Stock Name: GNV
Amount: CAD 0.375
Announcement Date: 09/11/2011
Record Date: 29/12/2011
Dividend Detail:
MONTREAL, Nov. 9, 2011 /CNW Telbec/ - GENIVAR Inc. (TSX: GNV) ("GENIVAR"
or the "Company"), formerly GENIVAR Income Fund (the "Fund"), today
announced its financial and operating results for the third quarter and
for the year-to-date periods ended October 1, 2011, under the
International Financial Reporting Standards ("IFRS"). The third quarter
results cover the period from July 3, 2011, to October 1, 2011.
THIRD QUARTER 2011 HIGHLIGHTS
Total revenues were $173.1 million compared to $155.7 million in 2010,
an increase of 11.2%. Net revenues, expressed as revenues less direct
costs for subconsultants and other direct expenses that are recoverable
directly from the clients, amounted to $138.6 million, representing an
11.5% increase as compared to 2010.
EBITDA stood at $26.6 million, as compared to $24.2 million in 2010. As
a percentage of net revenues, the EBITDA margin stood at 19.2% for
2011, compared to 19.4% for 2010.
Net earnings amounted to $14.2 million or $0.54 per share.
The backlog stood at $419.3 million compared to a backlog of $427.8
million at the end of the second quarter of 2011 and represented
approximately 8.0months of revenues.
During the quarter, GENIVAR strengthened its expertise in the field of
automation systems with the acquisition of Dakins Engineering Group
Ltd., based in Ontario. Also, ARCOP, a Montreal-based firm,
internationally known for design and architectural excellence became
GENIVAR's partner.
Subsequent to the quarter-end, the Company further diversified its
professional services offering by welcoming the entities collectively
referred to as "Groupe GIROUX," Quebec-based geomatics and surveying
firms. The Company also acquired ISACTION Inc., a Quebec-based firm
specialized in instrumentation control and automation systems.
These four transactions add 204employees to our workforce and bring the
number of new employees who joined GENIVAR through business
acquisitions since the beginning of the year to approximately 340.
2011 YEAR-TO-DATE PERIOD HIGHLIGHTS
Total revenues were $479.9 million compared to $425.7 million in 2010,
an increase of 12.7%. For the same period, net revenues amounted to
$396.3 million, representing a 12.9% increase as compared to 2010 which
is within the 10-15% target range set for 2011.
EBITDA increased to $68.2 million, up from $64.1 million in 2010. As a
percentage of net revenues, the EBITDA margin stood at 17.2% for 2011,
compared to 18.3% for 2010.
Net earnings amounted to $40.1 million or $1.54 per share.
"During the quarter, we continued to focus on operational excellence and
we are pleased with the performance of our team," commented Pierre
Shoiry, President and Chief Executive Officer of GENIVAR. "We are also
particularly proud to have received the Schreyer Award, which is the
most coveted and the highest form of recognition for the consulting
engineering industry in Canada. The Gasp Mines Rehabilitation project
conducted for Xstrata Copper Canada was described by the jury as
setting a benchmark for future mine decommissioning projects, which
positions the work of our environmental team as the gold standard for
any similar projects," he concluded.
DIVIDEND
The Board of GENIVAR declared a dividend of $0.375 per share. This
dividend will be payable on or about January 15, 2012, to shareholders
of record at the close of business on December 31, 2011.
FINANCIAL REPORT
This release includes, by reference, the third quarter 2011 financial
reports, including the unaudited interim consolidated financial
statements and the Management Discussion & Analysis ("MD&A").
In 2011, GENIVAR reports its financial results in accordance with IFRS,
as required for public companies in Canada. Previously, the Company
prepared its financial results under Canadian Generally Accepted
Accounting Standards ("GAAP"). The comparative financial information
has been restated to reflect the adoption of IFRS, with effect from
January 1, 2010.
The Company has included reconciliations between IFRS and the amounts
previously reported under GAAP in its third quarter of 2011 interim
financial statements. For a copy of our full financial results for the
third quarter 2011, including the MD&A and the unaudited interim
consolidated financial statements, please visit our Website at www.genivar.com.
CONFERENCE CALL
GENIVAR will hold a conference call at 4 p.m. (Eastern Time) on November
9, 2011, to discuss these results. The telephone numbers to access the
conference call are as follows:
Montreal and International, please dial 514-861-2909
Elsewhere in Canada and United States, please dial 877-695-6175
Conference number: 8284786
A presentation highlighting the results of the third quarter 2011 will
be available on the same day in the Investor section of GENIVAR's Website (www.genivar.com), under Presentations and Events.
A replay of the call will be available until November 16, 2011. The
telephone numbers to access the replay of the call are 514-861-2272 or
800-408-3053, password 1421250. The replay of the conference call will
also be available in the Investor section of the Website under Presentations and Events, in the days following the event.
