Genivar Income Fund Announces Third Quarter 2007 Results



    MONTREAL, Nov. 12 /CNW Telbec/ - GENIVAR Income Fund (the "Fund")
announced today its financial and operating results (unaudited) for the period
from July 1st, to September 30, 2007. This is the sixth reporting period of
the Fund since it began its business operations on May 25th, 2006 and the
first reporting period where complete comparative information for the previous
year is available.

    
    Highlights

    - Revenues for the third quarter of 2007 were up 61.1% to $68.5 million
      compared to $42.5 million for the same period in 2006. Year-to-date
      revenues were $186.7 million compared to $126.4 million for the same
      nine-month period in 2006.

    - Net earnings before non-controlling interest were $7.4 million or
      38 cents per unit for the quarter and $16.5 million or 87 cents per
      unit for the nine-month period.

    - EBITDA increased 66.4% from $7.0 million in the third quarter of 2006
      to $11.7 million for the same period in 2007.

    - Adjusted Distributable Cash generated in the quarter totalled
      $9.6 million, of which $4.9 million were distributed to unitholders,
      representing an adjusted payout ratio of 51.5%.

    - The Fund raised $50.0 million through a public offering of
      approximately 1.9 million units for gross proceeds of $39.0 million and
      a private placement to the non-controlling unitholder of approximately
      0.5 million units for additional proceeds of $11.0 million.

    - Backlog increased to $201.0 million.

    During the third quarter, we welcomed five new firms who joined our team.
We completed the acquisitions of two firms active in the Ontario
transportation market segment, National Capital Engineering and Harmer Podolak
Engineering Consultants, as well as three municipal infrastructure firms,
namely SEG Engineering in Winnipeg, and André Simard et Associés (effective
October 1, 2007) and TERRA Experts conseils in Quebec City.
    "This was an active quarter for the Fund with record results, sustained
organic growth, the completion of a successful financing and the closing of
five acquisitions", said Pierre Shoiry, President and CEO of the GENIVAR
Income Fund.

    Conference Call

    The Fund will hold a conference call on Tuesday, November 13, 2007, at
11:00 AM EDT. To participate in the conference call, please dial
1-866-999-9779 and enter the password 150522. An audio play of the call will
be archived on the Website at www.genivar.com.

    GENIVAR is a leading Canadian engineering services firm providing private
and public sector clients with a full range of professional consulting
services through all execution phases of a project, including planning,
design, construction and maintenance. Its clients, who are of varying sizes,
fall into various market segments, such as building, industrial and power,
urban infrastructure, transportation, and environment. GENIVAR is one of the
largest engineering services firm in Canada, in terms of the number of
employees, with more than 2,200 managers, professionals, technicians and
technologists, and support staff, in over 40 offices in Canada and abroad.
    The Fund's financial statements, as well as management's discussion and
analysis of the reporting period can be obtained via the GENIVAR website, in
the Investor Relations section, at www.genivar.com or at www.sedar.com.


