Altus Group Income Fund
TSX : AIF.UN

Altus Group Income Fund

August 11, 2009 15:53 ET

Altus Group Income Fund Releases Second Quarter Results

Management to Hold Conference Call on Wednesday, August 12, 2009 at 10:00 a.m. EDT

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2009) - Altus Group Income Fund ("Fund") (TSX:AIF.UN) today announced financial and operating results for the quarter ended June 30, 2009.

Performance Highlights:

- Generated adjusted distributable cash of $0.39 per unit and distributed $0.30 per unit to unitholders resulting in an adjusted pay-out ratio of 77.1% for the quarter

- Year-over-year revenue growth of 4% for the quarter, 6% for year-to-date

- Increased investment in Solidifi Inc. and launched operations of Altus Residential Limited

Revenue for the second quarter 2009 was $50.6 million, compared to $48.8 million for the same period in 2008, an increase of 4%. Revenue for the six months ended June 30, 2009 was $101.2 million, compared to $95.7 million, an increase of 6%.

"Altus Group generated positive growth in the second quarter of 2009, despite an extremely challenging financial environment both at home and abroad," said Gary Yeoman, Chief Executive Officer of Altus Group. "This performance is due to our strategic growth plan supported by sound management decisions and professional support from our employees. We take particular pride in the lower payout ratio which, combined with other positive developments, leaves us cautiously optimistic about the prospects for the second half of 2009."

Salaries and benefits were $27.7 million for the second quarter 2009 compared to $27.9 million in the same quarter last year. Salaries and benefits as a percentage of revenue decreased to 55% for the quarter ended June 30, 2009 from 57% in same prior year period. Although salaries and benefits were impacted by higher headcount from acquisitions in 2008, cost-saving measures and a Scientific Research and Experimental Development tax credit resulted in an improved salary expense ratio. For the six months ended June 30, 2009, salaries and benefits were $55.9 million compared to $55.5 million for the same period in 2008, an increase of 1%. Salaries and benefits as a percentage of revenue decreased to 55% for the six months ended June 30, 2009 from 58% for the same period last year.

EBITDA for the second quarter 2009 was $9.0 million compared to $6.9 million in the prior year period, an increase of 29%, primarily attributable to acquisitions. EBITDA for the six months ended June 30, 2009 was $15.2 million compared to $15.5 million for the same period last year, a decrease of 2%.

Net earnings for the second quarter 2009 were $1.1 million or $0.06 per unit compared to $1.2 million or $0.08 per unit for the second quarter in 2008. Net earnings for the six months ended June 30, 2009 were $1.2 million or $0.06 per unit compared to $2.9 million or $0.18 per unit for the same period in the prior year. Net earnings per unit are basic and diluted.

In the second quarter 2009, the Fund generated adjusted distributable cash of $8.2 million or $0.39 per unit, and achieved an adjusted pay-out ratio of 77.1% compared to $5.7 million, or $0.31 per unit, and an adjusted pay-out ratio of 96.4% in the second quarter 2008. For the six months ended June 30 2009, the Fund generated adjusted distributable cash of $13.3 million or $0.63 per unit and an adjusted pay-out ratio of 95.1% compared to $13.0 million or $0.71 per unit and an adjusted pay-out ratio of 84.4% for the same period in 2008. For the three and six months ended June 30, 2009, distributions declared totaled $0.30 per unit and $0.60 per unit, respectively.

In the second quarter 2009, Altus invested an additional $3.0 million in Solidifi Inc., bringing the Fund's total equity interest to 19.55%. Solidifi Inc. is a leading provider of collateral valuation, risk management and data analytic services to the North American mortgage industry.

On May 1, 2009, Altus acquired certain business assets of Suvius Inc., a company that provides administrative and field services to land survey firms in Manitoba.

Subsequent to quarter end, on July 31, 2009, Altus indirectly acquired shares in certain businesses carried on by the Page Kirkland Group ("Page Kirkland"). This acquisition greatly extends the international reach of Altus due to Page Kirkland's presence 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.

"Page Kirkland increases our exposure to the Asia-Pacific market at exactly a time when this region is predicted to lead the global recovery," continued Yeoman. "It also positions us strongly for the balance of 2009 and beyond, continuing our pattern of strategic, highly targeted acquisitions."

Analyst Call Details

Altus Group Income Fund will hold an analyst conference call at 10:00 a.m. Eastern Daylight Time on Wednesday, August 12, 2009 to discuss these financial results and current industry conditions. Please dial 1-866-902-2211 (toll free) or 416-695-9748 (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. EDT. To access the recording, please call 1-800-408-3053 or 416-695-5800 (passcode: 8506363). 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, including Altus Group Limited Partnership, Altus Group Limited, Altus Group Advisory Services Limited, Altus Geomatics Limited Partnership, Physical Planning Technologies Ltd. and Altus UK Limited Liability Partnership or the industry, 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; 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; currency 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.

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