Press Releases

  • Wednesday, March 13, 2013
    GENIVAR Reports Record Revenues of $1.25 Billion for 2012 and Declares a Dividend of $0.375 per Share

    MONTREAL, QUEBEC--(Marketwire - March 13, 2013) - GENIVAR Inc. (TSX:GNV) ("GENIVAR" or the "Company"), today announced its financial and operating results for the fourth quarter and year-end 2012. The fourth quarter results cover the period from September 30, 2012, to December 31, 2012. Following the closing of the transaction with WSP Group plc ("WSP"), our results for the year include those of WSP from August 1, 2012, the date the transaction closed.

    Financial results include respectively $3.5 million, net of income taxes of $1.0 million of acquisition-related costs and integration and restructuring expenses for the fourth quarter and $15.1 million, net of income taxes of $1.7 million for the year 2012. These amounts are considered unusual costs by Management and are defined as "Unusual Items."

    FOURTH QUARTER 2012 HIGHLIGHTS

    • Total revenues were $516.5 million, compared to $172.0 million in 2011, an increase of 200.3%. Net revenues, expressed as revenues less direct costs for subconsultants and direct expenses that are recoverable directly from the clients, amounted to $411.9 million, representing a 210.4% increase as compared to 2011. Revenue growth was mainly attributable to the recent acquisition of WSP.
    • Excluding Unusual Items, EBITDA stood at $45.3 million or $0.89 per share, compared to $21.5 million or $0.80 per share in 2011. Taking Unusual Items into account, EBITDA for the quarter was $40.8 million or $0.80 per share.
    • The Company reported adjusted net earnings of $26.5 million or $0.52 per share, on a basic and diluted basis, as compared to $10.0 million or $0.37 per share, on a basic and diluted basis, in 2011. Including Unusual Items, net earnings was $23.0 million or $0.45 per share in the fourth quarter of 2012.
    • WSP's organic growth on net revenues stood at 8.2%, compared to the same quarter of 2011. GENIVAR excluding WSP realized a negative organic growth of 1.2%
    • Free cash flow of $93.1 million, or $1.83 per share generated in the fourth quarter.
    • The backlog stood at $1,420.6 million, compared to a backlog of $1,360.0 million at the end of the third quarter of 2012, representing an increase of 4.5%, and approximately 8.9 months of revenues.

    2012 YEAR HIGHLIGHTS

    • Total revenues were $1,257.5 million, compared to $651.9 million in 2011, an increase of 92.9%. For the same period, net revenues amounted to $1,020.1 million, representing a 92.8% increase as compared to 2011.
    • Organic growth on net revenues of 4.9% for WSP on a trailing-twelve-month basis and a flat organic growth for GENIVAR excluding WSP acquisition.
    • On a comparable year-over-year basis, excluding Unusual Items, EBITDA increased to $125.4 million or $3.11 per share in 2012, up from $89.7 million in 2011. As a percentage of net revenues, the EBITDA margin, excluding Unusual Items, stood at 12.3% for 2012, compared to 17.0% for 2011.
    • Adjusted net earnings amounted to $61.4 million or $1.52 per share.
    • Free cash flow per share without Unusual Items of $2.22, representing 146.1% of adjusted net earnings per share.
    • For the first time in 24 months, DSO decreased below the 100 days threshold and reached 97 days.
    • Net debt decreased to $127.1 million, which on a combined trailing-twelve-month basis puts the net debt to EBITDA ratio at 0.8x.

    "We are extremely pleased with our results and thankful to all our employees around the world for a strong 2012 performance. This landmark year for our Company saw our net revenues almost double and break the $1 billion threshold. This was achieved thanks to a strong contribution from our merger to WSP, one of the largest transactions in our industry in 2012," commented Pierre Shoiry, President and Chief Executive Officer of GENIVAR. "We ended the year with a strong statement of financial position, were included in the TSX S&P Composite Index and received continued support from our two main shareholders, which are Canada's two largest institutional investors; all the right elements which will be the foundation of our continued growth," he added.

    GUIDANCE FOR 2013

    Management provided guidance on 2013 operating results in the Management's Discussion & Analysis ("MD&A") for the year ended December 31, 2012. The outlook is provided to assist analysts and shareholders in formalizing their respective views on the 2013 outlook. These measures are subject to change.

    A detailed discussion on each region's operational results for 2012 is also available in the MD&A.

    DIVIDEND

    The Board of GENIVAR declared a dividend of $0.375 per share. This dividend will be payable on or about April 15, 2013, to shareholders of record at the close of business on March 31, 2013.

    FINANCIAL REPORT

    This release includes, by reference, the year 2012 financial reports, including the audited consolidated financial statements and MD&A of the Company.

    For a copy of our full financial results for the year 2012, including the MD&A and the audited 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 March 13, 2013, to discuss these results. The telephone numbers to access the conference call are 1-416-981-9000 or 1-800-734-8507 (toll-free).

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

    A replay of the call will be available until March 27, 2013. The telephone numbers to access the replay of the call are 1-416-626-4100 or 1-800-558-5253, access code 21648808. The replay of the conference call will also be available in the Investor section of the Website under Presentations & Events, in the days following the event.

