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Press release from CNW Group

Proventure Income Fund announces results for second quarter of 2011

Tuesday, August 09, 2011

Proventure Income Fund announces results for second quarter of 201118:00 EDT Tuesday, August 09, 2011Symbol: PVT.UN (TSX-V)CALGARY, Aug. 9, 2011 /CNW/ - Proventure Income Fund (the "Fund") is pleased to report its financial results for the six month period ended June 30, 2011.Overall PerformanceWe reported profit for the period of $645 thousand or $0.08 per unit when compared to $1.08 million or $0.14 per unit for 2010.  In addition, our EBITDA (see "Non-IFRS Financial Measures") decreased by 34% to $1.06 million from $1.62 million in 2010.The differences in net profit is primarily related to a combination of an increase in finance income related to the interest bearing receivable from a related party of $364 during the three month period ended June 30, 2011 (2010 - $nil) and offset by the net fair value changes in fund unit liabilities and unit purchase warrants that were recorded in the three month period ended June 30, 2010 of $568 thousand (2011 - $nil).  In addition, during the three month period ended June 30, 2010, there was income reported from real estate held for development and sale of $329 thousand.  This property was sold to a related party, Prodev Trust ("Prodev"), a related party on December 31, 2010.Selected Quarterly Information           Three Months Ended Six Months EndedIn $thousands , except per unit   amountsJune 30, 2011June 30, 2010% Change June 30, 2011June 30, 2010% ChangeRevenue and other income8581,200(28.5) 1,7152,282(24.8)Profit for the period6451,084(40.5) 1,0064,845(79.2) Per unit - Basic0.080.14(42.9) 0.130.64(79.7) Per unit - Diluted0.070.11(36.4) 0.100.50(80.0)Cash provided by operating activities563709(20.6) 9981,144(12.8) Per unit - Basic0.070.09(22.2) 0.130.15(13.3)EBITDA11,0641,622(34.4) 2,1255,920(64.1)EBITDA margin1124.0%135.2%(8.3) 123.9%259.4%(52.2) Per Unit - Basic0.140.21(33.3) 0.280.78(64.1)Weighted average units outstanding        Basic7,7807,6381.9 7,7147,5951.6 Diluted9,8819,7331.5 9,8159,6891.3 Actual units outstanding    7,8177,6382.3Closing market price    2.111.7520.6Total assets    54,86854,1381.3Total long-term liabilities    25,71426,090(1.4)Unitholders' equity    24,71519,69725.4Net book value per unit - diluted    2.522.0324.1Note:  (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 six month period ended June 30, 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: