GENIVAR Income Fund Concludes 2007 Strong Fourth Quarter and Year-end Results



    MONTREAL, March 11 /CNW Telbec/ - GENIVAR Income Fund (the Fund)
announced strong growth in revenues and EBITDA for its fourth quarter and for
the period from January 1, 2007 to December 31, 2007. This is the first full
year results for the Fund since it commenced business operations on May 25,
2006.

    
    Highlights

    - For the full year 2007, revenues grew from $176.1 million in 2006 to
      $257.2 million, representing a 46.0% increase. Net revenue was
      $206.6 million, up 61.4% from $128.0 million in 2006.  EBITDA stood at
      $42.2 million, up 62.2% from $26.0 million in 2006.

    - Revenues in the fourth quarter of 2007 were $70.5 million, up 41.9% for
      the same period in 2006. Net revenues increased by 57.9% to
      $58.0 million compared to $36.7 million in the fourth quarter of 2006.
      EBITDA reached $12.8 million for the period from October 1 to
      December 31, 2007.

    - Net earnings before non-controlling interest were $9.4 million or
      44 cents per unit for the fourth quarter and $25.9 million or $1.32 per
      unit for the full year 2007.

    - In 2007, the Fund generated adjusted distributable cash of
      $34.0 million of which $26.1 million were distributed to unitholders
      representing an annual distribution of $1.30 per unit and an adjusted
      payout ratio of 77%.

    - In 2007, GENIVAR completed 11 acquisitions, adding 410 new employees
      across Canada : Western Canada based Cochrane Design Group, a
      multidisciplinary firm, added offices in Vancouver, Regina, Saskatoon
      and Winnipeg; Toronto based building group Kazmar, Quebec
      infrastructure and environment firms Nove, GLD, ASA, Terra, and visual
      simulation group VizStudio; Ontario transportation groups NCE and
      Harmer Podolak; Winnipeg municipal infrastructure firm SEG and,
      finally, B.H. Martin, a northern Ontario building and industrial firm.

    "2007 has been a tremendous year for GENIVAR in all aspects of the
business. We expanded our services across Canada, added new clients, increased
our backlog and were awarded multiple challenging assignments and more
importantly grew our talented team by 800 people," said Pierre Shoiry,
GENIVAR's President and CEO. "We are well on track to achieve our goal of
becoming one of Canada's leading multidisciplinary engineering, environment
and project management firm by 2010 by offering our clients leading expertise
in all our market segments through our network of regional offices as well as
supporting them in their global development."
    The Fund's audited consolidated financial statements, as well as
management's discussion and analysis of this year-end reporting period can be
obtained via the GENIVAR website, in the Investor Relations section, at
www.genivar.com or at www.sedar.com.

    About GENIVAR

    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 number of employees, with
more than 2,700 managers, professionals, technicians and technologists and
support staff, in over 60 offices in Canada and abroad. The Fund's units trade
on the Toronto Stock Exchange under the symbol GNV.UN.


