Advanced Fiber Technologies (AFT) Income Fund Reports Third Quarter Results.LENNOXVILLE, Quebec Lennoxville, population 4,963 (2001), is a borough (Fr. arrondissement) of the City of Sherbrooke, Quebec, Canada. It was originally a town, but was amalgamated into the larger city of Sherbrooke in 2002. -- Advanced Fiber Technologies (AFT) Income Fund (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension : AFT.UN) announces its results for the third quarter ended October October: see month. 1, 2004.The third quarter is historically our lowest quarter due to the summer shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down at AFT's three plants. For the third quarter ended October 1, 2004, sales amounted to $18.2 million, a 11.2% increase from $16.3 million in the corresponding quarter of last year.Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
For the nine-month period ended October 1, 2004, the Fund recorded sales of $58.2 million, a 3.2% increase over the $56.4 million of last year, EBITDA of $11.9 million versus $15.8 million last year, a net loss of $0.4 million versus net earnings of $5.6 million in 2003, and cash available for distribution of $8.5 million ($0.63 per unit) versus $12.5 million ($0.95 per unit) last year. The average number of units outstanding for the first nine months of the year increased to 13.6 million units in 2004 from 13.1 million units in 2003, essentially due to the private equity placement of 750,000 units in March 2004.
Distribution Highlights
(in thousands of dollars except per unit amounts)
Three months ended Nine months ended
October 1 September 26 October 1 September 26
2004 2003 2004 2003
---------------------------------------------------------------------
---------------------------------------------------------------------
Earnings (loss) before
income taxes $(548) $748 $(224) $6,480
Plus
Depreciation and
amortization 2,699 2,556 7,946 7,331
Restructuring charge - - 1,500 -
Less
Income taxes current (35) (34) (84) (211)
Maintenance capital
expenditures (341) (497) (620) (1,105)
---------------------------------------------------------------------
Distributable cash $1,775 $2,773 $8,518 $12,495
---------------------------------------------------------------------
---------------------------------------------------------------------
Distributable cash
per unit $0.13 $0.21 $0.63 $0.95
---------------------------------------------------------------------
---------------------------------------------------------------------
Distributions declared
per unit $0.25 $0.30 $0.85 $0.90
---------------------------------------------------------------------
---------------------------------------------------------------------
Average number of units
(in thousands) 13,860 13,088 13,605 13,085
---------------------------------------------------------------------
---------------------------------------------------------------------
The Fund declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. distributions totalling $3.5 million ($0.25 per unit) to its Unitholders during the third quarter ended October 1, 2004 versus $3.9 million ($0.30 per unit) for the same quarter in 2003.On September September: see month. 21, 2004, the Fund announced a distribution of $0.05 per unit for the month of September 2004, a reduction from the monthly distribution of $0.10 per unit declared since its IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. .The Fund had to manage continued pricing pressures in its core business, higher stainless steel stainless steel: see steel. stainless steel Any of a family of alloy steels usually containing 10–30% chromium. The presence of chromium, together with low carbon content, gives remarkable resistance to corrosion and heat. costs and the appreciation of the Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents .The Fund negotiated amendments to its Senior Secured Notes and credit facility which resulted in changes to some financial covenants and an increase in applicable interest rates.Even though monthly distributions could have been maintained at a higher level than the $0.05 per unit, the Board of Trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. agreed to reduce it to a level that would allow the Fund to rebuild its cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. and reduce its indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . During the quarter, the Fund used $0.12 per unit from its cash reserve of $0.16 per unit in place at the beginning of the quarter, which included $1.5 million of cash on hand at the time of its IPO. Subsequent to quarter end, another distribution in the amount of $0.05 per unit was declared for the month of October 2004, in line with the Fund's policy to pay monthly distributions to Unitholders of record on the last business day of each month. Distributable cash is not a defined term under Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), but is determined by the Fund as earnings before income taxes adjusted for non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) or non-recurring expenses, including depreciation, amortization and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , and reduced by maintenance capital expenditures and current income taxes. EBITDA, or earnings before interest expense, income taxes, depreciation and amortization, is not a recognized measure under GAAP.Management believes that, in addition to net earnings, EBITDA is a useful