GENIVAR Income Fund Announces Fourth-Quarter and Full-Year Financial Results
for 2009

MONTREAL, March 23 /CNW Telbec/ - The GENIVAR Income Fund (the "Fund") released its 2009 fourth-quarter results today, together with the full-year results for the period from January 1, 2009, to December 31, 2009.

    
    Highlights
    ----------

    - For the full year 2009, revenues grew from $387.8 million in 2008 to
      $477.9 million, representing a 23.2% increase compared with 2008. Net
      revenues were $395.3 million, up 23.5% from $320.1 million in 2008. Of
      the total 23.5% increase in net revenues, 14.0% came from the
      acquisitions completed in 2008 and 2009 and the remaining 9.5% was
      achieved through organic growth.

    - For the fourth quarter of 2009, revenues rose to $135.0 million, up
      from $115.7 million, representing an increase of 16.7%. Net revenues
      were $108.7 million, compared with $93.3 million, an increase of 16.6%
      compared with 2008. Organic growth accounted for 6.2% of the 16.6%
      increase in net revenues, with the remaining 10.4% resulting from
      acquisitions.

    - EBITDA for the full year 2009 increased by 14.5% to $78.6 million or
      19.9% of net revenues, compared with $68.6 million or 21.4% of net
      revenues for the full year 2008. Without the negative impact of the
      exchange loss of $3.3 million registered in 2009, EBITDA would have
      increased by 23.4% to $81.9 million.

    - EBITDA increased from $19.6 million in the fourth quarter of 2008 to
      $21.0 million for the same period in 2009. The fourth-quarter results
      were negatively impacted by an exchange loss of $1.4 million as a
      result of the stronger Canadian dollar.

    - Earnings before non-controlling interest were $50.1 million or $2.06
      per unit, up from $42.5 million, or $1.95 per unit, in 2008. In the
      fourth quarter, earnings before non-controlling interest were $12.6
      million or $0.47 per unit, compared with $10.2 million or $0.44 per
      unit for the same period in 2008.

    - In 2009, the Fund generated adjustable distributable cash of $61.7
      million or $2.56 per unit, of which $48.7 million was distributed to
      unitholders, representing annual distributions of $1.95 per unit and an
      adjusted payout ratio of 78.9%.

    - As at December 31, 2009, backlog remained steady at $355.6 million,
      representing 8.6 months of work.

    - In 2009, the Fund added approximately 500 employees to its platform, of
      which about two-thirds came from the 12 acquisitions completed in
      Canada and the one completed in Trinidad and Tobago during the year. In
      addition, international net revenues also increased by 24.9% in 2009,
      compared with 2008.

    - Subsequent to the year-end, the Fund completed two acquisitions in
      Ontario, boosting the total staff in that province to more than 1,000
      employees.
    

"Despite a challenging economy in 2009, we are pleased with our overall performance which demonstrates the resilience of our business model and the advantages of scale as well as geographic and market diversification," said Pierre Shoiry, President and Chief Executive Officer of the GENIVAR Income Fund. "We are grateful to our almost 6,000 clients for their continued support and to our committed staff who provide them with innovative and cost-effective solutions and quality service on projects of varying size and scope."

Formation of a special committee

The Fund has formed a special committee of independent trustees to analyze the opportunity to convert the Fund into a corporation. The special committee is expected to make a formal recommendation to the Board of the Fund before the end of April 2010, and a press release will be issued by the Fund once the Board has made a decision.

    
    Conference call
    ---------------
    

The Fund will hold a conference call at 4 p.m. (Eastern time) on March 23, 2010, to discuss these results.

    
    To participate in the conference call:
    Montreal and International, please dial 514-807-9895
    Elsewhere in Canada and United States, please dial 1-888-231-8191
    Conference number: 60928017
    

A presentation of the 2009 fourth quarter highlights and results will be available on the same day at: www.genivar.com in the Investor Relations section, under Presentations and events.

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

    
    About GENIVAR
    -------------
    

GENIVAR is a leading Canadian consulting engineering firm providing private and public-sector clients with a comprehensive range of professional services covering all project phases, including planning, design, construction and maintenance. GENIVAR's clients range in size and scope and primarily operate in the building, industrial, power, municipal infrastructure, transportation and environmental sectors. GENIVAR is one of Canada's largest consulting engineering firms in terms of number of employees, with over 4,100 managers, professionals, technicians, technologists and support staff in more than 80 locations in Canada and abroad. www.genivar.com

    
    RESULTS OF OPERATIONS

                      -------------------------------------------------------
                                   3 months                    12 months
                      -------------------------------------------------------
                              2009          2008          2009          2008
                      -------------------------------------------------------
                           FOR THE       FOR THE       FOR THE       FOR THE
                       PERIOD FROM   PERIOD FROM   PERIOD FROM   PERIOD FROM
                      SEPTEMBER 27  SEPTEMBER 28     JANUARY 1     JANUARY 1
    IN THOUSANDS OF             TO            TO            TO            TO
     DOLLARS EXCEPT    DECEMBER 31   DECEMBER 31   DECEMBER 31   DECEMBER 31
     PER UNIT DATA      (UNAUDITED)   (UNAUDITED)  (AUDITED*)  (AUDITED*)
    -------------------------------------------------------------------------
    Revenues             $ 135,022     $ 115,718     $ 477,924     $ 387,803

    Deduct: Subcon-
     sultants and
     other direct
     expenses             $ 26,314      $ 22,455      $ 82,597      $ 67,709

    Net revenues         $ 108,708      $ 93,263     $ 395,327     $ 320,094

    Direct project
     costs                $ 54,911      $ 45,353     $ 196,644     $ 157,986
    -------------------------------------------------------------------------
    Gross margin          $ 53,797      $ 47,910     $ 198,683     $ 162,108

    Marketing,
     general, and
     administrative
     expenses and
     others               $ 32,845      $ 28,312     $ 120,114      $ 93,499
    -------------------------------------------------------------------------
    EBITDA                $ 20,952      $ 19,598      $ 78,569      $ 68,609
    -------------------------------------------------------------------------
    Interest                 $ 386         $ 850       $ 1,898       $ 2,341

    Depreciation of
     property, plant
     and equipment         $ 1,676       $ 1,647       $ 6,287       $ 4,705

    Amortization of
     intangible assets     $ 4,719       $ 5,486      $ 17,036      $ 16,527
    -------------------------------------------------------------------------
    Earnings before
     income taxes
     and non-contro-
     lling interest       $ 14,171      $ 11,615      $ 53,348      $ 45,036

    Income taxes           $ 1,556       $ 1,434       $ 3,281       $ 2,518
    -------------------------------------------------------------------------
    Earnings before
     non-controlling
     interest             $ 12,615      $ 10,181      $ 50,067      $ 42,518

    Non-controlling
     interest              $ 4,424       $ 3,955      $ 18,974      $ 16,703
    -------------------------------------------------------------------------
    Net earnings           $ 8,191       $ 6,226      $ 31,093      $ 25,815

    Basic net earnings
     per unit               $ 0.47        $ 0.44        $ 2.06        $ 1.95

    Weighted average
     number of units    17,297,253    14,192,428    15,071,186    13,213,513

    Diluted net
     earnings per unit      $ 0.47        $ 0.44        $ 2.06        $ 1.95

    Diluted weighted
     average number
     of units           26,357,640    23,224,760    24,131,573    21,829,087
    -------------------------------------------------------------------------
    * Except for Non-GAAP measures.


    DISTRIBUTABLE CASH

                      -------------------------------------------------------
                                   3 months                    12 months
                      -------------------------------------------------------
                              2009          2008          2009          2008
                      -------------------------------------------------------
                           FOR THE       FOR THE       FOR THE       FOR THE
                       PERIOD FROM   PERIOD FROM   PERIOD FROM   PERIOD FROM
                      SEPTEMBER 27  SEPTEMBER 28     JANUARY 1     JANUARY 1
    IN THOUSANDS OF             TO            TO            TO            TO
     DOLLARS EXCEPT    DECEMBER 31   DECEMBER 31   DECEMBER 31   DECEMBER 31
     PER UNIT DATA      (UNAUDITED)   (UNAUDITED)  (AUDITED*)  (AUDITED*)
    -------------------------------------------------------------------------
    Cash flows from
     operating
     activities           $ 35,703      $ 14,069      $ 52,581      $ 38,322

    Capital
     expenditures
     paid                 ($ 3,868)     ($ 3,748)    ($ 12,787)    ($ 10,438)

    Standardized
     distributable
     cash                 $ 31,835      $ 10,321      $ 39,794      $ 27,884

    Change in non-cash
     working capital
     items(2)            ($ 16,473)      $ 3,433      $ 20,397      $ 24,988

    Capital
     expenditures
     paid for UNISON
     project(1)            $ 1,531             -       $ 1,531             -

    Adjusted
     distributable
     cash                 $ 16,893      $ 13,754      $ 61,704      $ 52,872

    Adjusted
     distributable
     cash,
     per unit(3)            $ 0.64        $ 0.59        $ 2.56        $ 2.26

    Payout ratio

      Standardized            70.4%        186.7%        122.3%        136.1%
      Adjusted               132.7%        140.1%         78.9%         71.8%
    -------------------------------------------------------------------------
    Distributions

    Fund's units
     distributions        $ 14,935      $ 11,793      $ 31,016      $ 23,080

    Class B
     Exchangeable
     LP Unit
     distributions         $ 3,571       $ 3,571       $ 8,441       $ 6,836

    Class C
     Exchangeable
     LP Unit
     distributions         $ 3,904       $ 3,904       $ 9,227       $ 8,043

    Aggregate
     distributions,
     all units            $ 22,410      $ 19,268      $ 48,684      $ 37,959

    Aggregate
     distributions,
     all units, per
     unit(4)                $ 0.83        $ 0.83        $ 1.95        $ 1.70
    -------------------------------------------------------------------------
    * Except for Non-GAAP measures.

    (1) The Fund is working towards the implementation of a new information
        management system called the UNISON project. Costs incurred for this
        project are non-recurrent and therefore are removed from the
        calculation of the Adjusted distributable cash.
    (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) Distributable cash per unit is calculated using the diluted weighted
        average number of units.
    (4) Distributions declared per unit represent the annual distributions
        declared. Distributions declared per unit, calculated using the
        diluted weighted average number of units, were $1.98 per unit for the
        year.
    

NON-GAAP MEASURES

The Fund uses Non-GAAP measures that are used by Canadian open-ended income funds as indicators of financial performance measures which are not recognized 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.

Non-GAAP measures used by the Fund are Net revenues, EBITDA, Distributable cash, and Payout ratio.

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 the 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 year (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. Investors are cautioned that EBITDA should not be construed as an alternative to net earnings for the year (as determined in accordance with GAAP) as an indicator of the Fund's performance, or as an alternative to cash flows from operating, financing and investing activities as a measure of the Fund's liquidity and cash flows. The Fund's method of calculating EBITDA may differ from the methods used by other issuers and, accordingly, the Fund's EBITDA may not be comparable to similar measures used by other issuers.

Distributable cash

The Fund views distributable cash as an operating performance measure and it is a non-GAAP measure generally used by Canadian income funds as an indicator of financial performance.

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.

SOURCE GENIVAR Inc.

For further information: For further information: Pierre Shoiry, President and CEO, GENIVAR Income Fund, (514) 340-0046, ext. 5104; Marlene Casciaro, Director of Communications, GENIVAR Income Fund, (514) 340-0046, ext. 5184

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GENIVAR Inc.

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