MONTREAL, QUEBEC--(Marketwired - Nov 6, 2013) - GENIVAR Inc. (GNV.TO) ("GENIVAR" or the "Company"), today announced its financial and operating results for the third quarter and first nine months of the year ended September 28, 2013. The third quarter results cover the period from June 30, 2013 to September 28, 2013.
THIRD QUARTER OF 2013 HIGHLIGHTS
- Total revenues were $490.5 million, compared to $396.1 million in 2012, an increase of 23.8%. Net revenues amounted to $407.6 million, representing a 26.8% increase as compared to 2012. Revenue growth was mainly due to the acquisition of WSP.
- Organic growth in net revenues for the quarter amounted to 5.5%, fueled mainly by our operations in Europe, the United States and the Middle East. This growth was partially curtailed by the continued slowdown in our Canadian operations.
- EBITDA before restructuring charges stood at $50.2 million or 12.3% of net revenues. During the quarter, the Company incurred $3.1 million of restructuring charges, which mainly pertained to our Canadian operations.
- EBITDA stood at $47.1 million or $0.91 per share, compared to $37.8 million or $0.85 per share in 2012. The EBITDA margin represented 11.6% of net revenues.
- The Company reported net earnings of $21.5 million or $0.41 per share, on a basic and diluted basis, as compared to $16.2 million or $0.36 per share in 2012.
- Net earnings excluding amortization of intangible assets related to acquisitions (net of income taxes) amounted to $25.4 million or $0.49 per share, as compared to $20.4 million or $0.46 per share in 2012.
- Funds from operations amounted to $35.6 million or $0.68 per share, as compared to $31.9 million or $0.72 per share for the same quarter of 2012.
- Free cash flow amounted to $9.5 million or $0.18 per share, up from a negative free cash flow of $19.8 million or $0.45 per share in 2012. Free cash flow as a percentage of net earnings stood at 44.2%.
- Backlog stood at $1,552.7 million and approximately 9.3 months of revenues, stable when compared to the second quarter of 2013. Year-over-year, backlog increased by $192.7 million or 14.2%.
- Day sales outstanding ratio of accounts receivable and costs and anticipated profits in excess of billings ("DSO") stood at 94 days and decreased by 13 days as compared to a year earlier.
FIRST NINE MONTHS OF THE YEAR 2013 HIGHLIGHTS
- Total revenues were $1,485.6 million compared to $741.0 million in 2012, representing an increase of 100.5%. For the same period, net revenues amounted to $1,241.1 million, which represented a 104.1% increase as compared to 2012. Revenue growth was mainly due to the acquisition of WSP.
- EBITDA before restructuring charges stood at $131.4 million or 10.6% of net revenues. Since the beginning of the year, the Company incurred $5.2 million of restructuring charges, which mainly pertained to our Canadian operations.
- EBITDA stood at $126.2 million, up from $67.8 million in 2012; EBITDA margin represented 10.2% of net revenues.
- Net earnings amounted to $52.6 million or $1.02 per share, on a basic and diluted basis, as compared to $23.3 million or $0.64 per share in 2012.
- Net earnings excluding amortization of intangible assets related to acquisitions (net of income taxes) were $64.4 million or $1.25 per share, as compared to $32.7 million or $0.89 per share in 2012.
- Funds from operations amounted to $89.9 million or $1.74 per share, as compared to $49.7 million or $1.36 per share for the same period of 2012.
- Free cash flow amounted to $27.5 million or $0.53 per share, compared to a negative free cash flow of $16.7 million or $0.46 per share for the same period of 2012, which represented 52.3% of net earnings.
"We are pleased with our performance, which continues to support our strategic acquisition of WSP. Our increase in revenues and margins is a testimony to the rationale for geographical diversification of our operations," commented Pierre Shoiry, President and Chief Executive Officer of GENIVAR. "As we prepare to rebrand all our operations as WSP, we will continue to bring the best of our capabilities to serve our clients, both locally and internationally. In parallel, we will actively look at acquisitions with a focus on joining forces with complementary, successful and like-minded firms that will add value to our company," he added.
GUIDANCE FOR 2013
Management provided guidance on 2013 operating results in the Management's Discussion & Analysis ("MD&A") for the year ended December 31, 2012. The outlook is provided to assist analysts and shareholders in formalizing their respective views on the 2013 outlook. These measures are subject to change.
In light of our performance in the third quarter ended September 28, 2013, Management reiterates that it is confident with regards to the previously disclosed outlook.
The Board of GENIVAR declared a dividend of $0.375 per share. This dividend will be payable on or about January 15, 2014, to shareholders of record at the close of business on December 31, 2013.
This release includes, by reference, the 2013 third quarter financial reports, including the unaudited interim consolidated financial statements and the Management Discussion & Analysis ("MD&A") of the Company.
For a copy of our full financial results for the third quarter of 2013, including the MD&A and the unaudited interim consolidated financial statements, please visit our Website at www.genivar.com.
GENIVAR will hold a conference call at 4 p.m. (Eastern Time) on November 6, 2013, to discuss these results. The telephone numbers to access the conference call are 1-416-981-9000 or 1-800-764-8268 (toll-free).
A presentation highlighting the results of the third quarter of 2013 will be available on the same day in the Investor section of GENIVAR's Website (www.genivar.com), under Presentations & Events.
