Sun Gro Horticulture Income Fund Releases 2007 Second Quarter Results - Fund Continues to Grow Revenues and Position Operations for Future Growth



    TRADING SYMBOL: Toronto Stock Exchange - GRO.UN

    Sun Gro Horticulture Income Fund will hold a conference call and webcast
    to discuss 2007 second quarter and first half results on August 3, 2007
    at 7:30 am Pacific Time (10:30 am Eastern). The call can be accessed by
    dialing: 1-800-594-3790 or 416-644-3419. A replay will be available
    through August 19, 2007 at: 1-877-289-8525 or 416-640-1917. (Passcode:
    21242321 followed by the number sign)

    To access the live and archived webcast, please go to:
    http://www.vcall.com/IC/CEPage.asp?ID=119230 or to the fund's
    website at: www.sungro.com.

    VANCOUVER, Aug. 2 /CNW/ - Sun Gro Horticulture Income Fund (the Fund)
today reported financial results for the three and six months ended June 30,
2007. The three-month period represents the second quarter of the Fund's 2007
fiscal year.

    Distributable Cash

    In the three months ended June 30, 2007, the Fund generated distributable
cash of $6.25 million, or $0.28 per unit. This compares to $6.15 million, also
$0.28 per unit, in the second quarter of 2006. For the six-month period,
distributable cash totalled $12.9 million, or $0.58 per unit, compared to
$12.7 million, or $0.58 in 2006. Distributable cash paid to unitholders was
unchanged at $5.0 million, or $0.225 per unit, for the quarter and
$9.9 million, or $0.45 per unit, for the six months.
    "We have built on the positive momentum that began in 2006 and gathered
strength through the first quarter of this year," said Mitch Weaver, President
and CEO of Sun Gro Horticulture Canada (Sun Gro, or the company) and a Trustee
of the Fund. "Sun Gro's second quarter revenues were up by 22%, setting a new
record for the period as we continued to enjoy healthy growth in sales
volumes, and to implement our growth and geographic diversification
strategies."

    
    (in thousands of dollars
     except per unit amounts)       For the    For the    For the    For the
                                     three      three       six        six
                                     months     months     months     months
                                     ended      ended      ended      ended
    Statement of                    June 30,   June 30,   June 30,   June 30,
     distributable cash(1)            2007       2006       2007       2006
                                  -------------------------------------------
    Cash flows from operating
     activities                    $ 18,232   $ 16,605   $ 12,263   $ 11,579
    Adjustments:
      Change in non-cash
       operating working capital    (12,857)   (11,813)       184       (123)
      Realized gain on foreign
       currency contracts             1,417      2,045      1,306      2,536
      Sustaining capital
       expenditures                    (860)      (672)    (1,481)    (1,686)
      Repayment of government loans     (55)       (50)      (110)      (100)
      Current income taxes expected
       to seasonally reverse in
       the current fiscal year          374         32        714        482
                                  -------------------------------------------
    Distributable cash             $  6,251   $  6,147   $ 12,876   $ 12,688
                                  -------------------------------------------
                                  -------------------------------------------
    Distributable cash per unit    $   0.28   $   0.28   $   0.58   $   0.58
                                  -------------------------------------------
                                  -------------------------------------------

    Distributions declared
     per unit                      $  0.225   $  0.225   $   0.45   $   0.45
                                  -------------------------------------------
                                  -------------------------------------------
    (1) Distributable cash is not an earnings measure recognized by Canadian
    generally accepted accounting principles (GAAP) and does not have a
    standardized meaning prescribed by GAAP. The table above shows the Fund's
    method of calculating distributable cash. See also "Non-GAAP Measures"
    below.
    


