-controlling Interest 5,878,183 - - 58,685,954


SELECTED FINANCIAL INFORMATION AND RESULTS FROM OPERATIONS

Combined Second Quarter Operating Results

The following table shows the unaudited results of the Fund combined with
the unaudited results of the Vendor for the Second Quarter of 2005 compared to
the Vendor's Second Quarter of 2004. Combined sales, cost of sales and
administrative and operating expenses have been derived from the unaudited
financial statements of the Vendor and the unaudited interim consolidated
financial statements of the Fund. The sales, cost of sales, and administrative
and operating expenses for the period from April 1, 2004 to June 30, 2004 have
been derived from the financial statements of the Vendor and are presented for
comparative purposes. The results of operations for these periods are not
necessarily indicative of the results of operations to be expected in any
given period.



Fund Vendor Combined Vendor Change
May 17 to April 1 to Fund and 2nd Q2 2005
June 30, May 16, Vendor 2nd Quarter to Q2
2005 2005 Quarter 2005 2004 2004

Sales 11,755,952 10,920,041 22,675,993 16,238,817 6,437,176
Cost of Sales 7,328,286 6,878,725 14,207,011 10,325,186 3,881,825
------------------------------------------------------------
Gross Margin 4,427,666 4,041,316 8,468,982 5,913,631 2,555,351

Administrative
and Operating
Expenses(*) 2,546,602 2,342,555 4,889,157 2,886,002 2,003,155
------------------------------------------------------------

Earnings from
Operations,
as defined(*) 1,881,064 1,698,761 3,579,825 3,027,629 552,196

(*) Earnings from operations have been calculated as described under
"Non-GAAP Measures" above. For purposes of this table, administrative and
operating expenses exclude the expenses outlined in the calculation of
Earnings from Operations as described under "Non-GAAP Measures".


Second Quarter Sales

Second Quarter sales increased by $6.4 million from $16.2 million to
$22.7, an increase of 39.5%. The increase in sales was attributable to seven
new stores that were open in the Second Quarter of 2005 that were not open in
2004. The new stores contributed a combined $6.7 million in sales, however,
three of those stores (Edmonton, Calgary and Brampton) were opened in close
proximity to existing stores, which caused a slight decrease in same store
sales of $0.3 million. Excluding the four existing stores that experienced
cannibalization from new stores with overlapping trading areas, same store
sales increased by 1.6% over the second quarter of 2004. The new stores in
Edmonton, Calgary and Brampton were accretive to sales in their relative
markets during the quarter, contributing over $1.5 million of sales in excess
of the decrease in existing stores.

Second Quarter Cost of Sales and Gross Margin

Cost of sales increased by $3.9 million from $10.3 million to
$14.2 million, an increase of 37.9%, primarily as a result of new store
openings.

Gross margin increased by $2.6 million from $5.9 million to $8.5 million,
an increase of 43.2%. Of the increase in gross margin, $2.4 million was
attributable to seven additional stores in 2005 compared to 2004 and the
remaining $0.2 million was the result of an increase in gross margin
percentage from 36.4% to 37.4%. The increase in gross margin percentage is the
result of XS Cargo's continued ability to improve product selection with
higher margin items.

Combined Administrative and Operating Expenses

Administrative and operating expenses increased by approximately
$2.0 million from $2.9 million to $4.9 million. The increase is primarily the
result of increases in rent ($0.4 million increase), wages ($0.6 million
increase) and advertising ($0.6 million increase). Most of the increase in
these expenses was the result of new store openings. During the period, an
eastern distribution centre was opened in Mississauga, Ontario. XS Cargo
incurred additional administrative and operating costs of $0.2 million in
connection with the new distribution centre during the period, but freight
savings associated with distributing products to the Ontario stores from an
eastern distribution centre are not expected to be realized until the third or
fourth quarter of 2005.

Fund Initial Reporting Period Net Earnings

For the period from May 17, 2005 to June 30, 2005, the Fund experienced
net earnings of $747,296, or $0.122 per unit on a basic and diluted basis.

Financial Position

The following are the significant assets, liabilities and equity of the
Fund as at June 30, 2005:



June 30, 2005

Cash 5,950,883

Current assets 22,050,463

Total assets 135,336,247

Current liabilities excluding term loan 5,266,498

Term loan, due May 2006 15,000,000

Non-controlling interest 58,685,954

Unitholders' equity 56,396,400


LIQUIDITY AND CAPITAL RESOURCES

Distributable Cash and Cash Distributions

The Fund's policy is to make stable monthly distributions to its
Unitholders based on its estimate of distributable cash for the year. It has a
policy to pay cash distributions on or about the 15th of each month to
Unitholders of record on the last business day of the previous month.

During the period, the Fund declared distributions of $0.1387 per Fund
Unit to Unitholders, $846,902 in total.

