BFI Canada Income Fund (the “Fund”) (TSX:BFC.UN) today reported strong financial results for the three months ended March 31, 2007. All amounts are in thousands of Canadian dollars, unless otherwise stated.
“We achieved a strong start to 2007 with a financial performance that reflects our continued commitment to growth,” said Keith Carrigan, Vice Chairman and Chief Executive Officer. “The Fund delivered a 13.1 per cent increase in consolidated revenues, a 16.1 per cent increase in EBITDA(A), and a 8.3 per cent increase in free cash flow available for distribution(B) compared to the same period a year ago.”
“The Fund’s growth can be attributed to the same factors that have driven our past results – a broadening of our customer base and increasing route density that enhanced productivity throughout our operations. We achieved this through a combination of acquisitions and organic business improvement. Organic Canadian and U.S. segment revenue growth, which excludes acquisitions, fuel and environmental surcharges, and foreign currency translation, was 9.9 per cent and 4.4 per cent, quarter over quarter, respectively, and 7.4 per cent on a consolidated basis.”
Mr. Carrigan added, “Our financial performance was strong despite the impact of what we consider to be more normalized winter conditions during the three months ended March 31, 2007, compared to the unusually mild winter months we experienced for the same period last year. While our collection operations delivered solid double digit growth in the first three months of 2007, the poorer winter weather conditions impacted waste volumes at certain landfills and transfer stations. We expect these waste volumes to return during the balance of the year and we remain confident that the business and industry fundamentals are in place to achieve a year of solid results. We continue to be well positioned in our markets and remain focused on employing our bottom-up strategies.”
Financial Highlights for the Three Months Ended March 31, 2007
– Total consolidated revenues increased 13.1 per cent to $202.3 million.
– Total revenue growth, excluding the impact of foreign currency translation, was 12.1 per cent.
– Total EBITDA growth, excluding the impact of foreign currency translation, was 15.1 per cent.
– Free cash flow available for distribution(B) increased to $33.1 million or 8.3 per cent.
– The Fund’s payout ratio was 89.5 per cent.
– The Fund’s payout ratio excluding the effects of the foreign currency hedge was 91.0 per cent.
Other Highlights for the Three Months Ended March 31, 2007
– Effective April 5, 2007, the Fund closed a 3,100 trust unit offering. In addition, the underwriters exercised their over-allotment option to acquire an additional 465 trust units. The Fund has subsequently applied the net proceeds from the offering, approximately $87,600, against advances from its U.S. revolving credit facility.
– Effective March 21, 2007, the Fund entered into a Second Amending Agreement to its Fourth Amended and Restated Credit Agreement. The second amendment increases the total committed Canadian segment credit to $150,000 from $80,000 and the total available credit from this facility, subject to lender consent, to $200,000 from $120,000. The maturity date was extended to May 30, 2011 from June 30, 2010, and the maturity date remains subject to one year extensions.
– Effective March 28, 2007, the Fund entered into a new 15 year agreement for variable rate demand solid waste disposal revenue bonds (“IRBs”) in the state of Texas. The IRBs are made available, to a maximum of U.S. $24,000 and are available to fund a portion of landfill construction activities, and equipment, vehicle, and container expenditures in the Fund’s Texas operations. The IRBs bear interest at a discount to LIBOR. A portion of the Fund’s drawings under this facility was used to repay the Fund’s U.S. revolving credit facility with the balance used to finance landfill construction activities, and equipment, vehicle, and container expenditures. At March 31, 2007, approximately U.S. $6,000 was restricted for the purpose of financing future activities and expenditures.
– The Fund completed four “tuck-in” acquisitions in 2007 for aggregate cash consideration of approximately $4,300.
Director, Investor Relations and Corporate Communications
BFI Canada Income Fund