Altus Group Income Fund Announces Third Quarter Results
Management Team to Hold Conference Call on Tuesday, November 9, 2010 at 9:00 a.m. EST
TORONTO, ONTARIO–(Marketwire – Nov. 8, 2010) – Altus Group Income Fund (“Fund”) (TSX:AIF.UN) today announced financial and operating results for the quarter ended September 30, 2010.
- Year-over-year revenue growth of 13% for the quarter, 19% for year-to-date
- Year-over-year EBITDA growth of 2% for the quarter, 17% for year-to-date
- Achieved an adjusted payout ratio of 88.1% for the quarter and 85.4% year-to-date, compared to 81.5% and 90.0% in 2009, respectively
Revenue for the third quarter of 2010 was $61.2 million, compared to $54.1 million for the comparable period in 2009, a 13% increase, of which approximately 12% is attributable to revenues from acquired businesses. Revenue for the nine months ended September 30, 2010 was $184.5 million, compared to $155.3 million in 2009, a 19% increase, of which approximately 16% is attributable to acquired businesses.
EBITDA for the third quarter 2010 was $8.6 million, compared to $8.4 million in the same period last year, an increase of 2%. EBITDA for the nine months ended September 30, 2010 was $27.5 million, compared to $23.6 million in 2009, an increase of 17%.
Net earnings for the third quarter 2010 were $0.3 million, or $0.01 per unit, compared to $1.3 million, or $0.07 per unit for the third quarter of 2009. Net earnings per unit are basic and diluted.
“Altus continues to deliver balanced growth even in the context of more trying and less certain economic conditions, particularly overseas,” said Gary Yeoman, Chief Executive Officer, Altus Group. “At the same time, we remain committed to a steady course, with a cohesive, determined vision: targeted organic growth, accretive acquisitions –and a focus on our independent, best-in-class service approach.”
In the third quarter of 2010, the Fund generated adjusted distributable cash of $7.6 million, or $0.34 per unit, and achieved an adjusted payout ratio of 88.1%, compared to $8.0 million, or $0.37 per unit, and an adjusted payout ratio of 81.5% in the third quarter of 2009. For the quarter, distributions declared totalled $0.30 per unit. For the nine months ended September 30, 2010, the Fund generated adjusted distributable cash of $23.4 million, or $1.05 per unit, and achieved an adjusted payout ratio of 85.4%, compared to $21.3 million, or $1.00 per unit, and an adjusted payout ratio of 90.0% for the same period in 2009. For the nine months ended September 30, 2010, distributions declared totalled $0.90 per unit.
“As we carefully manage the process of conversion to a corporation in January of 2011, we remain confident in our ability to deliver shareholder value through a disciplined, strategic corporate focus,” said Gary Yeoman, Chief Executive Officer, Altus Group.
As previously announced, Altus will hold a Special Meeting of its unitholders and special voting unitholders on December 8, 2010 with a record date of November 5, 2010. The purpose of the special meeting is to consider and, if deemed advisable, pass a resolution authorizing a plan of arrangement involving Altus and its subsidiaries. The purpose of the plan of arrangement is to effect Altus’ conversion from an income trust to a corporate structure.
- Acquired certain business assets of Peters Surveys Limited and US-based PricewaterhouseCoopers’ Real Estate Appraisal Management Practice
- Increased investment in Real Matters Inc. from 22.5% to 23.6%
On July 2, 2010, the Fund indirectly acquired certain business assets of Peters Surveys Ltd., a professional land surveying and planning firm that provided a broad range of geomatics services within the province of Saskatchewan, Canada.
On July 23, 2010, Altus invested an additional $1.0 million in Real Matters Inc., bringing the Fund’s total equity interest to 23.6%. On July 29, 2010, Solidifi Inc. changed its name to Real Matters and has Solidifi, the appraisal management solutions business, as one of its wholly owned subsidiaries. Real Matters is the leading provider of property information services in North America.
On July 30, 2010, as part of a targeted expansion into the US, the Fund indirectly acquired certain business assets of PricewaterhouseCoopers’ US-based Real Estate Appraisal Management Practice (“PwC Appraisal Management Practice”). The PwC Appraisal Management Practice provided a comprehensive national valuation consulting and analytic services to a roster of global clients from offices in Jersey City, Houston, Irvine and Atlanta. This acquisition will enhance Altus’ ability to operate worldwide, while broadening its local insight, providing clients with a comprehensive suite of value-added services.
Analyst Call Details
Altus Group Income Fund will hold an analyst conference call at 9:00 a.m. Eastern Standard Time on Tuesday, November 9, 2010 to discuss these financial results and current industry conditions. Please dial 1-866-226-1793 (toll free) or 416-340-2216 (GTA) to access the call. You will be required to identify yourself and your organization. A recording of this call will be made available beginning at 11:30 a.m. EST. To access the recording, please call 1-800-408-3053 or 416-695-5800 (passcode: 4787323). 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 1,700, Altus Group has a network of over 60 offices in 11 countries worldwide, including Canada, UK, Australia, Asia and the United States. 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. AltusÊ¹ clients include banks, financial institutions, governments, pension funds, asset and fund managers, developers and landlords and companies engaged in the oil and gas industry
For more information on Altus Group, please visit: www.altusgroup.com.
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, 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”, “would”, “could” 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 24, 2010 (which are available on SEDAR at www.sedar.com). Those risks and uncertainties include: general state of the economy; dependence on oil and gas sector; competition in the industry; ability to attract and retain professionals; interest rate risk; currency risk; credit risk; ability to maintain profitability and manage growth; revenue and cash flow volatility; dependence on Canadian multi-residential market; integration of acquisitions; protection of intellectual property; weather; fixed-price and contingency engagements; performance of obligations / maintenance of client satisfaction; appraisal mandates; customer concentration; restrictions on potential growth; operating risks; risk of future legal proceedings; legislative and regulatory changes and insurance limits. 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.
Camilla BartosiewiczBartosiewiczVice President, Investor Relations