Credit Facilities

In May 2005 the Fund established credit facilities with a Canadian
chartered bank. These credit facilities consisted of a $7.5 million demand
revolving operating loan and a $15 million committed non-revolving term loan.
On May 17, 2005 the Fund drew $15 million on the term loan in connection with
the acquisition. No amounts have been drawn on the operating loan.

Capital Expenditures

From May 17, 2005 to June 30, 2005 the Fund incurred capital expenditures
of $25,281 funded by cash generated from operations. As at June 30, 2005 the
Fund does not have significant capital expenditure commitments and intends to
continue to finance its capital expenditures with cash generated from
operations.

Interest Rate Risk and Sensitivity

The Fund is not significantly impacted by interest rate changes. The
Fund's long-term debt bears interest with floating rates based on the bank's
prime rate, thus exposing the Fund to interest rate fluctuations. A 1.0%
increase in interest rates would have an impact of $150,000 annually ($18,750
for the period from May 17, 2005 to June 30, 2005) on distributable cash based
on $15 million of debt outstanding.

Contractual Obligations

The table below sets forth the contractual obligations of the Fund as of
June 30, 2005, due in the years indicated, which related to various premises
operating leases and the $15,000,000 term loan that matures on May 17, 2006,
but may be extended with approval of the lender until 2008.



Total 2005 2006 2007
Operating
leases 14,679,664 1,400,866 2,909,793 2,388,045
Term loan 15,000,000 15,000,000 - -
-------------------------------------------------------------------------

Total 29,679,664 16,400,866 2,909,793 2,388,045
-------------------------------------------------------------------------
-------------------------------------------------------------------------

2009 and
2008 thereafter
Operating
leases 2,141,382 5,839,578
Term loan - -
-------------------------------------------------

Total 2,141,382 5,839,578
-------------------------------------------------
-------------------------------------------------


Off-Balance Sheet Arrangements

The Fund has not entered into any off-balance sheet arrangements.

Critical Accounting Estimates

Because of the nature of the Fund's business and assets, management does
not believe that there are critical accounting policies that rely on
estimates.

Changes in Accounting Policies

Management is not aware of any recent accounting pronouncements or
developments that will affect the Fund's financial statements. Management will
continue to monitor and assess the impact of accounting pronouncements on the
financial statements of the Fund as they become available.

Financial Instruments

Due to the nature of its business, the Fund does not engage in activities
or hold assets that would require the Fund to acquire financial instruments
for hedging or speculative purposes. The financial instruments that are held
by the Fund are held in the normal course of operations and as a result no
significant accounting policies need to be adopted or assumptions made in
reporting the Fund's financial instruments.

Transactions with Related Parties

Transactions with related parties include XS Cargo LP's purchase of the
assets of the business from the Vendor. As of June 30, 2005, $724,675 was due
to the Vendor. This amount arose as a result of difference between the
estimated working capital that would be purchased by the Fund as of May 17,
2005 and the actual amount of working capital purchased as well as to
reimburse the Vendor for issuance costs paid on the Fund's behalf.

Outlook

Management believes that operating results will continue to improve in
the upcoming year due to new store openings, the realization of freight
savings from the new distribution centre in Ontario and the consolidation of
XS Cargo's existing Edmonton distribution and warehousing operations. Based on
leases currently in place, XS Cargo plans to open new stores in Oshawa,
Ontario and Victoria, British Columbia in the third quarter.

Additional Information

Additional information relating to the Fund is available on SEDAR
(www.sedar.com) and on the Fund's website at www.xscargo.com.

RISK FACTORS

The Fund's results of operations, business prospects, financial
condition, cash distributions to unitholders and the trading price of the
Fund's units are subject to a number of risks. These risk factors include: the
ability to maintain profitability and manage growth; the ability to expand
through new store openings; the ability to source products in adequate
quantities and on acceptable terms; changes in trends and consumer tastes;
economic conditions and consumer spending; competition; reliance on
centralized distribution centres; freight costs; ability to maintain
comparable store sales; seasonality and fluctuations in quarterly results;
reliance on management information systems; increase in the cost of, or
disruption in the flow of, imported products; successful management of
exposure to merchandise returns; foreign exchange fluctuations; costs and
availability of insurance coverage; protection of intellectual property;
reliance on key personnel; labour matters; absence of history as a public
company; dependence on external funding sources; uncertainties arising from
world events; and property taxes. For a discussion of these risks and other
risks associated with an investment in Fund Units, see "Risk Factors" detailed
in the Fund's final prospectus dated May 6, 2005 available at www.sedar.com.