supplemental measure as it provides investors with an indication of cash available for distribution prior to debt service, capital expenditures and income taxes.EBITDA, as defined by the Fund, also excludes restructuring charges.Investors are cautioned, however, that EBITDA should not be construed as an alternative to net earnings determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP as an indicator of the Fund's performance, or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows.The Fund's method of calculating EBITDA may differ from other issuers and, accordingly, may not be comparable to measures used by other issuers. Operating Results Sales for the three-month period ended October 1, 2004 were $18.2 million compared with $16.3 million last year.Direct sales to End-users were $13.0 million (71% of total sales) and sales to OEMs were $5.2 million (29% of total sales).For the comparable period of 2003, sales to End-users and OEMs represented $10.6 million (65% of total sales) and $5.7 million (35% of total sales), respectively. For the first nine months of 2004, sales amounted to $58.2 million compared with $56.4 million in 2003.In 2004, sales to End-users were $39.5 million (68% of total sales) compared with $34.8 million last year (62% of total sales).For the same period, sales to OEMs were $18.7 million (32% of total sales) in 2004 versus $21.6 million last year (38% of total sales). After accounting for cost of sales as well as selling and administrative expenses of $15.1 million, the Fund generated EBITDA of $3.1 million during the three-month period ended October 1, 2004. As a percentage of sales, EBITDA was 16.9% in the third quarter compared with 24.4% in the corresponding quarter of 2003. The reduction of $0.9 million in EBITDA in 2004 versus 2003 is essentially due to differences in exchange gains related to loans denominated in US$and Euro and unhedged cash flows. For the first nine months of 2004, sales increased by $1.8 million year over year while EBITDA decreased by $3.9 million. This reduction in EBITDA is explained by several factors.First, total price erosion represented approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.2 million.Second, the lower operational performance in the first quarter created an unfavourable variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality of $1.2 million.Third, foreign currency fluctuations accounted for another unfavourable variance of $1.1 million and fourth, the increase in raw material costs represented $0.8 million of additional costs.These unfavourable variances were partly offset by $0.9 million of cost reductions due to projects completed to date (annual run rate of $2.0 million) and by a positive contribution from Optimum business of $0.5 million. The net loss for the nine-month period ended October 1, 2004 was $0.4 million compared with net earnings of $5.6 million last year. Integration of the Optimum Filtration filtration: see sewerage; water supply. Filtration The separation of solid particles from a fluidsolids suspension of which they are a part by passage of most of the fluid through a septum or membrane that retains most of the solids operations progressed well during the quarter.Synergies from the sales integration are expected to have a positive impact on results beginning in 2005. Finebar(R) sales for the first nine months of 2004 were $2.1 million.These sales are on a cost recovery basis until the Fund exercises the option to buy the business.These sales have a positive impact on consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues while they have no positive impact on EBITDA.Therefore, the EBITDA margin for the nine months ended October 1, 2004 would have been higher by 0.7% excluding the impact of Finebar(R) sales. Unitholder Rights Plan The Board of Trustees adopted a unitholder rights plan on September 24, 2004.By implementing the rights plan, the Board of Trustees has taken proactive steps to ensure that the Fund has additional time to consider alternatives to maximize unitholders value, should an unsolicited un·so·lic·it·ed adj. Not looked for or requested; unsought: an unsolicited manuscript; unsolicited opinions. unsolicited Adjective takeover To assume control or management of a corporation without necessarily obtaining actual title to it. A takeover bid or tender offer is a proposal made by one company to purchase shares of stock of another company, in order to acquire control thereof. offer be made for the Fund. Outlook "Our third quarter results were clearly disappointing and need to be considered within the context of both our internal and external operating environments In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. ," commented Roch Saint Roch (Latin: Rochus; Italian: Rocco; French: Roch; Spanish and Portuguese: Roque; c. 1295 – traditionally 16 August 1327[1]) was a Christian saint, a confessor whose death is commemorated on 16 August; he is specially invoked against the plague. Leblanc Leblanc is a French surname. It can refer to: Companies
