Stock Name: GNV
Amount: CAD 0.375
Announcement Date: 26/03/2012
Record Date: 29/03/2012
Dividend Detail:
MONTREAL, March 26, 2012 /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
fourth quarter and year-end 2011, under the International Financial
Reporting Standards ("IFRS"). The fourth quarter results cover the
period from October 2, 2011, to December 31, 2011.
FOURTH QUARTER 2011 HIGHLIGHTS
Total revenues were $172.0��million compared to $154.7 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 $132.7��million, representing an
11.9% increase as compared to 2010.
EBITDA stood at $21.5��million, as compared to $19.3��million in 2010. As
a percentage of net revenues, the EBITDA margin stood at 16.2% for
2011, compared to 16.3% for 2010.
Net earnings amounted to $9.9��million or $0.37 per share.
The backlog stood at $409.6��million compared to a backlog of
$419.3��million at the end of the third quarter of 2011 and represented
approximately 7.5��months of revenues.
During the quarter, GENIVAR received support from Canada's two largest
institutional investors, the Canada Pension Plan Investment Board
("CPPIB") and the Caisse de d��p��t et placement du Qu��bec (the
"Caisse"), each of whom invested a gross amount of $79.9��million. This
financing consisted in an equity private placement through the issuance
of 6,500,000 common shares from treasury at a price of $24.57 per share
for aggregate gross proceeds of $159.7��million. It will allow the
Company to continue growing its Canadian business while moving forward
on executing its international expansion plans.
During the quarter, GENIVAR further diversified its professional
services offering by welcoming the entities collectively referred to as
"Giroux," Quebec-based geomatics and surveying firms. The Company also
acquired ISACtion Inc., a Quebec-based firm specialized in
instrumentation control and automation systems. Finally, the firm also
established its presence in all ten Canadian provinces through a
transaction involving AE Consultants Ltd., based in Newfoundland and
Labrador. These three transactions bring to 355 the number of new
employees who joined GENIVAR through business acquisitions during the
year 2011.
Shortly after the end of the quarter, GENIVAR laid the initial
foundations of its international growth strategy through the
acquisition of Consultores Regionales Asociados - CRA S.A.S. based in
Colombia. This acquisition is in line with the Company's plans, which
consist in developing a long-term local presence in Colombia and expand
in the neighboring countries. GENIVAR also acquired Les Investissements
R.J. Inc., a Quebec-based firm specialized in mechanical and electrical
engineering, will enable GENIVAR to meet growing client demand in the
Building sector. Furthermore, the Company diversified its services
principally in the oil and gas sector in the Alberta region by
welcoming GRB Engineering Ltd. ("GRB"). GRB complements the array of
services already offered in this flourishing, dynamic and
rich-in-opportunities industry. Finally, the Company reinforces its
expertise in architecture with the acquisition of Smith Carter
Architects and Engineers Inc. and of Smith Carter (USA) LLC, which are
specialized in integrated architectural design and engineering. With
this acquisition, GENIVAR reinforces its presence in Western Canada and
integrates the United States market.
2011 YEAR HIGHLIGHTS
Total revenues were $651.9 million compared to $580.4 million in 2010,
an increase of 12.3%. For the same period, net revenues amounted to
$529.0 million, representing a 12.7% increase as compared to 2010.
EBITDA increased to $89.7��million, up from $83.5��million in 2010. As a
percentage of net revenues, the EBITDA margin stood at 17.0% for 2011,
compared to 17.8% for 2010.
Net earnings amounted to $50.1 million or $1.91 per share.
"I am pleased to report fiscal 2011 ended with a good quarter, that is
consistent with our year-to-date results and expectations," commented
Pierre Shoiry, President and Chief Executive Officer of GENIVAR. "This
past year saw GENIVAR strategically position its platform in
preparation for future growth. Throughout the year, we remained focused
on the fundamentals of our business and continued to strengthen our
presence in Canada and abroad. Additionally, we closed 10 transactions
and welcomed new solid and committed financial partners. As we progress
into 2012, we remain focused on driving growth, further cementing our
position as a leader in the field of professional services, while
enhancing execution to deliver sustained value creation," he added.
BOARD OF DIRECTORS
Ali Ettehadieh notified the Board of Directors of the Company that he
will not stand for re-election at the next annual meeting of
shareholders. Mr. Ettehadieh's term will expire effective upon
conclusion of the Company's 2012 annual meeting of shareholders, which
is scheduled to be held on May 26, 2012. Mr. Ettehadieh will continue
to hold the position of Executive Vice President of GENIVAR.
Commenting on this announcement on behalf of the Board, Richard
B��langer, Chairman, said "We greatly appreciate the energy and the
contribution Ali has made to the Board. We thank him for his
outstanding service and dedication for the past 6 years."
DIVIDEND
The Board of GENIVAR declared a dividend of $0.375 per share. This
dividend will be payable on or about April 15, 2012, to shareholders of
record at the close of business on March 31, 2012.
FINANCIAL REPORT
This release includes, by reference, the year 2011 financial reports,
including the audited consolidated financial statements and the
Management Discussion & Analysis ("MD&A") of the Company.
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 2011 financial statements. For a
copy of our full financial results for the year 2011, including the
MD&A and the audited 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 March
26, 2012, 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 fourth quarter and year
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 April 2, 2012. 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
�� | �� | �� | �� | |||||||||
�� | Fourth quarter | �� | Year | |||||||||
�� | 2011 | �� | 2010 | �� | Variation | �� | 2011 | �� | 2010 | �� | Variation | |
IN THOUSANDS OF DOLLARS EXCEPT PER SHARE/UNIT DATA AND PERCENTAGES | FOR THE PERIOD FROM OCTOBER��2 TO DECEMBER��31 (UNAUDITED) | �� | FOR THE PERIOD FROM OCTOBER��3 TO DECEMBER��31 (UNAUDITED) | �� | % | �� | FOR THE PERIOD FROM JANUARY 1 TO DECEMBER��31 (AUDITED*) | �� | FOR THE PERIOD FROM JANUARY 1 TO DECEMBER��31 (AUDITED*) | �� | % | |
Revenues | $ 171,980 | �� | $ 154,706 | �� | 11.2% | �� | $ 651,885 | �� | $ 580,431 | �� | 12.3% | |
Less: Subconsultants and other direct expenses | $ 39,299 | �� | $ 36,103 | �� | 8.9% | �� | $ 122,883 | �� | $ 110,932 | �� | 10.8% | |
Net revenues** | $ 132,681 | �� | $ 118,603 | �� | 11.9% | �� | $ 529,002 | �� | $ 469,499 | �� | 12.7% | |
Direct project costs | $ 68,371 | �� | $ 61,597 | �� | 11.0% | �� | $ 272,412 | �� | $ 238,537 | �� | 14.2% | |
Gross margin | $ 64,310 | �� | $ 57,006 | �� | 12.8% | �� | $ 256,590 | �� | $ 230,962 | �� | 11.1% | |
Marketing, general and administrative expenses(1) | $ 42,846 | �� | $ 37,673 | �� | 13.7% | �� | $ 166,901 | �� | $ 147,480 | �� | 13.2% | |
EBITDA** | $ 21,464 | �� | $ 19,333 | �� | 11.0% | �� | $ 89,689 | �� | $ 83,482 | �� | 7.4% | |
Amortization of intangible assets | $ 4,479 | �� | $ 4,864 | �� | (7.9%) | �� | $ 17,311 | �� | $ 16,859 | �� | 2.7% | |
Depreciation of property, plant and equipment | $ 2,389 | �� | $ 1,789 | �� | 33.5% | �� | $ 7,971 | �� | $ 6,312 | �� | 26.3% | |
Financial expenses(2) | $ 1,003 | �� | $ 671 | �� | 49.5% | �� | $ 4,406 | �� | ($ 2,367) | �� | 286.1% | |
Earnings before income taxes | $ 13,593 | �� | $ 12,009 | �� | 13.2% | �� | $ 60,001 | �� | $ 62,678 | �� | (4.3%) | |
Income tax expenses | $ 3,678 | �� | $ 9,313 | �� | (60.5%) | �� | $ 9,945 | �� | $ 11,728 | �� | (15.2%) | |
Net earnings | $ 9,915 | �� | $ 2,696 | �� | 267.8% | �� | $ 50,056 | �� | $ 50,950 | �� | (1.8%) | |
Attributable to the: | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | - shareholders/unitholders | $ 9,911 | �� | ($ 1,154) | �� | 958.8% | �� | $ 50,052 | �� | $ 39,219 | �� | 27.6% |
�� | - non-controlling interest | $ 4 | �� | $ 3,850 | �� | (99.9%) | �� | $ 4 | �� | $ 11,731 | �� | (100.0%) |
Basic net earnings per share/unit | $ 0.37 | �� | $ 0.15 | �� | 146.7% | �� | $ 1.91 | �� | $ 2.81 | �� | (32.0%) | |
Diluted net earnings per share/unit | $ 0.37 | �� | $ 0.15 | �� | 146.7% | �� | $ 1.91 | �� | $ 2.26 | �� | (15.5%) | |
Adjusted net earnings** | $ 9,915 | �� | $ 2,696 | �� | 267.8% | �� | $ 50,056 | �� | $ 47,100 | �� | 6.3% | |
Adjusted net earnings per share/unit** | $ 0.37 | �� | $ 0.10 | �� | 270.0% | �� | $ 1.91 | �� | $ 1.73 | �� | 10.4% | |
Weighted average number of shares/units | 26,841,888 | �� | 18,103,589 | �� | �� | �� | 26,233,234 | �� | 18,103,589 | �� | �� | |
Diluted weighted average number of shares/units | 26,841,888 | �� | 18,103,589 | �� | �� | �� | 26,233,234 | �� | 21,752,567 | �� | �� | |
Adjusted weighted average number of shares/units(3) | 26,841,888 | �� | 27,163,976 | �� | �� | �� | 26,233,234 | �� | 27,163,976 | �� | �� | |