FORWARD LOOKING STATEMENTS

This MD&A contains forward-looking statements. All statements other than
statements of historical fact contained in this MD&A are forward-looking
statements, including, without limitation, statements regarding the future
financial position, cash distributions, proposed store openings, budgets,
litigation, projected costs and plans and objectives of or involving the Fund
or XS Cargo LP. You can identify many of these statements by looking for words
such as "believe", "expects", "will", "intends", "projects", "anticipates",
"estimates", "continues" or similar words or the negative thereof. These
forward-looking statements include statements with respect to the amount and
timing of the payment of distributions of the Fund. There can be no assurance
that the plans, intentions or expectations upon which these forward-looking
statements are based will occur. Forward-looking statements are subject to
risks, uncertainties and assumptions, including, but not limited to, those
discussed elsewhere in the MD&A. There can be no assurance that such
expectations will prove to be correct.

Some of the factors that could affect future results and could cause
results to differ materially from those expressed in the forward-looking
statements contained herein include, but are not limited to, those discussed
under "Risk Factors".

The information contained in this MD&A, including the information set
forth under "Risk Factors", identifies additional factors that could affect
the operating results and performance of the Fund and XS Cargo LP.

The forward-looking statements contained herein are expressly qualified
in their entirety by this cautionary statement. The forward-looking statements
included in this MD&A are made as of the date of this MD&A and, except as
required by law, the Fund assumes no obligation to update or revise them to
reflect new events or circumstances.



XS Cargo Income Fund
Interim Consolidated Financial Statements
Unaudited
June 30, 2005


XS Cargo Income Fund
Consolidated Balance Sheet
-------------------------------------------------------------------------
June 30, 2005
(Unaudited)
-------------------------------------------------------------------------

Assets
Current
Cash 5,950,883
Rebate and other receivables 62,000
Inventory 13,358,317
Deposits on inventory 2,232,602
Prepaid expenses and deposits 446,661
-------------------------------------------------------------------------

22,050,463

Property and equipment (Note 4) 2,338,809

Intangible assets (Note 5) 8,506,000

Goodwill (Note 3) 102,440,975
-------------------------------------------------------------------------

135,336,247
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Liabilities
Current
Accounts payable and accrued liabilities 2,879,617
Due to Vendor (Note 6) 724,675
Distributions payable to unitholders (Note 9) 846,902
Distributions payable to non-controlling interest (Note 10) 815,304
-------------------------------------------------------------------------

5,266,498

Term loan (Note 7) 15,000,000
-------------------------------------------------------------------------

20,266,498
Unamortized lease inducements (Note 8) 87,001
-------------------------------------------------------------------------

20,353,499
Non-controlling interest (Note 10) 58,685,954
-------------------------------------------------------------------------

79,039,453
-------------------------------------------------------------------------

Unitholders' Equity
Fund Units (Note 9) 56,396,400

Cumulative earnings
Net earnings for the period 747,296
Distributions declared (846,902)
-------------------------------------------------------------------------

56,296,794
-------------------------------------------------------------------------

135,336,247
-------------------------------------------------------------------------
-------------------------------------------------------------------------



XS Cargo Income Fund
Consolidated Statement of Earnings and Cumulative Earnings
For the period from April 6, 2005, including operations from
May 17, 2005 (date of commencement of business operations)
to June 30, 2005
-------------------------------------------------------------------------
(Unaudited)
-------------------------------------------------------------------------

Sales 11,755,952

Cost of sales 7,328,286
-------------------------------------------------------------------------

Gross margin 4,427,666
-------------------------------------------------------------------------

Expenses
Administrative and operating 2,663,932
Amortization of property and equipment 60,030
Amortization of intangible assets 149,000
-------------------------------------------------------------------------

2,872,962
-------------------------------------------------------------------------

Earnings before the undernoted 1,554,704
-------------------------------------------------------------------------

Other expenses
Interest on term loan 85,676
Foreign exchange loss 2,304
-------------------------------------------------------------------------

87,980
-------------------------------------------------------------------------

Earnings before non-controlling interest 1,466,724

Non-controlling interest (Note 10) 719,428
-------------------------------------------------------------------------

Net earnings for the period 747,296
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Basic and diluted earnings per unit (Note 16) 0.122
-------------------------------------------------------------------------
-------------------------------------------------------------------------



XS Cargo Income Fund
Consolidated Statement of Cash Flows
For the period from April 6, 2005, including operations from
May 17, 2005 (date of commencement of business operations)
to June 30, 2005
-------------------------------------------------------------------------
(Unaudited)
-------------------------------------------------------------------------

Cash provided by (used for) the following activities

Operating activities
Net earnings for the period 747,296
Items not affecting cash
Non-controlling interest 719,428
Amortization of property and equipment 60,030
Amortization of intangible assets 149,000
Unit-based compensation (Note 13) 117,330
Leasehold inducements received 87,001
-------------------------------------------------------------------------

1,880,085

Net change in non-cash working capital 4,212,164
-------------------------------------------------------------------------

6,092,249
-------------------------------------------------------------------------

