May 24, 2011 (Canada NewsWire Group) --
MONTREAL, May 24, 2011 /CNW Telbec/ - GENIVAR Inc. (TSX: GNV) ("GENIVAR" or the "Corporation"), formerly GENIVAR Income Fund (the "Fund"), today announced its financial and operating results for the first quarter of 2011, under the International Financial Reporting Standards ("IFRS"). The first quarter results cover the period from January 1, 2011, to April 2, 2011.
FIRST QUARTER OF 2011 HIGHLIGHTS
- Total revenues for 2011, was $149.3 million, compared to $126.0 million in 2010, an increase of 18.6%. For the same period, net revenues, expressed as revenues less direct costs for subconsultants and other direct expenses that are recoverable directly from the clients, amounted to $126.7 million, which represents a 17.5% increase as compared to 2010. In Canada, organic growth for the quarter represented 4.7% and 4.1% of revenues and net revenues, respectively.
- EBITDA increased to $20.0 million, up from $18.5 million in 2010. As a percentage of net revenues, the EBITDA margin stood at 15.8% for 2011, compared to 17.1% for 2010. This decrease is largely due to a reduction of activities in certain market segments and regions, the slowdown of our international operations and the conversion to the new ERP system.
- Net earnings amounted to $16.1 million, or $0.62 per share, compared to a net loss of $5.2 million, or $0.29 per unit a year earlier. This loss was a result of the financial expenses related to a reclassification pursuant to the migration to IFRS. Without this adjustment, net earnings for 2010 would have been $11.3 million or $0.42 per unit. Net earnings for 2011 included an income tax recovery of $7.2 million. Without this one-time income tax recovery, net earnings would have been $8.9 million or $0.34 per share.
- Funds from operations amounted to $18.8 million or $0.72 per share as compared to $17.6 million or $0.65 per unit a year earlier.
- The backlog amounted to $423.7 million (8.0 months of upcoming work), compared to a backlog of $420.0 million (8.0 months of work) at the end of 2010.
-
On January 1, 2011, the reorganization of the Fund's income trust
structure into a public corporation and the transition to IFRS were
successfully completed.
- During the quarter GENIVAR completed the acquisition of two firms, one in Quebec and one in Prince Edward Island.
"Despite the impact of a continued slow performance for our Caribbean operations, we are pleased with our performance in Western Canada and Ontario, which produced strong organic growth rates. In Quebec, we have seen a slowdown in the Transportation and Municipal Infrastructure market segments, but remain optimistic about the long-term outlook," stated Pierre Shoiry, President and Chief Executive Officer of GENIVAR. "On a different note, we have made some significant investments in our systems and support services over the past 18 months, and I wish to thank our employees for their continued support and efforts throughout this transition period. We now have a stronger, scalable organization," he added.
DIVIDEND
The Board of GENIVAR declared a dividend of $0.375 per share. This
dividend will be payable on or about July 15, 2011, to shareholders of
record at the close of business on June 30, 2011.
FINANCIAL REPORT
This release includes, by reference, the first quarter 2011 financial
reports incorporating the unaudited interim consolidated financial
statements and the Management Discussion & Analysis ("MD&A").
Since the first quarter of 2011, GENIVAR reports its financial results in accordance with IFRS, as required for public companies in Canada. Previously, the Corporation prepared its financial results under Canadian generally accepted accounting standards (GAAP). The comparative financial information has been restated to reflect the adoption of IFRS, with effect from January 1, 2010.
The Corporation has included reconciliations between IFRS and the amounts previously reported under GAAP in its first quarter of 2011 interim financial statements and in the MD&A. For a copy of our full financial results for the first quarter 2011, including the MD&A and the unaudited interim consolidated financial statements, please visit our website at www.genivar.com.
CONFERENCE CALL
GENIVAR will hold a conference call at 4 p.m. (Eastern Time) on May 24,
2011, to discuss these results. The telephone numbers to access the
conference call are as follows:
-
Montreal and International, please dial 514-861-2255.
