Mar 8 2010
Richards Packaging Income Fund (TSX: RPI.UN) (the "Fund") announced today results for the quarter and year ended December 31, 2009.
"Performance rebounded in the fourth quarter with organic revenue growth of 6.8%, as our customers replenished inventories drawn down during the first quarter, and gross margin was at a record 18.2% of sales when compared with the same period in 2008. EBITDA for the fourth quarter reflected the increase in gross profit margin by 1.2% of sales, as a result in the improvement in our customer mix, which fully offset the impact of foreign currency adjustments", commented Gerry Glynn, Chief Executive Officer.
"The 2009 results mirrored 2008 with revenue growth of 1.0% and EBITDA up $0.1 million despite the recession and the packaging industry down 10%. We experienced a $2 million contraction with our top 60 customers as the higher freight costs and Canadian dollar hampered their ability to compete. More than offsetting this setback was the success of our sales team in generating new small customers which resulted in $4 million of additional sales from 700 new customers. EBITDA as a percent of sales was at 11.7%. Net income was $13.8 million, or $1.37 per Unit, up $15.5 million from the same period in 2008 which mainly reflects non-cash foreign currency translation gain on our U.S. dollar denominated debt" added Mr. Glynn.
Richards Packaging made a $1.0 million payment on the term debt in the fourth quarter. Accumulated cash on hand at yearend of $2.0 million was available to ensure that limited seasonal borrowing is required during the first quarter of 2010.
The Fund paid monthly distributions of 6.55 cents per Unit for October through December, which represents an annualized yield of 11.0% on the December 31st closing price of $7.15 per Unit. The payout ratio for the fourth quarter was 74%. During the fourth quarter, 43,006 Units were purchased at an average price of $6.98 per Unit under the normal course issuer bid.
Source:
RICHARDS PACKAGING INCOME FUND