Financing activities
Repayment of amounts due to Vendor (180,180)
Net proceeds from the issuance of Units 56,396,400
Proceeds from term loan 15,000,000
-------------------------------------------------------------------------

71,216,220
-------------------------------------------------------------------------

Investing activities
Purchases of property and equipment (25,281)
Business acquisition - net of cash acquired (Note 3) (71,332,305)
-------------------------------------------------------------------------

(71,357,586)
-------------------------------------------------------------------------

Increase in cash and cash equivalents 5,950,883
-------------------------------------------------------------------------

Cash and cash equivalents, end of period 5,950,883
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Supplementary cash flow information:

Interest paid 85,676



XS Cargo Income Fund
Notes to the Interim Consolidated Financial Statements
June 30, 2005
Unaudited
-------------------------------------------------------------------------


1. The Fund

XS Cargo Income Fund (the "Fund") is an unincorporated open-ended
trust established under the laws of the Province of Alberta pursuant
to the Fund Declaration of Trust dated April 6, 2005. The Fund has
been created to invest in the broadline closeout retail business,
through an indirect acquisition of the controlling interest of XS
Cargo Limited Partnership ("XS Cargo LP") and its general partner
("GP") (collectively "XS Cargo"), and such other investments as the
Trustees may determine. Income tax obligations related to the
distributions of the Fund are obligations of the Unitholder.

The Fund commenced business operations on May 17, 2005, when it
completed an initial public offering (the "IPO") of 6,106,000 trust
units ("Fund Units"), at a price of $10 per unit, for aggregate gross
proceeds of $61,060,000. Concurrent with the closing of the IPO, the
Fund acquired a 51% indirect interest in XS Cargo LP (note 3) and XS
Cargo LP acquired the net assets (the "Acquired Business") of Famous
Brands (Edmonton) Inc. (the "Vendor"). XS Cargo LP operates 23
closeout retail stores in Alberta, British Columbia, Manitoba,
Saskatchewan and Ontario.


2. Accounting policies

These financial statements have been prepared in accordance with
Canadian generally accepted accounting principles for interim
financial statements and may not include all necessary disclosures
required by generally accepted accounting principles for annual
financial statements. The financial statements include the following
significant accounting policies:

Cash and cash equivalents

Cash and cash equivalents include balances with banks and short term
investments with maturities of three months or less at acquisition.

Inventory

Inventory is valued at the lower of cost, determined using the
average cost basis, and net realizable value.

Vendor volume rebate

The Fund receives a volume rebate from a particular vendor, which is
accrued based on purchases from that vendor and included in rebate
and other receivables. The portion of the rebate related to goods
that the Fund has subsequently sold is recorded as a reduction of
cost of sales and the portion related to goods that remain in
inventory is recorded as a reduction of inventory costs.

Deposits on inventory

On certain purchases the Fund pays either a deposit or the balance in
full prior to taking possession of the goods. Such payments are
recorded as deposits on inventory until the Fund takes possession of
the goods, at which time the balance is transferred to inventory.

Property and equipment

Property and equipment are recorded at cost. Amortization is
provided using methods and rates intended to amortize the cost of
assets over their estimated useful lives. The Fund will test its
property and equipment for impairment when events and circumstances
warrant such a review. Amortization rates are set forth below:



Method Rate

Leasehold improvements straight line Shorter of
lease term
and 5 years
Office, computer and mobile equipment straight line 20 %
Signs straight line 20 %



Goodwill

Goodwill represents the excess of the cost of an acquired business
over the estimated fair value of the identifiable net assets
acquired. Goodwill is not amortized, but is tested at least annually
for impairment. The Fund analyzes its business as one reporting unit
because all of the components of the reporting unit have similar
economic characteristics. The Fund uses a discounted cash flow model
to assess the fair value of the reporting unit annually. If the
carrying value of the reporting unit exceeds its fair value, the fair
value is allocated to the assets and liabilities of the reporting
unit and the resulting difference between the carrying value and fair
value of goodwill is recorded as an impairment loss is reported in
income of the current period.

Intangible assets

Intangible assets acquired at the time of the IPO represent
management's estimate of the fair value of the XS Cargo brand name
and trademark, supplier contract, technology, non-competition
agreements and the value attributed to property leases at less than
market rates. The intangible assets related to the brand name and
trademark, supplier agreement and technology have indefinite lives
and are not amortized. The intangible assets related to the non-
competition agreements are amortized on a straight-line basis over
the 3 year term of the agreements and the amount attributable to
property leases is amortized over the remaining term of the lease.
The Fund will assess the carrying value of the intangible assets when
events or circumstances warrant such a review. An impairment loss is
recorded when it is determined that the carrying amount of the assets
is not recoverable and exceeds the fair value.

