MONTREAL, Aug. 10 /CNW Telbec/ - GENIVAR Income Fund (the "Fund") announced today its financial and operating results (unaudited) for the second quarter of 2009. These results cover the period from March 29, 2009, to June 27, 2009.
Highlights - For the second quarter of 2009, revenues were $120.0 million up from $97.3 million for the same period in 2008, representing an increase of 23.3%. Net revenues were $100.6 million compared to $80.9 million, an increase of 24.4% from 2008 to 2009. Organic growth accounted for almost half of the increase in revenues and net revenues, the remaining increase being generated by the acquisitions completed since the second quarter of 2008. - Net earnings were $7.7 million for the second quarter, a 15.1% increase from the amount of $6.7 million achieved for the same period in 2008. - Earnings before non controlling interest were $12.6 million or $0.54 per unit on a diluted basis for the second quarter, up 13.9% from $11.1 million or $0.52 per unit on a diluted basis generated in the same quarter of 2008. EBITDA increased 11.7% from $17.5 million in the second quarter of 2008 to $19.5 million for the same period in 2009. The results of the second quarter of 2009 were negatively impacted by an exchange loss of $1.1 million as a result of the stronger Canadian dollar. Without the impact of the exchange loss, EBITDA would have been $20.6 million and our earnings before non-controlling interest would have been $0.59 per unit on a diluted basis for the second quarter. - For the second quarter of 2009, adjusted distributable cash totalled $14.5 million of which $8.8 million were distributed to unitholders, representing an adjusted payout ratio of 60.4%. For the six-month period ended June 27, 2009, adjusted distributable cash totalled $26.6 million, of which $17.5 million were distributed to unitholders, representing an adjusted payout ratio of 65.8%. - During the second quarter of 2009, the Fund added approximately 125 employees with the acquisitions of Algal & Associates, a leading provider of electrical engineering services for power generation, transmission and distribution systems, Jagger Hims Limited, an Ontario- based earth and environmental firm, and ENAQ, a specialized nuclear engineering firm. - Subsequent to the quarter-end, the Fund completed the acquisition of Walker Engineering, a Sault Ste. Marie multidisciplinary engineering firm. - As of June 27, 2009, backlog remained steady at $321.3 million.
"Despite a challenging business environment and softer conditions in specific market and regions, we see very positive signs during this second quarter as proposal activity remained strong, organic growth was at the higher end of our 5-10% target and private sector showed signs of recovery," said Pierre Shoiry, President and CEO of the GENIVAR Income Fund. "These factors provide for a promising base for the remainder of 2009 and beyond, and the pipeline for acquisitions is good, which should yield continued growth for the Fund," concluded Pierre Shoiry.
Conference call A conference call will be held on August 11, 2009 at 4:00 p.m. (Eastern Time) to discuss these results. To participate in the conference call: - Montreal region, dial 514-861-2909 - Canada and United States, dial 1-877-695-6175 Enter access code 7283034 A presentation of the 2009 second quarter highlights and results is available at: www.genivar.com in the Investor Relations section, under Presentations and events. The replay of the conference call will also be available in the Investor Relations section of the Company's web site in the following days at: www.genivar.com.
About GENIVAR
GENIVAR is a leading Canadian engineering services firm providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. Ranging in size and scope, GENIVAR's clients primarily operate in the building, industrial, power, municipal infrastructure, transportation and environmental sectors. GENIVAR is one of Canada's largest consulting engineering services firms by number of employees, with around 3,800 managers, professionals, technicians, technologists and support staff in more than 70 locations in Canada and internationally (www.genivar.com).
