Toronto Stock Exchange: VIC.UN
OAKVILLE, ON, Dec. 17, 2009 /CNW/ - Vicwest Income Fund (the "Fund") (TSX: VIC.UN) announced today its cash distribution for the month of December 2009. The monthly cash distribution of $0.13 per unit is payable on January 20, 2010, to unitholders of record as of December 31, 2009.
The Fund also announced that the Board of Trustees has approved a special cash distribution of $0.20 per Fund unit, also payable on January 20, 2010, to unitholders of record on December 31, 2009. This special cash distribution will be in addition to the regular December distribution. In combination with the December special cash distribution, the Fund's cash distributions for 2009 will be $1.76 per unit.
In addition to the special cash distribution, the Fund has approved an additional special non-cash distribution in the form of Fund units with an estimated value of $0.20 per unit, payable on December 31, 2009, to unitholders of record on that date. These Fund units will be distributed on a pro rata basis and will be included in the unitholders' taxable income for the 2009 calendar year. Immediately after this pro rata distribution of Fund units, the number of outstanding Fund units will be consolidated such that each unitholder will hold, following the consolidation, the same number of Fund units as before the non-cash distribution. The exact value and number of Fund units to be distributed pursuant to this special non-cash distribution will be based upon the aggregate taxable income of the Fund for the fiscal year ended December 31, 2009, which is not yet complete. Following the special cash and non-cash distributions, the Fund does not expect to pay income tax on the current year's earnings.
"These special distributions reflect the underlying strength of the Fund and our continued commitment to create value for our unitholders while managing our operations responsibly through the current economic environment," said Colin Osborne, President and CEO.
These special distributions are being declared because the Fund expects that taxable income generated in 2009 will exceed the aggregate monthly cash distributions declared and the Fund is obligated under its declaration of trust to distribute all taxable income within a calendar year. As a portion of the special distributions is to be paid with Fund units, the income allocated to unitholders will exceed the cash distributed.
The Fund may be required to withhold certain amounts otherwise distributable to non-resident unitholders, and to the extent that the withholding cannot be applied to cash distributions, the Fund may be required to withhold and sell Fund units to satisfy such obligations.
About Vicwest Income Fund
The Fund is one of Canada's leading manufacturers and distributors of construction building products, including metal roofing, siding and other metal building products. Headquartered in Oakville, Ontario, it fabricates and markets these products under the Vicwest, Mercury Metals, Valley Truss & Metal and RCA Metal trade names. Under the Westeel trade name, the Fund is one of Canada's foremost manufacturers of steel containment products for agricultural storage of grain and fertilizer. Its liquid storage tanks and accessories are manufactured and distributed under the trade names Westeel, Northern Steel Industries and NSI. The Fund has 16 manufacturing facilities strategically located across Canada with more than 1,000 dedicated employees committed to providing superior quality products and delivering excellent service to customers in domestic and international markets.
Forward Looking Statements
This news release contains forward-looking statements, including the statements concerning income tax on the Fund's earnings for the current year and ability of the Fund to service the payment of the regular and special cash distributions. These forward-looking statements are based on current expectations and are subject to a number of uncertainties and risks and the actual results may differ materially. The statements concerning income tax on the Fund's earnings for the current year and ability of the Fund to service the payment of the regular and special cash distributions are based on the assumption that the Fund's performance will be in line with the expectations of management for the remainder of the year.
Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Factors that could cause such differences include the cyclical nature of the construction industry, changes in interest rates and general economic conditions, adverse weather, cost and availability of materials used to manufacture the Fund's products, competitive developments affecting the building products industry, and the risk factors described from time to time in the reports and disclosure documents filed by the Fund with Canadian securities regulatory agencies and commissions. This list is not exhaustive of the factors that may impact the Fund's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Fund's forward-looking statements. Although the forward-looking statements contained in this release are based upon what management of the Fund believes are reasonable assumptions, the Fund cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and the Fund assumes no obligation to update or revise them to reflect new events or circumstances. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by the Fund with the securities regulatory authorities, available at www.sedar.com and on the Fund's website www.vicwestfund.com.
SOURCE Vicwest Inc.
For further information: For further information: Colin Osborne, President & Chief Executive Officer, Vicwest Income Fund, Tel: (905) 469-5700, Fax: (905) 825-1090; John Slattery, Executive VP & Chief Financial Officer, Vicwest Income Fund, Tel: (905) 469-5706, Fax: (905) 825-1090