Altus Group Income Fund
TSX : AIF.UN

Altus Group Income Fund

November 10, 2009 11:46 ET

Altus Group Income Fund Releases Third Quarter Results

Management to Hold Conference Call on Thursday, November 12, 2009 at 9:00 a.m. EST

TORONTO, ONTARIO--(Marketwire - Nov. 10, 2009) - Altus Group Income Fund ("Fund")(TSX:AIF.UN) today announced financial and operating results for the quarter ended September 30, 2009.

Performance Highlights:

- Completed acquisition of Page Kirkland Group, a cost consulting and project management practice that operates in 8 countries throughout Asia-Pacific

- Generated adjusted distributable cash of $0.37 per unit and distributed $0.30 per unit to unitholders resulting in an adjusted payout ratio of 81.5% for the quarter.

Revenue for the third quarter 2009 was $54.1 million, compared to $59.8 million for the comparable period in 2008, a decrease of 10%. Revenue for the nine months ended September 30, 2009 was $155.3 million, compared to $155.4 million in 2008.

"Despite the challenging conditions in many of our businesses and markets during the first nine months of 2009, Altus has been able to match last year's revenues year-to-date and to achieve a healthy payout ratio for the quarter," said Gary Yeoman, Chief Executive Officer of Altus Group. "Looking forward, the acquisition of Page Kirkland offers Altus Group a strong platform in Asia-Pacific, an area that promises to be the world's fastest growing region in 2010."

Salaries and benefits were $31.8 million for the third quarter 2009 compared to $34.4 million in the same quarter last year. Salaries and benefits as a percentage of revenue increased to 59% for the quarter ended September 30, 2009 from 58% in same prior year period. Salaries and benefits were impacted by higher headcount from acquisitions. For the nine months ended September 30, 2009, salaries and benefits were $87.8 million compared to $89.8 million for the same period in 2008, a decrease of 2%. Salaries and benefits as a percentage of revenue decreased to 57% for the nine months ended September 30, 2009 from 58% for the same period last year. A combination of cost-saving measures and a government tax credit were primarily responsible for the improved salary expense ratio.

EBITDA for the third quarter 2009 was $8.4 million compared to $9.5 million in the prior year period, a decrease of 12%. EBITDA for the nine months ended September 30, 2009 was $23.6 million compared to $25.0 million for the same period last year, a decrease of 6%.

Net earnings for the third quarter 2009 were $1.3 million or $0.07 per unit compared to $3.1 million or $0.17 per unit for the third quarter in 2008. Net earnings for the nine months ended September 30, 2009 were $2.5 million or $0.13 per unit compared to $6.0 million or $0.36 per unit for the same period in the prior year. Net earnings per unit are basic and diluted.

In the third quarter 2009, the Fund generated adjusted distributable cash of $8.0 million or $0.37 per unit, and achieved an adjusted pay-out ratio of 81.5% compared to $8.3 million or $0.40 per unit and an adjusted pay-out ratio of 74.5% in the third quarter 2008. Year-to-date, the Fund generated adjusted distributable cash of $21.3 million or $1.00 per unit and an adjusted pay-out ratio of 90.0% compared to $21.3 million or $1.12 per unit and an adjusted pay-out ratio of 80.5% for the same period in 2008. For the three and nine months ended September 30, 2009, distributions declared totaled $0.30 per unit and $0.90 per unit, respectively.

On July 31, 2009, Altus indirectly acquired shares in certain businesses carried on by the Page Kirkland Group ("Page Kirkland"). This acquisition extends the international reach of Altus throughout the Asia-Pacific region. Page Kirkland is a multi-disciplined property consultancy whose services include cost consulting, project management, asset and facilities management and development management. Altus financed this acquisition with a combination of cash on hand, bank financing and equity issued from treasury.

"Tangible benefits of Page Kirkland to Altus' growth prospects are already in evidence, notwithstanding the fact that this acquisition only closed earlier this summer," continued Yeoman. "Integration of operations, development of expanded service offerings and identification of new growth opportunities are well underway and will add to our bottom line in 2010."

Analyst Call Details

Altus Group Income Fund will hold an analyst conference call at 9:00 a.m. Eastern Standard Time on Thursday, November 12, 2009 to discuss these financial results and current industry conditions. Please dial 1-800-769-8320 (toll free) or 416-695-6622 (GTA) to access the call. You will be required to identify yourself and your organization. A recording of this call will be made available as of 12:30 p.m. EST. To access the recording, please call 1-800-408-3053 or 416-695-5800 (passcode: 2581240). The recording will also be available at 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 1,500, Altus Group has a network of over 50 offices in 11 countries worldwide, including Canada, UK, Australia, Asia, USA and the Middle East. We operate four interrelated Business Units, bringing years of expertise together into one comprehensive platform: Research, Valuation and Advisory; Cost Consulting and Project Management; Realty Tax Consulting and Geomatics services. 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, 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, 2009 (which are available on SEDAR at www.sedar.com). Those risks and uncertainties include: general state of the economy; ability to maintain profitability and manage growth; dependence on oil and gas sector; competition in the industry; revenue and cash flow volatility; credit risk; reliance on and retention of professionals; currency risk, dependence on multi-residential market; integration of acquisitions; protection of intellectual property; weather; fixed-price and contingency engagements; performance of obligations / maintenance of client satisfaction; interest rate risk; appraisal mandates; customer concentration; restrictions on potential growth; operating risks; risk 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.
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, non-controlling interest and equity accounted earnings (loss).

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