WesternOne Inc. Reports Solid Growth in 2012 Full Year and Q4 Results

VANCOUVER, March 11, 2013 /CNW/ - WesternOne Inc. ("WesternOne") (Toronto Stock Exchange: WEQ, WEQ.DB.B and WEQ.DB.C) today announced the release of its financial results for the year ended December 31, 2012.

The results, consisting of WesternOne Equity's audited financial statements for the year ended December 31, 2012 and Management's Discussion and Analysis ("MD&A") dated March 11, 2013, are available on SEDAR (www.sedar.com).

2012 annual and Q4 financial highlights and recent events are as follows:

  • Growth in Q4 consolidated revenue (39%), gross profit (50%) and adjusted EBITDA(1) (44%) compared with Q4 in 2011 due to organic growth from WesternOne's Britco and WesternOne Rentals & Sales ("WRS") divisions. For the 2012 fiscal year the annual growth was 99% for revenue, 97% for gross profit and 94% for adjusted EBITDA compared with the 2011 fiscal year.

  • In Q4, Britco achieved growth in revenue and adjusted EBITDA of 52% and 34%, respectively, compared with Q4 in 2011 as solid demand for modular buildings led to strong manufacturing activity and related services in the workforce accommodation and infrastructure sectors. Britco's annual growth in 2012 was 197% for revenue, 188% for gross profit and 206% for adjusted EBITDA compared with 2011.

  • In Q4, WRS recorded organic growth in revenue and adjusted EBITDA of 19% and 47%, respectively, compared with Q4 in 2011 due to solid demand for construction heating services and aerial equipment rentals in Western Canada's commercial construction and infrastructure segments. Following the successful launches of the new construction heating operations in central and southern BC in the fall of 2012, incremental revenue and earnings were added to the platform. WRS's annual growth in 2012 was 9% for revenue, 27% for gross profit and 27% for adjusted EBITDA compared with 2011.

  • The growth in revenues and operating earnings led to solid operating cash flow, which was up 40% (before working capital changes) in Q4 compared with the same period in 2011. The annual growth in the operating cash flow was 77% compared with 2011.

  • Consolidated payout percentage(2) for Q4 was 39.9%, compared with 65.1% in Q4 in 2011. Annual payout percentage for 2012 was 41.0%, compared with 66.5% a year ago.

  • On December 20, 2012, WesternOne announced that Britco executed a contract to design, build and install the first phase of a 2,000 room workforce accommodation complex for Manitoba Hydro. The two phases of the project are aggregately valued at approximately $207 million, with phase one totaling about $101 million and phase two $106 million. Phase one is expected to be complete in June 2014. Phase two of the project is subject to Manitoba Hydro receiving regulatory approval for the Keeyask Generating Station Project, which is anticipated in early June 2014.

  • On December 31, 2012, WesternOne completed the conversion from an income trust structure to a publicly-traded corporation, in which all publicly traded units of WesternOne Equity Income Fund then outstanding were exchanged to common shares of WesternOne Inc. on a one-for-one basis.

  • On January 18, 2013, WesternOne announced that Britco, through its wholly owned subsidiary Britco International Inc., completed the purchase of 80% of the modular building construction business and 10% of the modular leasing business of APB Holding Australia Pty Limited and its subsidiaries (collectively, "APB") for a total price of A$31.4 million. the Company funded the purchase from existing working capital and a banking facility. The purchase is subject to customary post-closing adjustments including net asset adjustments. APB manufactures and leases modular buildings throughout Australia including Sydney (New South Wales), Brisbane (Queensland) and Perth (Western Australia). 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.

"Our disciplined growth strategy has led to record revenue, gross profit and adjusted EBITDA in 2012," said Mr. Darren Latoski, Chief Executive Officer. "Along with these results our Britco and WRS platforms have delivered strong operating cash flow. This allowed us to distribute monthly dividends to our shareholder with a 41% payout ratio for the year and redeploy capital towards growth mandates such as rental fleet expansion and the recent acquisition of APB in Australia."

"WesternOne is well positioned for growth with our deep management team across corporate, Britco and WRS," continued Mr. Latoski. "We look forward to another exciting year in 2013 as we diversify our revenue base into the Australian markets and the utility sector as we commence the Manitoba Hydro project in the spring of 2013. We will also identify ways to enhance returns on our rental fleet and profitability, through targeting new niche rental markets. We will continue to seek accretive acquisition opportunities to grow WesternOne's businesses."

Summary Financial Overview     Three months ended
December 31,
    Year ended
December 31,
($ millions except unit amounts)       2012       2011       2012       2011
Revenue     $ 54.5     $ 39.3     $ 217.8     $ 109.4
Gross Profit       16.5       11.0       67.0       34.1
Adjusted EBITDA (1)     $ 10.9     $ 7.6     $ 47.3     $ 24.4
Distributable Cash Generated (1)     $ 8.1     $ 4.1     $ 29.8     $ 14.7
Distributions Declared       3.2       2.7       12.2       9.8
Distributable Cash per Unit (3)       0.3773       0.2345       1.4740       0.9137
Distributions Declared per Unit       0.1500       0.1500       0.6000       0.6000
Payout Percentage (2)       39.9%       65.1%       41.0%       66.5%

(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 or share issuances relating to conversion of debentures, gain/loss on WesternOne's exchangeable units relating to changes in their fair values, 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 distribution to the unitholders by WesternOne. For further description of Adjusted EBITDA and Distributable Cash refer to "Non-IFRS Measures" in the MD&A dated March 11, 2013.
(2)   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.
(3)   Calculated based on basic weighted average number of units.


Conference Call

Darren Latoski, CEO, Geoff Shorten, President and COO and Carlos Yam, CFO, of WesternOne will host a conference call at 5:30pm (Eastern time) or 2:30pm (Pacific time), on Monday, March 11, 2013, to review the financial results and corporate developments for the year ended December 31, 2012.

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 March 11, 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 March 18, 2013. Please enter the Replay ID number 911071 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 work camp 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 US 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 29, 2012 and Management's Discussion and Analysis dated March 11, 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 of WesternOne Equity Income Fund 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.B and WEQ.DB.C


SOURCE: WesternOne Inc.

For further information:

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

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890