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

                      -------------------------------------------------------
                                        3 months                   12 months
                      -------------------------------------------------------
                              2007          2006          2007          2006
                      -------------------------------------------------------
                                                                     FOR THE
                           FOR THE       FOR THE       FOR THE   PERIOD FROM
                       PERIOD FROM   PERIOD FROM   PERIOD FROM     JANUARY 1
                         OCTOBER 1     OCTOBER 1     JANUARY 1            TO
                                TO            TO            TO   DECEMBER 31
    IN THOUSANDS OF    DECEMBER 31   DECEMBER 31   DECEMBER 31     (COMBINED
     DOLLARS EXCEPT     (UNAUDITED)   (UNAUDITED)     (AUDITED)   -UNAUDITED)
     PER UNIT DATA                                                        (1)
    -------------------------------------------------------------------------
    Revenues              $ 70,528      $ 49,703     $ 257,205     $ 176,113
    Deduct:
     Subconsultants
     and other direct
     expenses             $ 12,529      $ 12,970     $  50,577     $  48,134
    Net revenues          $ 57,999      $ 36,733     $ 206,628     $ 127,979
    Direct project costs  $ 29,237      $ 19,200     $ 105,979     $  65,123
    -------------------------------------------------------------------------
    Gross margin          $ 28,762      $ 17,533     $ 100,649     $  62,856
    Marketing, general,
     and administrative
     expenses and others  $ 15,974      $ 10,096     $  58,489     $  36,867
    -------------------------------------------------------------------------
    EBITDA                $ 12,788      $  7,437     $  42,160     $  25,989
    -------------------------------------------------------------------------
    Interest              $    158      $    195     $   1,651     $     608
    Depreciation of
     property, plant,
     and equipment        $    924      $    534     $   2,893     $   1,867
    Amortization of
     intangible assets    $  3,061      $  2,130     $  10,687     $   7,052
    Earnings before
     income taxes
     and non-controlling
     interest             $  8,645      $  4,578     $  26,929     $  16,462
    Income tax expense
     (recovery)(2)(4)       ($ 755)     $    144     $   1,034
    -------------------------------------------------------------------------
    Earnings before
     non-controlling
     interest             $  9,400      $  4,434     $  25,895
    Non-controlling
    interest(2)           $  3,724      $  1,857     $  10,600
    -------------------------------------------------------------------------
    Net earnings(2)       $  5,676      $  2,577     $  15,295

    Basic net earnings
     per unit             $   0.44      $   0.24     $    1.32
    Weighted average
     number of
     units(3)(5)        12,858,533    11,000,000    11,543,532
    Diluted net
     earnings per unit    $   0.44      $   0.24     $    1.32
    Diluted weighted
     average number of
     units(3)(5)        21,332,787    18,927,381    19,635,498
    -------------------------------------------------------------------------

    (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 during the year in
        connection with the long-term incentive plan and units issued
        pursuant to a public offering in Q3.
    (4) See section "Results of operations - Income tax expense."
    (5) As at March 10, 2008, the number of units is identical to what it was
        as at December 31, 2007.



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

                      -------------------------------------------------------
                                   3 months          12 months       220-day
                                                                      period
                              2007          2006          2007          2006
                      -------------------------------------------------------
                           FOR THE       FOR THE       FOR THE       FOR THE
                       PERIOD FROM   PERIOD FROM   PERIOD FROM   PERIOD FROM
                         OCTOBER 1     OCTOBER 1     JANUARY 1        MAY 25
    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           $ 19,735      $  8,833      $ 31,801      $ 13,333
     Capital
     expenditures paid    ($ 1,442)       ($ 915)     ($ 8,052)     ($ 1,583)
    Standardized
     Distributable
     Cash                 $ 18,293      $  7,918      $ 23,749      $ 11,750
    Change in non-cash
     working
     capital
     items(1)             ($ 7,211)     ($ 1,649)     $  8,461      $  3,887
    Purchase of units
     in the market
     under the
     long-term
     incentive plan              -             -        ($ 825)            -
    Capital expenditures
     paid for
     non-recurring
     items(2)             $    136             -      $  2,567             -

    Adjusted
     Distributable
     Cash (3)             $ 11,218      $  6,269      $ 33,952      $ 15,637
    Adjusted
     Distributable
     Cash,
     per unit(3)          $   0.53      $   0.33      $   1.59      $   0.83

    Payout ratio
      Adjusted               104.7%         75.5%         77.0%         72.9%
    -------------------------------------------------------------------------
    Distributions
    Fund's units
     distributions        $  7,095      $  2,749      $ 15,500      $  6,622
    Class B
     Non-subordinated
     Exchangeable
     LP unit
     distributions        $  2,053      $    799      $  4,493      $  1,924
    Class C Subordinated
     Exchangeable
     LP unit
     distributions
                          $  2,601      $  1,182      $  6,149      $  2,848
    Aggregate
     distributions,
     all units(3)         $ 11,749      $  4,730      $ 26,142      $  11,394
    Aggregate
     distributions,
     all units,
     per unit(3)          $   0.55      $   0.25      $   1.30      $    0.60
    -------------------------------------------------------------------------

    (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 Exchangeable LP
        units, which total 21,366,405 as at December 31, 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.
    




For further information:

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

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