Press Releases

  • Wednesday, May 9, 2012
    Genivar reports first quarter of 2012 results and declares a dividend of $0.375 per share

    MONTREAL, May 9, 2012 - GENIVAR Inc. (TSX: GNV) ("GENIVAR" or the "Company") today announced its financial and operating results for the first quarter of 2012. The first quarter results cover the period from January 1, 2012, to March 31, 2012.

    FIRST QUARTER OF 2012 HIGHLIGHTS

    • Total revenues were $163.7 million compared to $149.3 million in 2011, an increase of 9.7%. Net revenues, expressed as revenues less direct costs for subconsultants and other direct expenses that are recoverable directly from the clients, amounted to $137.2 million, representing a 8.3% increase as compared to 2011.

    • EBITDA stood at $21.3 million, as compared to $20.0 million in 2011. As a percentage of net revenues, the EBITDA margin stood at 15.5% for 2012, compared to 15.8% for 2011. EBITDA for the first quarter of 2012 was negatively impacted by a foreign exchange loss of $0.7 million, costs of $0.6 million related to an uncompleted transaction as well as one less working day during the quarter as compared to the same period of 2011, which further impacted EBITDA by $0.3 million.

    • Net earnings amounted to $10.1 million or $0.31 per share on a basic and diluted basis, as compared to $16.1 million or $0.62 per share on a basic and diluted basis in 2011. However, adjusted net earnings were $10.1 million compared to $8.9 million in 2011, representing an increase of 13.0%, without the effect of a one-time deferred income tax recovery in 2011 resulting from a change in legal structure. The 2011 one-time deferred income tax recovery was $7.2 million or $0.28 per share.

    • The backlog stood at $454.0 million compared to a backlog of $409.6 million at the end of the fourth quarter of 2011, representing an increase of 10.8% and approximately 7.5 months of revenues.

    • During the quarter, GENIVAR acquired a Colombian firm, Consultores Regionales Asociados - CRA S.A.S., as part of the Company's international expansion plan. GENIVAR also acquired Smith Carter Architects and Engineers Inc. and Smith Carter (USA) LLC, two integrated architecture and engineering firms including United States operations. Additionally, GENIVAR acquired Les Investissements R.J. Inc., a Quebec-based firm specialized in mechanical and electrical engineering. Finally, GENIVAR diversified its services in the oil and gas sector in the Alberta region by acquiring GRB Engineering Ltd. ("GRB"). GRB complements the services already offered by the Company in this industry. These four transactions added approximately 600 employees to our workforce.

    "We are pleased with these results, during what traditionally is the slowest quarter of the year. We are evolving as planned in an overall good Canadian market environment and our outlook is positive for the remainder of the year," stated Pierre Shoiry, President and Chief Executive Officer of GENIVAR. "Our strong balance sheet, coupled with a buoyant pipeline of growth opportunities in a consolidating industry, positions us well to execute on our global expansion strategy. As in the past, our search is focused on successful, complementary firms who share our vision and corporate culture," he added.

    DIVIDEND
    The Board of GENIVAR declared a dividend of $0.375 per share. This dividend will be payable on or around July 15, 2012, to shareholders of record at the close of business on June 30, 2012.

    FINANCIAL REPORT
    This release includes, by reference, the 2012 first quarter financial reports, including the unaudited interim consolidated financial statements and the Management Discussion & Analysis ("MD&A") of the Company.

    For a copy of our full financial results for the first quarter 2012, including the MD&A and the unaudited interim consolidated financial statements, please visit our Website at www.genivar.com.

    CONFERENCE CALL
    GENIVAR will hold a conference call at 4 p.m. (Eastern time) on May 9, 2012, to discuss these results. The telephone numbers to access the conference call are as follows:

    • Montreal and International, please dial 514-861-2909.
    • Elsewhere in Canada and United States, please dial 877-695-6175.

    • Conference number: 8284786

    A presentation highlighting the results of the first quarter of 2012 will be available on the same day in the Investor section of GENIVAR's Website (www.genivar.com), under Presentations and Events.

    A replay of the call will be available until May 16, 2012. The telephone numbers to access the replay of the call are 514-861-2272 or 800-408-3053, password 1421250. The replay of the conference call will also be available in the Investor section of the Website under Presentations and Events, in the days following the event.

    ANNUAL GENERAL MEETING OF SHAREHOLDERS
    GENIVAR will hold its annual general meeting of shareholders on May 24, 2012, at 10 a.m. (Eastern time) at the McCord Museum (J. Armand Bombardier Hall), at 690 Sherbrooke Street West, Montreal, Quebec.

    RESULTS OF OPERATIONS

       
      First quarter
      2012 2011 Variation
    IN THOUSANDS OF DOLLARS EXCEPT NUMBER OF SHARES, PER SHARE DATA AND PERCENTAGES FOR THE PERIOD
    FROM JANUARY 1
    TO MARCH 31
    FOR THE PERIOD
    FROM JANUARY 1
    TO APRIL 2
    %
    Revenues $ 163,736 $ 149,321 9.7%
    Less: Subconsultants and other direct expenses $ 26,545 $ 22,668 17.1%
    Net revenues* $ 137,191 $ 126,653 8.3%
    Direct project costs $ 69,561 $ 64,131 8.5%
    Gross margin $ 67,630 $ 62,522 8.2%
    Marketing, general and administrative expenses(1) $ 46,332 $ 42,508 9.0%
    EBITDA* $ 21,298 $ 20,014 6.4%
    Amortization of intangible assets $ 4,271 $ 4,567 (6.5%)
    Depreciation of property, plant and equipment $ 2,230 $ 1,863 19.7%
    Financial expenses $ 702 $ 998 (29.7%)
    Earnings before income taxes $ 14,095 $ 12,586 12.0%
    Income tax expenses (recovery) $ 3,997 ($ 3,528) 213.3%
    Net earnings $ 10,098 $ 16,114 (37.3%)
    Attributable to:      
      - Shareholders $ 10,085 $ 16,114 (37.4%)
      - Non-controlling interest $ 13 - 100.0 %
    Basic and diluted net earnings per share $ 0.31 $ 0.62 (50.0%)
    Adjusted net earnings* $ 10,098 $ 8,934 13.0%
    Adjusted net earnings per share* $ 0.31 $ 0.34 (8.8%)
    Basic and diluted weighted average number of shares 32,668,079 26,015,930  

    *   Non-IFRS measures are described below.
    (1)   The marketing, general and administrative expenses include the exchange loss or gain and the interest revenues.