    Three-month Operating Results

    Revenues for the three months ended June 30, 2007 were a record
$63.2 million, up by $11.3 million, or 22%, from $51.9 million in 2006.
Overall sales volumes for the second quarter were also up by 22% over last
year. The revenue growth came primarily from sales generated by Sun Gro's
recently-acquired California operations. The four plants purchased in January
2007 added about $7.0 million of revenue from retail co-packing business and
sales of bulk bark landscape mixes.
    Due in part to the greater proportion of lower-margin products from the
new California facilities in its sales mix, Sun Gro's second quarter gross
margin declined to 43% from 48% in 2006. Excluding the California operations,
the company's second quarter gross margin would have been 46%. Weaver noted
that Sun Gro is in the process of adding higher-margin professional growing
mixes to its California output, as well as adjusting prices.
    "During the second quarter, as planned, we completed the installation of
a new growing mix production line at our McFarland, California plant, and we
are now in the process of installing an automated mixing line at our
Sacramento facility. These enhancements will allow us to target more
profitable business within the California professional grower market," said
Weaver.
    Gross profit for the second quarter was also negatively impacted by a
slower than normal start to harvesting in Manitoba due to persistent wet
weather during the spring and early summer of this year. However, in New
Brunswick, Sun Gro achieved nearly twice its targeted second quarter harvest
volume, demonstrating the benefits of the company's growing geographic
diversification. Sun Gro is one of only a few peat industry participants with
significant bog resources in all commercially viable harvest regions of North
America.
    The company's primarily US dollar-denominated sales revenues were
moderately impacted by a year-over-year strengthening of the Canadian dollar
during the quarter. The average Canadian dollar exchange rate increased to
US$0.90 from US$0.89 in the second quarter of 2006. The difference effectively
decreased Sun Gro's three-month revenue by about 1%.
    In tandem with the expansion of its business into California, the company
saw an increased cost of goods sold during the second quarter of 2007. The
strengthening of the Canadian dollar and slower start to the Manitoba peat
harvest also contributed to the increased costs. As a result, Sun Gro's cost
of goods sold for the quarter was up by 32% over 2006. Distribution costs were
also higher, increasing by 20% over last year due to the larger sales volumes.
    Second quarter operating income of $4.1 million was consistent with the
$4.1 million reported for the same period of 2006. As expected, the higher
sales revenues from the company's new California locations did not have a
meaningful impact on operating income. Sun Gro will continue to focus sales
efforts over the balance of the year on adding more higher-margin professional
business to the new California plants.
    Net earnings for the three month period were $4.9 million, generating
basic and diluted earnings of $0.22 per unit. In 2006, the company generated
basic and diluted earnings of $0.38 per unit on second quarter net earnings of
$8.4 million. The year-over-year difference is primarily attributable to
differences in future taxes.

    Six-Month Operating Results

    Revenue for the six months ended June 30, 2007 was $129.8 million, up by
$20.0 million, or 18%, from the $109.8 million reported in the first half of
2006. Overall sales volumes for the first half were 14% higher than in 2006.
As with the quarterly result, the revenue gain was primarily driven by the new
California operations, which added about $11.1 million of revenue during the
six months.
    Sun Gro's gross margin of 45% for the first half of 2007 was down from
47% in the same six months of 2006, due mainly to the significant lower-margin
sales volumes added in California. Excluding the California operations, gross
margin for the first half would have been 46%. Operating income for the first
half increased to $10.8 million from $10.1 million in 2006. Net earnings of
$9.7 million, or $0.44 per unit, were down from $12.5 million, or $0.57 per
unit, in the first six months of 2006. The net earnings difference is
attributable to this year's higher sales volumes and revenue, offset by
differences in future taxes.