RESULTS OF OPERATIONS
| | ||||||
| Third quarter | Year-to-date | |||||
| 2011 | 2010 | Variation | 2011 | 2010 | Variation | |
| FOR THE PERIOD FROM JULY 3 TO OCTOBER1 (UNAUDITED) | FOR THE PERIOD FROM JULY 4 TO OCTOBER2 (UNAUDITED) | % | FOR THE PERIOD FROM JANUARY 1 TO OCTOBER1 (UNAUDITED) | FOR THE PERIOD FROM JANUARY 1 TO OCTOBER2 (UNAUDITED) | % | |
Revenues | $173,088 | $155,655 | 11.2% | $479,905 | $ 425,725 | 12.7% | |
| | | | | | | |
Less: Subconsultants and other direct expenses | $34,522 | $31,385 | 10.0% | $83,584 | $ 74,829 | 11.7% | |
| | | | | | | |
Net revenues* | $ 138,566 | $ 124,270 | 11.5% | $ 396,321 | $ 350,896 | 12.9% | |
| | | | | | | |
Direct project costs | $ 72,472 | $ 61,182 | 18.5% | $ 204,041 | $ 176,940 | 15.3% | |
Gross margin | $ 66,094 | $ 63,088 | 4.8% | $ 192,280 | $ 173,956 | 10.5% | |
| | | | | | | |
Marketing, general and administrative expenses(1) | $ 39,498 | $ 38,933 | 1.5% | $ 124,055 | $ 109,807 | 13.0% | |
EBITDA* | $ 26,596 | $ 24,155 | 10.1% | $ 68,225 | $ 64,149 | 6.4% | |
Amortization of intangible assets | $ 4,246 | $ 3,845 | 10.4% | $ 12,832 | $ 11,995 | 7.0% | |
| | | | | | | |
Depreciation of property, plant and equipment | $ 2,054 | $ 1,593 | 28.9% | $ 5,582 | $ 4,523 | 23.4% | |
| | | | | | | |
Financial expenses | $ 1,212 | $ 350 | 246.3% | $ 3,403 | ($ 3,038) | (212.0%) | |
Earnings before income taxes | $ 19,084 | $ 18,367 | 3.9% | $ 46,408 | $ 50,669 | (8.4%) | |
| | | | | | | |
Income tax expenses | $ 4,932 | $ 307 | 1,506.5% | $ 6,267 | $ 2,415 | 159.5% | |
Net earnings | $ 14,152 | $ 18,060 | (21.6%) | $ 40,141 | $ 48,254 | (16.8%) | |
| | | | | | | |
Attributable to the: | | | | | | | |
-shareholders/unitholders | $ 14,152 | $ 11,954 | 18.4% | $ 40,141 | $ 40,373 | (0.6%) | |
| - non-controlling interest | - | $ 6,106 | (100.0%) | - | $ 7,881 | (100.0%) |
Basic net earnings per share/unit | $ 0.54 | $ 1.00 | (46.0%) | $ 1.54 | $ 2.67 | (42.3%) | |
| | | | | | | |
Diluted net earnings per share/unit | $ 0.54 | $ 1.00 | (46.0%) | $ 1.54 | $ 1.95 | (21.0%) | |
| | | | | | | |
Adjusted net earnings* | $ 14,152 | $ 18,060 | (21.6%) | $ 40,141 | $ 44,404 | (9.6%) | |
| | | | | | | |
Adjusted net earnings per share/unit* | $ 0.54 | $ 0.66 | (18.2%) | $ 1.54 | $ 1.63 | (5.5%) | |
* Non-IFRS measures.
(1)The marketing, general and administrative expenses include the exchange
loss or gain.
FUNDS FROM OPERATIONS AND FREE CASH FLOW
| | | ||
| Third quarter | Year-to-date | ||
| 2011 | 2010 | 2011 | 2010 |
| FOR THE PERIOD FROM JULY3 TO OCTOBER1 (UNAUDITED) | FOR THE PERIOD FROM JULY4 TO OCTOBER2 (UNAUDITED) | FOR THE PERIOD FROM JANUARY1 TO OCTOBER1 (UNAUDITED) | FOR THE PERIOD FROM JANUARY1 TO OCTOBER2 (UNAUDITED) |
Cash flows from operating activities | $ 13,225 | $ 390 | $ 19,257 | $ 26,012 |
Change in non-cash working capital items | $6,822 | $23,687 | $35,602 | $36,826 |
Funds from operations* | $ 20,047 | $ 24,077 | $ 54,859 | $ 62,838 |
Funds from operations per share/unit* | $ 0.77 | $ 0.89 | $ 2.11 | $ 2.31 |
Less: Change in non-cash working capital items | ($ 6,822) | ($ 23,687) | ($ 35,602) | ($ 36,826) |
Capital expenditures | ($ 1,997) | ($ 1,726) | ($ 6,414) | ($ 9,493) |
Free cash flow* | $ 11,228 | ($ 1,336) | $ 12,843 | $ 16,519 |
Free cash flow per share/unit* | $ 0.43 | ($ 0.05) | $ 0.49 | $ 0.61 |
*Non-IFRS measures.
