Press Releases

  • Tuesday, May 12, 2009
    First Quarter Yields Solid Results for GENIVAR Income Fund

    MONTREAL, May 11 - GENIVAR Income Fund (the "Fund") announced today its financial and operating results (unaudited) for the first quarter of 2009. These results cover the period from January 1, 2009, to March 28, 2009.

    Highlights

    • Revenues for the first quarter of 2009 were $97.4 million, up from $70.1 million for the same period in 2008, representing an increase of 39.0%. Net revenues were $84.8 million, representing an increase of 24.7 million (41.0%).
    • Net earnings before non-controlling interest were $10.4 million or $0.45 cents per unit for the first quarter of 2009. EBITDA increased 40.8% from $11.9 million in the first quarter of 2008 to $16.7 million for the same period in 2009.
    • Cash flows from operating activities generated $13.1 million of cash. Adjusted distributable cash totalled $12.1 million of which $8.8 million was distributed to unitholders, representing an adjusted payout ratio of 72.2%.
    • The Fund completed five acquisitions during the first quarter of 2009, adding approximately 100 employees in Ontario, Alberta and Quebec. Subsequent to the quarter-end, the Fund completed the acquisition of Algal & Associates, a firm specialized in power generation and transmission systems.
    • ENAQ, a Montreal-based nuclear power group also joined GENIVAR as of May 2009. This small group of specialists provides GENIVAR with leading expertise in nuclear licensing, safety, risk management and engineering design.
    • Backlog was $316.9 million as at March 28, 2009.

    "We are very pleased with these first quarter results and are encouraged with the outlook for 2009 and beyond," said Pierre Shoiry, President and CEO of the GENIVAR Income Fund. "Despite the downturn in private sector investment, as well as the general slowdown in the economy, we were able to deliver solid results and continue the execution of our business plan. Proposal activity was buoyant in this first quarter and we secured several contracts in all of our operating segments and regions," concluded Mr. Shoiry.

    Several mandates were awarded to the Fund in the first quarter in all of our regions. These mandates cover our multidisciplinary engineering, architectural and project management services for many clients, including Rio Tinto, the Ontario Ministry of Transportation, the Quebec Ministry of Transportation, the Montreal Ports Authority, the Montreal Harbourfront Corporation, Ryerson University in Toronto, La Cité Collégiale in Ottawa, Defence Construction Canada, Walmart, the Town of Markham and the City of Victoria.

    About GENIVAR

    GENIVAR is a leading Canadian engineering 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, power, municipal infrastructure, transportation and environmental sectors. GENIVAR is one of Canada's largest consulting engineering services firms by number of employees, with more than 3,500 managers, professionals, technicians, technologists and support staff in more than 65 locations in Canada and internationally (www.genivar.com).

        RESULTS OF OPERATIONS
        ---------------------
        ---------------------
                                                      ---------------------------
                                                                3 months
                                                      ---------------------------
                                                              2009          2008
                                                      ---------------------------
                                                           FOR THE       FOR THE
                                                       PERIOD FROM   PERIOD FROM
                                                         JANUARY 1     JANUARY 1
                                                       TO MARCH 28   TO MARCH 29
        IN THOUSANDS OF DOLLARS EXCEPT PER UNIT DATA    (UNAUDITED)   (UNAUDITED)
        -------------------------------------------------------------------------
        Revenues                                          $ 97,431      $ 70,087
    
        Deduct: Subconsultants and other direct
         expenses                                         $ 12,627       $ 9,939
    
        Net revenues                                      $ 84,804      $ 60,148
    
        Direct project costs                              $ 42,394      $ 30,182
        -------------------------------------------------------------------------
        Gross margin                                      $ 42,410      $ 29,966
    
        Marketing, general, and administrative
         expenses and others                              $ 25,685      $ 18,088
        -------------------------------------------------------------------------
        EBITDA                                            $ 16,725      $ 11,878
        -------------------------------------------------------------------------
        Interest                                             $ 319         $ 121
    
        Depreciation of property, plant and equipment      $ 1,398         $ 854
    
        Amortization of intangible assets                  $ 4,143       $ 3,440
        -------------------------------------------------------------------------
        Earnings before income taxes and non-
         controlling interest                             $ 10,865       $ 7,463
    
        Income taxes                                         $ 447        ($ 107)
        -------------------------------------------------------------------------
        Earnings before non-controlling interest          $ 10,418       $ 7,570
    
        Non-controlling interest                           $ 4,014       $ 2,972
        -------------------------------------------------------------------------
        Net earnings                                       $ 6,404       $ 4,598
    
        Basic net earnings per unit                         $ 0.45        $ 0.36
    
        Weighted average number of units                14,277,078    12,870,664
    
        Diluted net earnings per unit                       $ 0.45        $ 0.35
    
        Diluted weighted average number of units        23,345,696    21,347,826
        -------------------------------------------------------------------------
    
    
        DISTRIBUTABLE CASH
        ------------------
        ------------------
                                                      ---------------------------
                                                                3 months
                                                      ---------------------------
                                                              2009          2008
                                                      ---------------------------
                                                           FOR THE       FOR THE
                                                       PERIOD FROM   PERIOD FROM
                                                         JANUARY 1     JANUARY 1
                                                       TO MARCH 28   TO MARCH 29
        IN THOUSANDS OF DOLLARS EXCEPT PER UNIT DATA    (UNAUDITED)   (UNAUDITED)
        -------------------------------------------------------------------------
        Cash flows from operating activities              $ 13,050       $ 7,391
        Capital expenditures paid                         ($ 3,546)     ($ 1,930)
        -------------------------------------------------------------------------
        Standardized distributable cash(1)                 $ 9,504       $ 5,461
        Change in non-cash working capital items(2)        $ 2,621       $ 4,337
        -------------------------------------------------------------------------
        Adjusted distributable cash(1)(3)                 $ 12,125       $ 9,798
        Adjusted distributable cash, per unit(1)(3)         $ 0.52        $ 0.46
        -------------------------------------------------------------------------
        Payout ratio
          Standardized                                        92.2%         97.8%
          Adjusted                                            72.2%         54.5%
        -------------------------------------------------------------------------
        Distributions
    
        Fund's units distributions                         $ 5,360       $ 3,224
        Class B Exchangeable LP Unit distributions         $ 1,623         $ 934
        Class C Exchangeable LP Unit distributions         $ 1,775       $ 1,182
        -------------------------------------------------------------------------
        Aggregate distributions, all units(3)              $ 8,758       $ 5,340
        Aggregate distributions, all units, per
         unit(3)                                            $ 0.38        $ 0.25
        -------------------------------------------------------------------------
        (1) Calculation of the distributable cash included foreign income taxes
            of $0.6 million for the three-month period ended March 28, 2009
            ($- as at March 29, 2008).
        (2) 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.
        (3) Distributable cash and distributable cash per unit amounts are
            calculated for the combined interest of the Fund's units and
            Exchangeable Class B LP units and Exchangeable Class C LP Units,
            which total 23,354,476 as at March 28, 2009 (21,366,405 as at March
            29, 2008). 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.NON-GAAP MEASURES
    

    The Fund uses non-GAAP measures that are used by Canadian open-ended income funds as indicators of financial performance measures 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 of the Fund.

    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 our 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. Therefore, EBITDA may not be comparable to similar measures presented by other issuers.

    Distributable cash

    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.

    Pierre Shoiry,
    President and CEO,
    GENIVAR Income Fund,
    (514) 340-0046, ext. 5104;

    Marlene Casciaro,
    Director of Communications,
    GENIVAR Income Fund,
    (514) 340-0046, ext. 5184