Altus Group Income Fund
TSX : AIF.UN

Altus Group Income Fund

August 11, 2006 16:11 ET

Altus Group Income Fund Announces Second Quarter Results

TORONTO, ONTARIO--(CCNMatthews - Aug. 11, 2006) - Altus Group Income Fund ("the Fund") (TSX:AIF.UN) today announced its financial and operating results (unaudited) for the second quarter ended June 30, 2006.

Q2 Performance Highlights:

- Completed 4 accretive acquisitions

- Grew revenue 28% over Q1 2006

- Generated distributable cash of $4.4 million

- Increased unitholder monthly distributions to $0.10

"After a strong start to the year in our first quarter, we're pleased that Altus' momentum carried into the second quarter," said Gary Yeoman, CEO of Altus Group Income Fund. "The four accretive acquisitions we completed during the second quarter of 2006 have continued to enhance our position as Canada's real estate advisor of choice - bringing together some of the most respected names in real estate consulting to deliver a level of service that is becoming increasingly unparalleled in the industry. That, in turn, has had very positive financial implications for the Fund and its unitholders."

This reporting period for the Fund covers the full three-month period between April 1 and June 30, 2006. However, because the Fund commenced business operations on May 19, 2005, the comparative information provided in the Fund's interim consolidated financial statements is for a 43-day period only.

Revenue for the three months ended June 30, 2006 was $22.3 million, compared to $17.4 million for Q1 2006, an increase of 28%. EBITDA for the second quarter of 2006 was $4.9 million, a 29% increase from the first quarter of 2006.

Strong demand for Altus' services across practice groups and within each market resulted in organic growth of 11.5% for the six month period ended June 30, 2006 over the combined results of the predecessor companies for the six months ended June 30, 2005.

Net earnings for the quarter were $1.7 million or 18 cents per Unit, both on a basic and diluted basis, representing an increase of 42% over Q1 2006.

The Fund generated $4.4 million of distributable cash, or 31 cents per Unit, available to both the Fund's Units and the LP Class B exchangeable Partnership Units during the second quarter. Declared distributions were 29 cents per unit for the quarter, representing a payout ratio of 93.4%.

Operating costs relating to salaries and benefits rose in tandem with Altus' increased staff complement, from $10 million in the first quarter to $12 million in the second. Other operating costs also increased by 50% as incremental expenditures related to the acquisitions were higher as a reflection of the larger size of the Fund's operations.

On July 15, 2006, Altus increased monthly distributions by 4.3%, to $0.10 per month to unitholders of record at June 30, 2006.

States Gary Yeoman, "Our solid quarterly performance makes us optimistic about the future prospects for Altus. During this quarter we:

- Demonstrated strong organic growth

- Combined this with 4 accretive acquisitions, which are also growth businesses

- Increased distributions

- Lowered our payout ratio

- Raised $36.1 million new equity

We remain steadfast in our confidence that Altus will continue to deliver outstanding service to our clients, opportunities for our employees and financial results to our unitholders."

Analyst Call Details

Altus Group Income Fund will hold an analyst conference call at 11:00 AM EDT on August 14, 2006, to discuss these financial results and current industry conditions. Please dial 1-888-789-0150 or 416-695-6120 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 EDT. To access the recording, please call 1-888-509-0081 or 416-695-5275 (Passcode: 629045). 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. The company 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 Limited Partnership. Altus' clients include banks, financial institutions, governments, pension funds, asset and fund managers, developers and landlords and participants in the oil and gas industry. The Fund's units trade on the Toronto Stock Exchange under the symbol AIF.un.

Forward-Looking Statements

Certain statements in this 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.

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