    FUNDS FROM OPERATIONS AND FREE CASH FLOW

       
      First quarter
      2012 2011

    IN THOUSANDS OF DOLLARS EXCEPT PER SHARE DATA

    FOR THE PERIOD
    FROM JANUARY 1
    TO MARCH 31
    FOR THE PERIOD
    FROM JANUARY 1
    TO APRIL 2
    Cash flows from operating activities $ 5,976 $ 2,065
    Change in non-cash working capital items $ 8,909 $ 10,687
    Funds from operations* $ 14,885 $ 12,752
    Funds from operations per share* $ 0.46 $ 0.49
    Less:    
    Change in non-cash working capital items ($ 8,909) ($ 10,687)
    Capital expenditures ($ 2,096) ($ 2,158)
    Free cash flow* $ 3,880 ($ 93)
    Free cash flow per share* $ 0.12 -

    * Non-IFRS measures are described below.

    NON-IFRS MEASURES

    GENIVAR uses non-IFRS measures that are considered by Canadian companies as indicators of financial performance, measures which are not recognized under IFRS and may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable. GENIVAR believes these measures are useful supplemental information that may assist investors in assessing an investment in the Company's shares.

    Non-IFRS measures used by GENIVAR are net revenues, EBITDA, EBITDA per share, income tax expenses per share, adjusted net earnings, adjusted net earnings per share, funds from operations, funds from operations per share, free cash flow, and free cash flow per share.

    Net revenues
    Net revenues are defined as revenues from professional consulting services less direct costs for subconsultants and other direct expenses that are recoverable directly from the clients. Net revenues is not an IFRS measure and does not have a standardized definition within IFRS. Therefore, net revenues may not be comparable to similar measures presented by other issuers. Investors are advised that net revenues should not be construed as an alternative to revenues for the period (as determined in accordance with IFRS) as an indicator of GENIVAR's performance.

    EBITDA and EBITDA per share
    EBITDA is defined as earnings before financial expenses, income tax expenses, depreciation and amortization. EBITDA is not an IFRS measure and does not have a standardized definition within IFRS. Investors are cautioned that EBITDA should not be considered an alternative to net earnings for the period (as determined in accordance with IFRS) as an indicator of GENIVAR's performance, or an alternative to cash flows from operating, financing and investing activities as a measure of GENIVAR's liquidity and cash flows. GENIVAR's method of calculating EBITDA may differ from the methods used by other issuers and, accordingly, GENIVAR's EBITDA may not be comparable to similar measures used by other issuers.

    EBITDA per share is calculated using the basic weighted average number of shares.

    Adjusted net earnings and adjusted net earnings per share
    Adjusted net earnings is not an IFRS measure. This measure provides Management with net earnings without the income tax effect pertaining to the change in legal structure. The adjusted net earnings is defined as the net earnings for the period without the deferred income tax recovery accounted for on January 1, 2011.

    Adjusted net earnings per share is calculated using the basic weighted average number of shares.

    Funds from operations and funds from operations per share
    Funds from operations is not an IFRS measure. It provides Management and investors with a proxy for the amount of cash generated from operating activities before changes in non-cash working capital items.

    Funds from operations per share is calculated using the basic weighted average number of shares.

    Free cash flow and free cash flow per share
    Free cash flow is not an IFRS measure. It provides a consistent and comparable measurement of free cash flow generated from operations across entities and is used as an indicator of financial strength and performance. Free cash flow is defined as cash flows from operating activities as reported in accordance with IFRS, less total capital expenditures reported in the financial statements.

    Free cash flow per share is calculated using the basic weighted average number of shares.

    ABOUT GENIVAR INC.
    GENIVAR is a leading Canadian engineering company providing private and public-sector clients with a full range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. Ranging significantly in size, GENIVAR's clients operate in various different market segments, including the Buildings, Industrial, Energy, Municipal Infrastructure, Transportation and Environment sectors. GENIVAR is one of the largest engineering companies in Canada by number of employees, with more than 5,500 managers, professionals, technicians, technologists and support staff in over 100 cities in Canada and internationally.
    www.genivar.com

    Forward-looking statements
    Certain information regarding GENIVAR contained herein may constitute forward-looking statements. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although GENIVAR believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. GENIVAR's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The complete version of the cautionary note regarding forward-looking statements as well as a description of the relevant assumptions and risk factors likely to affect GENIVAR's actual or projected results are included in the Management Discussion and Analysis for the fourth quarter and year ended December 31, 2011, which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and GENIVAR does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws.   

    Alexandre L'Heureux
    Chief Financial Officer
    GENIVAR Inc.
    Tel.: 514-340-0046, ext. 5310
    alexandre.lheureux@genivar.com

    Isabelle Adjahi
    Director, Communications and Investor Relations
    GENIVAR Inc.
    Tel.: 514-340-0046, ext. 5648
    isabelle.adjahi@genivar.com