VEGREVILLE, AB, March 5, 2012 /CNW/ - TerraVest Income Fund (TSX: TI.UN) announced today its fourth quarter and full year results for 2011.
As a result of the Fund's previously announced strategy to maximize Unitholder value through a range of strategic alternatives, during 2011 the Fund:
- sold three of its portfolio businesses for total proceeds of $21,052;
- returned capital to Unitholders through payment of a special distribution of $1.15 per Unit ($22,679) in 2011; and
- returned capital to Unitholders by declaring a second special distribution of $0.50 per Unit ($9,860) in December 2011, which was paid in January 2012.
For the three months and year ended December 31, 2011, the Fund reported:
|Sales from continuing operations||$||20,585||$||16,714||$||74,032||$||46,729|
|Gross profit from continuing operations||5,297||4,305||18,009||8,303|
|(Loss) earnings from continuing operations||(630)||1,465||2,820||400|
|(Loss) earnings from discontinued operations||(3,048)||1,396||(4,057)||5,492|
|Net (loss) earnings||$||(3,678)||$||2,861||$||(1,237)||5,892|
|(Loss) earnings per Unit, basic and diluted continuing operations||$||(0.03)||$||0.07||$||0.14||$||0.02|
|(Loss) earnings per Unit, basic and diluted, discontinued operations||$||(0.15)||$||0.07||$||(0.20)||$||0.28|
|(Loss) earnings per Unit, basic and diluted||$||(0.18)||$||0.14||$||(0.06)||$||0.30|
On a segmented basis sales from continuing operations for the three months and year ended December 31, 2011 and 2010 were:
Additional segmented information can be found in the Fund's consolidated financial statements and MD&A which are available on SEDAR at www.sedar.com and through the Fund's website at www.terravestincomefund.com.
As disclosed previously, the Fund's management has been actively reviewing options for the maximization of value to the unitholders of their investment in the Fund. The board of trustees and management have also reviewed the future strategic direction of the Fund, and, as a result of this review, the board of trustees has determined that it is in the best interests of the Fund and its unitholders that management continue to evaluate a range of strategic alternatives, including possible liquidity events, aimed at enhancing unitholder value. Strategic alternatives may include, among other alternatives, a sale of one or more portfolio businesses or the assets thereof or a sale of all or a majority of the assets or units of the Fund, either in one transaction or in a combination of transactions, which could include a merger, recapitalization, arrangement, amalgamation or any combination thereof. The Fund's trustees will also continue to consider options for converting the Fund from its current trust structure to a corporation in connection with the review of other strategic options for the Fund. At this time, in order to rely on rules enacted by the federal government that permit conversion on a tax-deferred rollover basis, if another strategic option or options are not approved or pursued, the conversion of the Fund to a corporation would be expected to be completed prior to December 31, 2012. The Fund cautions that there are no guarantees that the strategic alternative review process will result in a transaction or, if a transaction is undertaken, as to its terms or timing or the ultimate impact of such a transaction on unitholders. The Fund has not set a definitive schedule to complete its evaluation and does not intend to disclose developments with respect to this process unless and until the evaluation has been completed or a definitive agreement has been reached.
The Fund also announces the appointment of Tim Rorabeck as a Director of TerraVest Industries Inc. and a Trustee of the Fund. Mr. Rorabeck replaces Rob Normandeau who has left the Fund to pursue other opportunities.
About TerraVest Income Fund
The Fund has investments in two portfolio businesses:
- RJV Gas Field Services ("RJV"), one of Canada's largest providers of wellhead processing equipment for the natural gas industry in western Canada; and
- Diamond Energy Services ("Diamond"), a market leader in providing well servicing to the oil and natural gas sector in south-western Saskatchewan.
Caution Regarding Forward-Looking Statements
This news release contains forward-looking statements. All statements other than statements of historical fact contained in this news release are forward-looking statements, including, without limitation, statements regarding our strategic direction and evaluation of the portfolio businesses and the Fund as a whole, the sale or potential sale of portfolio businesses or assets thereof, and other plans and objectives of or involving the Fund. Readers can identify many of these statements by looking for words such as "expects" and "will" and similar words or the negative thereof. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.
By their nature, forward-looking statements require us to make assumptions and, accordingly, forward looking statements are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. We caution readers of this news release not to place undue reliance on our forward-looking statements because a number of factors may cause actual future circumstances, results, conditions, actions or events to differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements and the assumptions underlying the forward-looking statements.
Assumptions and analysis about the performance of the Fund as a whole and the Fund's portfolio businesses, the markets in which the portfolio businesses compete and the prospects and values of the portfolio businesses are considered in setting the business plan for the Fund, in evaluating and forecastingtax horizon, capital investments, outlook for operations, financial position, results and cash flow, other plans and objectives and in making related forward-looking statements. Such assumptions include, without limitation, the current tax regime in Canada remaining unchanged and the performance of the continuing portfolio businesses of the fund not differing materially from historic performance. Should any of these factors or assumptions vary, actual results may differ materially from the forward-looking statements.
The information set forth under "Risk Factors" in the annual information form of the Fund dated March 5, 2012 and under "Financial Instruments" in the MD&A of the Fund for the period ended December 31, 2011, identifies risk factors that could affect the operating results and performance of the Fund and its portfolio businesses and the values of the portfolio businesses and the Fund as a whole. We caution that the lists of factors discussed in such information is not exhaustive and that, when relying on forward-looking statements to make decisions with respect to the Fund, investors and others should carefully consider the factors discussed, as well as other uncertainties and potential events, and the inherent risks and uncertainties of forward-looking statements. The forward-looking statements herein are made based on the assumption that the Fund will not be affected by such risks, but that, if the Fund is affected by such risks, the forward-looking statements may become inaccurate.
The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release. Except as required by applicable securities laws, the Fund does not undertake to update such forward-looking statements.
TerraVest Income Fund
Chief Executive Officer
(780) 632 -7774