March 23, 2010
Highlights
· For the full year 2009, revenues grew from $387.8 million in 2008 to $477.9 million, representing a 23.2% increase compared with 2008. Net revenues were $395.3 million, up 23.5% from $320.1 million in 2008. Of the total 23.5% increase in net revenues, 14.0% came from the acquisitions completed in 2008 and 2009 and the remaining 9.5% was achieved through organic growth.
· For the fourth quarter of 2009, revenues rose to $135.0 million, up from $115.7 million, representing an increase of 16.7%. Net revenues were $108.7 million, compared with $93.3 million, an increase of 16.6% compared with 2008. Organic growth accounted for 6.2% of the 16.6% increase in net revenues, with the remaining 10.4% resulting from acquisitions.
· EBITDA for the full year 2009 increased by 14.5% to $78.6 million or 19.9% of net revenues, compared with $68.6 million or 21.4% of net revenues for the full year 2008. Without the negative impact of the exchange loss of $3.3 million registered in 2009, EBITDA would have increased by 23.4% to $81.9 million.
· EBITDA increased from $19.6 million in the fourth quarter of 2008 to $21.0 million for the same period in 2009. The fourth-quarter results were negatively impacted by an exchange loss of $1.4 million as a result of the stronger Canadian dollar.
· Earnings before non‑controlling interest were $50.1 million or $2.06 per unit, up from $42.5 million, or $1.95 per unit, in
· In 2009, the Fund generated adjustable distributable cash of $61.7 million or $2.56 per unit, of which $48.7 million was distributed to unitholders, representing annual distributions of $1.95 per unit and an adjusted payout ratio of 78.9%.
· As at December 31, 2009, backlog remained steady at $355.6 million, representing 8.6 months of work.
· In 2009, the Fund added approximately 500 employees to its platform, of which about two‑thirds came from the 12 acquisitions completed in
· Subsequent to the year-end, the Fund completed two acquisitions in
“Despite a challenging economy in 2009, we are pleased with our overall performance which demonstrates the resilience of our business model and the advantages of scale as well as geographic and market diversification,” said
Formation of a special committee
The Fund has formed a special committee of independent trustees to analyze the opportunity to convert the Fund into a corporation. The special committee is expected to make a formal recommendation to the Board of the Fund before the end of April 2010, and a press release will be issued by the Fund once the Board has made a decision.
Conference call
The Fund will hold a conference call at 4 p.m. (Eastern time) on March 23, 2010, to discuss these results.
To participate in the conference call:
Elsewhere in
Conference number: 60928017
A presentation of the 2009 fourth quarter highlights and results will be available on the same day 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 days following the event.
About GENIVAR
GENIVAR is a leading Canadian consulting engineering firm providing private and public‑sector clients with a comprehensive range of professional services covering all project phases, including planning, design, construction and maintenance. GENIVAR’s clients range in size and scope and primarily operate in the building, industrial, power, municipal infrastructure, transportation and environmental sectors. GENIVAR is one of Canada’s largest consulting engineering firms in terms of number of employees, with over 4,100 managers, professionals, technicians, technologists and support staff in more than 80 locations in Canada and abroad.
NON-GAAP MEASURES
The Fund uses Non-GAAP measures that are used by Canadian open-ended income funds as indicators of financial performance measures which are not recognized 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.
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 the 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 year (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. Investors are cautioned that EBITDA should not be construed as an alternative to net earnings for the year (as determined in accordance with GAAP) as an indicator of the Fund's performance, or as an alternative to cash flows from operating, financing and investing activities as a measure of the Fund's liquidity and cash flows. The Fund's method of calculating EBITDA may differ from the methods used by other issuers and, accordingly, the Fund's EBITDA may not be comparable to similar measures used by other issuers.
Distributable cash
The Fund views distributable cash as an operating performance measure and it is a non-GAAP measure generally used by Canadian income funds as an indicator of financial performance.
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.
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For further information, please contact:
Pierre Shoiry, President and CEO
GENIVAR Income Fund
Phone: 514-340-0046, ext. 5104
Marlene Casciaro, Director of Communications
GENIVAR Income Fund
Phone: 514-340-0046, ext. 5184