Altus Group Limited Announces Positive First Quarter Results With 27% Year-Over-Year Increase in Revenue
TORONTO, ONTARIO–(Marketwire – May 10, 2012) – Altus Group Limited (“Altus”) (TSX:AIF) today announced its financial and operating results for the quarter ended March 31, 2012.
- Year-over-year revenue growth of 26.6%;
- Adjusted EBITDA of $13.9 million for the quarter, representing a margin of 16.1% and an increase of 87.7% over the prior year;
- Adjusted earnings per share of $0.27 for the quarter as compared to $0.04 in same period in 2011; and,
- Completed a sale-leaseback transaction on four properties for gross proceeds of $5.2 million and gain on sale of $1.5 million.
Revenue for the first quarter of 2012 was $86.2 million, as compared to $68.1 million in the same period in 2011, representing an increase of 26.6%. Organic growth and increases in the billing of subcontractor fees contributed 7.0% and 9.2% of this total revenue growth, respectively. In addition, the 2011 Argus acquisition contributed 10.4% of this total revenue growth.
Adjusted EBITDA for the first quarter of 2012 was $13.9 million, up 87.7% from $7.4 million in the same period last year.
“We believe that these first quarter results demonstrate that Altus is making clear, solid progress in respect of our core priorities of improving the bottom line, reinforcing growth and returning to profitability,” said Stuart Smith, Acting Chief Executive Officer of Altus. “Over the past number of months, we have pursued a determined effort to improve our financial position, control costs, and leverage our unique mix of professional services to increase revenues. The fact that the first quarter can be a challenging period for some business units helps to support the prospect of continued momentum.”
Profit (loss) for the first quarter of 2012 was $2.9 million, or $0.12 per share, basic and $0.09 per share, diluted, as compared to $(3.6) million, or $(0.16) per share, basic and diluted, in the same period in 2011.
Adjusted earnings per share for the first quarter of 2012 was $0.27, as compared to $0.04 in the same period in 2011.
“Our particular focus on strengthening the Company’s balance sheet through a combination of targeted divestitures, as well as taking steps to cancel the US convertible debentures, continues to be evident,” emphasized Smith. “We believe we are making choices that help to steady things now but at the same time are also in the best interests of Altus for longer term financial flexibility.”
For the first quarter of 2012, dividends declared were $0.15 per common share.
During the quarter, Altus completed a sale-leaseback transaction on four properties for gross proceeds of $5.2 million and gain on sale of $1.5 million.
Subsequent to quarter end, on April 19, 2012, Altus completed the issuance of $48.0 million aggregate principal amount of convertible unsecured subordinated debentures (the “debentures”) with a maturity date of June 30, 2017. On May 1, 2012, Altus used the net proceeds from the offering of the debentures to acquire and cancel the outstanding US convertible debentures for a purchase price of $45.7 million (US$46.0 million). The US convertible debentures were issued to vendors of the Argus business in connection with Altus’ indirect acquisition of Realm Solutions, Inc. in June, 2011. As of May 1, 2012, the US convertible debentures had an aggregate principal and interest amount outstanding of approximately $51.3 million (US$52.1 million), giving rise to an estimated accounting gain of $6.2 million in the second quarter ending June 30, 2012.
Analyst Call Details
Altus will hold an analyst conference call at 9:30 a.m. Eastern Daylight Time on Friday, May 11, 2012 to discuss these financial results and current industry conditions. Please dial 1-877-440-9795 (toll-free) or 416-340-9432 (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 11:00 a.m. EDT. To access the recording, please call 1-800-408-3053 or 905-694-9451 (passcode: 4952603). The recording will also be available at www.altusgrouplimited.com.
About Altus Group Limited
Altus leads the global real estate industry in offering professional real estate advisory services, data solutions and intelligence about an organization’s assets, generating a wealth of knowledge and insight. With a staff of over 1,700, Altus has a network of over 60 offices in 14 countries worldwide, including Canada, the United Kingdom, Australia, Asia and the United States. We operate five interrelated Business Units, bringing years of experience and a broad range of expertise together into one comprehensive platform: Research, Valuation and Advisory; Cost Consulting and Project Management; Realty Tax Consulting; Geomatics, and ARGUS Software. Altus’ clients include banks, financial institutions, governments, pension funds, asset and fund managers, developers and landlords and companies engaged in the oil and gas industry.
