All references to "TerraVest" or the "Corporation" in this press release include TerraVest Capital Inc., the successor to TerraVest Income Fund (the "Fund") following the conversion of the Fund from an income trust to a corporate entity (please see "Corporate Conversion" for further discussion), together with the Fund and its subsidiaries, as applicable, including the operations controlled and consolidated by them, unless otherwise indicated.
All amounts in this news release are stated in thousands of Canadian dollars, except per share or per unit data.
|For the three months ended March 31, 2013 TerraVest reported:|
|FINANCIAL PERFORMANCE||Three months ended March 31|
|EBITDA (Note 1)||4,303||4,377|
|Income and comprehensive income for the year||2,500||2,755|
|Free cash flow (Note 1)||2,257||2,967|
|Income per Share/Unit, basic and diluted||$||0.19||$||0.13|
|FINANCIAL POSITION|| March 31,
| December 31,
|Working capital (Note 1)||$||9,833||$||7,592|
|Property, plant and equipment||32,707||32,885|
|Non-current portion of long-term debt||3,444||3,700|
|Note 1: EBITDA, Free Cash Flow and Working Capital are not defined measures under International Financial Reporting Standards ("IFRS") and are therefore defined below. TerraVest's definitions may differ from those of other issuers and therefore may not be comparable to measures used by them.|
|EBITDA: is defined as income from continuing operations before financial expenses, income taxes, depreciation and amortization, impairment charges and changes in fair values of derivative instruments. EBITDA should not be used as an exclusive measure of cash flow since it does not account for the impact of working capital changes, capital expenditures, debt changes and other sources and uses of cash which are disclosed in the condensed consolidated statement of cash flows. Management uses EBITDA as part of its assessment of TerraVest's operating performance. There is no directly comparable IFRS measure for EBITDA.|
|Free Cash Flow: is defined as cash flow from operating activities from continuing operations less net capital expenditures from continuing operations. Free cash flow is a useful measure in that it provides management and investors an indication of TerraVest's capacity to generate discretionary cash flows from operations. Free cash flow should not be an exclusive measure of cash flow since it does not necessarily reflect the cash flow in the period available for management to use at its discretion, which may be affected by other sources and non-discretionary uses of cash such as scheduled debt repayments. There is no directly comparable IFRS measure for free cash flow.|
|Working Capital: is calculated by subtracting current liabilities from current assets. Management uses working capital as a measure for assessing overall liquidity. There is no directly comparable IFRS measure.|
TerraVest is also pleased to announce that The Board of Directors of TerraVest Capital Inc. (TSX:TVK) has today declared that a regular quarterly dividend of 8 cents per share upon the outstanding Common Shares in the capital stock of TerraVest Capital Inc. be payable on July 12, 2013 to shareholders of record as at the close of business on June 28, 2013. The ex-dividend date is June 26, 2013. The dividend is designated an "eligible dividend" for Canadian income tax purposes.
Additional information can be found in TerraVest's unaudited interim condensed consolidated financial statements and MD&A which are available on SEDAR at www.sedar.com.
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 business segments and TerraVest as a whole, and other plans and objectives of or involving TerraVest. 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 TerraVest as a whole and its business segments, the markets in which the business segments compete and the prospects and values of the business segments are considered in setting the business plan for TerraVest, plans and/or ability to pay dividends, 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, demand for products and services of the business segments in respect of the Canadian and other markets in which the businesses are active will be stable, and that input costs to business segments do not vary significantly from levels experienced historically. 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 TerraVest dated March 6, 2013 and under "Risk Factors" in the MD&A of TerraVest for the three months ended March 31, 2013, identifies risk factors that could affect the operating results and performance of TerraVest and its business segments and the values of the business segments and TerraVest 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 TerraVest, 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 TerraVest will not be affected by such risks, but that, if TerraVest 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, TerraVest does not undertake to update such forward-looking statements.
SOURCE: TerraVest Capital Inc.
For further information:
TerraVest Capital Inc.
Chief Executive Officer
(780) 632 -7774
Paul A. Casey, CA
TerraVest Capital Inc.
Chief Financial Officer