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Press release from CNW Group


Monday, May 30, 2011

PROVENTURE INCOME FUND ANNOUNCES RESULTS FOR FIRST QUARTER OF 201107:00 EDT Monday, May 30, 2011 Symbol: PVT.UN (TSX-V)CALGARY, May 30, 2011 /CNW/ - Proventure Income Fund (the "Fund") is pleased to report its financial results for the three month period ended March 31, 2011.Summary for the first three months of 2011 when compared to the same period of 2010We reported profit for the period of $361 thousand or $0.05 per unit when compared to $3.8 million or $0.49 per unit for 2010.  Rental income increased to $837 thousand or by 2.6% from $816 thousand for 2010.  In addition, our EBITDA (see "Non-IFRS Financial Measures") decreased by 75% to $1.06 million from $4.3 million in 2010 due primarily to an increase in finance income related to the interest bearing receivable from Prodev and net fair value changes in fund unit liabilities and unit purchase warrants that were recorded in 2010 in the amount of $3.4 million.  We also declared a $0.05 distribution on March 31, 2011, payable April 15, 2011.   Net cash provided by operating activities was $435 thousand compared to $565 thousand in 2010 due primarily to a combination of profit for the period and non-cash working capital changes.Selected Quarterly Information $ thousands, except per unit amounts March 31, 2011  March 31, 2010% ChangeRental revenue 837 8162.6Profit for the period 361 3,761(90.4) Per unit - Basic and diluted 0.05 0.49(28.6)Cash provided by operating activities                 435                   565                    (23.0) Per unit - basic 0.06 0.07(14.3)EBITDA1 1,060 4,298(75.3)EBITDA margin1 126.6% 526.7%(76.0) Per Unit - basic 0.14 0.57(75.4)Weighted average units outstanding      Basic 7,647 7,5511.3Actual units outstanding 7,648 7,6380.1Closing market price 2.00 1.8011.1Total assets 53,949 54,517(1.0)Total liabilities 30,210 45,105(33.0)Unitholders' equity 23,739 9,412152.2Net book value per unit - basic 3.10 1.25148.0Note:  (1) These financial measures are identified and defined under the section "Non-IFRS Financial Measures"The Non-IFRS measures indentified in this Press Release do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and are therefore unlikely to be comparable to similar measures presented by other issuers. These non-IFRS measures are more fully defined and discussed, together with reconciliation to the most directly related IFRS measure in the MD&A of the Fund on the results of operations for the three month period ended March 31, 2011.Copies of Proventure Income Fund's unaudited financial statements and related MD&A are available on the SEDAR website at Income Fund is an open-ended mutual fund trust established on December 31, 2005 under laws of the Province of Alberta.  The Fund is in the commercial property development business and leases real estate to Cervus LP.  The units of Proventure Income Fund are listed on the TSX Venture Exchange and trade under the symbol "PVT.UN".Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.For further information: Peter Lacey - President & CEO           Randy Muth - Chief Financial Officer Telephone: (403) 567-0339 Ext: 245          Telephone: (403) 567-0339 Ext: 244 Fax: 403 567-0497           Fax: 403 567-0497 Email:          Email: