Superior Plus Announces Solid Third Quarter Results and Tightens Annual Guidance for 2007



    TSX: SPF.UN

    CALGARY, Nov. 7 /CNW/ -

    
    Highlights

    -  The lower-end of the 2007 annual distributable cash flow per trust
       unit guidance increased by $0.05 to $1.80-$1.90 from $1.75-$1.90,
       reflecting solid year-to-date performance.
    -  Operating distributable cash flow before discontinued operations for
       the third quarter and year-to-date was $38.2 million and
       $150.2 million, compared to the prior year periods of $42.8 million
       and $144.9 million.
    -  Superior Propane results were as planned and consistent with the prior
       year quarter. The prior year quarter included some additional
       wholesale profits which typically would have been recognized in the
       fourth quarter.
    -  ERCO Worldwide operating cash flow was higher than the prior year
       quarter while distributable cash flow was lower due to the timing of
       maintenance capital projects in 2007.
    -  Winroc results were lower than the prior year quarter due to the
       impact from slower residential housing sales in the United States and
       Ontario partially offset by stronger Western Canada commercial and
       residential sales.
    -  Superior Energy Management results were as planned for the third
       quarter. Year-to-date results included $1.1 million in start-up costs
       for the British Columbia natural gas and Ontario electricity market
       entry.
    -  Distributions paid per trust unit remained stable at $0.13 per month
       ($1.56 annualized) for the quarter resulting in a year-to-date payout
       ratio of 94%. The payout ratio for 2007 is projected to be 84% based
       upon the mid-point of annual guidance.
    -  Senior Bank Debt has decreased by $77.3 million from December 31, 2006
       levels resulting in Senior Debt to EBITDA ratio of 1.6 and Total Debt
       to EBITDA ratio of 3.0 as at September 30, 2007.
    -  Superior's Plus US denominated cash flows are currently 85%-90% hedged
       for 2007, 2008 and approximately 50% for 2009.


    Financial Summary
    -------------------------------------------------------------------------
                                        Three Months Ended  Nine Months Ended
    (millions of dollars, except             Sept. 30            Sept. 30
     per trust unit amounts)              2007      2006      2007      2006
    -------------------------------------------------------------------------
    Financial
    Operating distributable cash flow
      Superior Propane                     8.2      10.0      59.7      58.0
      ERCO Worldwide ("ERCO")             18.2      20.8      56.7      55.7
      Winroc                               8.8       9.1      24.5      23.9
      Superior Energy Management ("SEM")   3.0       2.9       9.3       7.3
    -------------------------------------------------------------------------
                                          38.2      42.8     150.2     144.9
      Discontinued operations -
       JW Aluminum ("JWA")                   -      11.1         -      30.8
    -------------------------------------------------------------------------
                                          38.2      53.9     150.2     175.7
    Interest                             (11.0)    (17.3)    (34.0)    (46.9)
    Corporate costs                       (1.5)     (2.8)     (8.8)     (4.0)
    -------------------------------------------------------------------------
    Distributable cash flow               25.7      33.8     107.4     124.8
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Distributable cash flow per trust
     unit, basic and diluted             $0.30     $0.40     $1.25     $1.46
    Average number of trust units
     outstanding (millions)               86.7      85.5      86.2      85.5
    Distributions paid per trust unit    $0.39     $0.39     $1.17     $1.43
    -------------------------------------------------------------------------


    Corporate Growth Strategy - Investing in the Business

    -  All four businesses have excellent efficiency improvement projects and
       growth profiles which are projected to increase at a rate that will
       offset the potential impact of the SIFT tax legislation in 2011.
    -  Superior Propane continued to focus on value-added customer service
       programs resulting in an increase of $9.8 million in other services
       gross profit year-to-date compared to the prior year period. The
       majority of the reorganization into 6 regional centres has been
       completed at a cost of approximately $2.4 million with one centre left
       to be reorganized in Q2 2008.
    -  ERCO continues to invest in efficiency improvement projects reducing
       its manufacturing costs and expanding facility capacity. The Port
       Edwards conversion project has begun with the selection of the project
       management team and systems along with ordering of equipment.
       Completion of the US$95 million project is expected in the last half
       of 2009.
    -  Winroc added a greenfield location in St. George, Utah, purchased
       competitors in Minneapolis, Minnesota and Kamloops, British Columbia
       and continues to evaluate acquisition opportunities as part of
       Winroc's North American focused growth strategy.
    -  Superior Energy Management has begun selling into the high growth
       fixed-price retail electricity market in Ontario on August 01, 2007.
       In addition, SEM has started to deliver natural gas to British
       Columbia customers in Q4 2007. SEM continues to evaluate other
       deregulated jurisdictions for acquisition and expansion opportunities.

