Press Releases

  • Tuesday, March 11, 2008
    GENIVAR Income Fund Concludes 2007 Strong Fourth Quarter and Year-end Results
        MONTREAL, March 11  - 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
        ---------------------
    
                          -------------------------------------------------------
                                            3 months                   12 months
                          -------------------------------------------------------
                                  2007          2006          2007          2006
                          -------------------------------------------------------
                                                                         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)
        -------------------------------------------------------------------------
        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
        -------------------------------------------------------------------------
        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
        -------------------------------------------------------------------------
        EBITDA                $ 12,788      $  7,437     $  42,160     $  25,989
        -------------------------------------------------------------------------
        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
        -------------------------------------------------------------------------
        Earnings before
         non-controlling
         interest             $  9,400      $  4,434     $  25,895
        Non-controlling
        interest(2)           $  3,724      $  1,857     $  10,600
        -------------------------------------------------------------------------
        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
        -------------------------------------------------------------------------
    
        (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
        ------------------
    
                          -------------------------------------------------------
                                       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%
        -------------------------------------------------------------------------
        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
        -------------------------------------------------------------------------
    
        (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.
    Pierre Shoiry, President and CEO, GENIVAR
    Income Fund, (514) 340-0046, ext. 5104; For media inquiries: Marlene Casciaro,
    Director of Communications, GENIVAR Income Fund, (514) 340-0046, ext. 5184