Certain information in this press release may constitute “forward-looking information” within the meaning of applicable securities legislation. Generally, forward-looking information can be identified by use of words such as “may”, “will”, “expect”, “believe”, “plan”, “would”, “could” and other similar terminology. Inherent in the forward-looking information are known and unknown risks, uncertainties and other factors which could cause actual results, performance or achievements of Altus, or industry results, to differ materially from any results, performance or achievements expressed or implied by such forward-looking information. Those risks, uncertainties and other factors that could cause actual results to differ materially from the forward-looking information include: general state of the economy; competition in the industry; ability to attract and retain professionals; integration of acquisitions; dependence on oil and gas sector; dependence on Canadian multi-residential market; customer concentration; currency risk; interest rate risk; reliance on larger software transactions with longer and less predictable sales cycles; success of new product introductions; ability to respond to technological change and develop products on a timely basis; ability to maintain profitability and manage growth; revenue and cash flow volatility; credit risk; protection of intellectual property or defending against claims of intellectual property rights of others; weather; fixed-price and contingency engagements; operating risks; performance of obligations/maintenance of client satisfaction; appraisal mandates; legislative and regulatory changes; risk of future legal proceedings; insurance limits; income tax matters; ability to meet solvency requirements to pay dividends; leverage and restrictive covenants; unpredictability and volatility of common share price; capital investment; and issuance of additional common shares diluting existing shareholders’ interests, as well as those described in Altus’ publicly filed documents, including the Annual Information Form (which are available on SEDAR at www.sedar.com).
Given these risks, uncertainties and other factors, investors should not place undue reliance on forward-looking information as a prediction of actual results. The forward-looking information reflects Altus’ and management’s current expectations and beliefs regarding future events and operating performance and is based on information currently available to management. Although Altus has attempted to identify important factors that could cause actual results to differ materially from the forward-looking information contained herein, there are other factors that could cause results not to be as anticipated, estimated or intended. The forward-looking information contained herein is current as of the date of this press release and, except as required under applicable law, Altus does not undertake to update or revise it to reflect new events or circumstances. Additionally, Altus undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Altus, its financial or operating results, or its securities.
Altus uses certain non-IFRS measures as indicators of financial performance. Readers are cautioned that they are not defined performance measures under IFRS and may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to financial measures as reported by those entities. We believe that these measures are useful supplemental measures that may assist investors in assessing an investment in shares of Altus and provide more insight into our performance.
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, (“Adjusted EBITDA”), represents operating profit (loss) adjusted for the effect of amortization of intangibles, depreciation of property, plant and equipment, acquisition related expenses (income), restructuring costs, corporation conversion and legal reorganization costs, share of profit or loss of associate, unrealized foreign exchange gains (losses), gains (losses) on sale of property, plant and equipment, asset impairments, the effect of stock options and other equity-settled performance plans, gains (losses) on hedging transactions and other expenses or income of a non-operating and/or non-recurring nature.
Adjusted Earnings (Loss) per Share (“Adjusted EPS”), represents basic earnings per share adjusted for the effect of amortization of intangibles acquired as part of business acquisitions, non-cash finance costs (income) related to the revaluation of unitholders’ liabilities, distributions on unitholders’ liabilities, acquisition related expenses (income), restructuring costs, corporate conversion and legal reorganization costs, share of profit or loss of associate, unrealized foreign exchange gains (losses), gains (losses) on sale of property, plant and equipment, interest accretion on vendor payables, asset impairments, the effect of stock options and other equity-settled performance plans, gains (losses) on hedging transactions and other expenses or income of a non-operating and/or non-recurring nature. All of the adjustments are made net of tax.
Camilla BartosiewiczBartosiewiczVice President, Investor Relations