A replay of the call will be available until November 13, 2013. The telephone numbers to access the replay of the call are 1-416-626-4100 or 1-800-558-5253 (toll-free), access code 21674302. The replay of the conference call will also be available in the Investor section of the Website under Presentations & Events, in the days following the event.
RESULTS OF OPERATIONS
|2013||2012||2013|| 2012 |
|IN MILLIONS OF DOLLARS, |
EXCEPT NUMBER OF SHARES AND PER SHARE DATA
|FOR THE |
JUNE 30 TO
|FOR THE |
JULY 1 TO
|FOR THE |
JANUARY 1 TO
|FOR THE |
JANUARY 1 TO
|FOR THE |
JANUARY 1 TO
|Less: Subconsultants and direct costs||$82.9||$74.7||$244.5||$132.8||$132.8|
|Other operational costs(1)||$64.8||$53.8||$194.9||$87.1||$99.4|
|Share of income of associates||($1.9||)||($1.0||)||($6.6||)||($1.0||)||($1.0||)|
|Amortization of intangible assets||$8.5||$7.2||$25.3||$16.0||$16.0|
|Depreciation of property, plant and equipment||$6.0||$5.1||$18.3||$9.8||$9.8|
|Share of depreciation of associates||$0.7||-||$2.2||-||-|
|Earnings before income taxes||$27.7||$22.5||$69.4||$48.8||$36.5|
|Income tax expenses||$5.8||$6.0||$15.4||$13.6||$12.9|
|Share of tax of associates||$0.4||$0.3||$1.4||$0.3||$0.3|
|- Non-controlling interests||($0.6||)||$0.1||($1.2||)||$0.1|
|Basic and diluted net earnings per share||$0.41||$0.36||$1.02||$0.64|
|Basic and diluted weighted average number of shares||51,999,669||44,489,283||51,676,724||36,671,406||36,671,406|
|*||Unusual Items amounting to $12.3, net of income tax of $0.7 pertained to Transaction Costs for WSP.|
|**||Non-IFRS measures are described in the section below.|
|(1)||The other operational costs include the operational exchange loss or gain and the interest income.|
The Company uses non-IFRS measures that are considered by 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. We believe these measures provide useful supplemental information that may assist investors in assessing an investment in the Company's shares.
Non-IFRS measures used by the Company are net revenues; EBITDA; EBITDA per share; EBITDA margin; net earnings (loss) excluding amortization of intangible assets related to acquisitions (net of income taxes); net earnings (loss) excluding amortization of intangible assets related to acquisitions (net of income taxes) per share; backlog; funds from operations; funds from operations per share; free cash flow; free cash flow per share, and DSO.
Net revenues are defined as revenues from professional 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 advised 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 the Company's performance.
EBITDA and EBITDA per share
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 period (as determined in accordance with IFRS) as an indicator of the Company's performance, or an alternative to cash flows from operating, financing and investing activities as a measure of the liquidity and cash flows. The Company's method of calculating EBITDA may differ from the methods used by other issuers and, accordingly, the Company's EBITDA may not be comparable to similar measures used by other issuers.
EBITDA per share is calculated using the basic weighted average number of shares.
EBITDA margin is defined as EBITDA expressed as a percentage of net revenues. EBITDA margin is not an IFRS measure.
Net earnings (loss) excluding amortization of intangible assets related to acquisitions (net of income taxes) and net earnings (loss) excluding amortization of intangible assets related to acquisitions (net of income taxes) per share
Net earnings (loss) excluding amortization of intangible assets related to acquisitions (net of income taxes) is not an IFRS measure. It provides a comparative measure of Company performance in a context of significant business combinations. This measure is defined as net earnings (loss) excluding the amortization expense of backlogs, customer relationships and non-competition agreements accounted for in business combinations and the income tax effects related to this amortization.
Net earnings (loss) excluding amortization of intangible assets related to acquisitions (net of income taxes) per share is calculated using the basic weighted average number of shares.
Backlog is not an IFRS measure. It represents future revenues stemming from existing signed contracts to be completed. The Company's method of calculating backlog may differ from the methods used by other issuers and, accordingly, may not be comparable to similar measures used by other issuers.
Funds from operations and funds from operations per share
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 is calculated using the basic weighted average number of shares.
Free cash flow and free cash flow per share
Free cash flow is not an IFRS measure. It provides a consistent and comparable measurement of free cash flow 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 as reported in accordance with IFRS, less maintenance capital expenditures.
Free cash flow per share is calculated using the basic weighted average number of shares.
Days Sales Outstanding ("DSO")
DSO is not an IFRS measure. It represents the average number of days to convert our trade receivables and costs and anticipated profits in excess of billings into cash. The Company's method of calculating DSO may differ from the methods used by other issuers and, accordingly, may not be comparable to similar measures used by other issuers.
The Company, through its combination with WSP, is one of the world's leading professional services firms, working with governments, businesses, architects and planners and providing integrated solutions across many disciplines. The firm provides services to transform the built environment and restore the natural environment, and its expertise ranges from environmental remediation to urban planning, from engineering iconic buildings to designing sustainable transport networks, and from developing the energy sources of the future to enabling new ways of extracting essential resources. It has approximately 15,000 employees, mainly engineers, technicians, scientists and architects, as well as various environmental experts, based in more than 300 offices, across 35 countries, on every continent. www.genivar.com
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 ended December 31, 2012, 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.