Altus Group Income Fund
TSX : AIF.UN

Altus Group Income Fund

August 11, 2008 12:44 ET

Altus Group Income Fund Announces Second Quarter Results

Management to Hold Conference Call on Thursday, August 14, 2008 at 9:30 a.m. EDT

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2008) - Altus Group Income Fund ("Fund")(TSX:AIF.UN) today announced financial and operating results for the quarter ended June 30, 2008.

Performance Highlights:

- Year-over-year revenue growth of 50% for the quarter, 48% for the half-year

- Adjusted distributable cash of $0.30 per unit a payout ratio of 98.7%

- Successfully integrated two accretive acquisitions with an aggregate value of $21 million

"The second quarter of 2008, featuring a combination of organic growth and strategic acquisitions including the property tax practice of Deloitte Canada and the UK-based Andrews Partnership, has better positioned us to continue to deliver value-added growth going forward," said Gary Yeoman, CEO, Altus Group. "Altus offers core services that remain in strong demand, particularly in the commercial and industrial sectors."

Revenue for the second quarter 2008 was $48.8 million, compared to $32.6 million for the same period in 2007, a 50% increase, of which 31% is attributable to revenue from entities acquired in 2007 and 2008. Revenue for the six months ended June 30, 2008 was $95.7 million, compared to $64.8 million for the first six months of 2007, a 48% increase, of which 31% is attributable to revenue from entities acquired in 2007 and 2008.

Salaries and benefits were $27.9 million for the second quarter, compared to $18.5 million in the same period last year, reflecting the growth in staff, which numbered 1,260 at quarter end. Salaries and benefits were $55.5 million for the six months ended June 30, 2008, compared to $36.7 million in the same period last year The ratio of salaries and benefits compared to revenue remained constant at 57% for the quarter ended June 30, 2008 and were 58% for the six month period compared to 57% for the same period in 2007.

Net earnings for the first quarter 2008 were $1.2 million or $0.08 per unit, compared to $1.6 million or $0.15 per unit, for the same quarter 2007. Net earnings for the six months ended June 30, 2008 were $2.9 million or $0.18 per unit, compared to $2.7 million or $0.26 per unit, for the same quarter 2007. Net earnings per unit are basic and diluted.

In the second quarter 2008, the Fund generated $5.6 million of adjusted distributable cash, or $0.30 per unit, compared to $5.6 million or $0.36 per unit for the second quarter 2007. Distributions declared to the Fund unitholders and the unitholders of the Class B limited partnership units of Altus Group Limited Partnership were $0.30 per unit, and resulted in a payout ratio of 98.7%, compared to 82.9% for the same period 2007. In the six months ended June 30, 2008, the Fund generated $12.7 million of adjusted distributable cash, or $0.70 per unit, compared to $10.9 million, or $0.71 per unit, for the second quarter 2007. Distributions to the Fund unitholders and the unitholders of the Class B limited partnership units of Altus Group Limited Partnership totaled $0.60 per unit for the six months, and resulted in a payout ratio of 86.3%, compared to 84.5% for the same period 2007.

Altus made two acquisitions in the second quarter of 2008:

- Acquisition of the property tax practice of Deloitte Canada - a property tax practice employing 80 professionals, primarily based in Western Canada, closed May 30, 2008.

- Acquisition of Andrews Partnership - a UK-based consulting firm, providing professional services in extending the reach of the Cost Consulting practice to the UK, closed June 1, 2008.

Subsequent to quarter end, on August 1, 2008, Altus announced that it had acquired the business assets of Space4Lease, a Vancouver-based company that offers office market information to the Canadian commercial real estate sector.

Also subsequent to quarter end, on July 2, 2008, Altus raised gross proceeds of $41 million by issuing 2,250,000 units on a private placement basis.

"We continue to invest in our employees and information technology platform to strengthen our capacity for strategic expansion to meet the demands of an increasingly global real estate market," said Yeoman. "We anticipate ongoing growth in our core businesses, fuelling increased opportunity and even greater value-added for our clients."

Analyst Call Details

Altus Group Income Fund will hold an analyst conference call at 9:30 a.m. Eastern Daylight Time on Thursday, August 14, 2008, to discuss these financial results and current industry conditions. Please dial 1-866-902-2211 (toll free) or 416-695-9748 (GTA) to access the call. You will be required to identify yourself and your organization. Should you be unable to participate, a recording of this call will be made available beginning at 11:30 a.m. EDT. To access the recording, please call 1-800-408-3053 or 416-695-5800 (passcode: 3268063). The recording will also be available at www.altusgroupincomefund.com.

About Altus Group Income Fund

Altus Group is the leading multidisciplinary provider of independent real estate consulting and professional advisory services worldwide. With a staff of over 1,300, Altus Group has a national network of 30 offices in 23 cities throughout Canada and 8 offices throughout the UK. We operate as: Altus Research, Valuation and Advisory; Altus Cost Consulting; Altus Realty Tax Consulting, Altus Geomatics; Altus InSite; Altus Geocom; Altus Edwin Hill; and Altus Andrews. Altus' clients include banks, financial institutions, governments, pension funds, asset and fund managers, developers and landlords and companies engaged in the oil and gas industry.

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking" statements, which involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Fund and its subsidiary entities, including Altus LP, Altus Limited, Altus Geomatics and Altus UK LLP, or the industry, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in the Fund's publicly filed documents, including the Annual Information Form, dated March 31, 2008 (which are available on SEDAR at www.sedar.com) and in this document under "Key Factors Affecting the Business". Those risks and uncertainties include: general state of the economy; reliance on and retention of professionals; ability to maintain profitability and manage growth; competition in the industry; performance of obligations / maintenance of client satisfaction; fixed price and contingency engagements; revenue and cash flow volatility; protection of intellectual property; dependence on multi-residential market; dependence on oil & gas sector; integration of acquisitions; interest rate risk; currency risk; credit risk; seasonality and weather; appraisal mandates; customer concentration; restrictions on potential growth; operating risks; risks of future legal proceedings; insurance limits; and legislative and regulatory changes. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Fund cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and, except in accordance with applicable law, the Fund assumes no obligations to update or revise them to reflect new events or circumstances. Additionally, the Fund undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Fund, its financial or operating results, or its securities.

Non-GAAP Measures

The Fund uses non-GAAP measures that are generally used by Canadian open-ended income funds as indicators of financial performance. Readers are cautioned that they are not defined performance measures under GAAP and may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to financial measures as reported by those entities. The Fund believes that these measures are useful supplemental measures that may assist investors in assessing an investment in units of the Fund ("Units").

Earnings before Interest, Taxes, Depreciation, Amortization and Non-Controlling Interest, ("EBITDA"), represents revenue less disbursements, salaries, general and administrative expenses but before interest, taxes, depreciation, amortization and non-controlling interest.

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