"Management remains committed to pursuing its long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategy and has taken concrete action to meet its objectives, including continuation of the several productivity and design review initiatives currently underway, reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. of the sales and marketing functions, increases in selling prices after quarter end, and changes in sales policies to emphasize the differentiated dif·fer·en·ti·ate v. dif·fer·en·ti·at·ed, dif·fer·en·ti·at·ing, dif·fer·en·ti·ates v.tr. 1. To constitute the distinction between: value of the various product offerings, " added Mr. Leblanc. "Despite a sustained improvement in the fundamentals of the pulp and paper industry The global pulp and paper industry is dominated by North American (United States, Canada), northern European (Finland, Sweden) and East Asian countries (such as Japan). Australasia and Latin America also have significant pulp and paper industries. , our customers' margins are still under pressure.However, in general, they understand that we must pass along the recent increase in stainless steel prices.We may lose some orders as a result of these measures, but we must do what makes good business sense for both AFT and our customers." "In light of our current results and the industry context, we chose to reduce monthly cash distributions to $0.05 per unit beginning with the September distribution," concluded Mr. Leblanc. "While this reduction was greater than necessary, it allows us more flexibility to reduce debt and replenish re·plen·ish v. re·plen·ished, re·plen·ish·ing, re·plen·ish·es v.tr. 1. To fill or make complete again; add a new stock or supply to: replenish the larder. 2. our cash reserves.On the other hand, we are committed to increasing our monthly cash distributions at the appropriate time.We remain confident that we can compensate for this situation as AFT's recent initiatives are fully implemented and complementary product lines become a more important portion of our business." About AFT Advanced Fiber Technologies (AFT) Income Fund is a limited purpose trust established to hold the securities of Advanced Fiber Technologies (AFT) Trust.AFT, which celebrated its 100th year of operations in March 2003, is one of the oldest and largest producers of pulp screening components. AFT's product portfolio is composed of three distinct but complementary technologies: pulp screening, pulp refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar and pulp dewatering Dewatering (dē′wöd·ər·iŋ) is the removal of water from solid material or soil by wet classification, centrifugation, filtration, or similar solid-liquid separation processes. .Pulp screening components are used to separate contaminants from pulp, a process that is critical to ensuring the quality of the pulp and the quality of the resulting paper products.Pulp refining is adjacent to the pulp screening process and is mostly used to enhance pulp properties.Dewatering is a process used to thicken thick·en tr. & intr.v. thick·ened, thick·en·ing, thick·ens 1. To make or become thick or thicker: Thicken the sauce with cornstarch. The crowd thickened near the doorway. 2. pulp or to increase the consistency of sludge sludge (sluj) a suspension of solid or semisolid particles in a fluid which itself may or may not be a truly viscous fluid. sludge a suspension of solid or semisolid particles in a fluid. before disposal. Forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. Information Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. contained herein, are based on current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially.These uncertainties and risks include, but are not limited to the dependence on certain key suppliers, competitive pressures and changes in market activity, risks associated with international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and foreign exchange, legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. , environmental, health and safety and other regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. . Further information can be found in the disclosure documents filed by Advanced Fiber Technologies (AFT) Income Fund with the securities regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities , available at www.sedar.com. Webcast Advanced Fiber Technologies (AFT) Income Fund invites interested investors and financial media to access a live webcast of the conference call covering its third quarter results at www.aft-global.com on Wednesday Wednesday: see week. , November November: see month. 3, 2004 at 10:00 a.m.
Advanced Fiber Technologies (AFT) Income Fund
Consolidated Balance Sheets
As at As at
October 1 December 31,
2004 2003
---------------------------------------------------------------------
---------------------------------------------------------------------
(in thousands of dollars) (unaudited) (audited)
Assets
Current assets
Cash and cash equivalents $567 $5,214
Accounts receivable 14,694 14,895
Inventories 11,793 10,957
Prepaid expenses 740 865
---------------------------------------------------------------------
27,794 31,931
Property, plant and equipment 28,503 30,968
Deferred financing fees 1,107 1,150
Intangible assets 45,320 46,485
Goodwill 65,703 63,982
---------------------------------------------------------------------
$168,427 $174,516
---------------------------------------------------------------------
---------------------------------------------------------------------
Liabilities and Unitholders' equity
Current liabilities
Bank Loans $3,204 $1,519
Accounts payable and accrued liabilities 10,449 13,611
Cash distributions payable 693 1,310
Income taxes payable 94 257
Current portion of long-term obligations 75 145
---------------------------------------------------------------------
14,515 16,842
Long-term obligations 46,020 46,089
