GENIVAR Income Fund Announces Growth in Revenues and Earnings for the Second Quarter of 2009



    MONTREAL, Aug. 10 /CNW Telbec/ - GENIVAR Income Fund (the "Fund")
announced today its financial and operating results (unaudited) for the second
quarter of 2009. These results cover the period from March 29, 2009, to June
27, 2009.

    
    Highlights

    - For the second quarter of 2009, revenues were $120.0 million up from
      $97.3 million for the same period in 2008, representing an increase of
      23.3%. Net revenues were $100.6 million compared to $80.9 million, an
      increase of 24.4% from 2008 to 2009. Organic growth accounted for
      almost half of the increase in revenues and net revenues, the remaining
      increase being generated by the acquisitions completed since the second
      quarter of 2008.

    - Net earnings were $7.7 million for the second quarter, a 15.1% increase
      from the amount of $6.7 million achieved for the same period in 2008.

    - Earnings before non controlling interest were $12.6 million or $0.54
      per unit on a diluted basis for the second quarter, up 13.9% from
      $11.1 million or $0.52 per unit on a diluted basis generated in the
      same quarter of 2008. EBITDA increased 11.7% from $17.5 million in the
      second quarter of 2008 to $19.5 million for the same period in 2009.
      The results of the second quarter of 2009 were negatively impacted by
      an exchange loss of $1.1 million as a result of the stronger Canadian
      dollar. Without the impact of the exchange loss, EBITDA would have been
      $20.6 million and our earnings before non-controlling interest would
      have been $0.59 per unit on a diluted basis for the second quarter.

    - For the second quarter of 2009, adjusted distributable cash totalled
      $14.5 million of which $8.8 million were distributed to unitholders,
      representing an adjusted payout ratio of 60.4%. For the six-month
      period ended June 27, 2009, adjusted distributable cash totalled
      $26.6 million, of which $17.5 million were distributed to unitholders,
      representing an adjusted payout ratio of 65.8%.

    - During the second quarter of 2009, the Fund added approximately
      125 employees with the acquisitions of Algal & Associates, a leading
      provider of electrical engineering services for power generation,
      transmission and distribution systems, Jagger Hims Limited, an Ontario-
      based earth and environmental firm, and ENAQ, a specialized nuclear
      engineering firm.

    - Subsequent to the quarter-end, the Fund completed the acquisition of
      Walker Engineering, a Sault Ste. Marie multidisciplinary engineering
      firm.

    - As of June 27, 2009, backlog remained steady at $321.3 million.
    

    "Despite a challenging business environment and softer conditions in
specific market and regions, we see very positive signs during this second
quarter as proposal activity remained strong, organic growth was at the higher
end of our 5-10% target and private sector showed signs of recovery," said
Pierre Shoiry, President and CEO of the GENIVAR Income Fund. "These factors
provide for a promising base for the remainder of 2009 and beyond, and the
pipeline for acquisitions is good, which should yield continued growth for the
Fund," concluded Pierre Shoiry.

    
    Conference call

    A conference call will be held on August 11, 2009 at 4:00 p.m. (Eastern
Time) 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 7283034

    A presentation of the 2009 second quarter highlights and results is
available 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 following days at:
www.genivar.com.
    

    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 around 3,800 managers, professionals, technicians, technologists and
support staff in more than 70 locations in Canada and internationally
(www.genivar.com).


    
    RESULTS OF OPERATIONS
    ---------------------
    ---------------------

                         ----------------------------------------------------
                                     3 months                  6 months
                         ----------------------------------------------------
                                 2009         2008         2009         2008
                         ----------------------------------------------------
                              FOR THE      FOR THE      FOR THE      FOR THE
                          PERIOD FROM  PERIOD FROM  PERIOD FROM  PERIOD FROM
    IN THOUSANDS OF          MARCH 29     MARCH 30    JANUARY 1    JANUARY 1
     DOLLARS EXCEPT PER    TO JUNE 27   TO JUNE 28   TO JUNE 27   TO JUNE 28
     UNIT DATA             (UNAUDITED)  (UNAUDITED)  (UNAUDITED)  (UNAUDITED)
    -------------------------------------------------------------------------
    Revenues                $ 120,045     $ 97,348    $ 217,476    $ 167,435

    Deduct: Subconsultants
     and other direct
     expenses                $ 19,411     $ 16,479     $ 32,038     $ 26,418

