Welcome!

News Feed Item

Foremost Income Fund Reports Q2 2014 Results

CALGARY, ALBERTA -- (Marketwired) -- 08/15/14 -- Foremost Income Fund ("Foremost" or the "Fund") announces the financial results for the three and six months ended June 30, 2014.

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.

CORPORATE - RESULTS OF OPERATIONS

Overall the Fund experienced a stronger financial quarter in Q2 2014 compared to previous quarters. Revenue is the highest is has been in the last 9 consecutive quarters and net income from operations the highest in the last 5 quarters.

The key elements from Q2 2014 are:

--  Revenue has increased $11.7 million over Q2 of 2013. This represents a
    20.7% increase. Further information on the increase in revenue by
    segment and product lines can be found in the segmented information
    section of the MD&A.
--  Q2 2014 gross profit increased to 14% compared to 8% in 2013, or $4.5
    million. Further information on the increase in gross profit by segment
    and product lines can be found in the segmented information section of
    the MD&A.
--  Administrative expenses decreased $1.0 million when comparing 2013
    second quarter to 2014 second quarter. This decrease of 18.4% is a
    reflection the cost discipline strategies being exercised by the Fund.
    This includes a focus to reduce discretionary spending, a reduction in
    overhead personnel and continuous improvements in the area of supply
    chain management.
--  EBITDA for Q2 2014 increased to $4.1 million from a negative $1.1
    million in Q2 2013. This is consistent with the increase in gross profit
    and reduction of SG&A.

The key elements for the year to date are:

--  Revenue decrease of 5%, year over year, due to ongoing weak demand for
    the shop and field tank product line, which was offset by the increasing
    demand for vac trucks in 2014.
--  A comparable margin of 12-13%, year over year, as the Fund's strategic
    initiatives and cost control measures begin to be implemented throughout
    the company.
--  A drop in the administrative expense of over $1.7 million due in large
    part to reduction of administration staff, reductions in discretionary
    expenses such as travel, meals, and sponsorship, and improvements in the
    area of supply chain management. The Fund is on track to reducing
    administrative expenses by $4.0 million for the 2014 calendar year.
--  Amortization expense increased as longer term projects and investments
    became active in the period, items such as an industry leading automated
    welding system, and capital investments for the successful truck
    manufacturing division.
--  The majority of the exchange rate loss in the current year relates to
    the results of hedging activities on contracts denominated in the
    Russian ruble. The Fund believes that the risk mitigation provided by
    these hedging activities continues to be consistent with our strategic
    goals and appropriate given ongoing European tension. During 2014 the
    Fund recorded an unrecognized loss of $621,000 on these forward looking
    contracts, nil was recorded in 2013.
--  EBITDA for 2014 increased over 2013 at $4.1 million compared to $3.4
    million.


SUMMARY OF QUARTERLY INFORMATION
(000's, except per Trust Unit amount)
2014                           Q1         Q2        Q3        Q4      Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenue                  $ 46,439  $  68,314                      $ 114,753

Gross profit ($)         $  5,029  $   9,336                      $  14,365
Gross profit (%)               11%        14%                            13%

Admin. expenses ($)      $  4,886  $   4,828                      $   9,714
Admin. expenses (% of
 total revenue)                11%         7%                             8%
Exchange rate loss       $   (134) $    (394)                     $    (528)
EBITDA                   $      9  $   4,162                      $   4,171
Income/(Loss) from
 operations              $ (1,140) $   3,207                      $   2,067
Comprehensive
 income/(loss)           $ (1,541) $   1,950                      $     409

Trust units redeemed       21,123     66,527                         87,650
Redemptions              $    151  $     474                      $     625
Basic and diluted (loss)
 per trust unit          $  (0.08) $    0.10                      $    0.02

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
Redemptions              $     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
 (loss)/gain             $    (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     $  7,653  $   5,078  $  5,625  $  1,371  $  19,727

Trust units redeemed        8,486      7,709     2,500    10,090     28,785
Redemptions              $     62  $      60  $     19  $     84  $     225
Basic and diluted gain
 per trust unit          $   0.41  $    0.27  $   0.30  $   0.07  $    1.05

TRUST UNIT REDEMPTIONS AND DISTRIBUTIONS

For the period ending June 30, 2014 the Fund redeemed 87,650 Trust Units through its redemption program resulting in cash payments of $200,103 and notes payable of $424,589.

The Trustees have determined that, as of August 12, 2014, the Fund will redeem tendered Trust Units at $6.50 per unit.

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
Investor Relations
(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
One of the biggest challenges with adopting a DevOps mentality is: new applications are easily adapted to cloud-native, microservice-based, or containerized architectures - they can be built for them - but old applications need complex refactoring. On the other hand, these new technologies can require relearning or adapting new, oftentimes more complex, methodologies and tools to be ready for production. In his general session at @DevOpsSummit at 20th Cloud Expo, Chris Brown, Solutions Marketi...
At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
I think DevOps is now a rambunctious teenager - it's starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
"We work around really protecting the confidentiality of information, and by doing so we've developed implementations of encryption through a patented process that is known as superencipherment," explained Richard Blech, CEO of Secure Channels Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU's GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes. In...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...