Press Releases

  • Tuesday, March 10, 2009
    GENIVAR Income Fund announces fourth quarter and year-end results

    MONTREAL, March 9 - GENIVAR Income Fund (the "Fund") announced strong growth in revenues, net revenues and EBITDA for its fourth quarter of 2008 and for the period from January 1, 2008 to December 31, 2008.

    Highlights

    • For the full year 2008, revenues grew from $257.2 million, in 2007, to $387.8 million, representing a 50.8% increase. Net revenues were $320.1 million, up 54.9% from $206.6 million in 2007. EBITDA stood a $68.6 million, up 62.7% from $42.2 million in 2007.
    • Revenues in the fourth quarter of 2008 were $115.7 million, up 64.1% for the same period in 2007. Net revenues increased by 60.8% to $93.3 million compared to $58.0 million in the fourth quarter of 2007. EBITDA reached $19.6 million for the period from September 28 to December 31, 2008, up 53.3% for the same period in 2007.
    • For the full year 2008, earnings before non-controlling interest were $42.5 million, or $1.95 per unit, up from $25.9 million, or $1.32 per unit, in 2007. Earnings before non-controlling interest were $10.2 million or $0.44 per unit for the fourth quarter compared to $9.1 million or $0.44 per unit for the same period in 2007. In the fourth quarter of 2008, net earnings were impacted by increased depreciation, amortization, interest and income tax expenses of $5.7 million.
    • In 2008, the Fund generated adjusted distributable cash of $52.9 million, or $2.26 per unit, of which $38.0 million were distributed to unitholders, representing annual distributions of $1.70 per unit and an adjusted payout ratio of 71.8%. This represents an increase of $18.9 million of adjusted distributable cash, or $0.67 per unit, over the 2007 fiscal year. For the fourth quarter of 2008, the Fund generated adjusted distributable cash of $13.8 million, or $0.59 per unit, up from $11.2 million or $0.53 per unit for the same period in 2007.

    "We are extremely pleased with our financial performance in 2008 and the solid execution of our business plan," said Pierre Shoiry, GENIVAR's President and CEO. "In 2008, we significantly expanded our geographic reach and broadened the expertise of our market segments with the addition of 1,000 employees. Our team is strong and our business operates in a wide range of sectors throughout Canada and abroad which should help us mitigate the impact of the current economic environment," concluded Pierre Shoiry.

    Conference call

    The Fund will hold a conference call at 2:00 PM (Eastern Time), March 10, 2009, to discuss these results.

       
     To participate in the conference call:
    
        - Montreal region, dial 514-861-2909
    
        - Canada and United States, dial 1-877-695-6175
    
        Enter access code 5147582
    
    

    The replay of the conference call will also be available in the Investor Relations section of the Company's web site in the following days at www.genivar.com.

    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 90 offices in Canada and internationally (www.genivar.com).

       RESULTS OF OPERATIONS
        ---------------------
        ---------------------
    
                                -------------------------------------------------
                                            3 months               12 months
                                -------------------------------------------------
                                        2008        2007        2008        2007
                                -------------------------------------------------
                                     FOR THE     FOR THE     FOR THE     FOR THE
                                      PERIOD      PERIOD      PERIOD      PERIOD
                                        FROM        FROM        FROM        FROM
                                SEPTEMBER 28   OCTOBER 1   JANUARY 1   JANUARY 1
                                          TO          TO          TO          TO
                                    DECEMBER    DECEMBER    DECEMBER    DECEMBER
        IN THOUSANDS OF DOLLARS           31          31          31          31
         EXCEPT PER UNIT DATA     (UNAUDITED) (UNAUDITED)   (AUDITED)   (AUDITED)
        -------------------------------------------------------------------------
        Revenues                   $ 115,718    $ 70,528   $ 387,803   $ 257,205
    
        Deduct: Subconsultants
         and other direct
         expenses                   $ 22,455    $ 12,529    $ 67,709    $ 50,577
    
        Net revenues                $ 93,263    $ 57,999   $ 320,094   $ 206,628
    
        Direct project costs        $ 45,353    $ 29,237   $ 157,986   $ 105,979
        -------------------------------------------------------------------------
        Gross margin                $ 47,910    $ 28,762   $ 162,108   $ 100,649
    
        Marketing, general,
         and administrative
         expenses and others        $ 28,312    $ 15,974    $ 93,499    $ 58,489
        -------------------------------------------------------------------------
        EBITDA                      $ 19,598    $ 12,788    $ 68,609    $ 42,160
        -------------------------------------------------------------------------
        Interest                       $ 850       $ 158     $ 2,341     $ 1,651
    
