MONTREAL, May 13 /CNW Telbec/ - GENIVAR Income Fund (The Fund) announced, today, its financial and operating results (unaudited) for the first quarter of 2008. These results cover the period from January 1, 2008 to March 29, 2008.
Highlights
- Revenues for the first quarter of 2008 were $70.1 million, up from
$54.3 million for the same period in 2007, representing an increase of
29.0%. Net revenues were $60.1 million, representing an increase of
$15.9 million (36.2%).
- Earnings before non-controlling interest were $7.6 million or
$0.36 cents per unit for the first quarter. EBITDA increased 46.8% from
$8.1 million in the first quarter of 2007 to $11.9 million for the same
period in 2008.
- Cash flows from operating activities generated $7.4 million of cash.
Adjusted distributable cash totalled $9.8 million of which $5.3 million
was distributed to unitholders, representing an adjusted payout ratio
of 54.5%.
- The Fund completed four acquisitions during the first three months of
2008, adding approximately 365 employees in Ontario, Alberta and
British Columbia.
- Backlog stands at $294.1 million as at March 29, 2008 up from
$207.5 million on December 31, 2007.
"We are very pleased with these first quarter results that bode well for
the rest of 2008" said Pierre Shoiry, President and CEO of the GENIVAR Income
Fund. "With the recent acquisition of Doucet & Associates, five quality firms
have now joined the Fund so far this year and we are especially pleased to now
have an established presence in Alberta," he added. "We secured several
significant contracts during this period in all of our operating regions,"
concluded Mr. Shoiry.
Recent awards include:
- Project and construction management services in environment for the
Gaspe Reclamation Project in Murdochville for Xstrata Copper.
- Electrical and mechanical engineering, instrumentation and piping, as
well as civil technical support for the Twin Rivers canola seed and
soybean crushing plant in the Mauricie Region, in Quebec.
- A multidisciplinary mandate in building engineering for two new office
towers, 21 and 25 storeys respectively, in Quebec City for Cominar.
- Structural, mechanical and civil engineering and supervision work, as
well as environmental studies for the new Calypso Park, the future
largest water park in Canada which will be located in Ottawa, Ontario.
- In transportation, GENIVAR has been selected by the Quebec Ministry of
Transportation to provide engineering services, in consortium, for the
refurbishment of the Dorval Interchange near Montreal's Trudeau
International Airport in Montreal.
- International activities were also buoyant as we successfully completed
the engineering and commissioning of the Mana Mining project in Burkina
Faso for SEMAFO, a fast-track project, with the first gold output being
produced in March 2008.
- GENIVAR was also awarded an important fast-track project management
assignment for a new Convention Centre, in Oran, Algeria, including a
multi-purpose conference and convention facility, a five-star 300-room
hotel, and a hotel-apartment.
- GENIVAR has been awarded a major project for Trinidad and Tobago's
Ministry of National Security aimed at redeveloping its security
facilities including: police stations, fire halls and detention centres
among others. The scope of the mandate covers the calls for proposals
and tender documents, in addition to managing the project and
monitoring the work.
The Fund will hold its annual meeting on May 22, 2008 at 10:00 a.m., at
the Montreal Convention Centre, Room 520AD.
About GENIVAR
GENIVAR is a leading Canadian engineering services firm, providing public
and private sector clients with a full range of professional consulting
services through all execution phases of a project, including planning,
design, construction, and maintenance. Its clients are of varying sizes and
fall into diverse market segments, including building, industrial and power,
urban infrastructure, transportation, and environment. GENIVAR is one of the
largest engineering services firms in Canada, in terms of number of employees,
employing over 2,800 managers, professionals, technicians, technologists, and
support staff, in over 60 offices in Canada and abroad.
RESULTS OF OPERATIONS
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3 months
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2008 2007
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FOR THE PERIOD FOR THE PERIOD
FROM JANUARY 1 FROM JANUARY 1
IN THOUSANDS OF DOLLARS EXCEPT TO MARCH 29 TO MARCH 31
PER UNIT DATA (UNAUDITED) (UNAUDITED)
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Revenues $ 70,087 $ 54,343
Deduct: Subconsultants and other
direct expenses $ 9,939 $ 10,175
Net revenues $ 60,148 $ 44,168
Direct project costs $ 30,182 $ 23,092
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Gross margin $ 29,966 $ 21,076
Marketing, general, and
administrative expenses and others $ 18,088 $ 12,986
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EBITDA $ 11,878 $ 8,090
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Interest $ 121 $ 295
Depreciation of property, plant,
and equipment $ 854 $ 599
Amortization of intangible assets $ 3,440 $ 2,458
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Earnings before income taxes and
non-controlling interest $ 7,463 $ 4,738
Income tax expense (recovery)(1) ($ 152) $ 141
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Earnings before non-controlling interest $ 7,615 $ 4,597
Non-controlling interest(2) $ 3,017 $ 1,925
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Net earnings $ 4,598 $ 2,672
Basic net earnings per unit $ 0.36 $ 0.24
Weighted average number of units(2) 12,870,664 11,000,000
Diluted net earnings per unit $ 0.36 $ 0.24
Diluted weighted average number of
units(2) 21,347,826 18,927,381
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(1) See section "Results of operations - Income tax expense."