    
    Financial Highlights

    Comparative Statements of Earnings
    (In thousands of dollars           For the three         For the three
     except per unit amounts,           months ended          months ended
     number of units outstanding       June 30, 2007         June 30, 2006
     and EBs)                           (unaudited)           (unaudited)
                                  -------------------------------------------
    Revenue                        $     63,181   100%   $     51,926   100%
    Cost of goods sold                   35,712    57%         27,006    52%
                                  --------------        --------------
    Gross profit                         27,469    43%         24,920    48%

    Distribution expenses                14,436    23%         12,045    23%
    Selling expenses                      4,225     7%          3,900     8%
    General and administrative
     expenses                             4,677     7%          4,827     9%
                                  --------------        --------------
    Total operating expenses             23,338    37%         20,772    40%
                                  --------------        --------------
    Operating income                      4,131     6%          4,148     8%

    Other income, net                     3,320     6%          3,875     7%
    Interest expense                     (1,238)   -2%         (1,176)   -2%
                                  --------------        --------------
    Earnings before income taxes          6,213    10%          6,847    13%
    Income tax (provision) recovery
      Current                              (436)   -1%           (867)   -2%
      Future                               (882)   -1%          2,400     5%
                                  --------------        --------------
    Income tax (provision)
     recovery, net                       (1,318)   -2%          1,533     3%
                                  --------------        --------------
    Net earnings for the period    $      4,895     8%   $      8,380    16%
                                  --------------        --------------
                                  --------------        --------------

    Basic and diluted earnings
     per unit                      $       0.22          $       0.38
                                  --------------        --------------
                                  --------------        --------------
    Weighted average number of
     units outstanding               22,023,000            22,023,000
                                  --------------        --------------
                                  --------------        --------------

    Selected supplemental revenue
     information

      Volume in thousands of
       EBs(1)
      Growing Mixes                       1,881                 1,486
      Bulk Bark Mixes                       280                    42
      Peat Moss                           1,951                 1,794
      Fertilizer and Minerals                71                    93
                                  --------------        --------------
      Total company sales                 4,183                 3,415
                                  --------------        --------------
                                  --------------        --------------

      Average revenue per EB(1)
       (US $)
      Growing Mixes                $      18.36          $      18.30
      Bulk Bark Mixes                      8.17                  7.43
      Peat Moss                            9.04                  8.23
      Fertilizer and Minerals             37.58                 28.49
                                  --------------        --------------
      Total company sales          $      13.66          $      13.16
                                  --------------        --------------
                                  --------------        --------------

      Average revenue per EB(1)
       (Canadian $)
      Growing Mixes                $      20.47          $      20.73
      Bulk Bark Mixes                      9.03                  8.37
      Peat Moss                           10.04                  9.30
      Fertilizer and Minerals             41.54                 32.30
                                  --------------        --------------
      Total company sales          $      15.20          $      14.89
                                  --------------        --------------
                                  --------------        --------------

    (1) An EB, or equivalent bale, is Sun Gro's standard unit of measure,
        referring to 10 cubic feet of peat. Average revenue per EB
        calculation does not include transportation-related surcharges or the
        cost of early payment discounts.



    Comparative Statements of Earnings
    (In thousands of dollars            For the six           For the six
     except per unit amounts,           months ended          months ended
     number of units outstanding       June 30, 2007         June 30, 2006
     and EBs)                           (unaudited)           (unaudited)
                                  -------------------------------------------
    Revenue                        $    129,847   100%   $    109,823   100%
    Cost of goods sold                   71,859    55%         57,786    53%
                                  --------------        --------------
    Gross profit                         57,988    45%         52,037    47%

    Distribution expenses                28,392    22%         24,765    22%
    Selling expenses                      8,436     7%          7,680     7%
    General and administrative
     expenses                            10,348     8%          9,474     9%
                                  --------------        --------------
    Total operating expenses             47,176    37%         41,919    38%
                                  --------------        --------------
    Operating income                     10,812     8%         10,118     9%