    Superior Propane

    -  Operating distributable cash flow of $8.2 million for the third
       quarter was in line with expectations and compares to $10.0 million
       for the prior year quarter.
    -  Wholesale marketing gross profit was $2.3 million lower than the prior
       year quarter due the timing of the recognition of profits which will
       occur in Q4 2007.
    -  Sales volumes were strong with non-auto volumes flat despite (23%)
       warmer weather across Canada compared to the prior year quarter.
    -  Propane sales and other services gross profit activities generated
       record total gross profit of 21.2 cents per litre in the quarter
       primarily due to increases in delivery and hazmat fees, higher service
       and rental revenues.
    -  A comprehensive operating lease program has resulted in 85 new trucks
       being added to the fleet, lowering the average age of the fleet to 6.2
       years. The new trucks added $0.6 million of lease operating costs
       which lowered maintenance capital and are anticipated to improve
       operating efficiency and lower maintenance costs.
    -  Operating distributable cash flow guidance for 2007 continues to be
       $95-$100 million, increasing in 2008 to $100-$105 million.

    ERCO

    -  Operating distributable cash flow of $18.2 million for the third
       quarter was in line with expectations and compares to $20.8 million
       for the prior year quarter.
    -  ERCO operating cash flow was $21.7 million compared to prior year
       quarter of $21.6 million.
    -  Maintenance capital expenditures of $3.5 million were $2.7 million
       higher than the prior year quarter due to timing of scheduled
       maintenance.
    -  Gross profit remained strong at $49.7 million due to strong pricing
       received on sodium chlorate and chloralkali/potassium products
       partially offset by the appreciation of the Canadian dollar.
    -  Pulp prices continued to increase throughout the quarter supporting a
       stable sodium chlorate demand profile.
    -  Chemical sales volumes were consistent with the prior year quarter, as
       the impact of ERCO's Chilean facility offset the reduction in North
       American sales volumes.
    -  Operating distributable cash flow guidance remains unchanged at
       $70-$75 million for 2007 and 2008.

    Winroc

    -  Operating distributable cash flow of $8.8 million for the third
       quarter was comparable to the prior year quarter of $9.1 million due
       to higher operating expenses partially offset by reduced maintenance
       capital.
    -  Strong Western Canada residential and commercial sales volumes
       continue to partially offset weakness in Ontario and US residential
       sales volumes in 2007.
    -  Winroc entered into master lease arrangements similar to Superior
       Propane, which will result in reduced maintenance capital
       expenditures.
    -  Due to the forecasted weakness in Ontario and United States
       residential markets in 2007 and 2008, Winroc continues to evaluate
       additional greenfield opportunities and potential acquisitions in
       these jurisdictions.
    -  Operating distributable cash flow guidance for 2007 continues to be
       $30-$35 million, increasing to $32-$37 million in 2008.

    SEM

    -  Operating distributable cash flow of $3.0 million for the third
       quarter increased by $0.1 million over the prior year quarter.
    -  SEM results included $1.1 million year-to-date in start up costs for
       the British Columbia natural gas and Ontario electricity market entry.
    -  SEM continues to focus on growing its high-margin residential and
       small commercial customer base.
    -  SEM successfully entered the British Columbia fixed-price natural gas
       market on May 01, 2007 adding approximately 13,650 new customers with
       cash flow expected to begin in Q4 2007.
    -  In addition, SEM established entry into the Ontario fixed-price
       electricity market with Bruce Power LP as the energy provider.
       Marketing of fixed-price electricity contracts to residential
       customers began on August 1, 2007.
    -  Operating distributable cash flow guidance for 2007 continues to be
       $12-$15 million, increasing to $15-$18 million in 2008.

    Key Quarterly Corporate Items

    -  Corporate costs for the third quarter were $1.5 million, compared to
       $2.8 million in the prior year quarter.
    -  Excluding the impact of long-term incentive plan costs, corporate
       costs normalized for the third quarter were $2.4 million.
    -  Interest expense of $11.0 million in the third quarter decreased by
       $6.3 million compared to the prior year quarter due to lower debt
       levels and the benefit of the appreciation of the Canadian dollar on
       US denominated debt.
    -  Superior has increased its total credit facilities to $670 million
       creating a projected undrawn credit capacity of $430 million at
       December 31, 2007. (Includes $100 million average utilization of the
       securitization program and redemption of the Series II 8% convertible
       debentures on November 05, 2007.)

    Financial Projections
    -------------------------------------------------------------------------
    (millions of dollars, except per trust unit amounts)     2007       2008
    -------------------------------------------------------------------------
    Operating distributable cash flow
      Superior Propane                                     95-100    100-105
      ERCO                                                  70-75      70-75
      Winroc                                                30-35      32-37
      SEM                                                   12-15      15-18
    -------------------------------------------------------------------------
    Distributable cash per trust unit                   1.80-1.90  1.85-2.05
    Payout ratio (target of 85% - 90%)                     84%(1)     80%(1)
    -------------------------------------------------------------------------
    Average Senior Debt/EBITDA (target of 1.5 to 2.0x)    2.0x(2)    1.7x(2)
    Average Total Debt/EBITDA (target of 2.5 to 3.0x)     3.1x(2)    2.7x(2)
    -------------------------------------------------------------------------
    (1)  Based on mid-point of the distributable cash flow per unit range.
    (2)  Superior's debt ratios take into account the impact of the off-
         balance sheet receivable sales program amounts, cash on hand, DRIP,
         the Port Edwards conversion, and early redemption of Series II 8%
         convertible debentures.

