Sun Gro Horticulture Income Fund reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company's net earnings were $3.7 million or $0.16 per share compared to net loss of $2.5 million or $0.11 per share for the same period a year ago. Revenue was $45.6 million compared with $45.9 million for the same period a year ago. Operating income was $3.2 million compared with $0.8 million a year ago. Earnings before income taxes were $3.8 million compared with loss before income taxes of $3.2 million a year ago. Cash flows from operating activities were $6.1 million compared with $0.3 million a year ago. The company reported additions to property, plant and equipment of $0.8 million compared with $0.8 million a year ago. For the nine months, the company's net earnings were $16.0 million or $0.72 per share compared to net loss of $25.0 million or $1.12 per share for the same period a year ago. Revenue was $179.5 million compared with $168.3 million for the same period a year ago. Operating income was $16.6 million compared with $2.4 million a year ago. Earnings before income taxes were $19.7 million compared with loss before income taxes of $31.3 million a year ago. Cash flows from operating activities were $17.9 million compared with $9.3 million a year ago. The company reported additions to property, plant and equipment of $1.6 million compared with $2.4 million a year ago. As with the quarterly result, the revenue increase was primarily due to the stronger US dollar, as well as stable pricing.

Sun Gro Horticulture Income Fund, Q3 2009 Earnings Call, Nov-05 2009

Sun Gro Horticulture Income Fund announced unaudited consolidated earnings results for the six months ended June 30, 2009. For the six months, the company reported operating income of CAD 13,487,000, EBITDA of CAD 16,838,000 and net earnings of CAD 12,353,000 or CAD 0.55 per basic and diluted share on revenue of CAD 133,854,000 against operating income of CAD 1,609,000, EBITDA of CAD 10,749,000 and net loss of CAD 22,553,000 or CAD 1.01 per basic and diluted share on revenue of CAD 122,410,000 for the same period a year ago. The year-over-year improvement in EBITDA was achieved even with CAD 2.4 million of realized foreign exchange contract losses recorded during the quarter, compared to a gain of CAD 1.5 million in 2008. Cash flows from operating activities for the period were CAD 11,812,000 against CAD 8,988,000 for the same period a year ago. As with the quarterly result, the revenue increase was primarily due to the strengthening of the US dollar against the Canadian dollar year-over-year. The year-over-year improvement was largely driven by Sun Gro's increased operating income, gains due to foreign currency fluctuations and, goodwill and asset impairments recorded last year. Operating income in the third quarter of 2009 should improve compared to the same three months of 2008, due to the current year's higher gross margin and lower transportation costs, as discussed earlier in this MD&A.