Future income taxes

The Fund complies with the Income Tax Act (Canada) to qualify as a
mutual fund trust. A mutual fund trust is subject to tax in each
taxation year on the amount of its income for the year, including the
net realized taxable capital gains, less the portion thereof that it
claims in respect of the amounts paid or payable to the unitholders
for the year. The Fund intends to allocate all of its income and net
realized capital gains, including those amounts derived from XS Cargo
LP, so that the Fund will not generally be liable for income tax and
as such, corporate income taxes have not been provided for the in the
Fund.

Revenue recognition

Revenue from retail sales is recognized at the point of sale.

Lease inducements

Lease inducements are received from certain of the Fund's landlords,
primarily in the form of rent-free periods. Lease inducements are
recorded as a liability when received and are amortized as a
reduction of rent expense over the terms of the related leases.

Foreign currency translation

Transaction amounts denominated in foreign currencies are translated
into their Canadian dollar equivalents at exchange rates prevailing
at the transaction dates. Carrying values of monetary assets and
liabilities reflect the exchange rates at the balance sheet date.
Translation gains and losses are included in current earnings.

Variable interest entities

The Fund has adopted new guidance issued by the Canadian Institute of
Chartered Accountants relating to the consolidation of variable
interest entities. Under this guidance, the Fund must identify
entities in which it has a variable interest by either contract,
ownership or other pecuniary interests. Where the Fund is the primary
beneficiary of an entity in which it has a variable interest, that
entity is consolidated. As disclosed in note 15, the Fund has a
variable interest in one company, but has determined that it is not
the primary beneficiary of that entity.

Unit-based compensation

Under the terms of an employment agreement, XS Cargo LP may issue a
maximum of 6,944 additional XS Cargo LP Exchangeable LP Units and
4,789 additional XS Cargo LP Subordinated LP Units per annum to the
Fund's Chief Financial Officer as performance based compensation, on
approval of the Chief Executive Officer and the Fund's Governance and
Compensation Committee. Compensation expense, which is included in
administrative and operating expenses, is measured at the estimated
fair value of the units awarded on the grant date.

Measurement uncertainty

The preparation of financial statements in conformity with Canadian
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities
at the date of financial statements and the reported amounts of
revenues and expenses during the reporting period. For example,
amortization is based on the estimated useful lives of property and
equipment and inventory is recorded after an evaluation as to the net
realizable value and is appropriately reduced if net realizable value
is estimated to be below cost. As well, freight costs are allocated
to inventory based on a percentage of the freight paid in the year in
comparison to the total purchases made in the year. This percentage
is then applied to the ending inventory balance.

These estimates are reviewed periodically and, as adjustments become
necessary, they are reported in earnings in the periods in which they
become known.


3. Issuance of Units and business acquisition

On May 17, 2005, the Fund completed the IPO for aggregate proceeds of
$61,060,000. The cost of the issuance of Units was $4,663,600
resulting in net proceeds of $56,396,400. The Fund used the net
proceeds from the IPO to acquire an indirect 51% interest in XS Cargo
LP, represented by 6,106,000 Ordinary LP Units. XS Cargo LP combined
these Funds with proceeds from new credit facilities (note7) to
acquire 100% of the net business assets of the Vendor.

The acquisition of the Fund's interest in the Acquired Business has
been accounted for using the purchase method and has been allocated
to the assets acquired and liabilities assumed, as follows:



Property and equipment 2,373,558
Goodwill 102,440,975
Intangible assets 8,655,000
---------------------------------------------------------------------

113,469,533

Net working capital 16,591,367
---------------------------------------------------------------------

130,060,900
---------------------------------------------------------------------
---------------------------------------------------------------------

Consideration, being cash from IPO and new
credit facilities 71,396,400
XS Cargo LP Exchangeable LP Units 34,719,700
XS Cargo LP Subordinated LP Units 23,944,800
---------------------------------------------------------------------

Total consideration 130,060,900
---------------------------------------------------------------------
---------------------------------------------------------------------


Included in net working capital is cash acquired of $64,095.

The Fund is in the process of finalizing its estimate of the costs of
issuance and the fair value of assets acquired and the liabilities
assumed. Working capital amounts as at May 17, 2005 have been
estimated and, pursuant to the purchase agreement with the Vendor,
the purchase price will be adjusted to reflect the actual amount of
working capital purchased when it is determined. The Fund expects to
complete this process by December 31, 2005.



4. Property and equipment

June 30,
Accumulated 2005
Amorti- Net book
Cost zation value

Leasehold improvements 251,140 6,322 244,818
Office, computer and
mobile equipment 2,010,516 50,258 1,960,258
Signs 137,183 3,450 133,733
---------------------------------------------------------------------

2,398,839 60,030 2,338,809
---------------------------------------------------------------------
---------------------------------------------------------------------


5. Intangible assets

June 30,
Accumulated 2005
Amorti- Net book
Cost zation value

Indefinite life
Brand name and trademark 690,000 - 690,000
Supplier contract 3,385,000 - 3,385,000
Databases of sales and
purchasing history 430,000 - 430,000
---------------------------------------------------------------------


4,505,000 - 4,505,000
---------------------------------------------------------------------
---------------------------------------------------------------------

Limited life
Operating lease agreements 1,600,000 42,750 1,557,250
Non-competition agreements 2,550,000 106,250 2,443,750
---------------------------------------------------------------------

4,150,000 149,000 4,001,000
---------------------------------------------------------------------
---------------------------------------------------------------------

8,655,000 149,000 8,506,000
---------------------------------------------------------------------
---------------------------------------------------------------------


6. Due to Vendor

The balance due to Vendor arose as a result of differences between
the estimated working capital that would be purchased by the Fund as
of May 17, 2005 and the actual amount of working capital purchased as
well as amounts owing to reimburse the Vendor for issuance costs paid
on the Fund's behalf. The actual amount of working capital is to be
determined and the balance due to Vendor paid by December 31, 2005.
The amount due to Vendor is not interest bearing.


7. Credit Facilities

Term Loan

Term loan consists of a committed $15,000,000 non-revolving term loan
facility. The term loan is collateralized by a first charge on all
present and after acquired personal property and an assignment of
inventory. Interest on the term facility is charged at the lender's
Canadian prime rate or U.S. base rate plus 0.25% to 0.75% or the
banker's acceptance rate plus 1.75% to 2.25%, depending on the Fund's
senior debt to EBITDA ratio. The credit facility includes limits on
incurring additional indebtedness or granting encumbrances without
the consent of the lender and is subject to the maintenance of senior
debt to EBITDA, current assets to current liabilities and fixed
charge coverage ratios and minimum equity.

The term loan was drawn in the form of prime rate loans on May 17,
2005 concurrent with the acquisition described in note 3. During the
period, interest was charged at a rate of prime plus 0.25% and
totaled $85,676. The term loan matures and the principal amount is
due on May 17, 2006 and includes two options to renew for an
additional year, with a maximum term to May 17, 2008 based on
approval by the lender.

Operating Loan

The Fund has available under its credit facilities a $7,500,000
demand revolving loan. Under the terms of the credit facility
agreement, the operating loan is collateralized along with the term
loan as described above. Interest on the operating loan will vary
between the lender's prime rate and the lender's prime rate plus
0.25% depending on the Fund's ratio of senior debt to EBITDA.

No amounts have been drawn on the operating loan during the period.



8. Unamortized lease inducements

June 30,
2005

Cost 89,741
Accumulated amortization (2,740)
---------------------------------------------------------------------

87,001
---------------------------------------------------------------------
---------------------------------------------------------------------


Lease inducements received are non cash transactions in the form of
rent-free periods and, as such, have been added back as a non-cash
item in operating activities on the statement of cash flows.


9. Unitholders' Equity

Fund Units

During the period, the following units were issued and are
outstanding at the end of the period:



Net Capital
Number of Issue Contri-
Units Costs butions
No. $ $

Fund Units 6,106,000 4,663,600 56,396,400
---------------------------------------------------------------------

6,106,000 4,663,600 56,396,400
---------------------------------------------------------------------
---------------------------------------------------------------------


An unlimited number of Fund Units may be created and issued pursuant
to the Declaration of Trust. Each Fund Unit is transferable and
represents an equal undivided beneficial interest in any
distributions from the Fund, whether of net income, net realized
capital gains or other amounts and in the net assets of the Fund in
the event of a termination or winding up of the Fund. All Fund Units
have equal voting rights or privileges.

Distributions payable to Unitholders

Distributions to Unitholders are determined based on earnings before
amortization, but reduced by capital expenditures. Distributions
totaling $0.1387 per Fund Unit ($846,902) were declared by the Fund
for the period ended June 30, 2005.



10. Non-controlling interest

XS Cargo LP XS Cargo LP
Exchange- Subordi-
able nated
LP Units LP Units Total
No. No. No.

Issued on Closing of IPO (note 3) 3,471,970 2,394,480 5,866,450
Issued subsequent to IPO -
unit-based compensation - (note 13) 6,944 4,789 11,733
---------------------------------------------------------------------

3,478,914 2,399,269 5,878,183
---------------------------------------------------------------------
---------------------------------------------------------------------

$ $ $

Issued on Closing of IPO (note 3) 34,719,700 23,944,800 58,664,500
Issued subsequent to IPO -
unit-based compensation - (note 13) 69,440 47,890 117,330
---------------------------------------------------------------------
---------------------------------------------------------------------

34,789,140 23,992,690 58,781,830

Non-controlling interest
- earnings 425,790 293,638 719,428

Distributions declared (482,525) (332,779) (815,304)
---------------------------------------------------------------------

34,732,405 23,953,549 58,685,954
---------------------------------------------------------------------
---------------------------------------------------------------------



XS Cargo LP Exchangeable LP Units ("Exchangeable LP Units")

The Exchangeable LP Units issued by XS Cargo LP have economic and
voting rights equivalent to the Fund Units (note 9), except in
connection with the exchangeability terms as described below. They
are exchangeable directly or indirectly, on a one-for-one basis for
Fund Units at the option of the holder, under the terms of the
Exchange Agreement. The Exchangeable LP Units are not required to be
exchanged for Fund Units before transferring to third parties. As a
result, they have been treated as non-controlling interest, in
accordance with the CICA Emerging Issues Committee Abstract No. 151.

