Altus Group Income Fund

Altus Group Income Fund

May 07, 2007 15:59 ET

Altus Group Income Fund Announces First Quarter Results

TORONTO, ONTARIO--(CCNMatthews - May 7, 2007) - Altus Group Income Fund (TSX:AIF.UN) today announced its financial results (unaudited) for the first quarter ended March 31, 2007.

Q1 Performance Highlights:

- Completed two accretive acquisitions

- Increased revenue by 8% over Q4 2006

- Generated distributable cash from operations of $5.3 million

"Altus is off to another strong start for 2007, with revenue growth of 85% over the first quarter of 2006," said Gary Yeoman, CEO of Altus Group Income Fund. "Our established business units continue to demonstrate our ability to drive organic growth while targeted acquisitions such as Ezra Consulting and Clayton Research strengthen our service offering. The result is a growing market position which benefits the Fund and its Unitholders."

Revenue for the three months ended March 31, 2007 was $32 million, up 85% over the same period in 2006. Of this increase, 20% was the result of the organic growth of the original three Altus entities, while 65% was attributable to the six acquisitions completed over the past year. Those acquisitions include InSite Real Estate Information Systems Inc., All West Surveys, Roy Sanche Gold, the property tax practice of KPMG, Ezra Consulting and Clayton Research.

Salaries, general and administration, was $21.5 million for the first quarter of 2007 compared to $12.3 million, an increase of 75%, for the same quarter of 2006. Salaries and benefits were the largest contributor to this increase, reflecting an increase in headcount of 80%. Other operating costs increased 47% in the three month period, largely because Altus added ten additional offices over the past year.

EBITDA for the first quarter rose 80%, to $6.9 million, over the comparable period last year, again due in large part to the six acquisitions cited above. EBITDA represents revenue less salaries, benefits and general and administrative costs but before deductions for interest, taxes, depreciation, amortization, and non-controlling interest.

Net earnings for the first quarter were $1.1 million, and 10 cents on a per unit basis, both basic and diluted, versus 15 cents per unit, both basic and diluted, in the first quarter 2006. The lower earnings are due to increased amortization in the amount of $1.3 million in the first quarter of 2007, reflecting management's decision to stop using all predecessor company co-brands.

Altus generated distributable cash from operations of $5.3 million in the first quarter, compared with $3.5 million one year ago, available to both the Fund's Units and the Altus LP Class B limited partnership units. Distributable cash from operations represents cash flow from operating activities as reported in the GAAP financial statements adjusted for certain non-operating cash outlays, including capital expenditures, income taxes and debt obligations. Declared distributions were 30 cents per unit for the quarter, for a payout ratio of 86.1%.

"For the remainder of 2007, our focus will be to capitalize on our clear and growing leadership position in Canadian real estate advisory services while completing the integration of the three businesses which we have acquired to date," said Gary Yeoman. "With our demonstrated track record of successfully growing our business while steadily adding value for our unitholders, we are confident that this will be another banner year for Altus."

Analyst Call Details

Altus Group Income Fund will hold an analyst conference call at 10:00 AM EDT on Thursday, May 10, 2007, to discuss these financial results and current industry conditions. Please dial 1-800-766-6630 or 416-695-9745 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 EDT. To access the recording, please call 1-888-509-0081 or 416-695-5275 (Passcode: 644027). The recording will also be available at

About Altus Group Income Fund

Altus Group Income Fund is the leading multidisciplinary provider of independent real estate consulting and professional advisory services in Canada. With a staff of over 800, Altus has a national network of 30 offices in 22 cities and operates as: Altus Helyar Research, Valuation and Advisory; Altus InSite; Altus Helyar Cost Consulting; Altus Derbyshire Realty Tax Consulting; All West Surveys; Altus Ezra; and Altus Clayton. 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
    Altus Group Income Fund
    Dale Lawr
    (905) 953-9948