VANCOUVER, Aug. 13 /CNW/ - WesternOne Equity Income Fund ("WesternOne
Equity") (TSX: WEQ.UN and WEQ.DB) today announced the release of its financial
results for the six months ended June 30, 2008. The results, consisting of
WesternOne Equity's unaudited interim consolidated financial statements for
the six months ended June 30, 2008, and Management's Discussion and Analysis
("MD&A") dated August 12, 2008, are available on SEDAR (www.sedar.com).
The following discussion is based on certain unaudited interim financial
and operating results of WesternOne Equity for the three and six months ended
June 30, 2008. Please refer to WesternOne Equity's MD&A dated August 12, 2008
for further information.
"WesternOne enjoyed overall sales growth compared to the same period last
year," said Mr. Darren Latoski, Chief Executive Officer. "We have achieved
this by continuing to execute our expansion strategy with a focus of acquiring
companies with exceptional management in place. Recently acquired businesses
C&N Motors Ltd. ("C&N") in Comox, BC, and Deerfoot Equipment Rental Inc.
("Deerfoot") in Calgary, Alberta, have both performed well in their first full
quarter, and existing operations Production Equipment Rentals ("PER") and Old
Country Rentals ("OCR"), continue to perform well in the BC Lower Mainland and
Southern Vancouver Island markets, respectively." said Mr. Darren Latoski,
Chief Executive Officer.
"In Q2, WesternOne had several significant achievements. In May,
WesternOne received approval for the listing of its units and Series A
debentures on the Toronto Stock Exchange, and in June WesternOne launched a
new equipment rental location in Lethbridge, Alberta. As we continue to grow
our businesses, we have been diligently working to position ourselves for
long-term earnings growth and sustainable distributions."
Total revenues of $15.32 million for the six months ended June 30, 2008
increased by 56.4%, or $5.53 million, compared to $9.79 million for the same
period a year ago. WesternOne's acquisition of C&N and Deerfoot in the first
quarter of 2008 contributed incremental revenues of $4.41 million and EBITDA
of $1.26 million for the six months ended June 30, 2008. Gross income
increased by 71.2%, or $4.52 million, to $10.87 million for the six months
ended June 30, 2008 compared to $6.35 million a year ago.
Gross margin was 70.9% for the six months ended June 30, 2008, compared
to 64.8% a year ago. The increased margin reflects the growth within our
rental and services operations, which typically have higher margins than the
sales of equipment.
Earnings before interest, income taxes, depreciation and amortization
("EBITDA") of $4.68 million for the six months ended June 30, 2008 increased
by 52.4%, or $1.61 million, compared to $3.07 million a year ago.
Net income was $1.40 million for the six months ended June 30, 2008,
equivalent to basic and diluted weighted average earnings per unit of $0.12.
This is compared to $0.95 million ($0.08 per unit, basic and diluted) for the
same period a year ago.
WesternOne Equity generated distributable cash of $3.85 million for the
six months ended June 30, 2008, or $0.3255 per trust unit. WesternOne Equity
distributed $3.55 million, or $0.3000 per trust unit, resulting in a payout
percentage of 92.2%.
WesternOne Equity has announced a subsequent monthly distribution of
$0.05 per unit for July, 2008 (payable August 15, 2008).
"Organic growth and accretive acquisitions continue to facilitate growth
for us, as demonstrated in our quarterly financial results," said Mr. Latoski.
"As we are approaching the high point of the annual construction industry and
equipment rental cycles, WesternOne will continue to focus on enhancing
profitability and generating incremental distributable cash for our
unitholders with the goal of reducing the payout percentage in the second half
of the year."
Darren Latoski, CEO, and Carlos Yam, CFO, of WesternOne Equity GP Inc.
will host a conference call at 5:30pm (ET), 2:30pm (PT), on Monday, August
18th, 2008, to review the financial results and corporate developments for the
six months ended June 30, 2008.
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 key.
If you are unable to participate, a replay will be available 60 minutes
after the meeting end time, until midnight, September 19, 2008, by dialing one
of the following numbers with the conference reference number 670296, followed
by the number key.
Local Calgary or International ........................ 403-205-4531
Toll Free (Canada or the USA)......................... 877-245-4531
We look forward to having you participate in our call.
About WesternOne Equity
WesternOne Equity seeks to acquire equipment and infrastructure related
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
Additional information about WesternOne Equity is available at www.weq.ca
Certain information in this press release may constitute
"forward-looking" information that involves known and unknown risks,
uncertainties and other factors that may cause our 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 information. When used in this press release, such information
often uses, but are not limited to, such words as "may", "will", "expect",
"should", "believe", "intend", "plan", "anticipate", "potential", and other
similar terminology. Such information reflects current expectations of
management regarding future events and operating performance and speaks only
as of the date of this press release. Forward-looking information involves
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 information, including, but not limited to,
the following factors: competitive and economic environment, the results of
due diligence inquiries and negotiation of acquisition documents, impact of
changes to tax treatment of income trusts or dividend tax credits, foreign
exchange, seasonality, inability to close or realize accretive benefits from
acquisitions, fluctuation of cash distributions and nature of trust units.
Although any forward-looking information contained in this press release is
based upon what WesternOne Equity's management believes to be reasonable
assumptions, WesternOne Equity cannot assure investors that actual results
will be consistent with such forward-looking information. Such forward-looking
information is made as of the date of this press release and WesternOne Equity
assumes no obligation to update or revise it to reflect new events or
THE TSX EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR
THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
For further information:
For further information: 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: firstname.lastname@example.org, www.weq.ca