TORONTO, Aug 06, 2002 (Canada NewsWire via COMTEX) --
BFI Canada Income Fund (TSX:BFC.UN) today reported its financial results for the period from the closing of its initial public offering on April 25, 2002 to June 30, 2002.
Operational and financial results for the period were consistent with the financial forecast included in the Fund's prospectus issued in conjunction with its initial public offering.
'The Fund's strong performance during the period was attributable to solid operating results from all segments,'said Keith Carrigan, president and chief executive officer of BFI Canada. 'We also completed two commercial tuck-in acquisitions in Vancouver and Montreal, and successfully integrated the commercial and industrial operations of Entreprise Sanitaire F.A. Ltee ('FA') with our Montreal district.'
The Fund's prospectus included forecasts for the four and eight month periods ending April 30, 2002 and December 31, 2002, respectively. The period from April 25th, 2002 to June 30th, 2002 consisted of 67 calendar days. For comparative purposes only, the table below compares the Fund's actual results for the period ended June 30th, 2002 to a 67 day equivalent of the eight month forecast. Since the forecast was not prepared as a linear 12 month compilation, the following comparisons should be considered only as reflective of general business trends, excluding seasonality.
Financial highlights
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April 25th, 2002 to June 30th, 2002 (1)
Dollar figures in millions Cdn
(except per unit): Actual 67 Day Equivalent
Forecast (2)
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Revenue $29.0 $27.3
Operating expenses 15.8 14.3
Selling, general &administrative expenses 4.0 3.8
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Earnings before the undernoted 9.2 9.2
Amortization 7.5 8.2
Interest 0.8 0.9
Taxes 0.7 0.3
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Net income (loss) $ 0.1 $(0.2)
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Net income (loss) per Unit $0.01 $(0.01)
Number of units 26,500,000 26,500,000
Maintenance capital expenditures $ 1.4 $ 1.4
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Free cash flow available for distribution $ 6.9 $ 6.6
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Free cash flow available for
distribution per trust unit $0.26 $0.25
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(1) The period April 25th, 2002 to June 30th, 2002 represents 67 calendar
days.
(2) The forecast above is for comparative purposes only and represents a
67 day equivalent period extracted from the eight month forecast
ended December 31, 2002 included in the Fund's prospectus. No
seasonality effects have been incorporated into the forecast.
Revenue for the period totaled $29 million or 6.2% higher than forecast. This is largely due to seasonality and higher realized commodity prices.
Operating and selling, general and administrative expenses totalling $15.8 million and $4.0 million, respectively, were higher than forecast and reflect the seasonal increase in operational activity, coupled with higher disposal costs due to heavier collection volumes resulting from above average seasonal precipitation this year.
Earnings before amortization, interest and taxes of $9.2 million was consistent with forecast amounts. Interest expense during the period was marginally lower than anticipated as the average actual interest rate of 5.7% was lower than the forecast rate of 6.0%. Of the $0.7 million in income taxes, current and future income taxes were $0.1 million and $0.6 million, respectively.
Free cash flow available for distribution amounted to $6.9 million, which is $0.3 million higher than forecast. Additional free cash flow available for distribution is the direct result of achieving operational earnings targets together with marginally lower interest and current income tax expenses for the period.
The Fund paid a distribution of $0.11667 per unit on June 14, 2002 and declared a distribution payable to unitholders of record on June 28, 2002, payable July 15, 2002, of $0.10 per unit.
Operational highlights - During the period, the Fund completed the integration of FA's
commercial and industrial operations with BFI Canada's Montreal
operations. FA was acquired by BFI Canada on February 28th, 2002 and
is one of the three largest residential waste collection companies in
Montreal. The inclusion of FA's results significantly increased the
Fund's internalization of solid waste, and contributed to increased
landfill margins for the period.
- The Fund completed required regulatory filings to secure timely approval of an expansion of its Lachenaie landfill site serving the Montreal community and much of southern Quebec. 'The permitting approval process for the Lachenaie landfill expansion
remains on schedule and we are confident that final Provincial
approval will be obtained before the expiry of the current permit,'
Carrigan added.
- The Fund also entered into a purchase and sale agreement to acquire a
Vancouver-based front-end solid waste and recycling business, and a
Montreal-based front-end solid-waste collection business, for total
cash consideration of $0.3 million, financed with cash flow generated
from operations.
'Based on these strong results, management remains confident that the current distribution level will be maintained,'said Carrigan.
The Fund is one of Canada's largest full-service solid, non-hazardous waste management companies. The Fund provides residential, commercial and industrial waste collection, recycling and disposal services serving 18 markets in Quebec, Ontario, Manitoba, Alberta and British Columbia. It operates three transfer collection stations, seven material recovery facilities, and owns landfill sites serving the Calgary, Winnipeg and Montreal markets.
