/NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISSEMINATION IN THE
VANCOUVER, March 14 /CNW/ - WesternOne Equity Income Fund ("WesternOne
Equity") (TSXV: WEQ.UN and WEQ.DB) today announced the release of its
financial results for the year ended December 31, 2006.
These results, consisting of WesternOne Equity's audited consolidated
financial statements for the period ended December 31, 2006, and Management's
Discussion and Analysis dated March 9, 2007, are available on SEDAR
The following discussion is based on certain unaudited financial and
operating results of WesternOne Equity for the 139-day period ended
December 31, 2006 and the unaudited results of the predecessor company for the
226-day period ended August 14, 2006, and the predecessor company's one year
ended December 31, 2005. Please refer to WesternOne Equity's Management's
Discussion and Analysis dated March 9, 2007 for further information.
"Sales growth was largely driven by the continued strength of the British
Columbia economy, in particular the construction and movie industry," said
Darren Latoski, Chief Executive Officer. Mr. Latoski also noted that
WesternOne Equity's revenues and gross margin both benefited from the increase
in the size of the rental fleet.
Total revenues for the 139-day period ended December 31, 2006 were
$6.67 million. Total revenues of $16.07 million for the one year period ended
December 31, 2006 increased by $1.94 million, or 13.7%, compared to
$14.13 million for the one year period ended December 31, 2005.
Cost of sales for the 139-day period ended December 31, 2006 was
$1.55 million. Cost of sales of $4.07 million for the one year period ended
December 31, 2006 decreased by $0.09 million, or 2.2%, compared to
$4.16 million for the one year period ended December 31, 2005.
Gross income for the 139-day period ended December 31, 2006 was
$5.12 million. Gross income of $12.00 million for the one year period ended
December 31, 2006 increased by $2.03 million, or 20.4%, compared to
$9.97 million for the one year period ended December 31, 2005.
Earnings before interest, income taxes, amortization and accretion
("EBITDA") for the 139-day period ended December 31, 2006 was $3.10 million.
EBITDA of $7.13 million for the one year period ended December 31, 2006
increased by $1.32 million, or 22.7%, compared to $5.81 million for the one
year period ended December 31, 2005.
Distributable cash for the 139-day period ended December 31, 2006 was
$2.4 million, or $0.3707 per unit, and WesternOne Equity distributed and/or
accrued for payment $1.3 million, or $0.2056 per unit, relating to the five
consecutive monthly cash distributions to its public unitholders, including a
$0.02 per unit special distribution paid on January 15, 2007, resulting in a
payout ratio of 55.5%.
WesternOne Equity has announced and paid two subsequent monthly
distributions of $0.0408 per unit for each of January and February 2007. On
March 7, 2007, WesternOne Equity announced that its Board of Trustees had
approved a 10.2% increase in the cash distribution, increasing the monthly
distribution from $0.0408 to $0.045 per trust unit effective March 1, 2007
(equivalent to $0.54 per trust unit on an annualized basis), a 10.2% increase
in the distribution.
Mr. Latoski said, "This distribution increase, along with the previously
announced $0.02 special distribution made for the partial year ended December
2006, further indicates the strength of our business."
WesternOne Equity will continue its targeted growth strategy through
organic growth and accretive acquisitions.
Darren Latoski, CEO, and Robert Hibberd, CFO, of WesternOne Equity GP
Inc. will host a conference call at 5:30pm (EST), 2:30pm (PST), on Monday
March 19, 2007, to review the year ended December 31, 2006 financial results
and corporate developments.
To participate in this conference call, please dial one of the following
numbers approximately 10 minutes prior to the commencement of the call, with
the participant pass-code 88222 followed by the number sign.
If you are unable to participate, a replay will be available 30 minutes
after the meeting end, until midnight of Wednesday April 17, 2007, by dialing
one of the following numbers with the conference reference number 389482
followed by the number sign.
We look forward to having you participate in our call.
Forward-looking statements are included in this news release, which
involve known and unknown risks, uncertainties and other factors that may
cause actual results, performance or achievements or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. These forward-looking
statements are identified by the use of terms and phrases such as
"anticipate", "believe", "could", "estimate", "expect", "intend", "may",
"plan", "predict", "project", "will", "would", and similar terms and phrases,
including references to assumptions. Such statements may involve but are not
limited to comments with respect to strategies, expectations, planned
operations or future actions.
These statements reflect current expectations of management regarding
future events and operating performance and speak only as of the date of this
news release. Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future performance or
results, and will not necessarily be accurate indications of whether or not
such results will be achieved. A number of factors could cause actual results
to differ materially from the results discussed in the forward-looking
statements, including, but not limited to, the following factors: financial
health of WesternOne Equity's subsidiaries and their related cash flows,
competitive and economic environment, seasonality and fluctuations in results,
expansion, interest rates, foreign exchange, cash distributions are not
guaranteed and will fluctuate with the performance of subsidiaries, nature of
Units, and the proposed changes to the Canadian federal income tax treatment
of income trusts, as discussed under "Risks and Uncertainties" in the
WesternOne Equity's Management Discussion & Analysis dated March 9, 2007.
Although the forward-looking statements contained in this news release
are based upon what WesternOne Equity's management believes to be reasonable
assumptions, WesternOne Equity cannot assure investors that actual results
will be consistent with these forward-looking statements. These
forward-looking statements reflect management's current beliefs and are based
on information currently available to WesternOne Equity. They reflect current
assumptions regarding future events and operating performance including,
without limitation, a strong economy in British Columbia, stable interest
rates and continued strength in the equipment rental and equipment sales
industry in which WesternOne Equity operates, and speak only as of the date of
this discussion. These forward-looking statements are made as of the date of
this news release and WesternOne Equity assumes no obligation to update or
revise them to reflect new events or circumstances.
About WesternOne Equity
WesternOne Equity has been established to seek out and acquire
predominantly privately owned businesses located primarily in the Western
Canadian provinces of British Columbia, Alberta and Saskatchewan, in order to
generate stable and growing distributions to its unitholders as well as to
achieve overall capital appreciation.
Additional information relating to WesternOne Equity is available on
WesternOne Equity's website at www.weq.ca or on SEDAR at www.sedar.com
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
For further information:
For further information: Robert Hibberd, Chief Financial Officer,
WesternOne Equity Income Fund, Suite 910, 925 West Georgia Street, Vancouver,
BC, V6C 3L2, Phone: (604) 678-4042, E-mail: firstname.lastname@example.org; For investor
relations information, please contact: Andrew Greig, Manager of Investor
Relations, WesternOne Equity Income Fund, Suite 910, 925 West Georgia Street,
Vancouver, BC, V6C 3L2, Phone: (604) 678-4042, E-mail: email@example.com