-
Elsewhere in Canada and United States, please dial 1-888-696-5910.
- Conference number: 6026618
A presentation highlighting the results of the first quarter 2011 will be available on the same day in the Investor section of GENIVAR's Website (www.genivar.com), under Presentations and Events.
A replay of the call will be available until May 31, 2011. The telephone numbers to access the replay of the call are 514-861-2272 or 1-800-408-3053, passcode 6773822. The replay of the conference call will also be available in the Investor section of the website under Presentations and Events, in the days following the event.
ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS
GENIVAR will hold its annual and special meeting of shareholders on May
26, 2011, at 10:00 a.m. (Eastern time) at the McCord Museum (J. Armand
Bombardier Hall), at 690 Sherbrooke Street West, Montreal, Quebec.
| RESULTS OF OPERATIONS | ||||
| First quarter | ||||
| 2011 | 2010 | |||
|
IN THOUSANDS OF DOLLARS EXCEPT NUMBER OF SHARES/UNITS |
FOR THE PERIOD FROM JANUARY 1 TO APRIL 2 (UNAUDITED) |
FOR THE PERIOD FROM JANUARY 1 TO APRIL 3 (UNAUDITED) |
||
| Revenues | $ 149,321 | $ 125,961 | ||
| Less: Subconsultants and other direct expenses | $ 22,668 | $ 18,149 | ||
| Net revenues | $ 126,653 | $ 107,812 | ||
| Direct project costs | $ 64,131 | $ 55,530 | ||
| Gross margin | $ 62,522 | $ 52,282 | ||
| Marketing, general, and administrative expenses | $ 42,508 | $ 33,818 | ||
| EBITDA | $ 20,014 | $ 18,464 | ||
| Financial expenses* | $ 998 | $ 16,795 | ||
| Depreciation of property, plant and equipment | $ 1,863 | $ 1,367 | ||
| Amortization of intangible assets | $ 4,567 | $ 4,143 | ||
| Earnings (loss) before income taxes | $ 12,586 | ($ 3,841) | ||
| Income tax expense (recovery) | ($ 3,528) | $ 1,387 | ||
| Net earnings (loss) | $ 16,114 | ($ 5,228) | ||
| Basic and diluted net earnings (loss) per share/unit | $ 0.62 | ($ 0.29) | ||
| Adjusted net earnings | $ 16,114 | $ 11,306 | ||
| Adjusted net earnings per share/unit | $ 0.62 | $ 0.42 | ||
| Weighted average number of shares/units | 26,015,930 | 18,103,589 | ||
| Diluted weighted average number of shares/units | 26,015,930 | 27,163,976 | ||
|
* The 2010 financial expenses included the unrealized loss arising from
change in fair value of financial liability related to LP units of $13,137, the distributions on this financial liability of $3,397 and the interest expenses. In 2011, the financial expenses included interest expenses only. |
||||
| FUNDS FROM OPERATIONS AND FREE CASH FLOW | ||||
| First quarter | ||||
| 2011 | 2010 | |||
|
IN THOUSANDS OF DOLLARS |
FOR THE PERIOD FROM JANUARY 1 TO APRIL 2 (UNAUDITED) |
FOR THE PERIOD FROM JANUARY 1 TO APRIL 3 (UNAUDITED) |
||
|
Cash flows from operating activities Change in non-cash working capital items |
$ 2,065 $ 16,713 |
$ 16,384 $ 1,202 |
||
|
Funds from operations Funds from operations per share/unit |
$ 18,778 $ 0.72 |
$ 17,586 $ 0.65 |
||
|
Less: Change in non-cash working capital items Capital expenditures Dividends/distributions paid |
($ 16,713) ($ 2,158) ($ 12,219) |
($ 1,202) ($ 4,661) ($ 22,410) |
||
|
Free cash flow Free cash flow per share/unit |
($ 12,312) ($ 0.47) |
($ 10,687) ($ 0.39) |
||
NON-IFRS MEASURES
GENIVAR uses non-IFRS measures that are used by Canadian companies as
indicators of financial performance measures which are not recognized
under IFRS and may differ from similar computations as reported by
other similar entities and, accordingly, may not be comparable. GENIVAR
believes these measures are useful supplemental measures that may
assist investors in assessing an investment in shares.
