Date: March 6, 2008
Source: BFI Canada Income Fund
BFI Canada Income Fund (the "Fund") (TSX:BFC.UN) reported strong financial results for the three months and year ended December 31, 2007. All amounts are in thousands of Canadian dollars, unless otherwise stated.
Management Commentary
"We achieved a strong close to another benchmark year and are well positioned as we head into 2008," said Keith Carrigan, Vice Chairman and Chief Executive Officer. "We grew revenues more than 25% quarter over quarter, and nearly 19% year over year, after the impact of foreign currency translation, as we continued to benefit from our market-based organic growth strategies coupled with contributions from acquisitions. Organic Canadian and U.S. segment revenue growth, which excludes acquisitions and fuel and environmental surcharges, was 14.6% and 7.7% quarter over quarter, respectively, and 12.6% and 7.5% year over year, respectively."
Mr. Carrigan continued, "We are pleased that our formula for growth continues to be effective, resulting in solid improvement in both EBITDA(A) and free cash flow available for distribution(B). In the three months and the year, after the impact of foreign currency translation, EBITDA(A) increased 15.2% and 16.8% to $69.4 million and $275.5 million, respectively, and free cash flow available for distribution(B) increased 21.2% and 18.8% to $47.6 million and $168.5 million, respectively. Accordingly, the Fund's payout ratio was 65.6% and 73.2%, indicating that we remain comfortably positioned to pay distributions."
"We believe that there is long-term potential for growth in our industry, however, the current economic downturn may moderate the results of certain segments of our business. Regardless, we plan to intensify our efforts to identify and act upon both internal growth and acquisition opportunities, with the goal of creating additional value for our unitholders, customers and employees."
Financial Highlights for the Three Months and Year Ended December 31, 2007
- Total consolidated revenues increased 25.3% and 18.9% to $251.0 million and $917.4 million.
- Total consolidated revenue growth, excluding the impact of foreign currency translation, was 36.3% and 23.1%.
- Total EBITDA(A) growth, excluding the impact of foreign currency translation, was 24.7% and 20.5%.
- Free cash flow available for distribution(B) increased to $47.6 million and $168.5 million or 21.2% and 18.8%.
- The Fund's payout ratio was 65.6% and 73.2%.
- The Fund's payout ratio excluding the effects of the foreign currency hedge was 69.4% and 76.2%.
Other Highlights for the Three Months and Year Ended December 31, 2007
- Effective August 31, 2007, the Fund acquired Winters Bros. Waste Systems, Inc. ("Winters Bros.") for total cash consideration of U.S. $277,207.
- Effective August 31, 2007, the Fund amended its U.S. long-term debt facility. Concurrently, the Fund's U.S. $160,000 note receivable ("U.S. note") from IESI was effectively cancelled through a restructuring.
- Effective August 28, 2007, the Fund received all of the necessary permits for the expansion of its Seneca Meadows landfill.
- Effective August 31, 2007, the Fund received an operating permit to continue accepting waste at its Calgary landfill through 2010.
- Effective April 5, 2007, the Fund closed a 3,565 trust unit offering, inclusive of the exercised over-allotment option, for net proceeds of approximately $87,600. Proceeds from the offering were used to repay U.S. revolving credit facility advances.
- Effective March 21, 2007, the Fund amended its Canadian long-term debt facility.
- 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.
- For the year ended December 31, 2007, and excluding the acquisition of Winters Bros., the Fund completed 17 acquisitions.
- The Trustees continue to actively work with management to review the Fund's corporate structure in light of changes to the taxation of income trusts as it relates to the Fund's continuous improvement and growth strategy. To date no definitive conclusions have been reached.