    RESULTS OF OPERATIONS

    Fourth quarter Year

    2012
    without
    Unusual
    Items*

    2012 2011 2012
    without
    Unusual
    Items*

    2012 2011
    IN MILLIONS OF DOLLARS, EXCEPT NUMBER OF SHARES AND PER SHARE DATA FOR THE
    PERIOD FROM
    SEPTEMBER 30
    TO DECEMBER 31
    FOR THE
    PERIOD FROM
    SEPTEMBER 30
    TO DECEMBER 31
    FOR THE
    PERIOD FROM
    OCTOBER 2 TO
    DECEMBER 31
    FOR THE
    PERIOD FROM
    JANUARY 1 TO
    DECEMBER 31
    FOR THE
    PERIOD FROM
    JANUARY 1 TO
    DECEMBER 31
    FOR THE
    PERIOD FROM
    JANUARY 1 TO
    DECEMBER 31
    Revenues $516.5 $516.5 $172.0 $1,257.5 $1,257.5 $651.9
    Less: Subconsultants and direct costs $104.6 $104.6 $39.3 $237.4 $237.4 $122.9
    Net revenues** $411.9 $411.9 $132.7 $1,020.1 $1,020.1 $529.0
    Personnel costs $308.4 $311.5 $92.6 $750.4 $753.5 $371.9
    Other operational costs(1) $60.5 $61.9 $18.6 $147.6 $161.3 $67.4
    Share of income of associates ($2.3 ) ($2.3 ) - ($3.3 ) ($3.3 ) -
    EBITDA** $45.3 $40.8 $21.5 $125.4 $108.6 $89.7
    Amortization of intangible assets $8.6 $8.6 $4.5 $24.6 $24.6 $17.3
    Depreciation of property, plant and equipment $6.4 $6.4 $2.4 $16.2 $16.2 $8.0
    Financial expenses $3.9 $3.9 $1.0 $9.4 $9.4 $4.4
    Share of depreciation of associates $0.7 $0.7 - $0.7 $0.7 -
    Earnings before income taxes $25.7 $21.2 $13.6 $74.5 $57.7 $60.0
    Income tax expenses (recovery) ($1.2 ) ($2.2 ) $3.6 $12.4 $10.7 $9.9
    Share of tax of associates $0.4 $0.4 - $0.7 $0.7 -
    Net earnings $23.0 $10.0 $46.3 $50.1
    Attributable to:
    - Shareholders $23.1 $10.0 $46.3 $50.1
    - Non-controlling interests ($0.1 ) - - -
    Basic and diluted net earnings per share $0.45 $0.37 $1.15 $1.91
    Basic and diluted weighted average number of shares 51,000,772 51,000,772 26,841,888 40,312,474 40,312,474 26,233,234
    * The financial results are presented before the impact of Unusual Items.
    ** Non-IFRS measures are described below.
    (1) The other operational costs include the operational exchange loss or gain and the interest income.

    RECONCILIATION OF NET EARNINGS AND ADJUSTED NET EARNINGS

    Fourth quarter Year
    2012 2011 2012 2011
    IN MILLIONS OF DOLLARS, EXCEPT PER SHARE DATA FOR THE
    PERIOD FROM
    SEPTEMBER 30
    TO DECEMBER 31
    FOR THE
    PERIOD FROM
    OCTOBER 2 TO
    DECEMBER 31
    FOR THE
    PERIOD FROM
    JANUARY 1 TO
    DECEMBER 31
    FOR THE
    PERIOD FROM
    JANUARY 1 TO
    DECEMBER 31
    Net earnings $23.0 $10.0 $46.3 $50.1
    Transaction costs of WSP* - - $12.3 -
    Integration and restructuring costs* $4.5 - $4.5 -
    Income taxes related to Transaction, Integration and restructuring costs* ($1.0 ) - ($1.7 ) -
    Deferred income tax recovery - - - ($7.2 )
    Adjusted net earnings** $26.5 $10.0 $61.4 $42.9
    Adjusted net earnings per share** $0.52 $0.37 $1.52 $1.64
    * Transaction costs of WSP and integration and restructuring costs are considered Unusual Items by Management.
    ** Non-IFRS measures are described below.

    NON-IFRS MEASURES

    GENIVAR uses non-IFRS measures that are considered by 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, EBITDA margin, adjusted net earnings and adjusted net earnings 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 year (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 year (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.

    EBITDA margin

    EBITDA margin is defined as EBITDA expressed as a percentage of net revenues. EBITDA margin is not an IFRS measure.

    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 effect of significant non-recurring items. The adjusted net earnings is defined as the net earnings for the year, excluding the effect in the financial results of the significant items identified.

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

    ABOUT GENIVAR INC.

    GENIVAR, through its combination with WSP, is one of the world's leading professional services firms, working with governments, businesses, architects and planners and providing integrated solutions across many disciplines. The firm provides services to transform the built environment and restore the natural environment, and its expertise ranges from environmental remediation to urban planning, from engineering iconic buildings to designing sustainable transport networks, and from developing the energy sources of the future to enabling new ways of extracting essential resources. It has approximately 15,000 employees, mainly engineers, technicians, scientists and architects, as well as various environmental experts, based in more than 300 offices, across 35 countries, on every continent.
    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, 2012, 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.
    514-340-0046, ext. 5310
    alexandre.lheureux@genivar.com

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