    Net revenues            $ 100,634     $ 80,869    $ 185,438    $ 141,017

    Direct project costs     $ 50,212     $ 40,429     $ 92,606     $ 70,611
    -------------------------------------------------------------------------
    Gross margin             $ 50,422     $ 40,440     $ 92,832     $ 70,406

    Marketing, general,
     and administrative
     expenses and others     $ 30,915     $ 22,977     $ 56,600     $ 41,065
    -------------------------------------------------------------------------
    EBITDA                   $ 19,507     $ 17,463     $ 36,232     $ 29,341
    -------------------------------------------------------------------------
    Interest                    $ 567        $ 592        $ 886        $ 713

    Depreciation of
     property, plant
     and equipment            $ 1,571      $ 1,033      $ 2,969      $ 1,887

    Amortization of
     intangible assets        $ 3,961      $ 3,783      $ 8,104      $ 7,223
    -------------------------------------------------------------------------
    Earnings before
     income taxes and
     non-controlling
     interest                $ 13,408     $ 12,055     $ 24,273     $ 19,518

    Income taxes                $ 799        $ 986      $ 1,246        $ 879
    -------------------------------------------------------------------------
    Earnings before
     non-controlling
     interest                $ 12,609     $ 11,069     $ 23,027     $ 18,639

    Non-controlling interest  $ 4,935      $ 4,403      $ 8,949      $ 7,375
    -------------------------------------------------------------------------
    Net earnings              $ 7,674      $ 6,666     $ 14,078     $ 11,264

    Basic net earnings
     per unit                  $ 0.54       $ 0.52       $ 0.99       $ 0.88

    Weighted average
     number of units       14,276,730   12,870,364   14,276,900   12,870,512

    Diluted net earnings
     per unit                  $ 0.54       $ 0.52       $ 0.99       $ 0.88

    Diluted weighted
     average number
     of units              23,348,960   21,350,781   23,348,944   21,350,786
    -------------------------------------------------------------------------



    DISTRIBUTABLE CASH
    ------------------
    ------------------

                         ----------------------------------------------------
                                     3 months                  6 months
                         ----------------------------------------------------
                                 2009         2008         2009         2008
                         ----------------------------------------------------
                              FOR THE      FOR THE      FOR THE      FOR THE
                          PERIOD FROM  PERIOD FROM  PERIOD FROM  PERIOD FROM
    IN THOUSANDS OF          MARCH 29      MARCH 30   JANUARY 1    JANUARY 1
     DOLLARS EXCEPT        TO JUNE 27    TO JUNE 28  TO JUNE 27   TO JUNE 28
     PER UNIT DATA         (UNAUDITED)   (UNAUDITED) (UNAUDITED)  (UNAUDITED)
    -------------------------------------------------------------------------
    Cash flows from
     operating activities       $ 991       $ 7,954    $ 14,041     $ 15,345

    Capital expenditures
     paid                    ($ 3,475)     ($ 2,676)   ($ 7,021)    ($ 4,606)

    Standardized
     distributable cash      ($ 2,484)      $ 5,278     $ 7,020     $ 10,739

    Change in non-cash
     working capital
     items(1)                $ 16,996       $ 7,964    $ 19,617     $ 12,301

    Adjusted distributable   $ 14,512      $ 13,242    $ 26,637     $ 23,040
     cash

    Adjusted distributable
     cash, per unit(2)         $ 0.62        $ 0.62      $ 1.14       $ 1.08

    Payout ratio

      Standardized             (352.6%)       101.2%      249.5%        99.5%
      Adjusted                   60.4%         40.3%       65.8%        46.4%
    -------------------------------------------------------------------------
    Distributions

    Fund's units
     distributions             $ 5,360      $ 3,224    $ 10,720      $ 6,448

    Class B Exchangeable
     LP Unit distributions     $ 1,623        $ 934     $ 3,246      $ 1,868

    Class C Exchangeable
     LP Unit distributions     $ 1,775      $ 1,182     $ 3,550      $ 2,364

    Aggregate distributions,
     all units                 $ 8,758      $ 5,340    $ 17,516     $ 10,680

    Aggregate distributions,
     all units, per unit(2)     $ 0.38       $ 0.25      $ 0.75       $ 0.50
    -------------------------------------------------------------------------
    (1) 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.
    (2) Distributable cash per unit and distributions declared per unit
        amounts are calculated using the diluted weighted average number of
        units.
    

    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.

    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.




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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