EDMONTON, March 23 /CNW/ - (TSX: XSC.UN): XS Cargo Income Fund (the "Fund") today announced its results for the three and twelve month periods ended December 31, 2009. The Fund's interim and annual financial statements and Management's Discussion and Analysis ("MD&A") can be found on XS Cargo's website at www.xscargo.com and on SEDAR at www.sedar.com.
For the fourth quarter of 2009, the Fund reported sales of $42.0 million and net earnings of $2.1 million EBITDA increased by $3.7 million or 173.4% from $2.2 million in the fourth quarter of 2008 to $5.9 million in 2009.
Fourth quarter sales increased by $3.3 million or 8.4% compared to 2008. Same store sales increased by 5.6% over the same period.
Annual sales decreased by $4.1 million to $106 million. The Fund had EBITDA of $5.8 million for the year and a net loss of $195,320.
Michael McKenna, President and Chief Executive Officer of the Fund stated, "In 2009 a number of initiatives were undertaken to improve operating results. As these initiatives took hold, aided by an improving economy, sales and gross margin improved markedly. We are pleased with our progress and particularly encouraged by the fourth quarter. We expect continued improvement in 2010."
The Fund plans to open three new stores in 2010.
Business of the Fund
The Fund owns a 51% indirect interest in XS Cargo LP which operates 41 closeout retail stores in Alberta, British Columbia, Manitoba, Saskatchewan, Ontario, Newfoundland, Nova Scotia and New Brunswick.
(1) Non-GAAP Measures
References to "EBITDA" are to earnings before interest, income taxes, depreciation and amortization and references to "distributable cash" are to cash available for distribution to Unitholders in accordance with the distribution policies of the Fund. EBITDA is calculated as Net Earnings (loss) plus non-controlling interest, plus future income tax expense, plus impairment of goodwill, plus impairment of intangible assets, plus interest on term, subordinated and operating loans, plus amortization of intangible assets and amortization of property and equipment. Management believes that, in addition to income or loss, EBITDA is a useful supplemental measure of performance and cash available for distribution before debt service, changes in working capital, capital expenditures and income taxes. Distributable cash of the Fund is a measure generally used by open-ended trusts as an indicator of financial performance. As one of the factors that may be considered relevant by prospective investors is the cash distributed by the Fund relative to the price of the Units, management believes that distributable cash of the Fund is a useful supplemental measure that may assist prospective investors in assessing an investment in the Fund.
Earnings from operations have been derived by adding interest expense, amortization of property and equipment and intangible assets, future income taxes, impairment of goodwill and intangible assets, foreign exchange gain or loss, unit-based compensation and non-controlling interest to net earnings for the period.
EBITDA, distributable cash, earnings from operations and payout ratio are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP. Investors are cautioned that EBITDA, distributable cash and earnings from operations should not replace net income or loss (as determined in accordance with GAAP) as an indicator of the Fund's performance, of its cash flows from operating, investing and financing activities or as a measure of its liquidity and cash flows. The Fund's methods of calculating EBITDA, distributable cash, earnings from operations and payout may differ from the methods used by other issuers and may not be comparable to similar measures presented by other issuers.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release are forward-looking statements. You can identify many of these statements by looking for words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof. These forward-looking statements include statements with respect to the amount and timing of the payment of distributions of the Fund. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. Forward-looking statements are subject to risks, uncertainties and assumptions, including, but not limited to, those discussed elsewhere in the press release. There can be no assurance that such expectations will prove to be correct.
Some of the factors that could affect future results and could cause results to differ materially from those expressed in the forward-looking statements contained herein include, but are not limited to, those discussed under "Risk Factors" in the Fund's MD&A and in the Fund's Annual Information Form. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.
The forward-looking statements included in this press release are made as of the date of this press release and, except as required by law, the Fund assumes no obligation to update or revise them to reflect new events or circumstances.
SOURCE XS CARGO INCOME FUND
For further information: For further information: Michael McKenna, President and Chief Executive Officer, XS Cargo Income Fund, (780) 413-4296