|By Marketwired .||
|March 26, 2014 06:54 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 03/26/14 -- Foremost Income Fund ("Foremost" or the "Fund") announces the financial results for the 12 months ended December 31, 2013.
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 includes activity from eight manufacturing sites throughout Alberta. Foremost manufactures off-highway large wheeled and tracked vehicles, and equipment for custom drilling, construction, water wells, and mining sectors. Foremost also maintains a focus on custom built vehicles for its clientele and is located in Calgary, Alberta.
ANNUAL FINANCIAL RESULTS:
The key elements from 2013 are:
-- Revenue decrease of 12% when comparing year over year. The Fund experienced the results of a general slowdown in oilfield equipment demand. Ongoing market and political concerns regarding transportation of product to foreign markets, and market price discrepancies led to depressed outlooks and product demand by key oilfield producers. Further information on the decrease in revenue by segment, and product line, can be found in the segmented information section of the MD&A. -- 2013 gross profit dropped to 13% from 20% in 2012. This is a result of lower customer demand, adjustments made to margin on field work and an increase in inventory allowance. -- During 2013, the Fund decreased the discretionary employee bonus payout in order to reflect the financial performance of the Fund. The decrease in bonus payouts significantly decreased administrative expenses for the year - enough to offset costs from new business unit acquisitions. -- The 2013 amortization balance increased due to late 2012 assets being used for a full year. Items such as the new Lloydminster office building, a major Calgary office renovation, a new 130 ton crane, as well as depreciated software and hardware purchased to bring systems up- to-date served to increase amortization on a year-over-year analysis. Disposals and sales during the year were on low value or slow depreciating items. -- Consistent with the Fund's strategy, Universal acquired control of manufacturing assets in Edmonton, Alberta. This business is in the Vac truck market and was purchased to complement and increase the existing hydro excavation operations. This transaction resulted in goodwill of $1.0 million. -- EBITDA for 2013 dropped to $7.7 million, from $27.9 million in 2012. This is a reflection of lower gross profit, due to industry conditions and adjustments made to margins on field work. It also includes an increase in inventory obsolescence provision of $1.0 million
SUMMARY OF QUARTERLY INFORMATION (000's, except per Trust Unit amount) 2013 Q1 Q2 Q3 Q4 Total ---------------------------------------------------------------------------- Revenue $ 64,001 $ 56,602 $ 50,232 $ 59,094 $ 229,929 Gross profit ($) $ 10,149 $ 4,770 $ 7,169 $ 7,763 $ 29,850 Gross profit (%) 16% 8% 14% 13% 13% Admin. expenses ($) $ 5,517 $ 5,920 $ 5,519 $ 5,171 $ 22,127 Admin. expenses (% of total revenue) 9% 10% 11% 9% 10% Exchange rate gain/(loss) $ (48) $ 225 $ 54 $ (38) $ 193 EBITDA $ 4,631 $ (1,150) $ 1,649 $ 2,592 $ 7,723 Income from operations $ 3,484 $ (2,334) $ 423 $ 1,325 $ 2,898 Comprehensive income/(loss) $ 2,810 $ (1,504) $ (2,890) $ 1,031 $ (553) Trust units redeemed 8,560 13,326 76,451 30,394 128,731 Redemption payouts $ 70 $ 107 $ 627 $ 229 $ 1,033 Basic and diluted gain/(loss) per trust unit 0.15 (0.08) (0.15) 0.05 (0.03) 2012 Q1 Q2 Q3 Q4 Total ---------------------------------------------------------------------------- Revenue $ 70,822 $ 62,499 $ 64,746 $ 63,363 $ 261,430 Gross profit ($) $ 15,393 $ 13,081 $ 14,236 $ 9,389 $ 52,099 Gross profit (%) 22% 21% 22% 15% 20% Admin. expenses ($) $ 6,080 $ 5,977 $ 5,823 $ 6,222 $ 24,102 Admin. expenses (% of total revenue) 9% 10% 9% 10% 9% Exchange rate gain/(loss) $ (32) $ 41 $ (273) $ 34 $ (230) EBITDA $ 9,313 $ 7,104 $ 8,413 $ 3,166 $ 27,996 Income from operations $ 8,328 $ 6,096 $ 7,384 $ 2,092 $ 23,900 Comprehensive income/(loss) $ 7,653 $ 5,078 $ 5,625 $ 1,371 $ 19,727 Trust units redeemed $ 8,486 $ 7,709 $ 2,500 $ 10,090 $ 28,785 Redemption payouts $ 62 $ 60 $ 19 $ 84 $ 225 Basic and diluted gain/(loss) per trust unit $ 0.41 $ 0.27 $ 0.30 $ 0.07 $ 1.05
TRUST UNIT REDEMPTIONS AND DISTRIBUTIONS
The Fund redeemed 128,731 Trust Units during the year through its normal redemption program resulting in cash payments of $1.0 million. During 2012 the Fund redeemed 28,785 Trust Units for $225,000. No options were exercised during 2013.
