Alliance Grain Traders Income Fund announces 2009 second quarter results; Update on proposed conversion from income trust to corporation

    TORONTO, Aug. 19 /CNW/ - Alliance Grain Traders Income Fund (TSX-V:
AGT.UN) (the "Fund") is pleased to announce its financial results for the
three and six months ended June 30, 2009. The Fund is an income trust which
derives its income from the operations of its operating subsidiary, Alliance
Pulse Processors Inc. ("Alliance"). Alliance is engaged in the business of
sourcing and processing specialty crops such as lentils and peas, primarily to
export markets.
    Alliance's sales performance during the quarter ended June 30, 2009 met
management expectations despite challenging market conditions. Since lentil
inventories remaining on farms in Canada from the 2008-2009 crop year were at
very low levels by the second quarter of 2009, management anticipated that the
volumes processed during the quarter would be reduced and that product mix
would move away from traditional lentil sales into other specialty crops (peas
and canary seed). Nonetheless, thanks to its strategy of diversifying markets
coupled with a continued push on product mix diversification, the Fund was
still able to deal relatively well with the crop shortage of this quarter.
    The Fund's sales were $72,951,127 for the three months ended June 30,
2009, compared to sales of $72,314,047 for the three months ended June 30,
2008, and $86,818,020 for the three months ended March 31, 2009. When
comparing the results for the second quarter of 2009 to those for the first
quarter of 2009, sales volume decreased by approximately 16%, EBITDA decreased
by 53.5%, and cost of sales decreased by 11%. This reflects the higher raw
material costs (particularly for lentils, due to the reduced supply of
lentils) for the second quarter of 2009. EBITDA was $5,109,983 for the three
months ended June 30, 2009 compared to $10,990,994 for the three months ended
March 31, 2009 and $7,766,527 for the three months ended June 30, 2008. The
improvement in results in the first half of 2009 over the first half of 2008
is attributable primarily to the additional processing capacity acquired by
the Fund in the second half of 2008. The June 30, 2009 year to date EBITDA is
$16,100,977. A four quarter trailing EBITDA from July 1, 2008 to June 30, 2009
shows EBITDA of $38,317,000.
    The financial statements and management discussion and analysis for the
three and six months ended June 30, 2009 are available under the Fund's
profile on and have been posted on the Fund's web site at All amounts are reported in Canadian dollars.
    "Canada had a record export year for pulse crops, leaving available
stocks on farm at near zero levels. This affected our ability to execute our
Q2 sales program with limited lentil inventory available for processing.
However positive price performance in the past year has fueled a record
acreage planting of lentils and peas in Canada and the USA. Harvest is upon us
and we are optimistic that a record crop will bring positive results to
Alliance shareholders" said Murad Al-Katib, President and CEO of Alliance and
Chairman of the Board of Trustees of the Fund. "With the proposed acquisition
of the Arbel Group and positive crop forecasts for Australia, Alliance is well
positioned to continue on its path of growth."

    Update on Conversion to Dividend Paying Corporation

    The Fund today obtained a final order of the Ontario Superior Court of
Justice approving the proposed conversion of the Fund on a tax deferred basis
from an open-ended unit trust to a dividend-paying corporation by means of a
plan of arrangement between the Fund and AGTI under the Business Corporations
Act (Ontario) (the "Conversion"). This court order was one of the regulatory
approvals which were required for the completion of the Conversion. The
completion of the Conversion, and of the acquisition of the Arbel Group
Companies referred to in the Fund's press release dated August 14, 2009 (the
"Acquisition"), is subject to various other conditions, including receipt of
all requisite regulatory approvals. The Fund currently expects the completion
of the Conversion and the Acquisition to take place on or about September 10,

    Cautionary Statements

    Certain statements in this press release are forward-looking statements.
The reader is cautioned that assumptions used in the preparation of such
information, although considered reasonable by the Fund at the time of
preparation, may prove to be incorrect.
    Forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of the Fund (including its operating subsidiaries) to be
materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such risks and
uncertainties include, among others, the actual results of harvests,
fluctuations in the price of lentils and other crops, failure of plant,
equipment or processes to operate as anticipated, accidents or labour
disputes, risks relating to the integration of acquisitions or to
international operations, as well as those factors referred to in the section
entitled "Risk Factors" in the prospectus of the Fund dated December 30, 2004
which is available on SEDAR at, and which should be reviewed in
conjunction with this document. Although the Fund has attempted to identify
important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
    EBITDA (Earnings Before Interest, Income Taxes, Depreciation and
Amortization) is a financial measure used by many investors to compare
companies on the basis of operating results, asset value and the ability to
incur and service debt. EBITDA is not a recognized earnings measures under
Canadian Generally Accepted Accounting Principles ("GAAP") and does not have a
standardized meaning prescribed by GAAP. It is not intended to represent cash
flow or results of operations in accordance with GAAP. Therefore, EBITDA may
not be comparable to similar measures presented by other issuers. Investors
are cautioned that EBITDA should not be construed as an alternative to net
income or loss determined in accordance with GAAP as an indicator of the
Fund's performance or to cash flows from operating, investing and financing
activities of liquidity and cash flows.

    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.

For further information:

For further information: Murad Al-Katib, Chairman of the Board of
Trustees, President and CEO, Alliance Pulse Processors, Tel: (306) 525-4490,

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