WSP Global Inc.

WSP Global Inc.

May 11, 2009 15:57 ET

First Quarter Yields Solid Results for GENIVAR Income Fund

    MONTREAL, May 11  - GENIVAR Income Fund (the "Fund")
announced today its financial and operating results (unaudited) for the first
quarter of 2009. These results cover the period from January 1, 2009, to March
28, 2009.

    Highlights- Revenues for the first quarter of 2009 were $97.4 million, up from
      $70.1 million for the same period in 2008, representing an increase of
      39.0%. Net revenues were $84.8 million, representing an increase of
      24.7 million (41.0%).
    - Net earnings before non-controlling interest were $10.4 million or
      $0.45 cents per unit for the first quarter of 2009. EBITDA increased
      40.8% from $11.9 million in the first quarter of 2008 to $16.7 million
      for the same period in 2009.
    - Cash flows from operating activities generated $13.1 million of cash.
      Adjusted distributable cash totalled $12.1 million of which
      $8.8 million was distributed to unitholders, representing an adjusted
      payout ratio of 72.2%.
    - The Fund completed five acquisitions during the first quarter of 2009,
      adding approximately 100 employees in Ontario, Alberta and Quebec.
      Subsequent to the quarter-end, the Fund completed the acquisition of
      Algal & Associates, a firm specialized in power generation and
      transmission systems.
    - ENAQ, a Montreal-based nuclear power group also joined GENIVAR as of
      May 2009. This small group of specialists provides GENIVAR with leading
      expertise in nuclear licensing, safety, risk management and engineering
    - Backlog was $316.9 million as at March 28, 2009."We are very pleased with these first quarter results and are encouraged
with the outlook for 2009 and beyond," said Pierre Shoiry, President and CEO
of the GENIVAR Income Fund. "Despite the downturn in private sector
investment, as well as the general slowdown in the economy, we were able to
deliver solid results and continue the execution of our business plan.
Proposal activity was buoyant in this first quarter and we secured several
contracts in all of our operating segments and regions," concluded Mr. Shoiry.
    Several mandates were awarded to the Fund in the first quarter in all of
our regions. These mandates cover our multidisciplinary engineering,
architectural and project management services for many clients, including Rio
Tinto, the Ontario Ministry of Transportation, the Quebec Ministry of
Transportation, the Montreal Ports Authority, the Montreal Harbourfront
Corporation, Ryerson University in Toronto, La Cité Collégiale in Ottawa,
Defence Construction Canada, Walmart, the Town of Markham and the City of

    About GENIVAR

    GENIVAR is a leading Canadian engineering services firm providing private
and public-sector clients with a complete range of professional consulting
services throughout all project phases, including planning, design,
construction and maintenance. Ranging in size and scope, GENIVAR's clients
primarily operate in the building, industrial, power, municipal
infrastructure, transportation and environmental sectors. GENIVAR is one of
Canada's largest consulting engineering services firms by number of employees,
with more than 3,500 managers, professionals, technicians, technologists and
support staff in more than 65 locations in Canada and internationally
                                                            3 months
                                                          2009          2008
                                                       FOR THE       FOR THE
                                                   PERIOD FROM   PERIOD FROM
                                                     JANUARY 1     JANUARY 1
                                                   TO MARCH 28   TO MARCH 29
    Revenues                                          $ 97,431      $ 70,087

    Deduct: Subconsultants and other direct
     expenses                                         $ 12,627       $ 9,939

    Net revenues                                      $ 84,804      $ 60,148

    Direct project costs                              $ 42,394      $ 30,182
    Gross margin                                      $ 42,410      $ 29,966

    Marketing, general, and administrative
     expenses and others                              $ 25,685      $ 18,088
    EBITDA                                            $ 16,725      $ 11,878
    Interest                                             $ 319         $ 121

    Depreciation of property, plant and equipment      $ 1,398         $ 854

    Amortization of intangible assets                  $ 4,143       $ 3,440
    Earnings before income taxes and non-
     controlling interest                             $ 10,865       $ 7,463

    Income taxes                                         $ 447        ($ 107)
    Earnings before non-controlling interest          $ 10,418       $ 7,570

    Non-controlling interest                           $ 4,014       $ 2,972
    Net earnings                                       $ 6,404       $ 4,598

