MONTREAL, March 11 /CNW Telbec/ - GENIVAR Income Fund (the Fund) announced strong growth in revenues and EBITDA for its fourth quarter and for the period from January 1, 2007 to December 31, 2007. This is the first full year results for the Fund since it commenced business operations on May 25, 2006.
Highlights
- For the full year 2007, revenues grew from $176.1 million in 2006 to
$257.2 million, representing a 46.0% increase. Net revenue was
$206.6 million, up 61.4% from $128.0 million in 2006. EBITDA stood at
$42.2 million, up 62.2% from $26.0 million in 2006.
- Revenues in the fourth quarter of 2007 were $70.5 million, up 41.9% for
the same period in 2006. Net revenues increased by 57.9% to
$58.0 million compared to $36.7 million in the fourth quarter of 2006.
EBITDA reached $12.8 million for the period from October 1 to
December 31, 2007.
- Net earnings before non-controlling interest were $9.4 million or
44 cents per unit for the fourth quarter and $25.9 million or $1.32 per
unit for the full year 2007.
- In 2007, the Fund generated adjusted distributable cash of
$34.0 million of which $26.1 million were distributed to unitholders
representing an annual distribution of $1.30 per unit and an adjusted
payout ratio of 77%.
- In 2007, GENIVAR completed 11 acquisitions, adding 410 new employees
across Canada : Western Canada based Cochrane Design Group, a
multidisciplinary firm, added offices in Vancouver, Regina, Saskatoon
and Winnipeg; Toronto based building group Kazmar, Quebec
infrastructure and environment firms Nove, GLD, ASA, Terra, and visual
simulation group VizStudio; Ontario transportation groups NCE and
Harmer Podolak; Winnipeg municipal infrastructure firm SEG and,
finally, B.H. Martin, a northern Ontario building and industrial firm.
"2007 has been a tremendous year for GENIVAR in all aspects of the
business. We expanded our services across Canada, added new clients, increased
our backlog and were awarded multiple challenging assignments and more
importantly grew our talented team by 800 people," said Pierre Shoiry,
GENIVAR's President and CEO. "We are well on track to achieve our goal of
becoming one of Canada's leading multidisciplinary engineering, environment
and project management firm by 2010 by offering our clients leading expertise
in all our market segments through our network of regional offices as well as
supporting them in their global development."
The Fund's audited consolidated financial statements, as well as
management's discussion and analysis of this year-end reporting period can be
obtained via the GENIVAR website, in the Investor Relations section, at
www.genivar.com or at www.sedar.com.
About GENIVAR
GENIVAR is a leading Canadian engineering services firm providing private
and public 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, who are of varying sizes, fall into
various market segments such as building, industrial and power, urban
infrastructure, transportation and environment. GENIVAR is one of the largest
engineering services firm in Canada, in terms of number of employees, with
more than 2,700 managers, professionals, technicians and technologists and
support staff, in over 60 offices in Canada and abroad. The Fund's units trade
on the Toronto Stock Exchange under the symbol GNV.UN.
