Hot House Reports Net Income

TORONTO - May 9/05 - SNS -- Hot House Growers Income (HHGI) Fund reported net income of CDN $167,000 on sales of $4.728 million during the first quarter ending March 31, compared to a net loss of $211,000 on sales of $2.262 million during the same quarter of the previous fiscal year.

Despite the net income, the company says it has "negative distributable cash of $0.5 million ($0.07 per unit), a 67% improvement over negative distributable cash of $1.5 million ($0.21 per unit) during the same period in 2004.

"Negative cash flow is normal during the first quarter, which falls early in HHGI's crop cycle. No distributions were made during the quarter, reflecting the Fund's policy of declaring distributions only after distributable cash has been generated."

The company said while it is maintaining a cautious outlook for the coming year, its crops are "in excellent condition and product prices are slightly ahead of last year moving into the second quarter. However, it is still too early to predict peak season conditions and selling prices."

Subscribers can read the full text of the article by Clicking here