Altus Group Income Fund
TSX : AIF.UN

Altus Group Income Fund

May 16, 2006 10:58 ET

CORRECTION FROM SOURCE: Altus Group Income Fund Announces First Quarter Results

TORONTO, ONTARIO--(CCNMatthews - May 16, 2006) - This revised news release is being issued to correct inaccuracies in the conference call information and forward-looking statements sections of the release issued on May 15, 2006. The previous release should be disregarded and this version should be considered official and final from Altus Group Income Fund.

Altus Group Income Fund ("the Fund") (TSX:AIF.UN) today announced its financial and operating results (unaudited) for the first quarter ended March 31, 2006.



Q1 Performance Highlights:

- Strong first quarter, building upon solid performance of the
previous 3 quarters
- Revenue growth of 17% over Q1 2005
- Increased productivity contributing to a doubling of EBITDA
- Generated distributable cash of $3.5 million


"Altus is off to a strong start in 2006," commented Gary Yeoman, President and CEO of Altus Group Income Fund. "We are encouraged that our vision of a national, multi-faceted and integrated professional real estate consulting practice is delivering the customer benefits we believed it would. The synergies inherent in consolidated operations are driving improved productivity, while our expanded operations continue to produce cross-selling opportunities and higher revenues."

This is the fourth reporting period of the Fund since commencing business operations on May 19, 2005; consequently, no comparative information is provided in the Fund's interim consolidated financial statements. However, for reference purposes only, certain financial and operating results of the Fund are compared with the combined unaudited financial results of Altus Group, Helyar Group and Derbyshire Viceroy Consultants Limited (the Fund's predecessor entities) for period January 1 to March 31, 2005.

Revenue for the three months ended March 31, 2006 was $17.3 million, compared to $14.8 million for the three months ended March 31, 2005, an increase of 17%. Higher revenues are attributable to strong demand for Altus' services across practice groups and within each market the Fund's professional real estate consultants operate.

EBITDA for the quarter was $3.8 million, compared with $1.9 million in 2005. This represents an almost 100% increase from the previous year . A number of factors contributed to this result; among them, increased productivity by Altus' consultants; the absence of the pre-IPO bonuses that occurred in 2005, and ongoing savings achieved through leveraging the synergies available from merging the predecessor entities. For example, the two offices in the Ottawa area were consolidated in January, following the similar streamlining of the Vancouver offices last December.

Net earnings for the quarter were $1.19 million or 15 cents per Unit, both on a basic and diluted basis.

The Fund generated $3.5 million of distributable cash, or 30 cents per Unit, available to both the Fund's Units and the LP Class B exchangeable Partnership Units during the first quarter. As of March 31, 2006, distributions of $0.2874 per Unit had been declared to every unitholder of record for the Fund and to all Class B limited partnership unitholders of Altus LP.

During the quarter, operating costs decreased as a percentage of revenue, from 22.9% in the first quarter of 2005, to 20.7% in the first quarter of this year. Capital expenditures during the period were $189,000 and were largely for computer equipment and business applications.

Subsequent to March 31, 2006, the Fund announced two accretive acquisitions. Effective April 1, 2006, the Fund acquired the business assets of InSite Real Estate Information Systems, a leading aggregator and publisher of real estate information for the Canadian market. Earlier today, May 15, 2006, Altus completed the acquisition of the business assets of All West Surveys Ltd., a professional survey company dedicated to providing complete and specialized services to clients, many of whom are in the oil and gas industry, in Western and Northern Canada.

A public offering of 2,450,000 units at $14.75 was completed on May 15, 2006. Net proceeds, after deducting fees payable to underwriters, were approximately $34,330,226.

Finally, on April 25, 2006, Altus announced its intention to increase monthly distributions by 4.3%, to $0.10 per month. Unitholders of record at June 30, 2006 will receive the first such distribution around July 15, 2006.

"Altus has strong momentum and continues to grow, both in terms of the depth of our business and the breadth of our reach," said Yeoman. "Our service offering is expanding, our revenues are increasing and our distributions are growing. We are confident that our commitment to continuing to operate and expand Canada's leading professional real estate consulting firm will continue to deliver excellent results, for the benefit of clients, employees and unitholders."

Analyst Call Details

Altus Group Income Fund will hold an analyst conference call at 11:00 AM EST on May 15, 2006, to discuss these financial results and current industry conditions. Please dial 1-877-888-3490 or 416-695-5259 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 1:00 PM EST. To access the recording, please call 1-888-509-0081 or 416-695-5275 (Passcode:621122). The recording will also be available at www.altusgroupincomefund.com

About Altus Group Income Fund

Altus Group Income Fund is the leading independent multidisciplinary provider of real estate consulting and advisory services in Canada. Altus has a national network of offices in 16 cities and operates as: Altus Helyar Research, Valuation and Advisory; Altus InSite Market Information and Perspective; Altus Helyar Cost Consulting; Altus Derbyshire Realty Tax Consulting; and All West Surveys. Altus' clients include banks, financial institutions, governments, pension funds, asset and fund managers, developers and landlords. The Fund's Units trade on the Toronto Stock Exchange under the symbol AIF.un.

Forward-Looking Statements

Certain statements in this news 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 Altus and its subsidiary entities, including Altus Group Limited Partnership and Altus Group Limited, or the industry, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used, 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 Altus' publicly filed documents (which are available on SEDAR at www.sedar.com).

Those risks and uncertainties include: the ability to maintain profitability and manage growth; reliance on and retention of professionals; competition; performance obligations and client satisfaction; fixed price and contingency engagements; collectibility of accounts receivable; general state of the economy; possible acquisitions; possible future litigation; interest rate fluctuations; insurance limits; legislative and regulatory changes; revenue and cash flow volatility; operating risks; residential market risk; protection of intellectual property; appraisal mandates; restrictions on growth. 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 news release. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, Altus 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 news release, and, except in accordance with applicable law, Altus assumes no obligations to update or revise them to reflect new events or circumstances. Additionally, Altus undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Altus, its financial or operating results, or its securities.

Non-GAAP Measures - Definition of EBITDA and Distributable Cash

Distributable Cash does not have a standardized meaning prescribed by GAAP, but is a measure generally used by Canadian open-ended income funds as an indicator of financial performance. The Fund defines distributable cash as net earnings before interest, depreciation, amortization, income taxes ("EBITDA"), and after interest paid, debt repayment, capital expenditures, income taxes paid and contributions to any reserves that the Trustees of the Fund deem to be reasonable and necessary for the operation of the Fund.

The Fund's method of calculating distributable cash may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to distributable cash as reported by such entities. The Fund believes that its distributable cash is a useful supplemental measure that may assist investors in assessing the return on their investment in Units. Distributable cash is not intended to be representative of cash flow, or results of operations determined in accordance with GAAP.

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
    www.altusgroupincomefund.com