May 7, 2010
Highlights
· For the first quarter of 2010, revenues grew to $126.0 million from $97.4 million in 2009, representing a 29.3% increase compared to the first quarter of 2009. Net revenues were $107.8 million, up 27.1% from $84.8 million in the first quarter of 2009. Of the total 27.1% increase in net revenues, 12.2% came from the acquisitions completed since the first quarter of 2009 and two acquisitions completed in this reporting period; the remaining 14.9% being achieved through organic growth, of which 7.8% was a result of four extra working days in the first quarter of 2010 as compared to the same period in 2009.
· EBITDA increased to $18.5 million in the first quarter of 2010 from $16.7 million for the same period in 2009. These first quarter results were negatively impacted by an exchange loss of $1.3 million as a result of the continued strength of the Canadian dollar. Without this negative impact, EBITDA would have increased by 18.4% to $19.8 million between the first quarter of 2009 and 2010.
· Earnings before non-controlling interest were $11.0 million, or $0.41 per unit on a diluted basis as compared to $10.4 million or $0.45 per unit on a diluted basis for the first quarter of 2009.
· In the first quarter of 2010, the Fund generated adjustable distributable cash of $14.0 million or $0.52 per unit, of which $10.2 million was distributed to unitholders, representing an adjusted payout ratio of 72.6%.
· As at April 3, 2010, the total workforce of the Fund was more than 4,200, following the addition of approximately 210 employees during the quarter through the acquisitions of V.B. Cook Engineering and the Thompson Rosemount Group and the remaining 90 employees through organic growth.
· Subsequent to the quarter-end, the Fund announced its intention to convert to a dividend-paying corporation as of January 1, 2011 and proceeded with the acquisition of two Alberta based building firms, Beaubien Glover Maskell Engineering North Inc. and Bearden Engineering Consultants
· As at April 3, 2010, backlog increased at $377.2 million, representing 8.3 months of work.
“We are pleased with these first quarter results that bode well for the rest of
Annual Meeting
The Fund will hold its annual and special meeting of unitholders on May 27, 2010, at 10:00 a.m. (Eastern time) at the
Conference call
The Fund will hold a conference call at 11:00 a.m. (Eastern time) on May 7, 2010, to discuss these results.
To participate in the conference call:
International, please dial 514-807-9895.
Conference number: 72464803
A presentation of the 2010 first quarter highlights and results will be available early in the morning the same day 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 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 4,200 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 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. Investors are cautioned that EBITDA should not be construed as an alternative to net earnings for the period (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 declared divided by standardized distributable cash. Adjusted payout ratio is defined as aggregate cash distributions declared 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