Welcome!

News Feed Item

Foremost Income Fund Reports 2013 Results

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.

OVERVIEW

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

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 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.

Contacts:
Foremost Income Fund
Jackie Schenn, CA
(403) 295-5800 or toll free 1-800-661-9190 (Canada/US)
(403) 295-5832 (FAX)
[email protected]
www.foremost.ca

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
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Today, we have more data to manage than ever. We also have better algorithms that help us access our data faster. Cloud is the driving force behind many of the data warehouse advancements we have enjoyed in recent years. But what are the best practices for storing data in the cloud for machine learning and data science applications?
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to great conferences, helping you discover new conferences and increase your return on investment.
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO 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 t...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
When applications are hosted on servers, they produce immense quantities of logging data. Quality engineers should verify that apps are producing log data that is existent, correct, consumable, and complete. Otherwise, apps in production are not easily monitored, have issues that are difficult to detect, and cannot be corrected quickly. Tom Chavez presents the four steps that quality engineers should include in every test plan for apps that produce log output or other machine data. Learn the ste...