VANCOUVER, Feb. 28 /CNW/ - WesternOne Equity Income Fund ("WesternOne
Equity") (TSXV: WEQ.UN and WEQ.DB) today announced the release of its
financial results for the year ended December 31, 2007. The results,
consisting of WesternOne Equity's audited consolidated financial statements
for the year ended December 31, 2007, and Management's Discussion and Analysis
("MD&A") dated February 20, 2008, are available on SEDAR (www.sedar.com).
The following discussion is based on certain audited financial and
operating results of WesternOne Equity for the year ended December 31, 2007
and for the 201-day period ended December 31, 2006. Please refer to WesternOne
Equity's MD&A dated February 20, 2008 for further information.
"WesternOne has completed its first full year of operation this year
since its inception on June 14, 2006, and we are pleased with the growth that
WesternOne has achieved in 2007 both through its acquisition of the assets of
Old Country Rentals and the robust organic growth within the existing
operation of Production Equipment." said Darren Latoski, Chief Executive
Officer. "The outstanding growth in the operating results that we witnessed
this year was attributable to the continuing strength in the construction and
general equipment rental sectors, and the expanded geographical reach from the
Lower Mainland of British Columbia into Vancouver Island."
Total revenues of $22.53 million for the year ended December 31, 2007
increased by 238.2%, or $15.87 million, compared to $6.66 million for the
201-day period ended December 31, 2006. Factoring in the partial year in 2006,
revenue from WEQ Production Equipment LP ("PER") increased by 19.7%
year-over-year. PER is a subsidiary indirectly and wholly owned by WesternOne
Equity which acquired the assets and business of Production Equipment Rentals
Company on August 15, 2006. WEQ Old Country Rentals LP ("OCR") is a subsidiary
indirectly and wholly owned by WesternOne Equity and since the acquisition of
the assets and business of Old Country Rentals Ltd. on June 1, 2007, OCR has
contributed $3.49 million of incremental revenue for the period ended
December 31, 2007.
Gross income increased by 209.8%, or $10.75 million, to $15.87 million
for the year ended December 31, 2007 compared to $5.12 million a year ago.
Factoring in the partial year in 2006, gross income from PER achieved a
15.1% growth year-over-year. Since its acquisition on June 1, 2007, OCR has
contributed an incremental $2.38 million of gross income for the period ended
December 31, 2007.
Gross margin was 70.4% for the year ended December 31, 2007, compared to
76.9% in 2006. The lower margin is due to the significant growth in equipment
sales this year (25.3% of total revenues in 2007 compared to 17.2% in 2006),
fuelled by the strong construction and general equipment and tool sectors.
Equipment sales typically have a lower margin than equipment rentals. The
growth in equipment sales resulted in a net increase of $0.72 million of gross
income in 2007 compared to 2006.
Earnings before interest, income taxes, amortization and accretion
("EBITDA") of $8.11 million for the year ended December 31, 2007 increased by
161.2%, or $5.01 million, compared to $3.10 million a year ago. Factoring in
the partial year in 2006, PER achieved a 14.9% year-over-year growth. Since
its acquisition on June 1, 2007, OCR has contributed an incremental
$1.07 million of EBITDA for the period ended December 31, 2007.
Net income of $5.32 million for the year ended December 31, 2007
increased by 248.3% or $3.79 million, compared to $1.53 million a year ago.
Included in the 2007 net income was a one-time, non-cash future income tax
recovery of $1.45 million as a result of the new tax legislations enacted by
the Government of Canada in June, 2007. Excluding the tax effect the adjusted
net income was $3.87 million for the year ended December 31, 2007, which
increased by 152.9% or $2.34 million, compared to a year ago.
WesternOne Equity generated distributable cash of $6.94 million for the
year ended December 31, 2007, or $0.7325 per trust unit. WesternOne Equity
distributed $5.50 million, or $0.5666 per trust unit, relating to the twelve
consecutive monthly cash distributions to its public unitholders in 2007,
resulting in a payout percentage of 79.2%.
