WesternOne Inc. Reports 2013 Q1 Results

VANCOUVER, May 15, 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 months ended March 31, 2013.

The results, consisting of WesternOne's interim consolidated financial statements for the three months ended March 31, 2013 and Management's Discussion and Analysis ("MD&A") dated May 15, 2013, are available on SEDAR (www.sedar.com).

2013 Q1 financial highlights and recent events:

  • WesternOne recorded consolidated revenue of $77.0 million, gross profit of $21.1 million and adjusted EBITDA(1) of $12.7 million.

  • Consolidated payout percentage(2) of 41.2%.

  • WesternOne Rentals & Sales ("WRS") recorded organic growth of 19.4% in revenue and 14.2% in adjusted EBITDA, compared with Q1 of 2012. The growth was due to (i) incremental returns from investments in aerial equipment and recently-launched construction heat branches in Prince George and Kelowna, British Columbia; and (ii) strong demand for construction heat services due to the cold winter in early 2013.

  • On January 18, 2013, WesternOne announced that Britco, through its wholly owned subsidiary, completed the purchase of 80% of the modular building construction business of APB Holding Australia Pty Limited and its subsidiaries (collectively, "APB") for a total price of A$27.6 million (before post closing adjustments). APB serves the mining, resource, commercial, industrial and government industry sectors and designs and builds a wide variety of temporary and permanent buildings including workforce accommodations, office complexes, classrooms, health care facilities, switch rooms and a variety of construction site offices. APB contributed $22.8 million of revenue and $0.1 million of adjusted EBITDA to WesternOne's consolidated financial results in Q1.

  • In March 2013, Britco commenced the construction of the modular accommodations units for the Manitoba Hydro Keeyask Generating Station Project. The construction work is expected to continue through to the fall of 2013, while the related site preparation and installation work is expected to continue through to June 2014.

  • On March 28, 2013, WesternOne completed a public offering, in which $51.75 million principal amount of the convertible series 3 unsecured subordinated debentures ("2013 Debentures") were issued by way of short-form prospectus. The offering included $6.75 million principal amount of the 2013 Debentures issued on the full exercise of the overallotment option granted to a syndicate of underwriters. The 2013 Debentures bear interest at an annual rate of 6.25%, payable semi-annually and are convertible into common shares of WesternOne at a conversion price of $11.75 per share. The 2013 Debentures will mature on June 30, 2020.

"WesternOne continues to generate solid operating results and shareholders' value through delivering consistent dividends at a low payout ratio," Mr. Darren Latoski, Chief Executive Officer. "We look forward to further growth in 2013 through executing disciplined strategies in capital expenditures and business acquisitions."

Summary Financial Overview     Three months ended
March 31,
(unaudited)
($ millions except per share/unit amounts)       2013     2012
Revenue     $     77.0   $     51.9
Gross Profit       21.1     17.6
               
Adjusted EBITDA (1)     $     12.7   $       12.9
               
Distributable Cash Generated (1)     $       8.4   $       9.4
Distributions Declared       3.4     2.9
Distributable Cash per Share/Unit (3)       0.3733     0.4956
Distributions Declared per Share/Unit       0.1500     0.1500
               
Payout Percentage (2)       41.2%     30.6%

___________________
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, distribution to unitholders, foreign exchange gains/losses, and write-down of fleet assets, intangible assets and goodwill. "Distributable Cash" refers to cash available for 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 May 15, 2013.
(2)      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.
(3)      Calculated based on basic weighted average number of shares/units.


Conference Call

Darren Latoski, CEO, Geoff Shorten, President and COO and Carlos Yam, CFO, of WesternOne will host a conference call at 4:30pm (Eastern time) or 1:30pm (Pacific time), on Wednesday May, 15, 2013, to review the financial results and corporate developments for the three months ended March 31, 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 May 15, 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 May 22, 2013. Please enter the Replay ID number 736755 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 commencement and completion dates of the Manitoba Hydro Keeyask workforce accommodations project, the enhancement of WesternOne's product and service offering and customer base derived from organic business expansions and acquisitions completed by WesternOne or its subsidiaries, the growth prospects in sectors where WesternOne's businesses are conducted, market expansions and acquisitions under WesternOne's current and future strategies and the benefits that may accrue to WesternOne and its shareholders as a result of such market expansions and acquisitions. 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, expectations and assumptions respecting: the outlook of WesternOne's business and the economy in Western Canada, the United States 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 May 15, 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, including the Annual Information Form 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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