Non-IFRS measures used by GENIVAR are net revenues, EBITDA, adjusted net earnings, adjusted net earnings per share/unit, free cash flow, free cash flow per share/unit, funds from operations, funds from operations per share/unit and adjusted weighted average number of shares/units.
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 the clients. Net revenues is not an IFRS
measure and does not have a standardized definition within IFRS.
Therefore, net revenues may not be comparable to similar measures
presented by other issuers. Investors are warned that net revenues
should not be construed as an alternative to revenues for the period
(as determined in accordance with IFRS) as an indicator of GENIVAR's
performance.
EBITDA
EBITDA is defined as earnings before financial expenses, tax,
depreciation and amortization. EBITDA is not an IFRS measure and does
not have a standardized definition within IFRS. Investors are cautioned
that EBITDA should not be considered an alternative to net earnings for
the period (as determined in accordance with IFRS) as an indicator of
GENIVAR's performance, or an alternative to cash flows from operating,
financing and investing activities as a measure of GENIVAR's liquidity
and cash flows. GENIVAR's method of calculating EBITDA may differ from
the methods used by other issuers and, accordingly, GENIVAR's EBITDA
may not be comparable to similar measures used by other issuers.
Adjusted net earnings
Adjusted net earnings is not an IFRS measure and is defined as net
earnings without the expenses related to the financial liability
related to LP Units under IFRS and the share in earnings of the
non-controlling unitholder under the Canadian GAAP.
Adjusted net earnings per share/unit
Adjusted net earnings per share/unit is calculated using the adjusted
weighted average number of shares/units on adjusted net earnings.
Funds from operations and funds from operations per share/unit
Funds from operations is not an IFRS measure. It provides management and
investors with a proxy for the amount of cash generated from operating
activities before changes in non-cash working capital. Funds from
operations per share/unit is calculated using the adjusted weighted
average number of shares/units.
Free cash flow and free cash flow per share/unit
Free cash flow is a not an IFRS measure. It provides a consistent and
comparable measurement of free cash flow across entities generated from
operations and is used as an indicator of financial strength and
performance.
Free cash flow is defined as cash flows from operating activities, including operating cash flows provided from or used in discontinued operations as reported in accordance with IFRS, less adjustments for:
|
(a) total capital expenditures as reported in IFRS financial statements;
and (b) dividends/distributions paid. |
Free cash flow per share/unit is calculated using the adjusted weighted average number of shares/units.
Adjusted weighted average number of shares/units
The adjusted weighted average number of shares/units represents the
weighted average number of shares/units receiving
dividends/distributions.
ABOUT GENIVAR INC.
GENIVAR is a leading Canadian 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 and energy,
municipal infrastructure, transportation and environmental sectors.
GENIVAR is one of Canada's largest services firm by number of
employees, with approximately 4,500 managers, professionals,
technicians, technologists and support staff in more than 90 offices in
Canada and internationally.
www.genivar.com
Forward-Looking Statements
Certain information regarding GENIVAR contained herein may constitute
forward-looking statements. Forward-looking statements may include
estimates, plans, expectations, opinions, forecasts, projections,
guidance or other statements that are not statements of fact. Although
GENIVAR believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to have been correct. These
statements are subject to certain risks and uncertainties and may be
based on assumptions that could cause actual results to differ
materially from those anticipated or implied in the forward-looking
statements. GENIVAR's forward-looking statements are expressly
qualified in their entirety by this cautionary statement.
Alexandre L'Heureux
Chief Financial Officer
GENIVAR Inc.
Tel.: 514-340-0046, ext. 5310
[email protected]
Isabelle Adjahi
Director, Corporate Communications and Investor Relations
GENIVAR Inc.
Tel.: 514-340-0046, ext. 5648
[email protected]