Summarized Financial Highlights
Three months
ended Year ended
December 31, December 31,
2007 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenues December 31, 2006 $ 200,319 $ 771,819
Organic growth and acquisitions (includes
fuel and environmental surcharges) 72,698 178,120
Foreign currency exchange impact (21,988) (32,582)
----------------------------------------------------------------------------
Revenues December 31, 2007 $ 251,029 $ 917,357
% Revenue growth before foreign
currency exchange impact 36.3% 23.1%
Total revenue growth % 25.3% 18.9%
EBITDA(A) December 31, 2006 $ 60,235 $ 235,917
Organic growth and acquisitions 14,900 48,359
Foreign currency exchange impact (5,774) (8,741)
----------------------------------------------------------------------------
EBITDA(A) December 31, 2007 $ 69,361 $ 275,535
% EBITDA(A) growth before foreign
currency exchange impact 24.7% 20.5%
Total EBITDA(A) growth % 15.2% 16.8%
Free cash flow available for distribution(B)
December 31, 2006 (see page 5) $ 39,283 $ 141,857
Organic growth and acquisitions 11,489 31,194
Foreign currency exchange impact (3,144) (4,565)
----------------------------------------------------------------------------
Free cash flow available for distribution(B)
December 31, 2007 (see page 5) $ 47,628 $ 168,486
% Free cash flow available for
distribution(B) growth before foreign
currency exchange impact 29.2% 22.0%
Total free cash flow available for
distribution(B) growth % 21.2% 18.8%
Free cash flow available for distribution(B)
without hedge $ 44,973 $ 161,939
----------------------------------------------------------------------------
Distributions and dividends declared $ 31,227 $ 123,326
----------------------------------------------------------------------------
Payout ratio with foreign currency hedge 65.6% 73.2%
----------------------------------------------------------------------------
Payout ratio without foreign currency hedge 69.4% 76.2%
----------------------------------------------------------------------------
Financial Highlights
(in thousands, except per weighted average trust unit and participating
preferred share ("PPS"))
Three months ended Year ended
December 31 December 31
----------------------------------------------------------------------------
2007 2006 2007 2006
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------------
Operating results
Revenues $ 251,029 $ 200,319 $ 917,357 $ 771,819
Operating expenses 151,356 111,878 531,614 436,311
Selling, general and
administration
expenses ("SG&A") 30,312 28,206 110,208 99,591
----------------------------------------------------------------------------
Income before the
following
("EBITDA(A)") 69,361 60,235 275,535 235,917
Amortization 40,226 37,297 161,006 148,128
Interest on
long-term debt 13,824 9,311 42,964 34,307
Financing costs - - 7,192 79
Net gain on sale
of capital assets (91) (34) (1,434) (443)
Net loss on
financial instruments 7,666 3,902 9,384 3,363
Net foreign exchange
(gain) loss (1,131) (8,629)13,671 (2,578)
Other expenses 43 23 48 210
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income before
income taxes and
non-controlling
interest 8,824 18,365 42,704 52,851
----------------------------------------------------------------------------
Income tax expense 2,950 6,351 4,697 12,917
Non-controlling
interest 952 1,846 6,320 7,191
----------------------------------------------------------------------------
Net income $ 4,922 $ 10,168 $ 31,687 $ 32,743
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income per
weighted average
trust unit, basic
& diluted $ 0.09 $ 0.19 $ 0.56 $ 0.61
Trust units and
PPSs outstanding
Weighted average
number of trust
units outstanding 57,562 53,617 56,564 53,506
Weighted average
number of PPSs
outstanding 11,144 11,774 11,239 11,885
----------------------------------------------------------------------------
Weighted average
number of trust
units and PPSs
outstanding 68,706 65,391 67,803 65,391
----------------------------------------------------------------------------
Aggregate number
of trust units and
PPSs outstanding 68,706 65,391 68,706 65,391
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Maintenance and
growth expenditures
Maintenance
expenditures $ 11,577 $ 11,642 $ 56,463 $ 52,504
Growth capital and
landfill expenditures
("growth expenditures") 38,296 18,554 97,022 77,372
----------------------------------------------------------------------------
Total maintenance
and growth
expenditures $ 49,873 $ 30,196 $ 153,485 $ 129,876
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating and free
cash flow
Cash generated from
operating activities $ 78,794 $ 58,183 $ 217,415 $ 185,698
Free cash flow
available for
distribution(B)
(see page 5) $ 47,628 $ 39,283 $ 168,486 $ 141,857
Free cash flow
available for
distribution(B)
per weighted
average trust unit
and PPS $ 0.69 $ 0.60 $ 2.48 $ 2.17
Distributions
Distributions declared,
trust units $ 26,165 $ 24,369 $ 102,888 $ 93,721
Dividends declared,
PPSs 5,062 5,351 20,438 20,582
----------------------------------------------------------------------------
Total distributions
and dividends declared $ 31,227 $ 29,720 $ 123,326 $ 114,303
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total distributions
and dividends
declared per weighted
average trust unit
and PPS $ 0.45 $ 0.45 $ 1.82 $ 1.75
2007 2006
---------------------------- -----------------------------
Cumulative Cumulative
Current Average average Current Average average
---------------------------- -----------------------------
March 31 $ 1.153 $ 1.172 $ 1.172 $ 1.167 $ 1.155 $ 1.155
June 30 $ 1.063 $ 1.098 $ 1.135 $ 1.115 $ 1.122 $ 1.138
September 30 $ 0.996 $ 1.045 $ 1.105 $ 1.115 $ 1.121 $ 1.133
December 31 $ 0.988 $ 0.982 $ 1.074 $ 1.165 $ 1.139 $ 1.134
Operating Highlights
Three months ended December 31 Year ended December 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2007 2006 $ Change 2007 2006 $ Change
----------------------------------------------------------------------------
Revenues $ 251,029 $ 200,319 $ 50,710 $ 917,357 $ 771,819 $ 145,538
----------------------------------------------------------------------------
Canada $ 89,418 $ 74,943 $ 14,475 $ 336,527 $ 288,640 $ 47,887
U.S. south $ 77,479 $ 70,097 $ 7,382 $ 314,690 $ 267,121 $ 47,569
U.S.
northeast $ 84,132 $ 55,279 $ 28,853 $ 266,140 $ 216,058 $ 50,082
Operating
expenses $ 151,356 $ 111,878 $ 39,478 $ 531,614 $ 436,311 $ 95,303
----------------------------------------------------------------------------
Canada $ 46,562 $ 38,573 $ 7,989 $ 175,305 $ 146,565 $ 28,740
U.S. south $ 51,805 $ 45,260 $ 6,545 $ 204,323 $ 177,263 $ 27,060
U.S.
northeast $ 52,989 $ 28,045 $ 24,944 $ 151,986 $ 112,483 $ 39,503
SG&A $ 30,312 $ 28,206 $ 2,106 $ 110,208 $ 99,591 $ 10,617
----------------------------------------------------------------------------
Canada $ 11,888 $ 12,222 $ (334) $ 41,504 $ 40,086 $ 1,418
U.S. south $ 9,783 $ 10,130 $ (347) $ 40,743 $ 36,570 $ 4,173
U.S.
northeast $ 8,641 $ 5,854 $ 2,787 $ 27,961 $ 22,935 $ 5,026
EBITDA(A) $ 69,361 $ 60,235 $ 9,126 $ 275,535 $ 235,917 $ 39,618
----------------------------------------------------------------------------
Canada $ 30,968 $ 24,148 $ 6,820 $ 119,718 $ 101,989 $ 17,729
U.S. south $ 15,891 $ 14,707 $ 1,184 $ 69,624 $ 53,288 $ 16,336
U.S.
northeast $ 22,502 $ 21,380 $ 1,122 $ 86,193 $ 80,640 $ 5,553
Free Cash Flow Available for Distribution(B) - Cash Flow Approach
----------------------------------------------------------------------------
Three months ended Year ended
December 31 December 31
----------------------------------------------------------------------------
2007 2006 Change 2007 2006 Change
----------------------------------------------------------------------------
Cash generated from
operating activities
(per statement of
cash flows) $ 78,794 $ 58,183 $ 20,611 $ 217,415 $ 185,698 $ 31,717
----------------------------------------------------------------------------
Operating
Changes in non-cash
working capital
items (24,533) (8,585) (15,948) (6,177) 3,529 (9,706)
Net change in
landfill closure
and post-closure
costs 3,394 1,411 1,983 (4,111) 4,546 (8,657)
Maintenance
expenditures (11,577) (11,642) 65 (56,463) (52,504) (3,959)
Financing
Amortization of
gain on settlement
of bond forward
contracts 56 56 - 224 224 -
Financing and
deferred costs
(net of non-cash
portion) (30) (429) 399 7,063 (847) 7,910
Effect of foreign
currency hedges
to support
Canadian dollar
distributions 2,655 918 1,737 6,547 3,885 2,662
Realized foreign
exchange gain (1,131) (629) (502) (3,705) (2,674) (1,031)
Realized foreign
exchange loss
on U.S. note - - - 7,693 - 7,693
----------------------------------------------------------------------------
Free cash flow
available for
distribution(B) $ 47,628 $ 39,283 $ 8,345 $ 168,486 $ 141,857 $ 26,629
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Free Cash Flow Available for Distribution(B) - Operations Approach
----------------------------------------------------------------------------
Three months ended Year ended
December 31 December 31
----------------------------------------------------------------------------
2007 2006 Change 2007 2006 Change
----------------------------------------------------------------------------
EBITDA(A) $ 69,361 $ 60,235 $ 9,126 $ 275,535 $ 235,917 $ 39,618
----------------------------------------------------------------------------
Amortization of
capitalized
landfill asset
closure and
post-closure
costs, including
revisions to
estimated cash
flows not
recorded to
operating
expense 2,279 664 1,615 (5,566) (5,538) (28)
Interest on
long-term debt (13,824) (9,311) (4,513) (42,964) (34,307) (8,657)
Management
transaction
bonuses (other
expenses) (43) (23) (20) (48) (210) 162
Current income
taxes (1,279) (1,614) 335 (8,779) (5,610) (3,169)
Maintenance
expenditures (11,577) (11,642) 65 (56,463) (52,504) (3,959)
Effect of foreign
currency hedges
to support
Canadian dollar
distributions 2,655 918 1,737 6,547 3,885 2,662
Amortization of
gain on
settlement of
bond forward
contracts 56 56 - 224 224 -
----------------------------------------------------------------------------
Free cash flow
available for
distribution(B) $ 47,628 $ 39,283 $ 8,345 $ 168,486 $ 141,857 $ 26,629
----------------------------------------------------------------------------
Maintenance and Growth Expenditures
----------------------------------------------------------------------------
Three months ended Year ended
December 31 December 31
----------------------------------------------------------------------------
2007 2006 Change 2007 2006 Change
----------------------------------------------------------------------------
Total $ 49,873 $ 30,196 $ 19,677 $ 153,485 $ 129,876 $ 23,609
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Maintenance:
Canada $ 5,784 $ 5,169 $ 615 $ 19,931 $ 18,406 $ 1,525
U.S. 5,793 6,473 (680) 36,532 34,098 2,434
----------------------------------------------------------------------------
Total maintenance $ 11,577 $ 11,642 $ (65) $ 56,463 $ 52,504 $ 3,959
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Growth:
Canada $ 9,231 $ 11,058 $ (1,827) $ 25,467 $ 30,717 $ (5,250)
U.S. 29,065 7,496 21,569 71,555 46,655 24,900
----------------------------------------------------------------------------
Total growth $ 38,296 $ 18,554 $ 19,742 $ 97,022 $ 77,372 $ 19,650
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Distributions
The following table summarizes various details of the Fund's 2007 and 2006
distributions:
Year ended December 31
----------------------------------------------------------------------------
Monthly Annual Total
distribution distribution distributions Percentage
per trust per trust and PPS increase in total
unit and PPS unit and PPS dividends distributions and
Period dividend dividend declared PPS dividends
----------------------------------------------------------------------------
2007 January-
December $ 0.1515 $ 1.8180 $ 123,326 7.9%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2006 August-
December $ 0.1515 $ 1.8180 $ 49,534
January-
July $ 0.1415 $ 1.6980 $ 64,769
----------------------------------------------------------------------------
Total $ 114,303
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Long-term debt
Summarized details of the Fund's long-term debt facilities are as follows:
Letters of
credit (not
reported as
long-term
debt on the
Facility drawn Consolidated Current
Available at December Balance available
lending 31, 2007 Sheets) capacity
----------------------------------------------------------------------------
Canadian long-term
debt facilities -
stated in Canadian
dollars
Senior secured
debentures, series A $ 47,000 $ 47,000 $ - $ -
Senior secured
debentures, series B $ 58,000 $ 58,000 $ - $ -
Revolving credit
facility $ 150,000 $ 72,000 $ 24,713 $ 53,287
U.S. long-term
debt facilities -
stated in U.S.
dollars
Term loan $ 195,000 $ 195,000 $ - $ -
Revolving credit
facility $ 575,000 $ 333,500 $ 166,755 $ 74,745
IRBs $ 104,000 $ 104,000 $ - $ -
BFI CANADA INCOME FUND
Consolidated Balance Sheets
December 31, 2007 and December 31, 2006 (in thousands of dollars)
December 31, December 31,
2007 2006
---------------------------------------------------------------------------
ASSETS
CURRENT
Cash and cash equivalents $ 13,359 $ 9,275
Accounts receivable 115,851 102,350
Due from non-controlling interest - 6,638
Other receivables 457 1,737
Prepaid expenses 15,001 11,665
----------------------------------------------------------------------------
144,668 131,665
OTHER RECEIVABLES 761 1,517
FUNDED LANDFILL POST-CLOSURE COSTS 5,976 4,142
INTANGIBLES 144,686 77,204
GOODWILL 616,534 481,334
DEFERRED COSTS 7,306 4,051
DEFERRED FINANCING COSTS - 7,015
CAPITAL ASSETS 404,900 322,372
LANDFILL ASSETS 644,711 730,290
OTHER ASSETS 1,670 7,070
----------------------------------------------------------------------------
$ 1,971,212 $ 1,766,660
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES
CURRENT
Accounts payable $ 66,815 $ 64,284
Accrued charges 75,355 57,318
Distribution and dividends payable 10,409 9,907
Income taxes payable 2,515 1,280
Deferred revenues 12,018 10,212
Current portion of long-term debt - 50
Landfill closure and post-closure costs 2,900 5,824
----------------------------------------------------------------------------
170,012 148,875
LONG-TERM DEBT 801,973 543,454
LANDFILL CLOSURE AND POST-CLOSURE COSTS 55,943 58,711
OTHER LIABILITIES 5,056 383
FUTURE INCOME TAX LIABILITIES 57,668 31,922
----------------------------------------------------------------------------
1,090,652 783,345
----------------------------------------------------------------------------
NON-CONTROLLING INTEREST 251,371 282,026
UNITHOLDERS' EQUITY 629,189 701,289
----------------------------------------------------------------------------
$ 1,971,212 $ 1,766,660
----------------------------------------------------------------------------
----------------------------------------------------------------------------
BFI CANADA INCOME FUND
Consolidated Statements of Operations and Comprehensive Income (Loss)
For the three months (unaudited) and year ended December 31, 2007 and
December 31, 2006 (in thousands of dollars, except net income per trust
unit amounts)
----------------------------------------------------------------------------
Three months ended Year ended
----------------------------------------------------------------------------
2007 2006 2007 2006
----------------------------------------------------------------------------
REVENUES $ 251,029 $ 200,319 $ 917,357 $ 771,819
----------------------------------------------------------------------------
EXPENSES
OPERATING 151,356 111,878 531,614 436,311
SELLING, GENERAL AND
ADMINISTRATION 30,312 28,206 110,208 99,591
----------------------------------------------------------------------------
INCOME BEFORE THE FOLLOWING 69,361 60,235 275,535 235,917
AMORTIZATION 40,226 37,297 161,006 148,128
INTEREST ON LONG-TERM DEBT 13,824 9,311 42,964 34,307
FINANCING COSTS - - 7,192 79
NET GAIN ON SALE OF CAPITAL ASSETS (91) (34) (1,434) (443)
NET LOSS ON FINANCIAL INSTRUMENTS 7,666 3,902 9,384 3,363
NET FOREIGN EXCHANGE (GAIN) LOSS (1,131) (8,629) 13,671 (2,578)
OTHER EXPENSES 43 23 48 210
----------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES AND
NON-CONTROLLING INTEREST 8,824 18,365 42,704 52,851
----------------------------------------------------------------------------
INCOME TAX EXPENSE (RECOVERY)
Current 1,279 1,614 8,779 5,610
Future 1,671 4,737 (4,082) 7,307
----------------------------------------------------------------------------
2,950 6,351 4,697 12,917
----------------------------------------------------------------------------
INCOME BEFORE NON-CONTROLLING
INTEREST 5,874 12,014 38,007 39,934
NON-CONTROLLING INTEREST 952 1,846 6,320 7,191
----------------------------------------------------------------------------
NET INCOME 4,922 10,168 31,687 32,743
----------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation
adjustment (3,407) 23,402 (95,859) (421)
----------------------------------------------------------------------------
COMPREHENSIVE INCOME (LOSS) $ 1,515 $ 33,570 $ (64,172) $ 32,322
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income per trust unit,
basic and diluted $ 0.09 $ 0.19 $ 0.56 $ 0.61
Weighted average number of
trust units outstanding
(thousands), basic 57,562 53,617 56,564 53,506
Weighted average number of
trust units outstanding
(thousands), diluted 68,706 65,391 67,803 65,391
BFI CANADA INCOME FUND
Consolidated Statements of Cash Flows
For the three months (unaudited) and year ended December 31, 2007 and
December 31, 2006 (in thousands of dollars)
----------------------------------------------------------------------------
Three months ended Year ended
----------------------------------------------------------------------------
2007 2006 2007 2006
----------------------------------------------------------------------------
NET INFLOW (OUTFLOW) OF CASH
RELATED TO THE FOLLOWING ACTIVITIES
OPERATING
Net income $ 4,922 $ 10,168 $ 31,687 $ 32,743
Items not affecting cash
Amortization of intangibles 8,849 5,286 25,443 19,851
Amortization of deferred
financing costs - 368 - 1,380
Amortization of capital assets 18,299 15,153 66,295 56,874
Amortization of landfill assets 13,078 16,490 69,268 70,023
Net gain on sale of capital assets (91) (34) (1,434) (443)
Write-off of deferred costs 30 429 129 847
Write-off of deferred financing
costs - - - 79
Accretion of landfill closure
and post-closure costs 719 736 3,086 2,932
Net unrealized foreign
exchange loss (gain) - (8,000)9,683 96
Future income taxes 1,671 4,737 (4,082) 7,307
Net loss on financial instruments 7,666 3,902 9,384 3,363
Non-controlling interest 952 1,846 6,320 7,191
Landfill closure and
post-closure expenditures (1,834) (1,483) (4,541) (13,016)
----------------------------------------------------------------------------
54,261 49,598 211,238 189,227
Changes in non-cash working
capital items 24,533 8,585 6,177 (3,529)
----------------------------------------------------------------------------
Cash generated from operating
activities 78,794 58,183 217,415 185,698
----------------------------------------------------------------------------
INVESTING
Acquisitions (2,708) (13,850) (366,244) (33,578)
Investment in other receivables (210) (611) (610) (2,095)
Proceeds from other receivables 432 502 2,596 1,633
Funded landfill post-closure costs (392) (402) (1,472) (2,525)
Purchase of capital assets (30,535) (14,139) (96,176) (74,334)
Purchase of landfill assets (17,236) (15,677) (59,693) (55,051)
Proceeds from the sale of
capital assets 144 42 1,996 1,183
Investment in deferred costs 1,238 (792) (3,385) (1,910)
----------------------------------------------------------------------------
Cash utilized in investing
activities (49,267) (44,927) (522,988) (166,677)
----------------------------------------------------------------------------
FINANCING
Payment of deferred financing
costs - (892) - (1,890)
Proceeds from long-term debt 48,779 63,269 562,415 215,406
Repayment of long-term debt (47,184) (43,404) (218,644) (123,774)
Trust units issued, net of
issue costs (17) - 87,562 (46)
Distributions and dividends
paid to trust unitholders
and participating preferred
shareholders (31,227) (29,720) (122,824) (113,649)
----------------------------------------------------------------------------
Cash (utilized in) generated
from financing activities (29,649) (10,747) 308,509 (23,953)
----------------------------------------------------------------------------
Effect of foreign exchange
changes on foreign cash and
cash equivalents 212 (171) 1,148 65
----------------------------------------------------------------------------
NET CASH INFLOW (OUTFLOW) 90 2,338 4,084 (4,867)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD OR YEAR 13,269 6,937 9,275 14,142
----------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS,
END OF YEAR $ 13,359 $ 9,275 $ 13,359 $ 9,275
----------------------------------------------------------------------------
----------------------------------------------------------------------------
BFI CANADA INCOME FUND
Consolidated Statements of Unitholders' Equity, Deficit and Accumulated
Other Comprehensive Loss
For the three months (unaudited) and year ended December 31, 2007 and
December 31, 2006 (in thousands of dollars)
----------------------------------------------------------------------------
Three months ended Year ended
----------------------------------------------------------------------------
2007 2006 2007 2006
----------------------------------------------------------------------------
CONTRIBUTED EQUITY
Trust units, beginning of
period or year $ 1,006,268 $ 908,221 $ 908,221 $ 891,070
Issuance of trust units,
net of issue costs and
related tax effect, during
the period or year (17) - 89,414 (46)
Trust units issued on
exchange of PPSs, during
the period or year 500 - 9,116 17,197
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Trust units, end of year 1,006,751 908,221 1,006,751 908,221
----------------------------------------------------------------------------
Class A units, beginning of
period or year - - - -
Class A units issued, during
the period or year - - - -
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Class A units, end of year - - - -
----------------------------------------------------------------------------
Treasury units, beginning
of period or year - - - -
Trust units acquired by the
U.S. LTIP, during the period
or year - - (1,698) (1,281)
Deferred compensation
obligation, during the
period or year - - 1,698 1,281
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Treasury units, end of year - - - -
----------------------------------------------------------------------------
TOTAL CONTRIBUTED EQUITY 1,006,751 908,221 1,006,751 908,221
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DEFICIT
Accumulated net income,
beginning of period or year 110,142 76,779 86,947 54,204
Accumulated distributions,
beginning of period or year (337,714) (236,622) (260,991) (167,270)
----------------------------------------------------------------------------
Deficit, beginning of period
or year (227,572) (159,843) 174,044 (113,066)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income, during the
period or year 4,922 10,168 31,687 32,743
Transition adjustment,
during the period or year - - (3,570) -
Distributions declared, during
the period or year (26,165) (24,369) (102,888) (93,721)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Accumulated net income,
end of year 115,064 86,947 115,064 86,947
----------------------------------------------------------------------------
Accumulated distributions,
end of year (363,879) (260,991) (363,879) (260,991)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DEFICIT, END OF YEAR (248,815) (174,044) (248,815) (174,044)
----------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE
LOSS
Accumulated other comprehensive
loss, beginning of period or year (125,340) (56,290) (32,888) (32,467)
Foreign currency translation
adjustment, during the period
or year (3,407) 23,402 (95,859) (421)
----------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE
LOSS, END OF YEAR (128,747) (32,888) (128,747) (32,888)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DEFICIT AND ACCUMULATED OTHER
COMPREHENSIVE LOSS, END OF YEAR (377,562) (206,932) (377,562) (206,932)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
UNITHOLDERS' EQUITY $ 629,189 $ 701,289 $ 629,189 $ 701,289
----------------------------------------------------------------------------
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