        Depreciation of
         property, plant, and
         equipment                   $ 1,647       $ 924     $ 4,705     $ 2,893
    
        Amortization of
         intangible assets           $ 5,486     $ 3,061    $ 16,527    $ 10,687
        -------------------------------------------------------------------------
        Earnings before income
         taxes and
         non-controlling
         interest                   $ 11,615     $ 8,645    $ 45,036    $ 26,929
    
        Income taxes                 $ 1,434      ($ 459)    $ 2,518       $ 983
        -------------------------------------------------------------------------
        Earnings before
         non-controlling
         interest                   $ 10,181     $ 9,104    $ 42,518    $ 25,946
    
        Non-controlling interest     $ 3,955     $ 3,428    $ 16,703    $ 10,651
        -------------------------------------------------------------------------
        Net earnings                 $ 6,226     $ 5,676    $ 25,815    $ 15,295
    
        Basic net earnings
         per unit                     $ 0.44      $ 0.44      $ 1.95      $ 1.32
    
        Weighted average number
         of units                 14,192,428  12,858,533  13,213,513  11,543,532
    
        Diluted net earnings
         per unit                     $ 0.44      $ 0.43      $ 1.95      $ 1.32
    
        Diluted weighted average
         number of units          23,224,760  21,332,787  21,829,087  19,635,498
        -------------------------------------------------------------------------
    
    
        DISTRIBUTABLE CASH
        ------------------
        ------------------
    
                                -------------------------------------------------
                                            3 months               12 months
                                -------------------------------------------------
                                        2008        2007        2008        2007
                                -------------------------------------------------
                                     FOR THE     FOR THE     FOR THE     FOR THE
                                      PERIOD      PERIOD      PERIOD      PERIOD
                                        FROM        FROM        FROM        FROM
                                SEPTEMBER 28   OCTOBER 1   JANUARY 1   JANUARY 1
                                          TO          TO          TO          TO
                                    DECEMBER    DECEMBER    DECEMBER    DECEMBER
        IN THOUSANDS OF DOLLARS           31          31          31          31
         EXCEPT PER UNIT DATA     (UNAUDITED) (UNAUDITED)   (AUDITED)   (AUDITED)
        -------------------------------------------------------------------------
        Cash flows from operating
         activities                 $ 14,069    $ 19,735    $ 38,322    $ 31,801
        Capital expenditures paid   ($ 3,748)   ($ 1,442)  ($ 10,438)   ($ 8,052)
    
        Standardized
         distributable cash(1)      $ 10,321    $ 18,293    $ 27,884    $ 23,749
        Change in non-cash
         working capital items(2)    $ 3,433    ($ 7,211)   $ 24,988     $ 8,461
        Capital expenditures paid
         for non-recurring
         items(3)                          -       $ 136           -     $ 2,567
        Purchase of units in the
         market under the
         long-term incentive
         plan                              -           -           -      ($ 825)
    
        Adjusted distributable
         cash(1)(4)                 $ 13,754    $ 11,218    $ 52,872    $ 33,952
    
        Adjusted distributable
         cash, per unit(1)(4)         $ 0.59      $ 0.53      $ 2.26      $ 1.59
    
        Payout ratio
          Standardized                 186.7%       64.2%      136.1%      110.1%
          Adjusted                     140.1%      104.7%       71.8%       77.0%
        -------------------------------------------------------------------------
        Distributions
    
        Fund's units
         distributions              $ 11,793     $ 7,095    $ 23,080    $ 15,500
    
        Class B Exchangeable LP
         Unit distributions          $ 3,571     $ 2,053     $ 6,836     $ 4,493
    
        Class C Exchangeable LP
         Unit distributions          $ 3,904     $ 2,601     $ 8,043     $ 6,149
    
        Aggregate
         distributions,
         all units(4)               $ 19,268    $ 11,749    $ 37,959    $ 26,142
    
        Aggregate
         distributions, all
         units, per unit(4)           $ 0.83      $ 0.55      $ 1.70      $ 1.30
        -------------------------------------------------------------------------
        (1) Calculation of the distributable cash included a foreign income taxes
            of $0.7 million for the three-month period and of $2.1 million for
            the twelve-month period ended December 31, 2008. Out of this amount,
            $1.3 million will be included on the unitholders' T3 slip as foreign
            income taxes.
        (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) Non-recurring capital expenditures pertain to a construction project
            which had for objective to expand square footage of the main office
            in Quebec City.
        (4) 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 December 31, 2008 (21,366,405 as at
            December 31, 2007). 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. These measures are defined below.

    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;

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