*�� | Except for non-IFRS measures. |
**�� | Non-IFRS measures are described below. |
(1) | The marketing, general and administrative expenses include the exchange loss or gain and the interest revenues. |
(2) | In 2011, the financial expenses only included the interest expenses. The 2010 financial expenses included the unrealized gain arising from changes in fair value of financial liability related to LP Units of $9,513, less the distributions on this financial liability of $5,663 and the interest expenses. |
(3) | Adjusted weighted average number of shares/units represents the weighted average number of shares/units receiving dividends/distributions. |
FUNDS FROM OPERATIONS AND FREE CASH FLOW
�� | �� | �� | �� | ||||
�� | Fourth quarter | �� | Year | ||||
�� | 2011 | �� | 2010 | �� | 2011 | �� | 2010 |
IN THOUSANDS OF DOLLARS | FOR THE PERIOD FROM OCTOBER��2 TO DECEMBER��31 (UNAUDITED) | �� | FOR THE PERIOD FROM OCTOBER��3 TO DECEMBER��31 (UNAUDITED) | �� | FOR THE PERIOD FROM JANUARY��1 TO DECEMBER��31 (AUDITED*) | �� | FOR THE PERIOD FROM JANUARY��1 TO DECEMBER��31 (AUDITED*) |
Cash flows from operating activities | $ 53,278 | �� | $ 35,750 | �� | $ 72,535 | �� | $ 61,762 |
Change in non-cash working capital items | ($ 36,827) | �� | ($ 18,005) | �� | ($ 4,793) | �� | $ 17,994 |
Funds from operations** | $ 16,451 | �� | $ 17,745 | �� | $ 67,742 | �� | $ 79,756 |
Funds from operations per share/unit** | $ 0.61 | �� | $ 0.65 | �� | $ 2.58 | �� | $ 2.94 |
Less: | �� | �� | �� | �� | �� | �� | �� |
Change in non-cash working capital items | $ 36,827 | �� | $ 18,005 | �� | $ 4,793 | �� | ($ 17,994) |
Capital expenditures | ($ 5,814) | �� | ($ 3,171) | �� | ($ 12,228) | �� | ($ 12,664) |
Free cash flow** | $ 47,464 | �� | $ 32,579 | �� | $ 60,307 | �� | $ 49,098 |
Free cash flow per share/unit** | $ 1.82 | �� | $ 1.20 | �� | $ 2.30 | �� | $ 1.81 |
*�� | Except non-IFRS measures. |
**�� | Non-IFRS measures are described below. |
NON-IFRS MEASURES
GENIVAR uses non-IFRS measures that are considered 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
Company's shares.
Non-IFRS measures used by GENIVAR are net revenues, EBITDA, EBITDA per
share/unit, income tax expenses 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 year (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, income tax
expenses, 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 year (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.
Income tax expenses per share/unit
Income tax expenses per share/unit is defined as the income tax expenses
on the diluted weighted average number of shares/units.
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.
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 items.
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 generated from operations
across entities 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 engineering company providing private and
public-sector clients with a full range of professional consulting
services throughout all project phases, including planning, design,
construction and maintenance. Ranging significantly in size, GENIVAR's
clients operate in various different market segments, including the
building, industrial, energy, municipal infrastructure, transportation
and environmental sectors. GENIVAR is one of the largest engineering
companies in Canada by number of employees, with more than 5,500
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. The complete
version of the cautionary note regarding forward-looking statements as
well as a description of the relevant assumptions and risk factors
likely to affect GENIVAR's actual or projected results are included in
the Management Discussion and Analysis for the fourth quarter and year
2011 ended December 31, 2011, which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are
made as of the date hereof and GENIVAR does not assume any obligation
to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise unless expressly
required by applicable securities laws.
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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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