    Consolidated Outlook

    -  Superior's third quarter results support the tightening of year-end
       expectations of consolidated distributable cash flow per trust unit
       for 2007 to be between $1.80 and $1.90. Guidance per trust unit for
       2008 of $1.85 to $2.05, remains unchanged.
    -  The projected payout ratios are in line with management's expectations
       for 2007 and 2008 at 84% and 80%, respectively.
    -  The projected Senior Debt to EBITDA and Total Debt to EBITDA ratios of
       2.0x and 3.1x for 2007 and 1.7x and 2.7x for 2008 include
       US $54 million of the total US $95 million investment in the
       Port Edwards conversion and early redemption of the Series II 8%
       convertible debenture.
    -  We believe our diversified portfolio of four growth-orientated
       businesses, our improved financial flexibility, and our disciplined
       approach to capital allocation will result in long-term stability of
       distributions and high total returns for our Unitholders.
    

    Third Quarter Results

    The Fund's financial statements for the period ended September 30, 2007,
including its Management's Discussion and Analysis, are available on
Superior's website at: www.superiorplus.com under investor information section
and at www.sedar.com.

    Conference Call

    Superior Plus will be conducting a conference call and webcast for
investors, analysts, brokers and media representatives to discuss the 2007
Third Quarter Results 9:30 a.m. EST (7:30 a.m. MST) on Thursday, November 08,
2007. To participate in the call, dial: 1-800-587-1893. An archived recording
of the call will be available for replay until midnight, November 15, 2007. To
access the recording, dial: 1-877-289-8525 and enter pass code 21251932
followed by the # key. Internet users can listen to the call live, or as an
archived call, on Superior's website at: www.superiorplus.com under the Events
and Presentations section.

    Forward Looking and Non-GAAP Statements

    Forward Looking Statements
    --------------------------
    Except for the historical and present factual information, certain
statements contained herein are forward-looking. Such forward-looking
statements are not guarantees of future performance and involve a number of
known and unknown risks and uncertainties which may cause the actual results
of the Superior Plus Income Fund (the "Fund") or its wholly owned partnership,
Superior Plus LP ("Superior") in future periods to differ materially from any
projections expressed or implied by such forward-looking statements and
therefore should not be unduly relied upon. Any forward-looking statements are
made as of the date hereof and neither the Fund nor Superior undertakes any
obligation to publicly update or revise such statements to reflect new
information, subsequent events or otherwise.

    Distributable Cash Flow and Other Non-GAAP Measures
    ---------------------------------------------------
    Distributable cash flow of the Fund available for distribution to
Unitholders, is equal to cash generated from operations, adjusted for changes
in non-cash working capital and natural gas and electricity customer
acquisition costs, less maintenance capital expenditures. Maintenance capital
expenditures are equal to capital expenditures incurred to maintain the
capacity of Superior's operations and are deducted from the calculation of
distributable cash flow. Acquisitions and other capital expenditures incurred
to expand the capacity of Superior's operations or to increase its
profitability ("growth capital"), are excluded from the calculation of
distributable cash flow. The Fund may deduct or include additional items to
its calculation of distributable cash flow, these items would generally, but
not necessarily, be items of a non-recurring nature. Distributable cash flow
is the main performance measure used by management and investors to evaluate
the performance of the Fund and its businesses. Readers are cautioned that
distributable cash flow is not a defined performance measure under Canadian
generally accepted accounting principles ("GAAP"), and that distributable cash
flow cannot be assured. The Fund's calculation of distributable cash flow,
maintenance capital and growth capital may differ from similar calculations
used by comparable entities. Operating distributable cash flow is
distributable cash flow before corporate and interest expenses. It is also a
non-GAAP measure and is used by management to assess the performance of the
operating divisions.

    EBITDA represents earnings before interest, taxes, depreciation and
amortization calculated on a 12 month trailing basis giving pro forma effect
to acquisitions and divestitures and is used by Superior to calculate its debt
covenants and other credit information. Superior's calculation of EBITDA may
differ from similar calculations used by comparable entities.




For further information:

For further information: about Superior, visit our website at
www.superiorplus.com or contact Wayne Bingham, Executive Vice-President and
Chief Financial Officer, E-mail: wbingham@superiorplus.com, Phone: (403)
218-2951, Fax: (403) 218-2973, Toll Free: 1-866-490-PLUS (7587); Scott Daniel,
Vice-President, Treasurer and Investor Relations, E-mail:
sdaniel@superiorplus.com, Phone: (403) 218-2953, Fax: (403) 218-2973, Toll
Free: 1-866-490-PLUS (7587)

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SUPERIOR PLUS CORP.

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