Financial Statements Attached.
Forward-looking statements
This document may contain forward-looking statements, relating to the Company's operations or to the environment in which it operates, which are based on the Company's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond the Company's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in other public filings. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. BFI Canada Income Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Management will hold a conference call on Tuesday, August 6, 2002 at
4:30 pm (ET). To access the call, participants should dial
1-888-881-4892, at approximately 4:20 pm. The conference call will also
be Webcast live at www.bficanada.com and www.newswire.ca/webcast and
subsequently archived on the BFI Canada site.
A rebroadcast of the call will be available until midnight on August 13,
2002.
To access the rebroadcast, dial (416) 640-1917 and quote the reservation
number 203522.
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BFI CANADA INCOME FUND
Consolidated Balance Sheet
June 30, 2002
(unaudited)
(in thousands of dollars)
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ASSETS CURRENT
Cash and cash equivalents $ 4,091
Accounts receivable 23,768
Other receivables 549
Prepaid expenses 2,230
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30,638
OTHER RECEIVABLES 986
INTANGIBLES 138,817
DEFERRED COSTS 1,574
DEFERRED FINANCING COSTS 2,499
CAPITAL ASSETS 91,674 LANDFILL ASSETS 125,510
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$391,698
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LIABILITIES CURRENT
Accounts payable $ 9,459
Accrued charges 7,064
Distribution payable 2,650
Income taxes payable 1,580
Deferred revenue 5,157
Current portion of long-term debt 119
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26,029
LONG-TERM DEBT 71,986
LANDFILL CLOSURE AND POST-CLOSURE COSTS 7,783 FUTURE INCOME TAX LIABILITIES 36,510
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142,308
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UNITHOLDERS'EQUITY TRUST UNITS 249,390
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$391,698
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BFI CANADA INCOME FUND
Consolidated Statement of Operations
For the period from April 25, 2002 to June 30, 2002
(unaudited)
(in thousands of dollars, except income per unit amounts)
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REVENUES $ 28,971 -------------------------------------------------------------------------
OPERATING EXPENSES 15,759
SELLING, GENERAL AND ADMINISTRATION EXPENSES 4,059 -------------------------------------------------------------------------
INCOME BEFORE THE FOLLOWING 9,153
AMORTIZATION 7,454
INTEREST - NET 827 ------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES 872 INCOME TAX EXPENSE
Current 127
Future 610
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737
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NET INCOME $ 135 ------------------------------------------------------------------------- -------------------------------------------------------------------------
Net income per trust unit, basic and diluted $ 0.01 Number of units outstanding (thousands) 26,500 BFI CANADA INCOME FUND
Consolidated Statement of Cash Flows
For the period from April 25, 2002 to June 30, 2002
(unaudited)
(in thousands of dollars)
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NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES OPERATING
Net income for the period $ 135
Items not affecting cash
Amortization of intangibles 2,092
Amortization of deferred financing costs 147
Amortization of capital assets 3,215
Amortization of landfill assets 2,000
Provision for landfill closure and post-closure costs 513
Future income taxes 610
Landfill closure and post-closure expenditures (670)
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8,042
Changes in non-cash working capital items 940
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Cash generated from operating activities 8,982
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INVESTING
Acquisitions (158,660)
Purchase of capital assets (830)
Landfill assets (1,610)
Deferred costs (138)
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Cash utilized in investing activities (161,238)
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FINANCING
Issue of trust units 176,609
Trust units purchased for cancellation (17,170)
Distributions paid to unitholders (3,092)
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Cash generated from financing activities 156,347
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NET CASH INFLOW 4,091 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -
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CASH AND CASH EQUIVALENTS, END OF PERIOD $ 4,091
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SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the period for: Income taxes $ - Interest $ 3,357 BFI CANADA INCOME FUND
Consolidated Statement of Unitholders'Equity
For the period from April 25, 2002 to June 30, 2002
(unaudited)
(in thousands of dollars)
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BALANCE, BEGINNING OF PERIOD $ -
Issue of trust units 272,167
Cancelled (17,507)
Contributed surplus 337
Net income 135
Distributions (5,742)
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BALANCE, END OF PERIOD $ 249,390
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%SEDAR: 00017538E
VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: http://www.newswire.ca/cgi-bin/inquiry.cgi?OKEY=57624 For further information: BFI Canada provides a full Management
Discussion and Analysis document on its website: www.bficanada.com; BFI Canada
Income Fund: Joseph D. Quarin, Chief Financial Officer, Tel: (416) 401-7722,
Email: joe.quarin(at)bficanada.com
News release via Canada NewsWire, Toronto 416-863-9350 Copyright (C) 2002 CNW, All rights reserved
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