WINNIPEG, Feb. 17, 2015 /CNW/ - Exchange Income Corporation (TSX: EIF), ("EIC" or the "Corporation") a diversified, acquisition-oriented company, reported today that it has entered into an agreement with the Canada Revenue Agency ("CRA") regarding the CRA's objection to the tax consequences of the conversion (the "conversion") of EIC's income trust structure into a corporation in July 2009.
The agreement will not give rise to any cash outlay by the Corporation for prior taxation years. EIC will prepare an overall update of the agreement's one-time impact on its deferred tax assets as part of its management's discussion and analysis accompanying its financial statements for the fourth quarter and year-end to be issued on February 19, 2015.
"We've been proactive with the CRA in order to resolve this issue, and the agreement gives EIC a highly satisfactory ending to an important chapter. The resolution of this issue strengthens our balance sheet by eliminating any exposure for liability for prior periods. The agreement also eliminated any potential for years of costly litigation and allows management to focus full time on executing our core business plan of creating value for our shareholders," said Carmele Peter, President of EIC.
About Exchange Income Corporation
Exchange Income Corporation is a diversified acquisition-oriented company, focused in two sectors: aviation services and equipment and manufacturing. The Corporation uses a disciplined acquisition strategy to identify already profitable, well-established companies that have strong management teams, generate steady cash flow, operate in niche markets and have opportunities for organic growth.
The Corporation currently operates two segments: Aviation and Manufacturing. The Aviation segment consists of the operations by Perimeter Aviation, Keewatin Air, Calm Air International, Bearskin Lake Air Service, Custom Helicopters, Regional One and Provincial Aerospace. The Manufacturing segment consists of the operations by Jasper Tank, Overlanders Manufacturing, Water Blast Manufacturing, Stainless Fabrication and WesTower Communications in Canada. For more information on the Corporation, please visit www.ExchangeIncomeCorp.ca. Additional information relating to the Corporation, including all public filings, is available on SEDAR (www.sedar.com).
Caution concerning forward-looking statements
The statements contained in this news release that are forward-looking are based on current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. These uncertainties and risks include, but are not limited to, the dependence of Exchange Income Corporation on the operations and assets currently owned by it, the degree to which its subsidiaries are leveraged, the fact that cash distributions are not guaranteed and will fluctuate with the Corporation's financial performance, dilution, restrictions on potential future growth, the risk of shareholder liability, competitive pressures (including price competition), changes in market activity, the cyclicality of the industries, seasonality of the businesses, poor weather conditions, and foreign currency fluctuations, legal proceedings, commodity prices and raw material exposure, dependence on key personnel, and environmental, health and safety and other regulatory requirements. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by Exchange Income Corporation with the securities regulatory authorities, available at www.sedar.com.
SOURCE Exchange Income Corporation
For further information: Mike Pyle, CEO, Exchange Income Corporation, (204) 982-1850, [email protected]; Joe Racanelli, Investor Relations, The Equicom Group Inc., (416) 815-0700 or 1-800-385-5451 ext. 243, [email protected]