Wednesday, November 9, 2011

GNV - <span class="simulate_din_font">GENIVAR reports its results for the third quarter and year-to-date period of 2011 and declares a dividend of $0.375 per share</span> (CAD 0.375)

Company: Genivar Inc
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 8.0months 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 204employees 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


IN THOUSANDS OF DOLLARS EXCEPT PER SHARE/UNIT DATA




FOR THE PERIOD

FROM JULY 3

TO OCTOBER1

(UNAUDITED)

FOR THE PERIOD

FROM JULY 4

TO OCTOBER2

(UNAUDITED)

%

FOR THE PERIOD

FROM JANUARY 1

TO OCTOBER1

(UNAUDITED)

FOR THE PERIOD

FROM JANUARY 1

TO OCTOBER2

(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


IN THOUSANDS OF DOLLARS




FOR THE PERIOD

FROM JULY3

TO OCTOBER1

(UNAUDITED)

FOR THE PERIOD

FROM JULY4

TO OCTOBER2

(UNAUDITED)

FOR THE PERIOD

FROM JANUARY1

TO OCTOBER1

(UNAUDITED)

FOR THE PERIOD

FROM JANUARY1

TO OCTOBER2

(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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