RESULTS OF OPERATIONS
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3 months 6 months
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2009 2008 2009 2008
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FOR THE FOR THE FOR THE FOR THE
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
IN THOUSANDS OF MARCH 29 MARCH 30 JANUARY 1 JANUARY 1
DOLLARS EXCEPT PER TO JUNE 27 TO JUNE 28 TO JUNE 27 TO JUNE 28
UNIT DATA (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
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Revenues $ 120,045 $ 97,348 $ 217,476 $ 167,435
Deduct: Subconsultants
and other direct
expenses $ 19,411 $ 16,479 $ 32,038 $ 26,418
Net revenues $ 100,634 $ 80,869 $ 185,438 $ 141,017
Direct project costs $ 50,212 $ 40,429 $ 92,606 $ 70,611
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Gross margin $ 50,422 $ 40,440 $ 92,832 $ 70,406
Marketing, general,
and administrative
expenses and others $ 30,915 $ 22,977 $ 56,600 $ 41,065
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EBITDA $ 19,507 $ 17,463 $ 36,232 $ 29,341
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Interest $ 567 $ 592 $ 886 $ 713
Depreciation of
property, plant
and equipment $ 1,571 $ 1,033 $ 2,969 $ 1,887
Amortization of
intangible assets $ 3,961 $ 3,783 $ 8,104 $ 7,223
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Earnings before
income taxes and
non-controlling
interest $ 13,408 $ 12,055 $ 24,273 $ 19,518
Income taxes $ 799 $ 986 $ 1,246 $ 879
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Earnings before
non-controlling
interest $ 12,609 $ 11,069 $ 23,027 $ 18,639
Non-controlling interest $ 4,935 $ 4,403 $ 8,949 $ 7,375
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Net earnings $ 7,674 $ 6,666 $ 14,078 $ 11,264
Basic net earnings
per unit $ 0.54 $ 0.52 $ 0.99 $ 0.88
Weighted average
number of units 14,276,730 12,870,364 14,276,900 12,870,512
Diluted net earnings
per unit $ 0.54 $ 0.52 $ 0.99 $ 0.88
Diluted weighted
average number
of units 23,348,960 21,350,781 23,348,944 21,350,786
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DISTRIBUTABLE CASH
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3 months 6 months
----------------------------------------------------
2009 2008 2009 2008
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FOR THE FOR THE FOR THE FOR THE
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
IN THOUSANDS OF MARCH 29 MARCH 30 JANUARY 1 JANUARY 1
DOLLARS EXCEPT TO JUNE 27 TO JUNE 28 TO JUNE 27 TO JUNE 28
PER UNIT DATA (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
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Cash flows from
operating activities $ 991 $ 7,954 $ 14,041 $ 15,345
Capital expenditures
paid ($ 3,475) ($ 2,676) ($ 7,021) ($ 4,606)
Standardized
distributable cash ($ 2,484) $ 5,278 $ 7,020 $ 10,739
Change in non-cash
working capital
items(1) $ 16,996 $ 7,964 $ 19,617 $ 12,301
Adjusted distributable $ 14,512 $ 13,242 $ 26,637 $ 23,040
cash
Adjusted distributable
cash, per unit(2) $ 0.62 $ 0.62 $ 1.14 $ 1.08
Payout ratio
Standardized (352.6%) 101.2% 249.5% 99.5%
Adjusted 60.4% 40.3% 65.8% 46.4%
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Distributions
Fund's units
distributions $ 5,360 $ 3,224 $ 10,720 $ 6,448
Class B Exchangeable
LP Unit distributions $ 1,623 $ 934 $ 3,246 $ 1,868
Class C Exchangeable
LP Unit distributions $ 1,775 $ 1,182 $ 3,550 $ 2,364
Aggregate distributions,
all units $ 8,758 $ 5,340 $ 17,516 $ 10,680
Aggregate distributions,
all units, per unit(2) $ 0.38 $ 0.25 $ 0.75 $ 0.50
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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) Distributable cash per unit and distributions declared per unit
amounts are calculated using the diluted weighted average number of
units.
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.
Net revenues
Net revenues are defined as revenues from consulting services less direct costs for subconsultants 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
Distributable cash is calculated in accordance with the recommendations provided in CICA's publication "Standardized Distributable Cash in Income Trusts and Other Flow-Through Entities." 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.