    RESULTS OF OPERATIONS

                         ----------------------------------------------------
                                      3 months                  9 months
                         ----------------------------------------------------
                                 2007         2006         2007         2006
                         ----------------------------------------------------
                              FOR THE      FOR THE      FOR THE      FOR THE
                          PERIOD FROM  PERIOD FROM  PERIOD FROM  PERIOD FROM
                            JULY 1 TO    JULY 2 TO JANUARY 1 TO JANUARY 1 TO
                         SEPTEMBER 30 SEPTEMBER 30 SEPTEMBER 30 SEPTEMBER 30
    IN THOUSANDS OF       (UNAUDITED)  (UNAUDITED)  (UNAUDITED)    (COMBINED
    DOLLARS EXCEPT                                               -UNAUDITED)
    PER UNIT DATA                                                        (1)
    -------------------------------------------------------------------------
    Revenues              $    68,543  $    42,555  $   186,677  $   126,410
      Deduct: Sub-
       consultants and
       other direct
       expenses           $    14,941  $     8,823  $    38,048  $    35,164
    Net revenues          $    53,602  $    33,732  $   148,629  $    91,246
      Direct project
       costs              $    27,369  $    17,536  $    76,742  $    45,923
    -------------------------------------------------------------------------
    Gross margin          $    26,233  $    16,196  $    71,887  $    45,323
      Marketing,
       general,
       and admi-
       nistrative
       expenses and
       others             $    14,548  $     9,172  $    42,515  $    26,771
    -------------------------------------------------------------------------
    EBITDA                $    11,685  $     7,024  $    29,372  $    18,552
    -------------------------------------------------------------------------
      Interest            $       746  $       245  $     1,493  $       413
      Depreciation of
       property, plant,
       and equipment      $       693  $       512  $     1,969  $     1,333
      Amortization of
       intangible
       assets             $     2,667  $     2,305  $     7,626  $     4,922
      Earnings
       before
       income taxes
       and non-
       controlling
       interest           $     7,579  $     3,962  $    18,284  $    11,884
      Income tax
       expense
       (recovery)(2)(4)   $       161  $      (105) $     1,789            -
    -------------------------------------------------------------------------
      Earnings before
       non-controlling
       interest           $     7,418  $     4,067  $    16,495            -
      Non-controlling
       interest(2)        $     3,074  $     1,703  $     6,876            -
    -------------------------------------------------------------------------
    Net earnings(2)       $     4,344  $     2,364  $     9,619            -
    Basic net earnings
     per unit             $      0.38  $      0.21  $      0.87            -
      Weighted average
       number of units
       (3)(5)              11,305,396   11,000,000   11,100,382            -
      Diluted net
       earnings per
       unit               $      0.38  $      0.21  $      0.87            -
      Diluted weighted
       average number
       of units (3)(5)     19,347,454   18,927,381   19,066,964            -
    -------------------------------------------------------------------------

    (1) This combined financial information is the combination of financial
        results of GENIVAR Engineering Services Business PRE-IPO and
        financial results of the Fund POST-IPO.

    (2) Income taxes, non-controlling interest and net earnings have not been
        presented on a comparative basis due to the changes in the capital
        structure of the preceding entities and the Fund in connection with
        the IPO on May 25, 2006.

    (3) The basic and diluted weighted average number of units has been
        adjusted to reflect units purchased in the market in Q2 in connection
        with the long-term incentive plan and units issued pursuant to a
        public offering in Q3.

    (4) See section of the Management's Discussion and Analysis "Results of
        operations - Income tax expense."

    (5) As at November 9, 2007, the number of units is identical to what it
        was as at September 30, 2007.



    SUMMARY OF QUARTERLY RESULTS
    -------------------------------------------------------------------------
                                                      2007
    -------------------------------------------------------------------------
                                  TTM           Q3           Q2           Q1
    -------------------------------------------------------------------------
                      TRAILING TWELVE      FOR THE      FOR THE      FOR THE
                               MONTHS       PERIOD  PERIOD FROM  PERIOD FROM
                          (UNAUDITED)    FROM JULY   APRIL 1 TO    JANUARY 1
    IN THOUSANDS                              1 TO      JUNE 30  TO MARCH 31
    OF DOLLARS,                          SEPTEMBER  (UNAUDITED)   (UNAUDITED)
    EXCEPT PER                        30(UNAUDITED)
    UNIT DATA
    -------------------------------------------------------------------------
    Results of operations
    -------------------------------------------------------------------------
      Revenues                236,380       68,543  $    63,791  $    54,343
    -------------------------------------------------------------------------
      Net revenues(1)         185,362       53,602  $    50,859  $    44,168
    -------------------------------------------------------------------------
      Gross margin             89,420       26,233  $    24,578  $    21,076
    -------------------------------------------------------------------------
      EBITDA                   36,809       11,685  $     9,597  $     8,090
    -------------------------------------------------------------------------
      Net earnings             12,196        4,344  $     2,603  $     2,672
    -------------------------------------------------------------------------
      Basic and diluted
       net earnings per
       unit                      1.09         0.38  $      0.24  $      0.24
    -------------------------------------------------------------------------
      Weighted average
       number of
       units(2)                         11,305,396   10,992,394   11,000,000
    -------------------------------------------------------------------------
      Diluted weighted
       average number
       of units (2)                     19,347,454   18,920,619   18,927,381
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