(2) As at May 13, 2008, the number of units is identical to what it was
as at March 29, 2008.
DISTRIBUTABLE CASH
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3 months
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2008 2007
------------------------------------
FOR THE PERIOD FOR THE PERIOD
FROM JANUARY 1 FROM JANUARY 1
IN THOUSANDS OF DOLLARS EXCEPT TO MARCH 29 TO MARCH 31
PER UNIT DATA (UNAUDITED) (UNAUDITED)
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Cash flows from operating activities $ 7,391 $ 1,654
Capital expenditures paid ($ 1,930) ($ 2,605)
Standardized distributable cash $ 5,461 ($ 951)
Change in non-cash working capital
items(1) $ 4,337 $ 6,135
Capital expenditures paid for
non-recurring items(2) - $ 1,257
Adjusted distributable cash(3) $ 9,798 $ 6,441
Adjusted distributable cash, per unit(3) $ 0.46 $ 0.34
Payout ratio
Standardized 97.8% 497.4%
Adjusted 54.5% 73.4%
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Distributions
Fund's units distributions $ 3,224 $ 2,749
Class B Non-subordinated Exchangeable LP
unit distributions $ 934 $ 799
Class C Subordinated Exchangeable LP
unit distributions $ 1,182 $ 1,182
Aggregate distributions, all units(3) $ 5,340 $ 4,730
Aggregate distributions, all units,
per unit(3) $ 0.25 $ 0.25
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(1) Distributions are based on actual historical and estimated future
performance of the Fund on a full-year basis. Consequently, periodic
fluctuations in non-cash working capital are not considered when
evaluating the cash flows available for distribution.
(2) Non-recurring capital expenditures pertain to a construction project
which had for objective to expand square footage of the main office
in Quebec City.
(3) Distributable cash and distributable cash per unit amounts are
calculated for the combined interest of the Fund's units and Non-
subordinated Exchangeable LP units and Subordinated Exchangeable LP
units, which total 21,366,405 as at March 29, 2008 (18,927,381 at the
same date in 2007). Number of units has not been adjusted to reflect
units purchased in the market in connection with the long-term
incentive plan since the distributions on these units continue to be
declared and paid.
NON-GAAP MEASURES
The Fund uses non-GAAP measures that are used by Canadian open-ended
income funds as indicators of financial performance measures under GAAP and
may differ from similar computations as reported by other similar entities
and, accordingly, may not be comparable. The Fund believes these measures are
useful supplemental measures that may assist investors in assessing an
investment in units of the Fund.
Non-GAAP measures used by the Fund are net revenues, EBITDA, distributable
cash and payout ratio. These measures are defined below.
Net revenues
Net revenues are defined as revenues from consulting services less direct
costs for sub-consultants and other direct expenses that are recoverable
directly from our clients. Net revenues are not a measure in accordance with
GAAP and do not have standardized meaning prescribed by GAAP. Therefore, net
revenues may not be comparable to similar measures presented by other issuers.
Investors are cautioned that net revenues should not be construed as an
alternative to revenues for the period (as determined in accordance with
GAAP), as an indicator of the Fund's performance.
EBITDA
EBITDA is defined as earnings before interest, tax, depreciation and
amortization. EBITDA is not an earnings measure in accordance with GAAP and
does not have a standardized meaning prescribed by GAAP. Therefore, EBITDA may
not be comparable to similar measures presented by other issuers.
Distributable cash
Standardized distributable cash is defined as cash flows from operating
activities as reported in the GAAP financial statements, including the effects
of changes in non-cash working capital items and any operating cash flows
provided from or used in discontinued operations, less adjustments for:
(a) total capital expenditures as reported in the GAAP financial
statements; and
(b) restrictions on distributions arising from compliance with financial
covenants restrictive at the date of the calculation of standardized
distributable cash and limitations arising from the existence of a
minority interest in a subsidiary.
The Fund also calculated an adjusted distributable cash, which is defined
as standardized distributable cash adjusted for entity-specific adjustment
items that management believes are appropriate for the determination of levels
of distributions.
Payout ratio
Standardized payout ratio is defined as aggregate cash distributions
Divided by standardized distributable cash. Adjusted payout ratio is defined
as aggregate cash distributions divided by adjusted distributable cash.