Altus Group Limited Announces First Quarter Results
Management Team to Hold Conference Call on Thursday, June 9, 2011 at 9:00 am EDT
TORONTO, ONTARIO–(Marketwire – June 8, 2011) – Altus Group Limited (“Altus”) (TSX:AIF) today announced financial and operating results for the quarter ended March 31, 2011.
- Year-over-year revenue growth of 12.1%;
- Adjusted EBITDA of $7.4 million;
- Adjusted earnings per share of $0.07; and,
- Announced merger of Realm Solutions Inc., owner of ARGUS Software.
Revenue for the first quarter of 2011 was $68.1 million, compared to $60.8 million for the comparable period in 2010, a 12.1% increase. Acquisitions contributed 8.1% to overall growth in the quarter.
Adjusted EBITDA for the first quarter of 2011 was $7.4 million, compared to $9.0 million in the same period last year, a decrease of 17.8%. Included in Adjusted EBITDA were charges totaling $2.4 million that related to executive severance costs, temporary duplicate occupancy costs on the Toronto office move and higher discretionary bonus accrual.
Profit (loss) for the first quarter of 2011 was $(2.5) million, or $(0.11) per share, compared to $(8.2) million, or $(0.42) per unit for the first quarter of 2010. Profit (loss) per share/unit is basic and diluted.
Adjusted earnings per share for the first quarter of 2011 was $0.07 compared to $0.28 for the same period in 2010.
“After a challenging first quarter, our focus for the balance of the year will be to increase profitability by ensuring all business units are both managing costs and sourcing new growth opportunities,” said Gary Yeoman, Chief Executive Officer, Altus Group. “Altus remains on track for a solid overall result in 2011, setting the stage for a stronger 2012 and beyond as we fully integrate ARGUS Software into our operations.”
For the first quarter, dividends declared totaled $0.30 per common share.
Subsequent to quarter end, on June 1, 2011, Altus completed the previously announced merger of Realm Solutions Inc. (“Realm”), owner of ARGUS Software, for aggregate consideration of US$130.0 million, subject to adjustments. The consideration will be satisfied by US$80.0 million cash and US$50.0 million principal amount of 6.0% convertible unsecured debentures issued by Altus to certain shareholders of Realm. This acquisition will enable Altus to create a powerful new platform that will offer clients value-added commercial real estate data and analytics.
“The ARGUS acquisition generates accretive benefits as well as the addition of thousands of new software licenses and client relationships,” emphasized Yeoman. “More fundamentally, the combination with Altus means the creation of a data-rich analytics platform that will set a new industry standard and enable unique products and services that will provide Altus with a strong competitive advantage in addressing client needs.”
Analyst Call Details
Altus Group Limited will hold an analyst conference call at 9:00 a.m. Eastern Daylight Time on Thursday, June 9, 2011 to discuss these financial results and current industry conditions. Please dial 1-866-226-1793 (toll free) or 416-340-2218 (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 12:30 p.m. EDT. To access the recording, please call 1-800-408-3053 or 905-694-9451 (passcode: 1623384). The recording will also be available at altusgrouplimited.com.
Altus Group Limited
Altus Group leads the global real estate industry in delivering data and information 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 70 offices in 14 countries worldwide, including Canada, UK, Australia, Asia and the United States. We operate five interrelated Business Units, bringing years 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.
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 Altus and its subsidiary entities, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. This press release has statements using 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 which could cause actual results to differ materially from the forward-looking statements, including those described in Altus’ publicly filed documents, including the Annual Information Form (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; operating risks; risk of future legal proceedings; legislative and regulatory changes; insurance limits; income tax matters; fluctuation of dividends; unpredictability and volatility of common share price; capital investment; dilution of existing shareholder interests; leverage and restrictive covenants; and, investment eligibility. 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, Altus 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, Altus assumes no obligations to update or revise them 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.
Camilla BartosiewiczBartosiewicztoronto-hqVice President, Investor Relations