    Other income, net                     3,592     3%          3,583     3%
    Interest expense                     (2,413)   -2%         (2,225)   -2%
                                  --------------        --------------
    Earnings before income taxes         11,991     9%         11,476    10%
    Income tax (provision) recovery
      Current                            (1,893)   -2%         (1,952)   -2%
      Future                               (434)    0%          2,955     3%
                                  --------------        --------------
    Income tax (provision)
     recovery, net                       (2,327)   -2%          1,003     1%
                                  --------------        --------------
    Net earnings for the period    $      9,664     7%   $     12,479    11%
                                  --------------        --------------
                                  --------------        --------------

    Basic and diluted earnings
     per unit                      $       0.44          $       0.57
                                  --------------        --------------
                                  --------------        --------------
    Weighted average number of
     units outstanding               22,023,000            22,023,000
                                  --------------        --------------
                                  --------------        --------------

    Selected supplemental revenue
     information

      Volume in thousands of EBs(1)
      Growing Mixes                       3,935                 3,293
      Bulk Bark Mixes                       390                    79
      Peat Moss                           3,284                 3,254
      Fertilizer and Minerals               165                   196
                                  --------------        --------------
      Total company sales                 7,774                 6,822
                                  --------------        --------------
                                  --------------        --------------

      Average revenue per EB(1)
       (US $)
      Growing Mixes                $      18.58          $      18.44
      Bulk Bark Mixes                      8.05                  7.33
      Peat Moss                            9.34                  8.37
      Fertilizer and Minerals             31.82                 28.47
                                  --------------        --------------
      Total company sales          $      14.56          $      13.80
                                  --------------        --------------
                                  --------------        --------------

      Average revenue per EB(1)
       (Canadian $)
      Growing Mixes                $      21.36          $      21.07
      Bulk Bark Mixes                      9.07                  8.33
      Peat Moss                           10.64                  9.53
      Fertilizer and Minerals             43.39                 32.53
                                  --------------        --------------
      Total company sales          $      16.68          $      15.75
                                  --------------        --------------
                                  --------------        --------------

    (1) An EB, or equivalent bale, is Sun Gro's standard unit of measure,
        referring to 10 cubic feet of peat. Average revenue per EB
        calculation does not include transportation-related surcharges or the
        cost of early payment discounts.
    


    Acquisition Activity

    As previously reported, Sun Gro entered into an agreement during the
quarter to acquire Quebec-based peat moss producer Tourbière Omer Bélanger
Inc. for $3.9 million. The purchase includes 1,900 acres of largely
undeveloped professional grade peat bogs, 140 acres of retail grade bogs and
three adjacent production facilities. The transaction is expected to close on
August 6, 2007 and will be funded through Sun Gro's existing acquisition line
of credit. The transaction, the company's third acquisition since the
beginning of 2007, is anticipated to be accretive to the Fund's unitholders
beginning in 2008.
    "In addition to giving us a physical presence in Quebec, the Tourbière
Omer Bélanger acquisition has strengthened our long-term peat supply in
Eastern Canada and enhanced the geographic diversity of our peat harvest
resources," said Weaver. "The new bogs will help ensure our ability to provide
high-quality peat to our core professional grower customers, who remain our
primary focus."

