SYS-CON MEDIA Authors: Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel, Peter Silva

News Feed Item

Foremost Income Fund Reports Q3 Results and Increase in Redemption Price

CALGARY, ALBERTA -- (Marketwire) -- 11/09/12 -- Foremost Income Fund ("Foremost" or the "Fund") announces the financial results for the three and nine months ended September 30, 2012.

The Fund is an unincorporated open end mutual fund trust conducting its business through Foremost Universal LP ("Universal") and Foremost Industries LP ("Foremost"). The Fund derives its operational income from both Universal and Foremost. Universal's overall business is focused on the oil and gas industry and contains the business units of:


--  Universal Industries, a manufacturer of oil treating systems, shop and
    field storage tanks; 
--  Universal Bonnyville, Corlac Industries and Peace Land Fabricating and
    Supply Ltd., all shop tank manufacturers 
--  Maloney Industries, a manufacturer of medium- to large-scale oil and gas
    process treating equipment; 
--  Stettler Universal Limited Partnership, a gas separator and hydrovac
    truck manufacturer and  
--  Brahma, a sub-200 horsepower compressor manufacturer.  

Foremost includes the operations of Foremost Industries, a manufacturer of custom equipment used for the oil and gas, construction, water-well and mining industries.


FINANCIAL RESULTS                                                           
Condensed Consolidated Interim Statements of Comprehensive Income           
Unaudited                                                                   
                                   Three months ended     Nine months ended 
(000's), except per Trust Unit          September 30,         September 30, 
 amounts                              2012       2011       2012       2011 
----------------------------------------------------------------------------
Revenue                          $  64,746  $  65,632  $ 198,067  $ 187,885 
Cost of sales                       50,510     51,141    155,357    149,528 
----------------------------------------------------------------------------
Gross profit                        14,236     14,491     42,710     38,357 
Administrative expenses              5,825      4,753     17,880     14,900 
Depreciation and amortization        1,027      1,220      3,022      3,217 
Other income                            (2)       (98)      (632)      (653)
----------------------------------------------------------------------------
Income from operating activities     7,386      8,616     22,440     20,893 
----------------------------------------------------------------------------
 Interest (income) expense               3        (92)        16        (53)
 Foreign exchange (gain) loss          273        (34)       264         43 
----------------------------------------------------------------------------
Net finance (income) expense           276       (126)       280        (10)
----------------------------------------------------------------------------
Income before income tax             7,110      8,742     22,160     20,903 
Income tax expense                   1,485                 3,804            
----------------------------------------------------------------------------
Net income and comprehensive                                                
 income for the period           $   5,625  $   8,742  $  18,356  $  20,903 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic and diluted earnings per                                              
 Trust Unit                      $    0.30  $    0.42  $    0.98  $    1.00 

The key elements from Q3 2012 are:


--  Q3 revenues have decreased slightly by 1.3%. Q3 consolidated revenues
    were $64.7 million versus $65.6 million for 2011. 
    
--  Q3 revenues generated outside of Canada have increased to 20.5% compared
    with 13.0% in 2011 of total revenues. 
    
--  Q3 operating activities generated a gross profit percentage of 22.0% as
    compared with 22.1% in 2011. Gross profits were $14.2 million as
    compared with $14.5 million for 2011. 
    
--  Q3 administrative expenses increased to 9.0% of revenue versus 7.2% of
    revenue in 2011 due to increased business activities and additional
    employee count. Administrative expenses were $5.8 million in 2012 and
    $4.7 million for 2011. 
    
--  Fluctuations in the exchange rates between the Canadian dollar and the
    U.S. dollar, along with a U.S. cash balance of $8.4, resulted in a
    $273,000 exchange loss in Q3 compared to a $34,000 gain in 2011. 
    
--  Q3 income from operations decreased 14.3% to $7.4 million versus $8.6
    million for 2011. 
    
--  Q3 comprehensive income was $5.6 million compared to $8.7 million in
    2011. 2012 comprehensive income includes a charge to deferred tax assets
    of $1.4 million. 
    
--  Quarterly Trust Unit distributions remain suspended during the quarter,
    consistent with 2011. The Fund's intention is to utilize an annual
    distribution process as per prior years. 
    
--  The Fund redeemed 2,500 Trust Units during the quarter resulting in
    payments of $19,747. 16,000 Trust Unit options were exercised in the
    quarter at $8.75 for a cash value of $140,000.  
    
--  Q3 basic and diluted earnings per Trust Unit were $0.30 per Trust Unit
    as compared with $0.42 per Trust Unit in 2011. 