     Distributable Cash
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

      Distributable
       Cash(3)(4)
        Standardized           13,374        4,784  $     1,623       ($ 951)
        Adjusted               29,003        9,575  $     6,718  $     6,441
    -------------------------------------------------------------------------
      Distributable Cash,
       per unit (3)(4)
        Standardized      $      0.68  $      0.22  $      0.09      ($ 0.05)
        Adjusted          $      1.47  $      0.45  $      0.35  $      0.34
    -------------------------------------------------------------------------
      Distributions
       declared                19,123        4,933  $     4,730  $     4,730
    -------------------------------------------------------------------------
      Distributions
       declared, per
       unit               $      1.00  $      0.25  $      0.25  $      0,25
    -------------------------------------------------------------------------
      Payout ratio
       Adjusted                  65.9%        51.5%        70.4%        73.4%
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                     2006
    -------------------------------------------------------------------------

                                                Q4           Q3           Q2
                                                      (37 days)
    -------------------------------------------------------------------------

                                           FOR THE      FOR THE      FOR THE
                                       PERIOD FROM       PERIOD  PERIOD FROM
    IN THOUSANDS                      OCTOBER 1 TO    FROM JULY    MAY 25 TO
    OF DOLLARS,                        DECEMBER 31         2 TO       JULY 1
    EXCEPT PER                         (UNAUDITED) SEPTEMBER 30  (UNAUDITED)
    UNIT DATA                                       (UNAUDITED)
    -------------------------------------------------------------------------
    Results of operations
    -------------------------------------------------------------------------
      Revenues                         $    49,703  $    42,555  $    17,523
    -------------------------------------------------------------------------
      Net revenues(1)                  $    36,733  $    33,732  $    14,216
    -------------------------------------------------------------------------
      Gross margin                     $    17,533  $    16,196  $     7,176
    -------------------------------------------------------------------------
      EBITDA                           $     7,437  $     7,024  $     3,354
    -------------------------------------------------------------------------
      Net earnings                     $     2,577  $     2,364  $     1,403
    -------------------------------------------------------------------------
      Basic and diluted net earnings
       per unit                        $      0.23  $      0.21  $      0.13
    -------------------------------------------------------------------------
      Weighted average number of
       units(2)                         11,000,000   11,000,000   11,000,000
    -------------------------------------------------------------------------
      Diluted weighted average
       number of units(2)               18,927,381   18,927,381   18,927,381
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Distributable Cash
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Distributable
       Cash(3)(4)
        Standardized                   $     7,918  $     5,682     ($ 1,850)
        Adjusted                       $     6,269  $     6,097  $     3,269
    -------------------------------------------------------------------------
      Distributable
       Cash, per unit (3)(4)
        Standardized                   $      0.42  $      0.30      ($ 0.10)
        Adjusted                       $      0.33  $      0.32  $      0.17
    -------------------------------------------------------------------------
      Distributions
       declared                        $     4,730  $     4,730  $     1,934
    -------------------------------------------------------------------------
      Distributions
       declared, per unit              $      0,25  $      0,25  $      0,10
    -------------------------------------------------------------------------
      Payout ratio
       Adjusted                               75.5%        77.6%        59.2%
    -------------------------------------------------------------------------

    (1) Net revenues are defined as Revenues less subconsultants and other
        direct expenses (see Non-GAAP measures at the end of the document).

    (2) The basic and diluted weighted average number of units has been
        adjusted to reflect units purchased in the market in Q2 in connection
        with the long-term incentive plan and units issued pursuant to a
        public offering in Q3.