    Outlook

    The information contained in "Outlook" is forward-looking information.
Please see "Forward-Looking Statements" below for a discussion of the risks
and uncertainties in connection with forward-looking information.
    For the first six months of 2007, Sun Gro's combined growing mix and peat
moss sales volumes were 14% higher than the level achieved in the first half
of 2006. Moving through 2007, the company expects that its overall sales
volumes will continue to be higher than in 2006, due both to the availability
of additional bog acreage, and the contribution of its recent acquisitions in
California and Quebec. The expected volume growth is based on Sun Gro
achieving 2007 peat harvest levels that are in line with its 2006 experience.
    "Through our acquisitions of Sun-Up Horticulture and Kellogg-Rich Grow in
the first quarter of this year, we have established manufacturing capability
in California," said Weaver. "While these new facilities were dedicated to
retail co-packing and bulk-bark landscape mixes this spring, we are now in the
process of adding high-margin professional mix products to their product
lines. This will significantly enhance our ability to target greenhouse
growers, ornamental nurseries, landscapers and vegetable transplant growers
throughout the large California market. Our installation of a new growing mix
production line at the recently acquired McFarland, California plant is part
of this strategy. We are also now installing an automated mixing line at our
Sacramento, California plant, expected to be completed this year."
    Weaver noted that Sun Gro has increased its acquisition line of credit to
support on-going growth initiatives, adding a further $10.0 million to the
line. The company has also amended its credit facilities to extend the
maturity of its term loans to November 1, 2010 and its revolving operating
facility to November 1, 2009, giving it added financial flexibility.
    Sun Gro continues to hold forward currency contracts to help manage the
near-term impact of any further strengthening of the Canadian dollar. For the
second half of 2007, the company has entered into forward currency contracts
with a blended rate of $1.11 (US$0.90) that will offset approximately 70% of
its expected net US dollar cash flows. For the first six months of 2008, Sun
Gro has entered into foreign currency contracts with a blended rate of $1.07
(US$0.93). These will offset approximately 70% of its expected US dollar cash
flows.

    Forward-Looking Statements

    This news release contains forward-looking statements. These statements
relate to future events or future performance and reflect Sun Gro's
expectations regarding its growth, results of operations, performance,
business prospects, opportunities or industry performance or trends. These
forward-looking statements reflect management's current internal projections,
expectations or beliefs and are based on information currently available. In
some cases, forward-looking statements can be identified by terminology such
as "may", "will", "should", "expect", "intend", "plan", "anticipate",
"believe", "predict", "potential", "continue" or the negative of these terms
or other comparable terminology. A number of factors could cause actual events
or results to differ materially from those discussed in the forward-looking
statements. Important factors that could cause actual results to differ
materially from Sun Gro's expectations include, among other things,
fluctuations in currency exchange rates, changes in tax laws, the impact of
adverse weather conditions on harvesting operations, an increase in freight
rates, failure to successfully implement our strategies of adding
higher-margin products and targeting the professional grower market, failure
of acquisitions to be accretive to unitholders or to be accretive within our
anticipated time frames, and the impact of an increase in fuel costs. You
should specifically consider these factors, including the risks and
uncertainties described in the Fund's most recent annual information form for
the year ended December 31, 2006. In addition, the Fund's ability to make
distributions to unitholders is entirely dependent on Sun Gro's performance.
Although management believes that the forward-looking statements contained in
this news release are based on reasonable assumptions, readers cannot be
assured that actual results will be consistent with such statements.
Forward-looking statements are made as of the date of this news release and
Sun Gro assumes no obligation to update or revise them to reflect new events
or circumstances.

    Non-GAAP Measures

    Distributable cash is not an earnings measure recognized by GAAP and does
not have a standardized meaning prescribed by GAAP. Therefore, the
distributable cash of the Fund may not be comparable to the distributable cash
measures presented by other issuers. However, distributable cash is commonly
used by Canadian open-ended trusts as an indicator of financial performance
and the Fund believes that distributable cash is a useful supplemental measure
that may assist in assessing the potential return on an investment in the
Fund.
    The calculation of distributable cash is based on cash flows from
operating activities, adjusted for changes in non-cash operating working
capital, realized gains and losses on foreign currency contracts, sustaining
capital expenditures, government grants and government loans, and such
reserves as the Board of Directors and Trustees of the Fund may consider
appropriate. Certain expenditures that are incurred as part of earnings-
enhancing capital projects and acquisitions are excluded from the
determination of distributable cash flow if the project or acquisition is
funded by term debt or equity financing.

    Income Fund Profile

    Sun Gro Horticulture Income Fund was launched with the completion of an
Initial Public Offering of 22,023,000 trust units on March 27, 2002. The Fund
is dependent on Sun Gro's operations, with monthly distributions to its
unitholders based entirely on Sun Gro's performance.