    Basic net earnings per unit                         $ 0.45        $ 0.36

    Weighted average number of units                14,277,078    12,870,664

    Diluted net earnings per unit                       $ 0.45        $ 0.35

    Diluted weighted average number of units        23,345,696    21,347,826

                                                            3 months
                                                          2009          2008
                                                       FOR THE       FOR THE
                                                   PERIOD FROM   PERIOD FROM
                                                     JANUARY 1     JANUARY 1
                                                   TO MARCH 28   TO MARCH 29
    Cash flows from operating activities              $ 13,050       $ 7,391
    Capital expenditures paid                         ($ 3,546)     ($ 1,930)
    Standardized distributable cash(1)                 $ 9,504       $ 5,461
    Change in non-cash working capital items(2)        $ 2,621       $ 4,337
    Adjusted distributable cash(1)(3)                 $ 12,125       $ 9,798
    Adjusted distributable cash, per unit(1)(3)         $ 0.52        $ 0.46
    Payout ratio
      Standardized                                        92.2%         97.8%
      Adjusted                                            72.2%         54.5%

    Fund's units distributions                         $ 5,360       $ 3,224
    Class B Exchangeable LP Unit distributions         $ 1,623         $ 934
    Class C Exchangeable LP Unit distributions         $ 1,775       $ 1,182
    Aggregate distributions, all units(3)              $ 8,758       $ 5,340
    Aggregate distributions, all units, per
     unit(3)                                            $ 0.38        $ 0.25
    (1) Calculation of the distributable cash included foreign income taxes
        of $0.6 million for the three-month period ended March 28, 2009
        ($- as at March 29, 2008).
    (2) Distributions are based on actual historical and estimated future
        performance of the Fund on a full-year basis. Consequently, periodic
        fluctuations in non-cash working capital are not considered when
        evaluating the cash flows available for distribution.
    (3) Distributable cash and distributable cash per unit amounts are
        calculated for the combined interest of the Fund's units and
        Exchangeable Class B LP units and Exchangeable Class C LP Units,
        which total 23,354,476 as at March 28, 2009 (21,366,405 as at March
        29, 2008). Number of units has not been adjusted to reflect units
        purchased in the market in connection with the long-term incentive
        plan since the distributions on these units continue to be declared
        and paid.NON-GAAP MEASURES

    The Fund uses non-GAAP measures that are used by Canadian open-ended
income funds as indicators of financial performance measures under GAAP and
may differ from similar computations as reported by other similar entities
and, accordingly, may not be comparable. The Fund believes these measures are
useful supplemental measures that may assist investors in assessing an
investment in units of the Fund.
    Non-GAAP measures used by the Fund are net revenues, EBITDA,
distributable cash, and payout ratio.

    Net revenues

    Net revenues are defined as revenues from consulting services less direct
costs for subconsultants and other direct expenses that are recoverable
directly from our clients. Net revenues are not a measure in accordance with
GAAP and do not have standardized meaning prescribed by GAAP. Therefore, net
revenues may not be comparable to similar measures presented by other issuers.
Investors are cautioned that net revenues should not be construed as an
alternative to revenues for the period (as determined in accordance with
GAAP), as an indicator of the Fund's performance.


    EBITDA is defined as earnings before interest, tax, depreciation, and
amortization. EBITDA is not an earnings measure in accordance with GAAP and
does not have a standardized meaning prescribed by GAAP. Therefore, EBITDA may
not be comparable to similar measures presented by other issuers.

    Distributable cash

    Distributable cash is calculated in accordance with the recommendations
provided in CICA's publication "Standardized Distributable Cash in Income
Trusts and Other Flow-Through Entities." Standardized distributable cash is
defined as cash flows from operating activities as reported in the GAAP
financial statements, including the effects of changes in non-cash working
capital items and any operating cash flows provided from or used in
discontinued operations, less adjustments for:(a) total capital expenditures as reported in the GAAP financial
        statements; and
    (b) restrictions on distributions arising from compliance with financial
        covenants restrictive at the date of the calculation of standardized
        distributable cash and limitations arising from the existence of a
        minority interest in a subsidiary.The Fund also calculated an adjusted distributable cash, which is defined
as standardized distributable cash adjusted for entity-specific adjustment
items that management believes are appropriate for the determination of levels
of distributions.

    Payout ratio

    Standardized payout ratio is defined as aggregate cash distributions
divided by standardized distributable cash. Adjusted payout ratio is defined
as aggregate cash distributions divided by adjusted distributable cash.

Contact Information

  • Pierre Shoiry, President and CEO, GENIVAR
    Income Fund, (514) 340-0046, ext. 5104; Marlene Casciaro, Director of
    Communications, GENIVAR Income Fund, (514) 340-0046, ext. 5184