HALIFAX, Feb. 19 /CNW/ - Today, Jazz Air Income Fund (the "Fund") (TSX: JAZ.UN) announced the re-filing of its 2007 year end financial statements, restating the future tax liability calculation, and increasing reported net income by $9.3 million. This restatement does not have any effect on the financial statements or the year end results of Jazz Air LP.
The restatement is the result of calculating future tax liability using a revised rate of 29.5% for 2011 and 28.0% for 2012 and subsequent years rather than the 31.5% previously announced rate. This restatement is not a cash item.
The effect of the restatement on the restated consolidated financial statements for the Jazz Air Income Fund is summarized below:
As previously reported Adjustment As restated $ $ $ ------------------------------------------------------------------------- Consolidated Balance Sheet - 2007 Future income taxes 83,810 (9,265) 74,545 Unitholders' Equity 933,511 9,265 942,776 Consolidated Statement of Income - 2007 Provision for future income taxes 83,810 (9,265) 74,545 Net income for the year 4,855 9,265 14,120
The Board of Trustees of the Fund, on the recommendation of the Audit, Finance and Risk Committee of the Board and management, has concluded that it is necessary to restate the Fund's audited financial statements for year end 2007. Accordingly, the Fund's financial statements as previously filed in respect of this period are now superseded. As previously stated, the year end 2007 financial statements for Jazz Air LP remain unchanged.
"We take seriously our obligations to provide accurate financial statements, and we acted responsibly to disclose this information", said Joseph Randell, President and Chief Executive Officer, Jazz Air LP. "The restatement does not impact the business of Jazz Air LP; our operations remain strong as does our ability to generate cash flow."
About Jazz Air Income Fund
Jazz Air Income Fund is an unincorporated, open-ended trust established under the laws of the Province of Ontario, created to indirectly acquire and hold an interest in the outstanding limited partnership units of Jazz Air LP.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release may contain statements which are forward-looking statements. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations or future actions. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Any forecasts or forward-looking predictions or statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to differ materially from those expressed in the forward-looking statements. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, general industry, market and economic conditions, war, terrorist attacks, changes in demand due to the seasonal nature of the business, the ability to reduce operating costs and employee counts, employee relations, labour negotiations or disputes, restructuring, pension issues, energy prices, currency exchange and interest rates, changes in laws, adverse regulatory developments or proceedings, pending and future litigation and actions by third parties, as well as the factors identified in the Risk Factors section of Jazz Air LP's and Jazz Air Income Fund's annual MD&A dated February 19, 2008. The forward-looking statements contained in this discussion represent Jazz's expectations as of February 19, 2008, and are subject to change after such date. However, Jazz disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.