    Company Profile

    Sun Gro was founded in 1929 in Vancouver, BC and has grown to become
North America's largest producer of sphagnum peat, and the largest distributor
of peat moss, and peat and bark-based growing media to professional plant
growers in the US and Canada. Sun Gro sells its professional products
primarily to greenhouse, nursery and specialty crop growers, as well as to
golf course developers and landscapers. Sun Gro also sells peat moss and peat-
based growing mixes to retail customers, either by way of private label
partnerships or under its own brand names. Approximately 80% of the company's
sales volume goes to the US.


    
    Sun Gro Horticulture Income Fund
    Consolidated Balance Sheet
    (in thousands of dollars)
    (unaudited)

                                                       As at        As at
                                                      June 30,   December 31,
    Assets                                              2007         2006
                                                   ------------  ------------

    Current assets
      Accounts receivable                           $   46,523    $   38,338
      Inventories                                       24,969        33,874
      Unrealized gain on foreign currency contracts      1,680             -
      Prepaid expenses and other assets                  4,600         3,522
                                                   ------------  ------------
                                                        77,772        75,734

    Property, plant and equipment                      120,933       122,459
    Intangible assets                                   35,200        33,653
    Goodwill                                            13,468        11,202
    Other assets                                           377           442
                                                   ------------  ------------
                                                    $  247,750    $  243,490
                                                   ------------  ------------
                                                   ------------  ------------
    Liabilities and Unitholders' Equity

    Current liabilities
      Bank indebtedness                             $      754    $      649
      Operating line                                    31,294        31,146
      Accounts payable and accrued liabilities          18,236        15,781
      Unrealized loss on foreign currency contracts          -           824
      Current portion of long-term debt                    647           221
      Distribution payable to Unitholders                1,652         1,652
                                                   ------------  ------------
                                                        52,583        50,273

    Other liabilities                                    4,696         4,561
    Long-term debt                                      33,261        27,511
    Future income taxes                                 14,912        13,678
                                                   ------------  ------------
                                                       105,452        96,023
    Unitholders' equity
      Capital contributions                            209,733       209,733
      Cumulative translation account                   (20,638)      (15,717)
      Cumulative earnings                               67,059        57,395
      Cumulative distributions declared               (113,856)     (103,944)
                                                   ------------  ------------
                                                       142,298       147,467
                                                   ------------  ------------
                                                    $  247,750    $  243,490
                                                   ------------  ------------
                                                   ------------  ------------


    Consolidated Statements of Earnings and Cumulative Earnings
    (in thousands of dollars except per unit amounts and number of
     units outstanding)
    (unaudited)

                                For the     For the     For the     For the
                                 three       three        six         six
                                 months      months      months      months
                                 ended       ended       ended       ended
                                June 30,    June 30,    June 30,    June 30,
                                  2007        2006        2007        2006
                             ------------------------------------------------

    Revenue                   $   63,181  $   51,926  $  129,847  $  109,823
    Cost of goods sold            35,712      27,006      71,859      57,786
                             ------------------------------------------------
    Gross profit                  27,469      24,920      57,988      52,037

    Distribution expenses         14,436      12,045      28,392      24,765
    Selling expenses               4,225       3,900       8,436       7,680
    General and
     administrative expenses       4,677       4,827      10,348       9,474
                             ------------------------------------------------
    Total operating expenses      23,338      20,772      47,176      41,919
                             ------------------------------------------------
    Operating income               4,131       4,148      10,812      10,118

    Other income, net              3,320       3,875       3,592       3,583
    Interest expense              (1,238)     (1,176)     (2,413)     (2,225)
                             ------------------------------------------------
    Earnings before income
     taxes                         6,213       6,847      11,991      11,476
    Income tax (provision)
     recovery
      Current                       (436)       (867)     (1,893)     (1,952)
      Future                        (882)      2,400        (434)      2,955
                             ------------------------------------------------
    Income tax (provision)
     recovery, net                (1,318)      1,533      (2,327)      1,003
                             ------------------------------------------------
    Net earnings for the
     period                        4,895       8,380       9,664      12,479
    Cumulative earnings -
     beginning of period          62,164      45,547      57,395      41,448
                             ------------------------------------------------
    Cumulative earnings -
     end of period            $   67,059  $   53,927  $   67,059  $   53,927
                             ------------------------------------------------
                             ------------------------------------------------

    Basic and diluted
     earnings per unit        $     0.22  $     0.38  $     0.44  $     0.57
                             ------------------------------------------------
                             ------------------------------------------------
    Weighted average number
     of units outstanding     22,023,000  22,023,000  22,023,000  22,023,000
                             ------------------------------------------------
                             ------------------------------------------------


    Sun Gro Horticulture Income Fund
    Consolidated Statements of Cash Flows
    (in thousands of dollars)
    (unaudited)

                                For the     For the     For the     For the
                                 three       three        six         six
                                 months      months      months      months
                                 ended       ended       ended       ended
                                June 30,    June 30,    June 30,    June 30,
                                  2007        2006        2007        2006
                             ------------------------------------------------

    Cash flows from
     operating activities
    Net earnings for the
     period                   $    4,895  $    8,380  $    9,664  $   12,479
      Items not affecting
       cash
        Depreciation,
         depletion and
         accretion                 2,565       2,389       5,156       4,770
        Amortization of
         intangible assets           468         491       1,029         982
        Gain on foreign
         currency contracts       (3,418)     (4,072)     (3,810)     (3,822)
        (Gain) loss on disposal
         of property, plant
         and equipment               (17)          4         (26)          2
        Future income tax
         provision (recovery)        882      (2,400)        434      (2,955)
                             ------------------------------------------------
                                   5,375       4,792      12,447      11,456
      Change in non-cash
       operating working
       capital                    12,857      11,813        (184)        123
                             ------------------------------------------------
                                  18,232      16,605      12,263      11,579
    Cash flows from
     investing activities
      Acquisitions                     -           -      (6,340)          -
      Realized gain on
       foreign currency
       contracts                   1,417       2,045       1,306       2,536
      Additions to property,
       plant and equipment        (1,585)       (672)     (2,318)     (1,686)
      Proceeds from disposal
       of property, plant
       and equipment                  18           -          62           2
                             ------------------------------------------------
                                    (150)      1,373      (7,290)        852
    Cash flows from
     financing activities
      Distributions paid to
       Unitholders                (4,956)     (4,956)     (9,912)     (9,912)
      Proceeds from term loans         -           -       6,435           -
      Increase (decrease) in
       operating line            (11,370)    (13,448)        148      (2,037)
      Repayment of government
       loan                          (55)        (50)       (110)       (100)
                             ------------------------------------------------
                                 (16,381)    (18,454)     (3,439)    (12,049)

    Effect of exchange rate
     changes on cash              (1,683)       (604)     (1,639)       (481)
                             ------------------------------------------------

    (Increase) decrease in
     bank indebtedness                18      (1,080)       (105)        (99)
    Bank indebtedness -
     beginning of period            (772)        (72)       (649)     (1,053)
                             ------------------------------------------------
    Bank indebtedness -
     end of period            $     (754) $   (1,152) $     (754) $   (1,152)
                             ------------------------------------------------
                             ------------------------------------------------

    Supplemental cash flow
     information
      Interest paid           $    1,417  $    1,541  $    2,462  $    2,300
      Income taxes paid       $      208  $       91  $      268  $      383

    

    %SEDAR: 00017490E




For further information:

For further information: Bradley A. Wiens, Vice-President, Finance and
CFO, Sun Gro Horticulture Income Fund, Tel: (425) 373-3603, Email:
bradw@sungro.com, Website: www.sungro.com

Organization Profile

SUN GRO HORTICULTURE INCOME FUND

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890