WesternOne Inc. Reports 2013 Q3 Results

VANCOUVER, Nov. 14, 2013 /CNW/ - WesternOne Inc. ("WesternOne") (Toronto Stock Exchange: WEQ, WEQ.DB, WEQ.DB.B and WEQ.DB.C) today announced the release of its financial results for the three and nine months ended September 30, 2013.

The results, consisting of WesternOne's interim financial statements for the three and nine months ended September 30, 2013 and Management's Discussion and Analysis ("MD&A") dated November 14, 2013, are available on SEDAR (www.sedar.com).

2013 Q3 financial highlights:

  • WesternOne recorded consolidated revenue of $93.6 million, gross profit of $19.0 million and adjusted EBITDA(1) of $9.5 million.

  • WRS, WesternOne's equipment rentals division, recorded revenue of $15.7 million and adjusted EBITDA of $4.8 million, representing year-over-year organic growth of 19.7% and 13.6%, respectively. The growth was driven by (i) higher fleet utilization and rental rates; and (ii) incremental fleet investments in aerial and construction heat equipment, driven by continued demand for equipment and related services in Western Canada's construction and infrastructure sectors.

  • Britco, WesternOne's modular construction and leasing division, recorded revenue and adjusted EBTIDA of $77.8 million and $5.9 million, respectively.

  • Corporate overhead remained consistent at $1.2 million, compared with $1.3 million in Q3 of 2012.

  • Operating cash flow was $14.9 million, compared with $6.0 million in Q3 of 2012.

  • Quarterly consolidated payout percentage (2) of 79.7%, or 50.1% year-to-date.

  • On September 12, 2013, Britco announced that it had entered into a contract for approximately $100 million to design and build accommodations for a large workforce housing project in Northern Alberta. The workforce accommodations will comprise over 1,500 rooms. Work on the project will start in the fourth quarter of 2013 and is scheduled to be completed in December of 2015.

"The third quarter operating results reflect strong organic growth in our WRS platform, the ramp-up related to the execution of approximately $300 million worth of work by Britco for projects in Northern Alberta and Northern Manitoba, and, our ongoing effort to secure workforce housing projects in North America and in Australia," said Mr. Rob King, Chief Executive Officer. "WesternOne is well positioned for growth from the continued demand for WRS and Britco products and services in the energy, construction and infrastructure sectors."

Summary Financial Overview Three months ended
September 30,
Nine months ended
September 30,
($ millions except per share /unit amounts)
2013 2012 2013 2012
Revenue $    93.6 $    54.0 $ 273.8 $  163.3
Gross Profit 19.0 16.9 64.0 50.5
         
Adjusted EBITDA (1) (2)        9.5     11.6 37.0 36.4
         
Net Income (Loss) (2)       - (8.6)     4.5   (13.7)
Earnings (Loss) per Share/Unit (2)        
  - Basic and Diluted      0.01 (0.42)    0.19   (0.69)
         
Distributable Cash Generated (1) 4.6       6.3    21.3    21.7
Dividends/Distributions Declared 3.6 3.1 10.7 9.0
Distributable Cash per Share (4) 0.19 0.30 0.91 1.10
Dividends/Distributions Declared per Share 0.15 0.15 0.45 0.45
         
Payout Percentage (3) 79.7% 49.8% 50.1% 41.4%
     
Notes:  
(1) "Adjusted EBITDA" and "Distributable Cash" are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. "Adjusted EBITDA" refers to earnings before interest, income taxes, depreciation, amortization, gain/loss on financial derivatives relating to changes in the fair market value of the fixed interest rate swap, business acquisition and trust conversion costs, debenture issuance costs, gain/loss on debentures relating to changes in their fair values, gain/loss on trust unit issuances relating to conversion of debentures, gain/loss on WesternOne 's exchangeable units relating to changes in their fair values, share/unit based compensation, foreign exchange gains/losses, and write-down of capital assets, intangible assets and goodwill. "Distributable Cash" refers to cash available for paying dividend/distribution to the shareholders/unitholders by WesternOne. For further description of Adjusted EBITDA and Distributable Cash refer to "Non-IFRS Measures" in the MD&A dated November 14, 2013.
(2) Represents amount attributable to shareholders/unitholders.
(3) Amounts calculated using distributable cash and dividends/distributions declared for the related period, not on per share/unit amounts. Calculated as dividend/distribution declared divided by distributable cash generated.
(4) Calculated based on basic weighted average number of shares/units.

Conference Call

Rob King, CEO of WesternOne and the management team will host a conference call at 4:30pm (Eastern time) or 1:30pm (Pacific time), on Thursday, November 14, 2013, to review the financial results and corporate developments for the three and nine months ended September 30, 2013.

To participate in this conference call, please dial one of the following numbers approximately 10 minutes prior to the commencement of the call, and ask to join the WesternOne conference call.

Dial in numbers:  Toll Free  1-888-390-0546
  International or Local Toronto  1-416-764-8688

Conference Call Replay

If you cannot participate on November 14, 2013, a replay of the conference call will be available by dialing one of the following replay numbers. You will be able to dial in and listen to the conference two hours after the meeting end time, and the replay will be available until November 21, 2013. Please enter the Replay ID number 522521 followed by the # key.

Replay Dial-In:  Toll Free  1-888-390-0541
  International or Local Toronto  1-416-764-8677

Forward-looking Information

Certain statements in this press release may constitute "forward-looking" information that involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such information includes, without limitation, statements with respect to: the estimated contract value, project size, and start and completion dates in relation to the newly signed design and construction contract and the growth prospects in sectors where WesternOne's businesses are conducted. Actual events or results may differ materially.

Forward-looking information contained in this press release is based on certain key expectations and assumptions made by WesternOne, including, without limitation: the outlook of WesternOne's business and the economy in Western Canada, the US and Australia, the supply and demand for WesternOne's products and services and management's assessment of future plans and operations. Although the forward-looking information contained in this press release is based upon what the WesternOne's management believes to be reasonable assumptions, WesternOne cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release. Such information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, and a description of these factors can be found under "Risk Factors" in WesternOne's Annual Information Form dated March 28, 2013 and Management's Discussion and Analysis dated November 14, 2013, which are available on SEDAR (www.sedar.com).

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to WesternOne. The forward-looking information is made as of the date of this press release and WesternOne assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

About WesternOne

WesternOne seeks to acquire and grow businesses in the construction and infrastructure services sectors in order to generate stable and growing dividends to its shareholders and to achieve capital appreciation.

Additional Information

Additional information relating to WesternOne and other public filings, is available on SEDAR at www.sedar.com or on WesternOne's website at www.weq.ca.

Trading Symbols

Toronto Stock Exchange: WEQ, WEQ.DB, WEQ.DB.B and WEQ.DB.C

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.

SOURCE: WesternOne Inc.

For further information:

For more information about this press release, please contact:

Carlos Yam, Chief Financial Officer
WesternOne Inc.
Suite 910, 925 West Georgia Street
Vancouver, BC  V6C 3L2
Phone:  (604) 678-4042
E-mail:  cyam@weq.ca

For investor relations information, please contact:

Andrew Greig, Manager of Investor Relations
WesternOne Inc.
Suite 910, 925 West Georgia Street
Vancouver, BC  V6C 3L2
Phone:  (604) 678-4042
E-mail:  agreig@weq.ca


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