Each Exchangeable LP Unit entitles the holder to receive
distributions from XS Cargo LP pro rata with distributions made by XS
Cargo LP on Fund Units.

XS Cargo LP Subordinated LP Units ("Subordinated LP Units")

The Subordinated LP Units have economic and voting rights equivalent
to the Fund Units (note 9), except in connection with the
subordination terms as described below. As a result, they have been
treated as non-controlling interest, in accordance with the CICA
Emerging Issues Committee Abstract No. 151.

Distributions are to be made monthly on the Fund Units (note 9) and
Exchangeable LP Units equal to $0.09375 per Unit to the extent cash
is available to make cash distributions. Distributions on the
Subordinated LP Units are subordinated and are made quarterly in an
amount equal to the amount distributed on Fund Units and Exchangeable
LP Units and to the extent cash is available to make such
distributions.

The Subordinated LP Units will be automatically exchanged for
Exchangeable LP Units on a one-for-one basis and the subordination
provisions will apply until the end of any fiscal year ending on or
after December 31, 2006 if, for that fiscal year the Fund has earned
EBITDA (earnings before interest, taxes, depreciation and
amortization) of at least $14.432 million and the Fund has paid
distributions of at least $1.125 per Fund Unit for such fiscal year.



Fund Special Voting Units

Number Amount
No. $

Issued on Closing of IPO (note 3) 5,866,450 -
Issued subsequent to IPO -
unit-based compensation - (note 13) 11,733 -
---------------------------------------------------------------------

5,878,183 -
---------------------------------------------------------------------
---------------------------------------------------------------------


Fund Special Voting Units are non-participating and are used solely
for providing voting rights to persons holding Exchangeable LP Units
and Subordinated LP Units. Fund Special Voting Units are not
transferable separately from Exchangeable LP Units and Subordinated
LP Units to which they relate. The Fund Special Voting Units are not
entitled to any beneficial interest in any distribution from the Fund
or in the net assets of the Fund in the event of a termination or
winding up of the Fund. Each Fund Unit and Fund Special Voting Unit
entitles the holder thereof to one vote at all meetings of the
Unitholders.

If the Exchangeable LP Units or the Subordinated LP Units are
purchased in accordance with the Exchange Agreement, a like number of
Fund Special Voting Units will be redeemed by the Fund for a nominal
amount. The Fund issued 5,866,450 Fund Special Voting Units relating
to the 3,471,970 Exchangeable LP Units and 2,394,480 Subordinated LP
units that were issued at the time of the IPO.

Distributions payable to non-controlling interest

Distributions to non-controlling interest are determined based on
earnings, before amortization, but reduced by capital expenditures.
Distributions totaling $0.1387 per Exchangeable LP Unit ($482,525)
and Subordinated LP Unit ($332,779) were declared by the Fund for the
period ended June 30, 2005.


11. Commitments

The Fund occupies the premises of its stores, warehouses and office
under lease agreements requiring basic monthly rents for the periods
indicated and in aggregate as follows:



Remaining 6 months ending December 31, 2005
Years ending December 31, 1,400,866
2006 2,909,793
2007 2,388,045
2008 2,141,382
2009 1,904,740
2010 1,169,106
Thereafter 2,765,732
---------------------------------------------------------------------

Total 14,679,664
---------------------------------------------------------------------
---------------------------------------------------------------------


In addition, as described in note 7, the principal balance on the
Fund's committed term loan is due on May 17, 2006, but the Fund has
two options to request a one-year extension, with a maximum term to
May 17, 2008 based on approval of the lender.


12. Long-term incentive plan

The Fund has adopted a long-term incentive plan (the "Plan") to
provide key senior management, officers and directors of the Fund
with compensation opportunities that will enhance the ability of the
Fund to attract, retain and motivate key personnel and reward these
key employees for significant performance and associated per unit
cash flow growth. Fund bonuses, in the form of the Units of the Fund,
will be provided to eligible employees on an annual basis where the
distributable cash of the Fund exceeds certain specified threshold
amounts.