RESULTS OF OPERATIONS
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-------------------------------------------------------
3 months 12 months
-------------------------------------------------------
2007 2006 2007 2006
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FOR THE
FOR THE FOR THE FOR THE PERIOD FROM
PERIOD FROM PERIOD FROM PERIOD FROM JANUARY 1
OCTOBER 1 OCTOBER 1 JANUARY 1 TO
TO TO TO DECEMBER 31
IN THOUSANDS OF DECEMBER 31 DECEMBER 31 DECEMBER 31 (COMBINED
DOLLARS EXCEPT (UNAUDITED) (UNAUDITED) (AUDITED) -UNAUDITED)
PER UNIT DATA (1)
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Revenues $ 70,528 $ 49,703 $ 257,205 $ 176,113
Deduct:
Subconsultants
and other direct
expenses $ 12,529 $ 12,970 $ 50,577 $ 48,134
Net revenues $ 57,999 $ 36,733 $ 206,628 $ 127,979
Direct project costs $ 29,237 $ 19,200 $ 105,979 $ 65,123
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Gross margin $ 28,762 $ 17,533 $ 100,649 $ 62,856
Marketing, general,
and administrative
expenses and others $ 15,974 $ 10,096 $ 58,489 $ 36,867
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EBITDA $ 12,788 $ 7,437 $ 42,160 $ 25,989
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Interest $ 158 $ 195 $ 1,651 $ 608
Depreciation of
property, plant,
and equipment $ 924 $ 534 $ 2,893 $ 1,867
Amortization of
intangible assets $ 3,061 $ 2,130 $ 10,687 $ 7,052
Earnings before
income taxes
and non-controlling
interest $ 8,645 $ 4,578 $ 26,929 $ 16,462
Income tax expense
(recovery)(2)(4) ($ 755) $ 144 $ 1,034
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Earnings before
non-controlling
interest $ 9,400 $ 4,434 $ 25,895
Non-controlling
interest(2) $ 3,724 $ 1,857 $ 10,600
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Net earnings(2) $ 5,676 $ 2,577 $ 15,295
Basic net earnings
per unit $ 0.44 $ 0.24 $ 1.32
Weighted average
number of
units(3)(5) 12,858,533 11,000,000 11,543,532
Diluted net
earnings per unit $ 0.44 $ 0.24 $ 1.32
Diluted weighted
average number of
units(3)(5) 21,332,787 18,927,381 19,635,498
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(1) This combined financial information is the combination of financial
results of GENIVAR Engineering Services Business PRE-IPO and
financial results of the Fund POST-IPO.
(2) Income taxes, non-controlling interest and net earnings have not been
presented on a comparative basis due to the changes in the capital
structure of the preceding entities and the Fund in connection with
the IPO on May 25, 2006.
(3) The basic and diluted weighted average number of units has been
adjusted to reflect units purchased in the market during the year in
connection with the long-term incentive plan and units issued
pursuant to a public offering in Q3.
(4) See section "Results of operations - Income tax expense."
(5) As at March 10, 2008, the number of units is identical to what it was
as at December 31, 2007.
DISTRIBUTABLE CASH
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-------------------------------------------------------
3 months 12 months 220-day
period
2007 2006 2007 2006
-------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
OCTOBER 1 OCTOBER 1 JANUARY 1 MAY 25
IN THOUSANDS OF TO TO TO TO
DOLLARS EXCEPT DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31
PER UNIT DATA (UNAUDITED) (UNAUDITED) (AUDITED) (AUDITED)
-------------------------------------------------------------------------
Cash flows from
operating
activities $ 19,735 $ 8,833 $ 31,801 $ 13,333
Capital
expenditures paid ($ 1,442) ($ 915) ($ 8,052) ($ 1,583)
Standardized
Distributable
Cash $ 18,293 $ 7,918 $ 23,749 $ 11,750
Change in non-cash
working
capital
items(1) ($ 7,211) ($ 1,649) $ 8,461 $ 3,887
Purchase of units
in the market
under the
long-term
incentive plan - - ($ 825) -
Capital expenditures
paid for
non-recurring
items(2) $ 136 - $ 2,567 -
Adjusted
Distributable
Cash (3) $ 11,218 $ 6,269 $ 33,952 $ 15,637
Adjusted
Distributable
Cash,
per unit(3) $ 0.53 $ 0.33 $ 1.59 $ 0.83
Payout ratio
Adjusted 104.7% 75.5% 77.0% 72.9%
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Distributions
Fund's units
distributions $ 7,095 $ 2,749 $ 15,500 $ 6,622
Class B
Non-subordinated
Exchangeable
LP unit
distributions $ 2,053 $ 799 $ 4,493 $ 1,924
Class C Subordinated
Exchangeable
LP unit
distributions
$ 2,601 $ 1,182 $ 6,149 $ 2,848
Aggregate
distributions,
all units(3) $ 11,749 $ 4,730 $ 26,142 $ 11,394
Aggregate
distributions,
all units,
per unit(3) $ 0.55 $ 0.25 $ 1.30 $ 0.60
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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 December 31, 2007 (18,927,381 at
the same date in 2006). 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.