An annual Trust Unit cash distribution was made on December 6, 2013, at $.32 per unit. This resulted in a cash payment of $5.9 million for 2013. In 2012 the Fund paid a cash distribution equal to $.70 per unit for a total of $13.1 million.
The Trustees have determined that, as of the date of March 19, 2014 the Fund will redeem tendered Trust Units at tangible book value + 3.5% or $7.13 per unit.
BEVAN MAY APPOINTED INTERIM CEO, REPLACING PAT BREEN
Foremost Income Fund's Board of Trustees has appointed Board member Bevan May as Interim President and CEO of Foremost Industries Ltd., effective immediately. Mr. May succeeds Pat Breen, as President and CEO. The Board will immediately start a process that in the course of time will result in a new CEO being named.
The Board is confident that Mr. May is qualified, capable, and the right person to lead the Fund in this interim period. Mr. May has served as Foremost board Chairman since Nov 2012 and has served as a board advisor since 2010. The Board looks forward to enhancing execution of the Fund's objectives.
On behalf of the Trustees Foremost Income Fund
Bevan May, Trustee
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 include statements the Fund's intention to proceed with a Unitholders' meeting and information regarding the Trustees' views of the future prospects and tax treatment of the Fund and tax treatment of the Special Redemption, the Fund's expectations regarding the future availability of cash to meet redemption requests and the Trustee's expectations for redemption prices in December 2011 and January 2012. 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 and stock market volatility.
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
Sep. 2, 2015 11:15 PM EDT Reads: 510
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so the...
Sep. 2, 2015 11:15 PM EDT Reads: 217
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
Sep. 2, 2015 10:45 PM EDT Reads: 1,606
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device acce...
Sep. 2, 2015 10:00 PM EDT Reads: 306
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Sep. 2, 2015 08:00 PM EDT Reads: 835
In 2014, the market witnessed a massive migration to the cloud as enterprises finally overcame their fears of the cloud’s viability, security, etc. Over the past 18 months, AWS, Google and Microsoft have waged an ongoing battle through a wave of price cuts and new features. For IT executives, sorting through all the noise to make the best cloud investment decisions has become daunting. Enterprises can and are moving away from a "one size fits all" cloud approach. The new competitive field has ...
Sep. 2, 2015 07:45 PM EDT Reads: 148
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what...
Sep. 2, 2015 07:15 PM EDT
eCube Systems has released NXTmonitor, a full featured application orchestration solution. NXTmonitor, which inherited the code base of NXTminder, has been extended to support multi-discipline processes and will act as a DevOps utility in a heterogeneous enterprise environment. Previously, NXTminder was packaged with NXTera middleware to configure and manage Entera and NXTera RPC servers. “Since we are widening the focus of this solution to DevOps, we felt the need to change the name to NXTmon...
Sep. 2, 2015 07:00 PM EDT Reads: 121
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
Sep. 2, 2015 06:30 PM EDT Reads: 1,657
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Sep. 2, 2015 06:00 PM EDT Reads: 463
The web app is agile. The REST API is agile. The testing and planning are agile. But alas, data infrastructures certainly are not. Once an application matures, changing the shape or indexing scheme of data often forces at best a top down planning exercise and at worst includes schema changes that force downtime. The time has come for a new approach that fundamentally advances the agility of distributed data infrastructures. Come learn about a new solution to the problems faced by software organ...
Sep. 2, 2015 05:45 PM EDT Reads: 121
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
Sep. 2, 2015 05:30 PM EDT Reads: 270
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
Sep. 2, 2015 05:00 PM EDT Reads: 427
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
Sep. 2, 2015 04:45 PM EDT Reads: 393
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
Sep. 2, 2015 04:15 PM EDT Reads: 355