    (3) The definition of Distributable Cash has been revised to comply with
        the recommendations provided in CICA's publication "Standardized
        Distributable Cash in Income Trusts and Other Flow-Through
        Entities." See section of the Management's Discussion and Analysis
        "Distributable Cash".

    (4) Distributable Cash and Distributable Cash per unit amounts are
        calculated for the combined interest of the Fund's units and Non-
        subordinated Exchangeable LP units and Subordinated LP units, which
        total 21,366,405 as at September 30, 2007 (18,927,381 at the same
        date in 2006). Number of units has not been adjusted to reflect units
        purchased in the market in connection with the long-term incentive
        plan since the distributions on these units continue to be declared
        and paid.


    DISTRIBUTABLE CASH

                                       --------------------------------------
                                                3 months            9 months
                                       --------------------------------------
                                              2007         2006         2007
                                       --------------------------------------
                                           FOR THE      FOR THE      FOR THE
                                       PERIOD FROM  PERIOD FROM  PERIOD FROM
    IN THOUSANDS                         JULY 1 TO    JULY 2 TO JANUARY 1 TO
    OF DOLLARS EXCEPT                 SEPTEMBER 30 SEPTEMBER 30 SEPTEMBER 30
    PER UNIT DATA                       (UNAUDITED)  (UNAUDITED)  (UNAUDITED)
    -------------------------------------------------------------------------
    Cash flows from operating          $     6,400  $     6,321  $    12,066
     activities
    Capital expenditures paid             ($ 1,616)      ($ 639)    ($ 6,610)
    Standardized Distributable
     Cash                              $     4,784  $     5,682  $     5,456
      Change in non-cash working
       capital items(1)                $     4,523  $       415  $    15,672
      Purchase of units in the
       market under the
       long-term incentive
       plan                                      -            -       ($ 825)
      Capital expenditures
       paid for non-
       recurring items(2)              $       268            -  $     2,431
    Adjusted Distributable Cash(3)     $     9,575  $     6,097  $    22,734
    Adjusted Distributable Cash,
     per unit (3)                      $      0.45  $      0.32  $      1.06
    Payout ratio
      Adjusted                                51.5%        77.6%        63.3%
    -------------------------------------------------------------------------
    Distributions
      Fund's units distributions       $     2,907  $     2,749  $     8,405
      Class B Non-subordinated
       Exchangeable LP unit
       distributions                   $       844  $       799  $     2,440
      Class C Subordinated
       Exchangeable LP unit
       distributions                   $     1,182  $     1,182  $     3,548
    Aggregate distributions,
     all units(3)                      $     4,933  $     4,730  $    14,393
    Aggregate distributions,
     all units, per unit(3)            $      0.25  $      0.25  $      0.75
    -------------------------------------------------------------------------

    (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) Non-recurring capital expenditures pertain to a construction project
        which had for objective to expand square footage of the main office
        in Quebec City.

    (3) Distributable Cash and Distributable Cash per unit amounts are
        calculated for the combined interest of the Fund's units and Non-
        subordinated Exchangeable LP units and Subordinated LP units, which
        total 21,366,405 as at September 30, 2007 (18,927,381 at the same
        date in 2006). Number of units has not been adjusted to reflect units
        purchased in the market in connection with the long-term incentive
        plan since the distributions on these units continue to be declared
        and paid.

    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 unit of the fund.
    Non-GAAP measures used by the fund are net revenues, EBITDA, Distributable
Cash, and Payout ratio. In the third quarter, the definitions of Distributable
Cash and Payout ratio have been revised to comply with the recommendations
provided in CICA's publication "Standardized Distributable Cash in Income
Trusts and Other Flow-Through Entities." 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.

    Disbributable 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 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 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, (514)
340-0046, ext. 5104; For media inquiries: Marlène Casciaro, Director of
Communications, (514) 340-0046, ext. 5184

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