Future income taxes 1,426 1,358
---------------------------------------------------------------------
61,961 64,289
---------------------------------------------------------------------
Unitholders' equity
Units 129,482 119,846
Cumulative foreign currency
translation adjustment 555 2,005
Deficit (23,571) (11,624)
---------------------------------------------------------------------
106,466 110,227
---------------------------------------------------------------------
$168,427 $174,516
---------------------------------------------------------------------
---------------------------------------------------------------------
Advanced Fiber Technologies (AFT) Income Fund
Consolidated Statements of Earnings (Unaudited)
Three months ended Nine months ended
October 1 September 26 October 1 September 26
2004 2003 2004 2003
---------------------------------------------------------------------
---------------------------------------------------------------------
(in thousands of dollars
except units and
per unit amounts)
Sales $18,160 $16,325 $58,218 $56,396
Cost of sales,
selling and
administrative
expenses 15,099 12,344 46,296 40,571
---------------------------------------------------------------------
Earnings before
the undernoted 3,061 3,981 11,922 15,825
Interest expense -
long term obligations 753 582 2,302 1,744
Interest expense - other 157 95 398 270
Depreciation of property,
plant and equipment 1,129 1,184 3,469 3,473
Amortization of
intangible assets
and deferred
financing fees 1,570 1,372 4,477 3,858
Restructuring charge - - 1,500 -
---------------------------------------------------------------------
Earnings (loss) before
income taxes (548) 748 (224) 6,480
Provision for
income taxes
Current 35 34 84 211
Future (215) (30) 87 619
---------------------------------------------------------------------
(180) 4 171 830
---------------------------------------------------------------------
Net earnings (loss) $(368) $744 $(395) $5,650
---------------------------------------------------------------------
---------------------------------------------------------------------
Basic weighted average
number of units
(in thousand
of units) 13,860 13,088 13,605 13,085
Diluted weighted
average number
of units
(in thousand
of units) 14,337 13,640 14,104 13,640
Basic earnings
(loss) per unit $(0.03) $0.06 $(0.03) $0.43
---------------------------------------------------------------------
---------------------------------------------------------------------
Diluted earnings
(loss) per unit $(0.03) $0.06 $(0.03) $0.43
---------------------------------------------------------------------
---------------------------------------------------------------------
Advanced Fiber Technologies (AFT) Income Fund
Consolidated Statements of Deficit (Unaudited)
Three months ended Nine months ended
October 1 September 26 October 1 September 26
2004 2003 2004 2003
---------------------------------------------------------------------
---------------------------------------------------------------------
(in thousands of dollars)
Balance - beginning
of period $(19,738) $(6,631) $(11,624) $(3,687)
Net earnings (loss) (368) 744 (395) 5,650
Distributions declared (3,465) (3,927) (11,552) (11,777)
---------------------------------------------------------------------
Balance, end
of period $(23,571) $(9,814) $(23,571) $(9,814)
---------------------------------------------------------------------
---------------------------------------------------------------------
Advanced Fiber Technologies (AFT) Income Fund
Consolidated Statements of Cash Flows (Unaudited)
Three months ended Nine months ended
October 1 September 26 October 1 September 26
2004 2003 2004 2003
---------------------------------------------------------------------
---------------------------------------------------------------------
(in thousands of dollars)
Operating activities
Net earnings (loss) $(368) $744 $(395) $5,650
Items not affecting cash
Depreciation of
property, plant
and equipment 1,129 1,184 3,469 3,473
Amortization of
intangible assets
and deferred
financing fees 1,570 1,372 4,477 3,858
Future income taxes (215) (30) 87 619
Change in non-cash
operating working
capital items (519) 2,763 (3,778) 1,378
---------------------------------------------------------------------
1,597 6,033 3,860 14,978
---------------------------------------------------------------------
Investing activities
Acquisition of 65%
remaining ownership
of Poong Nam, net of
cash and cash
equivalent acquired - - - (4,599)
Acquisition of
Finebar license - (2,298) - (2,298)
Maintenance capital
expenditures (341) (497) (620) (1,105)
Expansion/productivity
capital expenditures (459) - (744) -
Acquisition of Optimum
Filtration (Note 2) - - (5,975) -
---------------------------------------------------------------------
(800) (2,795) (7,339) (8,002)
---------------------------------------------------------------------
Financing activities
Distribution to
Unitholders (4,158) (3,925) (12,245) (11,775)
Repayment of long-term
obligations - - (94) (152)
Change in Bank Loan 2,057 (514) 1,685 3,225
Issuance of trust
units 5 131 10,186 131
Cost related to
issuing units - - (550) -
Fees related to the
amendment to existing
Senior Secured Notes
and credit facility
(Note 4) (150) - (150) -
---------------------------------------------------------------------
(2,246) (4,308) (1,168) (8,571)
---------------------------------------------------------------------
Decrease in cash and
cash equivalents