WesternOne Equity has announced subsequent monthly distributions of
$0.05 per unit for January and February, 2008 (paid February 15 and payable
March 17, 2008, respectively).
Subsequent to December 31, 2007, WesternOne Equity, through its indirect
subsidiaries, has completed the acquisitions of the assets of two additional
companies: C&N Motors Ltd. ("C&N") in Comox on central Vancouver Island for
$2.0 million and Deerfoot Equipment Rentals Ltd. ("Deerfoot") in Calgary,
Alberta for $13.0 million. The purchases were funded by cash for C&N and a
combination of cash, debt from an existing credit facility and the issuance of
125,000 exchangeable units convertible to public units of WesternOne Equity on
a one-for-one basis for Deerfoot.
"2007 was a successful year for WesternOne Equity in terms of achieving
organic growth within our existing operation of Production Equipment and
seeking external growth through the acquisition of the assets of Old Country
Rentals," said Mr. Latoski. "We are excited about the growth potential
generated by our recent purchases of the assets of C&N and Deerfoot. In
2008 we look forward to integrating these operations into the WesternOne
Equity business platform through leveraging our in-place management expertise
and expanded business network, now beyond British Columbia and into Alberta.
Further, we will continue to execute our growth strategy through seeking
accretive acquisition opportunities."
Darren Latoski, CEO, and Carlos Yam, CFO, of WesternOne Equity GP Inc.
will host a conference call at 5:30pm (EST), 2:30pm (PST), on
Thursday, March 6, 2008, to review the financial results and corporate
developments for the year ended December 31, 2007.
To participate in this conference call, please dial one of the following
numbers approximately 10 minutes prior to the commencement of the call, with
the participant pass-code 88222 followed by the number sign.
If you are unable to participate, a replay will be available 60 minutes
after the meeting end time, until midnight April 7, 2008, by dialing one of
the following numbers with the conference reference number 610687 followed by
the number sign.
We look forward to having you participate in our call.
About WesternOne Equity
WesternOne Equity seeks to acquire predominantly equipment and
infrastructure related businesses located primarily in the Western Canadian
provinces of British Columbia, Alberta and Saskatchewan, in order to generate
stable and growing distributions to its unitholders as well as to achieve
overall capital appreciation.
Additional information about WesternOne Equity is available at www.weq.ca
Certain information in this press release may constitute
"forward-looking" information that involves known and unknown risks,
uncertainties and other factors that may cause our actual results, performance
or achievements or industry results, to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking information. When used in this press release, such information
often uses, but are not limited to, such words as "may", "will", "expect",
"should", "believe", "intend", "plan", "anticipate", "potential", and other
similar terminology. Such information reflects current expectations of
management regarding future events and operating performance and speaks only
as of the date of this press release. Forward-looking information involves
significant risks and uncertainties, should not be read as guarantees of
future performance or results, and will not necessarily be accurate
indications of whether or not such results will be achieved. A number of
factors could cause actual results to differ materially from the results
discussed in the forward-looking information, including, but not limited to,
the following factors: competitive and economic environment, the results of
due diligence inquiries and negotiation of acquisition documents, impact of
changes to tax treatment of income trusts or dividend tax credits, foreign
exchange, seasonality, inability to close or realize accretive benefits from
acquisitions, fluctuation of cash distributions and nature of trust units.
Although any forward-looking information contained in this press release is
based upon what WesternOne Equity's management believes to be reasonable
assumptions, WesternOne Equity cannot assure investors that actual results
will be consistent with such forward-looking information. Such forward-looking
information is made as of the date of this press release and WesternOne Equity
assumes no obligation to update or revise it to reflect new events or
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
For further information:
For further information: Andrew Greig, Manager of Investor Relations,
WesternOne Equity Income Fund, Suite 910, 925 West Georgia Street, Vancouver,
BC, V6C 3L2, Phone: (604) 678-4042, E-mail: email@example.com, www.weq.ca