PRT sees 41% increase in seedling order volume over last year
PRT Forest Regeneration Income Fund has seen a 41% increase in seedling order volume over 2010, mainly attributable to improving forestry markets due to stabilization of the US housing market and growth in Chinese lumber exports.
PRT announced their financial results today for it second quarter.
Revenue increased 23.2% to $18.3 million compared with the first half of 2010. Gross profit increased 2.6% to $7.3 million due to increased efficiencies in production.
The Fund’s balance sheet is strong with only $1.3 million in term debt and financing leases outstanding and $17.1 million of available liquidity.
President and CEO Rob Miller observed, “Our results for the first half of the year are encouraging and demonstrate that our strategies to adapt to the forest industry downturn are paying off. The US housing market remains in difficult shape, and the timeline for its recovery is uncertain. At the same time, our customers have made significant headway in developing new markets in Asia, and this has brought an increase in harvesting activity to meet their needs. We have remained ready to respond to the resulting increase in silviculture work, allowing us to reopen our shuttered Kirkland Lake, Ontario, facility and to achieve margin improvements from the increased volume and improved capacity utilization.
While the future pace of the US housing market recovery is uncertain, midterm recovery prospects remain promising, and this will have further positive long-term effects on our business. Despite this prospect, we continue to believe it is prudent to diversify our business further to spawn additional growth and stability. In addition to geographic expansion within forest seedling markets, we see opportunities to expand our product line as well. Our strategy to pursue opportunities outside forestry, including in the energy crop sector, will enable us to develop significant new revenue streams over the long term. These present unique opportunities to expand and diversify our markets while levering off our core expertise in seedling propagation. By focusing on improving our key operational capabilities, managing our balance sheet, and developing new markets, we will maximize long-term value creation for Unitholders.”
See full release:
PRT Announces Improved Results for the First Half of 2011 (PRT Forest Regeneration Income Fund)