for the period (1,449) (1,070) (4,647) (1,595)
Cash and cash
equivalents -
beginning of period 2,016 2,929 5,214 3,454
---------------------------------------------------------------------
Cash and cash
equivalents - end
of period $567 $1,859 $567 $1,859
---------------------------------------------------------------------
---------------------------------------------------------------------
Advanced Fiber Technologies (AFT) Income Fund
Notes to the Consolidated
Financial Statements (Unaudited)
For the period from January 1, 2004 to October 1, 2004
1. Basis of Presentation In the opinion of management, the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. unaudited interim consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge , prepared in accordance with Canadian generally accepted accounting principles, contain all adjustments necessary to present fairly the financial position of Advanced Fiber Technologies (AFT) Income Fund as at October 1, 2004 and September 26, 2003 as well as its results of operations and its cash flows for the nine month periods ended October 1, 2004 and September 26, 2003. While management believes that the disclosures presented are adequate, these unaudited interim consolidated financial statements and notes should be read in conjunction with Advanced Fiber Technologies (AFT) Income Fund's 2003 annual consolidated financial statements and notes.These unaudited interim consolidated financial statements follow the same accounting policies as the most recent annual consolidated financial statements, except as noted below. These interim consolidated financial statements have not been subject to a review by the Fund's external auditors The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . These consolidated financial statements include the accounts of the Fund and its directly and indirectly wholly-owned subsidiaries from their dates of acquisition.The wholly-owned subsidiaries are: Advanced Fiber Technologies (AFT) Trust, Advanced Fiber Technologies (AFT) Inc., Advanced Fiber Technologies (AFT) Oy, Poong Nam Nam Vietnam. NAM (US) n abbr (= National Association of Manufacturers) → nationaler Verband der verarbeitenden Industrie (AFT) Ltd., Varkauden Metallikiinteistot Oy and Advanced Fiber Technologies (AFT) Ltd. 2. Acquisition On March 4, 2004, the Fund acquired the assets of Optimum Filtration.The acquisition has been accounted for using the purchase method with 100% of the results of operations included in earnings from the date of acquisition.The transaction included the purchase of substantially all tangible and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. related to the manufacture of medium to high consistency screw presses a press in which pressure is exerted by means of a screw. See also: Screw .The preliminary allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of the purchase price is summarized as follows and is subject to year end final determination:
Inventories 740
Property, plant and equipment 25
Patented and unpatented technologies 1,882
Customer relationships 1,607
Goodwill 1,721
-------------------------------------------------------
$5,975
-------------------------------------------------------
Consideration paid in cash $5,975
-------------------------------------------------------
3. Unitholders' Equity On March 31, 2004, the Fund completed a private placement of 750,000 units at a price of $13.40 per unit with Canadian Institutional Investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. for gross proceeds of $10,050,000.Fees and expenses related to the placement amounted to $550,000 resulting in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $9,500,000.The subscribers were entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to receive any declared distribution on these new units from the April 2004 distribution payable in May 2004.In addition, during the first nine months of 2004, 13,583 units were issued further to the exercise of unit options for total proceeds of $135,830 paid in cash. 4. Long Term Obligations and Bank Loan During the quarter, the Fund amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. certain conditions of its Senior Secured Notes and credit facility.Fees related to the amendments amounted to $150,000 and will be amortized over the remaining term of the loan agreements.The amendments resulted in changes to the financial covenants and an increase in applicable interest rates.The interest rate of its Senior Secured Notes increased from 6.712% to 6.912% while the margin for prime rate loans and US base rate loans under the credit facility increased from 1.375% to 1.75%.The maximum debt to EBITDA covenant covenant (kŭv`ənənt), agreement entered into voluntarily by two or more parties to do or refrain from doing certain acts. In the Bible and in theology the covenant is the agreement or engagement of God with man as revealed in the was changed from 2.5 to 3.0 times.In addition the Fund agreed to maintain its monthly distribution at $0.05 until the debt to EBITDA ratio is 2.5 times or less.In the case of the credit facility, the minimum EBITDA level was changed from $19 million to $16 million.The Fund has satisfied all its financial covenants.The debt to EBITDA ratio stood at 2.67 times at the end of the quarter, as calculated in accordance with the loan agreements. Advanced Fiber Technologies (AFT) Income Fund (TSX:AFT.UN) |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion