Montreal, March 9, 2009 – 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.
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.
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.
Results of Operations
Distributable cash
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For further information, please contact:
Pierre Shoiry,
President and CEO
GENIVAR Income Fund
Phone: (514) 340-0046, ext. 5104
Marlène Casciaro,
Director of Communications
GENIVAR Income Fund
Phone: (514) 340-0046, ext. 5184