NON-IFRS MEASURES
GENIVAR uses non-IFRS measures that are used by Canadian companies as
indicators of financial performance measures which are not recognized
under IFRS and may differ from similar computations as reported by
other similar entities and, accordingly, may not be comparable. GENIVAR
believes these measures are useful supplemental information that may
assist investors in assessing an investment in shares.
Non-IFRS measures used by GENIVAR are net revenues, EBITDA, EBITDA per
share/unit, adjusted net earnings, adjusted net earnings per
share/unit, funds from operations, funds from operations per
share/unit, free cash flow, and free cash flow per share/unit.
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 the clients. Net revenues is not an IFRS
measure and does not have a standardized definition within IFRS.
Therefore, net revenues may not be comparable to similar measures
presented by other issuers. Investors are warned that net revenues
should not be construed as an alternative to revenues for the period
(as determined in accordance with IFRS) as an indicator of GENIVAR's
performance.
EBITDA and EBITDA per share/unit
EBITDA is defined as earnings before financial expenses, tax,
depreciation and amortization. EBITDA is not an IFRS measure and does
not have a standardized definition within IFRS. Investors are cautioned
that EBITDA should not be considered an alternative to net earnings for
the period (as determined in accordance with IFRS) as an indicator of
GENIVAR's performance, or an alternative to cash flows from operating,
financing and investing activities as a measure of GENIVAR's liquidity
and cash flows. GENIVAR's method of calculating EBITDA may differ from
the methods used by other issuers and, accordingly, GENIVAR's EBITDA
may not be comparable to similar measures used by other issuers.
EBITDA per share/unit is calculated using the weighted average number of
shares/units receiving dividends/distributions.
Adjusted net earnings and adjusted net earnings per share/unit
Adjusted net earnings is not an IFRS measure and is defined as net
earnings without the income and expenses of the financial liability
related to LP Units under IFRS and the share in earnings of the
non-controlling interest under the Canadian GAAP.
Adjusted net earnings per share/unit is calculated using the adjusted
net earnings divided by the weighted average number of shares/units
receiving dividends/distributions.
Funds from operations and funds from operations per share/unit
Funds from operations is not an IFRS measure. It provides Management and
investors with a proxy for the amount of cash generated from operating
activities before changes in non-cash working capital.
Funds from operations per share/unit is calculated using the weighted
average number of shares/units receiving dividends/distributions.
Free cash flow and free cash flow per share/unit
Free cash flow is not an IFRS measure. It provides a consistent and
comparable measurement of free cash flow across entities generated from
operations and is used as an indicator of financial strength and
performance. Free cash flow is defined as cash flows from operating
activities, including operating cash flows provided from or used in
discontinued operations as reported in accordance with IFRS, less total
capital expenditures as reported in the financial statements.
Free cash flow per share/unit is calculated using the weighted average
number of shares/units receiving dividends/distributions.
ABOUT GENIVAR INC.
GENIVAR is a leading Canadian consulting services firm providing private
and public-sector clients with a full range of professional consulting
services through all project phases, including planning, design,
construction and maintenance. Ranging in size, its clients operate in
various market segments, including the building, industrial and energy,
municipal infrastructure, transportation and environmental sectors.
GENIVAR is one of the largest engineering services companies in Canada
by number of employees, with more than 5,000 managers, professionals,
technicians, technologists and support staff in over 100 cities in
Canada and internationally.
www.genivar.com
Forward-Looking Statements
Certain information regarding GENIVAR contained herein may constitute
forward-looking statements. Forward-looking statements may include
estimates, plans, expectations, opinions, forecasts, projections,
guidance or other statements that are not statements of fact. Although
GENIVAR believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to have been correct. These
statements are subject to certain risks and uncertainties and may be
based on assumptions that could cause actual results to differ
materially from those anticipated or implied in the forward-looking
statements. GENIVAR's forward-looking statements are expressly
qualified in their entirety by this cautionary statement.
For further information:
Alexandre L'Heureux
Chief Financial Officer
GENIVAR Inc.
Tel.: 514-340-0046, ext. 5310
alexandre.lheureux@genivar.com
Isabelle Adjahi
Director, Communications and Investor Relations
GENIVAR Inc.
Tel.: 514-340-0046, ext. 5648
isabelle.adjahi@genivar.com
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