If the distributable cash flow per unit exceeds the base
distribution, a percentage of the distributable cash (the
participation rate) is contributed by the Fund into a long-term
incentive pool. The funds in the pool are used to purchase units of
the Fund in the open market, to be provided to eligible employees as
bonus compensation. Threshold amounts and participation rates are as
follows:



Excess percentage Proportion of excess percentage
paid to plan Trustee

5% or less Nil
Greater than 5% and up to 10% 10% of any excess over 5%
Greater than 10% and up to 20% 10% of any excess over 5%,
plus 20% of any excess over 10%
Greater than 20% 10% of any excess over 5%,
plus 20% of any excess over 10%,
plus 25% of any excess over 20%


No amounts have been accrued to the Plan during the period.


13. Unit-based compensation

Under the terms of the Acquisition Agreement between the Vendor and
Fund, the Fund assumed certain obligations under an employment
agreement with the Chief Financial Offer. Under the terms of that
agreement, XS Cargo LP issued 6,944 XS Cargo Exchangeable Units and
4,789 Subordinated LP Units to the Chief Financial Officer following
the completion of the initial public offering. The unit-based award
was recorded as administrative and operating costs in the amount of
$117,330, the estimated fair value of the units on the grant date,
and resulted in an increase in non-controlling interest.


14. Financial instruments

Foreign currency risk

The Fund purchases a significant amount of its inventory from
suppliers in the United States. Consequently, the Fund's gross margin
is exposed to foreign exchange fluctuations. This exposure is limited
because the Fund does not enter into significant future purchase
commitments, but wires funds in advance upon placing orders with
United States suppliers.

Interest rate risk

The Fund's term loan, as described in note 7 bears interest with
floating rates over prime or the appropriate bankers' acceptance
rate, thus exposing the Fund to interest rate fluctuations.

Fair value of financial instruments

The Fund's financial instruments consist of cash, rebate and other
receivables, accounts payable and accrued liabilities, distributions
payable and term loan. The carrying amounts of cash, rebate and other
receivables, accounts payable and accruals, and distributions payable
approximate their fair values due to their relatively short terms to
maturity. The carrying value of the term loan approximates fair value
since the interest rate fluctuates with the prime rate and
approximates market rate.


15. Variable interest entity

Pursuant to the business acquisition described in note 3, the Fund
assumed a vendor supply and volume rebate agreement with Samra
Imports Ltd., ("Samra"). Samra imports products from China which it
sells to the Fund and other customers. Samra is the Fund's largest
supplier accounting for approximately 19% of the Fund's purchases
since the commencement of the agreement and the Fund is Samra's
largest customer. The purpose of the agreement is to outline the
supply terms and to provide the Fund with a rebate based on its
significant volume of purchases from Samra. The Fund has determined
that Samra is a variable interest entity and that the supply and
rebate agreement represents a variable interest in Samra. The Fund
has determined, however, that it is not the primary beneficiary under
the supply and rebate agreement since the Fund is not entitled to
receive a majority of Samra's expected residual returns or absorb a
majority of its expected losses.

During the period from May 17, to June 30, 2005, the Fund purchased
approximately $520,000 of inventory from Samra, and as at June 30,
2005 the Fund had made deposits of $689,089, for inventory that had
not yet been delivered. Samra issued the Fund a volume rebate for
purchases made from the period May 17 to June 30, 2005 in the amount
of $50,000, which is included in rebate and other receivables as at
June 30, 2005.


16. Basic and diluted earnings per unit

The following table outlines the adjustments to the numerator and
denominator to calculate the basic and diluted earning per unit:



Basic Diluted
Earnings Dilution Earnings
per Unit Adjustments per Unit

Net earnings 747,296 719,428(a) 1,466,724
---------------------------------------------------------------------
Average Units outstanding 6,106,000 5,878,183(b) 11,984,183

Earnings per Unit 0.122 0.122

(a) Adjustment to add back non-controlling interest if Exchangeable
LP Units and Subordinated LP Units are converted to Fund Units

(b) Adjustment to reflect the conversion of Exchangeable LP Units
and Subordinated LP Units to Fund Units on a one-for-one basis


17. Seasonal nature of the business

The Fund's results for the period are not necessarily indicative of
the results that may be expected for the full year due to seasonal
variations in sales levels. The business acquired from the Vendor
historically experiences a higher level of sales in the fourth
calendar quarter due to seasonal shopping patterns. Occupancy-related
expenses, certain administrative and operating expenses,
amortization, and interest expense remain relatively steady
throughout the year.


18. Segmented information

Each store constitutes an operating segment in that its performance
is monitored by senior management and discreet financial information
is available. Since each store sells the same products to the same
types of customers and uses similar distribution and sales processes,
they have been aggregated for reporting purposes into one segment.

Contact Information

  • XS Cargo Income Fund
    Michael McKenna
    President and Chief Executive Officer
    (780) 413-4296
    or
    XS Cargo Income Fund
    Jeff Rootman
    Vice-President, Finance and Chief Financial Officer
    (780) 413-4296
    Website: www.xscargo.com