Altus Group Income Fund
TSX : AIF.UN

Altus Group Income Fund

November 08, 2007 12:39 ET

Altus Group Income Fund Announces Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 8, 2007) - Altus Group Income Fund (TSX:AIF.UN) today announced its financial results (unaudited) for the third quarter ended September 30, 2007.

Q3 Performance Highlights:

- EBITDA for the third quarter rose 41% over the comparable period last year and up 23% over the previous quarter.

- Revenue was $35.8 million, an increase of 34% from the same period in 2006.

- Adjusted distributable cash for the third quarter of $6.7 million resulted in an adjusted payout ratio of 69.2%, the lowest payout ratio for any quarter in the Fund's history.

"Following two quarters marked by growth through acquisition, our focus during the third quarter was integration, operational efficiency and business development," said Gary Yeoman, CEO of Altus Group Income Fund. "Altus' strong third quarter results confirm the success of our strategic and operational emphasis while highlighting favourable macroeconomic trends. Indeed, demand for real estate consulting, advisory and technical services remains robust, as evidenced by our strong financial results."

Revenue for the three months ended September 30, 2007 was $36 million, up 34% over the same period in 2006. For the nine months ended September 30, 2007, revenue was $101 million, an increase of 52% over the same period in 2006. After adjusting for the impact of acquisitions, the increase in revenues was still a very strong 39%.

"As summer drilling activity stabilized and Geomatics continued to diversify its client base, we saw a revenue gain of 10% over the second quarter," added Yeoman. "By the end of the third quarter, Geomatics was operating at capacity and adding crews."

Salaries, general and administrative expenses were $24 million, an increase of 36% over the same quarter last year, due primarily to acquisition growth in 2007. Salaries and benefits were 35% higher than last year's third quarter, reflecting a 19% increase in headcount. Other operating costs increased 43% in the three-month period, largely because Altus added new offices with the acquisitions completed earlier in 2007.

EBITDA for the third quarter rose to $8.1 million, up 41%, versus the comparable period last year and up 23% from the second quarter of 2007. This reflects the impact of improved margins, due primarily to the results from Geomatics where EBITDA increased 25% over the second quarter. EBITDA represents revenue less disbursements, salaries, general and administrative expenses but before interest, taxes, depreciation, amortization and non-controlling interest.

Net earnings for the third quarter were $2.1 million, or 20 cents per unit versus $1.4 million and $0.13 per unit, basic and diluted, one year ago.

Altus generated cash from operations of $2.3 million during the third quarter. For unitholders, this translates to $6.7 million of adjusted distributable cash generated in the third quarter, or 43 cents per unit. Declared distributions for the quarter were 30 cents per unit, producing an adjusted payout ratio of 69%, the lowest payout ratio for any quarter in the Fund's history.

The so-called SIFT tax rules which became law on June 22, 2007 amend the Income Tax Act as it relates to publicly traded trusts, did not have a major impact on Altus this quarter. This is because the Fund's operating subsidiary, Altus Group Limited, has been subject to corporate taxes since inception. The only affected entity was Altus Geomatics, which has been brought into compliance.

During the third quarter, Altus announced its intent to acquire Edwin Hill, Chartered Surveyors, a leading commercial property consultancy based in London, UK, for approximately $54 million. The transaction closed on October 1, 2007.

"This acquisition advances our accretive strategy with a significant move into the international marketplace, broadening our reach while building on our solid foundation of knowledge and expertise," said Yeoman. "As we move forward in 2008 with a consolidated, strengthened Altus Group brand, we will focus on integration of new acquisitions and acceleration of organic growth. We will continue to source strategic acquisitions to build on Altus' leadership position in Canadian and international real estate advisory services."

Analyst Call Details

Altus Group Income Fund will hold an analyst conference call at 10:00 AM EST on Monday, November 12, 2007, to discuss these financial results and current industry conditions. Please dial 1-866-540-8136 or 416-340-8010 to access the call. You will be required to identify yourself and your organization. A recording of this call will be made available beginning at 12:00 PM EST. To access the recording, please call 1-800-408-3053 or 416-695-5800 (Passcode: 3241049). The recording will also be available at www.altusgroupincomefund.com.

About Altus Group Income Fund

Altus Group Income Fund is the leading multidisciplinary provider of independent real estate consulting and professional advisory services worldwide. With a staff of over 950, Altus has a national network of 27 offices in 22 cities throughout Canada and 6 offices throughout the UK. We operate as: Altus Group Research, Valuation and Advisory; Altus InSite; Altus Helyar Cost Consulting; Altus Derbyshire Realty Tax Consulting; Altus Geomatics; Altus Clayton; and Altus Edwin Hill. 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.

Contact Information

  • Altus Group Income Fund
    Gary Yeoman
    President and CEO
    (905) 953-9948
    or
    Altus Group Income Fund
    Dale Lawr
    CFO
    (905) 953-9948
    (905) 953-0018 (FAX)
    Website: www.altusgroupincomefund.com