WesternOne Equity Income Fund Reports Q3 2011 Financial Results and Schedules Conference Call

VANCOUVER, Nov. 10, 2011 /CNW/ - WesternOne Equity Income Fund ("WesternOne Equity") (Toronto Stock Exchange: WEQ.UN, WEQ.DB.B and WEQ.DB.C) today announced the release of its financial results for the three and nine months ended September 30, 2011.

The results, consisting of WesternOne Equity's unaudited interim financial statements for the three and nine months ended September 30, 2011 and Management's Discussion and Analysis ("MD&A") dated November 10, 2011, are available on SEDAR (www.sedar.com).

Financial highlights for the third quarter:

  • Year-over-year organic growth of 12.9% in revenue and 10.7% in EBITDA due to solid construction equipment rentals and services in BC and Alberta under the WesternOne Rentals & Sales division
  • The Britco division generated revenue of $22.6 million and EBITDA of $4.1 million from modular building manufacturing, leasing and site services
  • Payout percentage(3) of 70.8% compared to 209.3% in Q3 of 2010 and year-to-date payout percentage of 67.0% compared to 129.7% for the same period in 2010
  • Management executed expansion strategy to enter into the southern US modular workforce housing market through setting up Britco Structures USA LLC with two other minority investors in September 2011
  • $5.8 million principal amount of WesternOne Equity's convertible debentures (plus interest thereon) were converted to WesternOne Equity units ("Units"), resulting in a deleveraging of WesternOne Equity's balance sheet and a corresponding increase of 1,243,902 Units outstanding

"We are pleased to see the improvements in Q3 under the execution of our growth strategy through rental fleet expansion and business acquisition," said Mr. Darren Latoski, Chief Executive Officer. "We continue to see solid activities in the construction and infrastructure sector, which give rise to growth in demand and rental rates for our rental equipment and modular trailers. Britco's modular manufacturing business also benefits from the growth in the oil & gas and other resource sectors, as evidenced by the signing of a $45 million workforce housing contract in northern Alberta earlier this summer. We are well positioned to serve this increasing demand for workforce housing by increasing capacity at our existing plants and expanding into the southern US energy sector."

Summary Financial Overview For the three months ended
September 30,
  For the nine months ended
September 30,
($000's except unit amounts)   2011   2010   2011   2010
Revenue $    35,287 $   11,220 $     73,265 $     35,425
Gross Profit   10,716   2,886   23,100   9,945
Gross Margin (1)   30.4%   25.7%   31.5%   28.1%
EBITDA (2)   6,733   2,408   16,802   8,623
Distributable Cash Generated (2) $        3,621 $       1,004 $      10,614 $       4,853
Distributions Declared   2,563   2,102   7,113   6,297
Distributable Cash per Unit (4)   0.2138   0.0717   0.6786   0.3469
Distributions Declared per Unit   0.1500   0.1500   0.4500   0.4500
Payout Percentage (3)   70.8%   209.3%   67.0%   129.7%
(1)      WesternOne Equity adopted International Financial Reporting Standards ("IFRS") effective January 1, 2011. Under IFRS, certain operating expense items were reclassified as cost of sales, thereby deriving gross margins that were not comparable to those calculated under the previous Canadian GAAP. The 2010 comparative figures above have been reclassified to be consistent with IFRS. For further description of WesternOne Equity's adoption of IFRS, refer to "Adoption of International Financial Reporting Standards" in the MD&A dated November 10, 2011.
(2)      "EBITDA" refers to earnings before interest, income taxes, depreciation, amortization, accretion, gain/loss on financial derivatives relating to changes in the fair market value of the fixed interest rate swap, business acquisition costs, debenture issuance costs, gain/loss on debentures relating to changes in their fair values, gain/loss on Unit issuances relating to conversion of debentures, gain/loss on WesternOne Equity's exchangeable units relating to changes in their fair values, unit based compensation, distribution to unitholders, foreign exchange gains/losses, write-down of fleet assets, intangible assets and goodwill, and non-recurring items. "Distributable Cash" refers to cash available for distribution to the unitholders by WesternOne Equity. EBITDA and Distributable Cash are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. For further description of EBITDA and Distributable Cash refer to "Non-IFRS Measures" in the MD&A dated November 10, 2011.
(3)      Amounts calculated using distributable cash and distributions declared for the related period, not on per Unit amounts. Calculated as distribution declared divided by distributable cash generated.
(4)      Calculated based on basic weighted average number of units.

Conference Call

Darren Latoski, CEO, Carlos Yam, CFO and Geoff Shorten, COO, of WesternOne Equity GP Inc. will host a conference call at 4:30pm (Eastern time) or 1:30pm (Pacific time), on Thursday, November 10, 2011, to review the financial results and corporate developments for the three and nine months ended September 30, 2011.

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 Equity conference call.

Dial in numbers:   Toll Free         1-888-231-8191
  International or Local Toronto         1-647-427-7450

Conference Call Replay

If you cannot participate on November 10, 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 November 24, 2011. Please enter the Replay ID number 23568630 followed by the # key.

Replay Dial-In     Toll Free         1-855-859-2056
    International or Local Toronto         1-416-849-0833

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 enhancement of WesternOne Equity's product and service offering and customer base derived from the Britco acquisition, the growth prospects in sectors where WesternOne Equity's businesses are conducted, market expansions under WesternOne Equity's current and future strategies, and the benefits that may accrue to WesternOne Equity and its unitholders as a result of such market expansions. 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 Equity, including, without limitation, expectations and assumptions respecting: the outlook of WesternOne Equity's business and the economy in western Canada and the US, the supply and demand for WesternOne Equity'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 Equity's management believes to be reasonable assumptions, WesternOne Equity 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 Equity's Annual Information Form dated March 31, 2011 and Management's Discussion and Analysis dated November 10, 2011, 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 Equity. The forward-looking information is made as of the date of this press release and WesternOne Equity 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 Equity

WesternOne Equity seeks to acquire businesses in the sector of construction and infrastructure services in order to generate stable and growing distributions to its unitholders as well as to achieve overall capital appreciation.

Additional Information

Additional information relating to WesternOne Equity, including WesternOne Equity's Annual Information Form and other public filings, is available on SEDAR at www.sedar.com or on WesternOne Equity's website at www.weq.ca.

Trading Symbols
Toronto Stock Exchange: WEQ.UN, WEQ.DB.B and WEQ.DB.C


SOURCE WesternOne Equity Income Fund

For further information:

Carlos Yam, Chief Financial Officer
WesternOne Equity Income Fund
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 Equity Income Fund
Suite 910, 925 West Georgia Street
Vancouver, BC  V6C 3L2
Phone:  (604) 678-4042
E-mail:  agreig@weq.ca

Profil de l'entreprise

WesternOne Equity Income Fund

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