The key financial elements for the year to date are:


--  Year to date revenue has increased 5.4% as a result of improved domestic
    heavy oil markets and increased activity in oil sands development. Year
    to date consolidated revenues were $198.0 million versus $187.9 million
    in 2011. 
    
--  Year to date revenues generated outside of Canada have increased to
    18.0% from 12.9% of total revenues. 
    
--  Year to date gross margin percentage is 21.6% as compared with 20.4% in
    2011. Year to date gross profits were $42.7 million as compared with
    $38.3 million for 2011. 
    
--  Year to date administrative expenses increased to 9.0% of revenue versus
    7.9% of revenue in 2011. Administrative expenses were $17.8 million in
    2012 and $14.9 million for 2011. 
    
--  Fluctuations in the exchange rates between the Canadian dollar against
    the U.S. dollar resulted in a year to date loss of $264,000 compared to
    a loss of $43,000 in 2011. 
    
--  Year to date income from operations increased 7.4% to $22.4 million
    versus $20.9 million for 2011. 
    
--  Year to date comprehensive and net income was $18.3 million compared to
    $20.9 million in 2011. 2012 year to date comprehensive and net income
    includes a $3.8 million utilization of deferred tax assets. 
    
--  Year to date basic and diluted earnings per Trust Unit were $0.98 per
    Trust Unit as compared with $1.00 per Trust Unit in 2011. 
    
--  During the first quarter the Fund acquired the current and long-term
    debt facilities of Steelhead Welding Ltd., pursuant to a separate
    agreement the Fund also acquired and subsequently leased back the
    operating assets of Steelhead Welding Ltd. To date the Fund has advanced
    a total of $3.0 million in connection with its agreements with Steelhead
    Welding Ltd.  
    
--  Cash has increased $4.5 million since December 31, 2011. This increase
    was the result of $9.8 million of funds generated from operations, less
    net capital expenditures of $5.3 million, less $137,000 of Trust Unit
    redemptions and $140,000 received upon exercise of options. Working
    capital, defined as current assets less current liabilities, increased
    $19.1 million to $86.0 million due to strong earnings, strong
    collections and customer deposits outpacing billings. 
    
--  Property, plant and equipment at September 30, 2012 amounted to $58.4
    million. The $2.7 million increase relative to 2011 reflects $5.7
    million in acquisitions and $3.0 million decrease from amortization and
    disposals. 
    
--  Short-term indebtedness decreased to nil at September 30, 2012 compared
    with $3.5 million at December 31, 2011.  
    
--  Unitholders' equity increased from $156.7 million at December 31, 2011
    to $175.0 million at June 30, 2012. The increase relates primarily to
    strong earnings and minimal Trust Unit redemptions. 

TRUST UNIT REDEMPTIONS:

For the nine month period ending September 30, 2012 the Fund redeemed 18,695 Trust Units through its normal redemption program resulting in payments of $140,926. The Trustees have determined that, as of November 8, 2012 the Fund will increase the redemption price for tendered Trust Units from $8.26 to $8.40.

On behalf of the Trustees

Foremost Income Fund

James T. Grenon, Trustee

FORWARD-LOOKING STATEMENT

Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this news release. These forward-looking statements involve a number of risks and uncertainties, including: the impact of general economic conditions, industry conditions, changes in laws and regulations, increased competition, fluctuations in commodity prices and foreign exchange, and interest rates.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cloudian, Inc., is a Foster City, California - based software company specializing in cloud storage software. The main product is Cloudian, an Amazon S3-compliant cloud object storage platform, the bedrock of cloud computing systems, that enables c...
SYS-CON Media announced today that Sematext launched a popular blog feed on DevOps Journal with over 6,000 story reads over the weekend. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Sematext is a globally distributed organization that builds innovative Cloud and On Premises solutions for performance monitoring, alerting an...
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
ScriptRock makes GuardRail, a DevOps-ready platform for configuration monitoring. Realizing we were spending way too much time digging up, cataloguing, and tracking machine configurations, we began writing our own scripts and tools to handle what is normally an enormous chore. Then we took the concept a step further, giving it a beautiful interface and making it simple enough for our bosses to understand. We named it GuardRail after its function - to allow businesses to move fast and stay sa...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
In high-production environments where release cycles are measured in hours or minutes — not days or weeks — there's little room for mistakes and no room for confusion. Everyone has to understand what's happening, in real time, and have the means to do whatever is necessary to keep applications up and running optimally. DevOps is a high-stakes world, but done well, it delivers the agility and performance to significantly impact business competitiveness.
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...