Montréal-based engineering services provider Genivar Inc. reported net revenues totaling $406.8 million in the first quarter of 2013, up 197% compared to 2012. Growth was attributed to Genivar’s acquisition of U.K.-based WSP Group PLC in August, 2012 with the backing of the Caisse de dépôt et placement du Québec and Canada Pension Plan Investment Board. The company recently proposed a reorganization and rebranding that will rename it WSP Global Inc.
GENIVAR Reports First Quarter Revenues and EBITDA in Line with 2013 Outlook and Declares a Dividend of $0.375 per Share
MONTREAL, QUEBEC–(May 8, 2013) – GENIVAR Inc. (TSX:GNV) (“GENIVAR” or the “Company”), today announced its financial and operating results for the first quarter of 2013. The first quarter results cover the period from January 1, 2013 to March 30, 2013.
FIRST QUARTER OF 2013 HIGHLIGHTS
•Total revenues were $478.7 million, compared to $163.7 million in 2012, an increase of 192.4%. Net revenues, expressed as revenues less direct costs for subconsultants and direct expenses that are recoverable directly from the clients, amounted to $406.8 million, representing a 196.7% increase as compared to 2012. Revenue growth was mainly attributable to the acquisition of WSP.
•EBITDA stood at $37.1 million or $0.72 per share, compared to $21.2 million or $0.65 per share in 2012.
•The Company reported net earnings of $14.1 million or $0.27 per share, on a basic and diluted basis, as compared to $10.0 million or $0.31 per share, on a basic and diluted basis in 2012. Net earnings excluding amortization of intangible assets related to acquisitions (net of income taxes) amounted to $18.3 million or $0.36 per share.
•The backlog stood at $1,427.3 million, compared to a backlog of $1,420.6 million at the end of the fourth quarter of 2012, representing an increase of 0.5%, and approximately 8.7 months of revenues.
•Net debt decreased to $159.9 million, which on a combined trailing-twelve-month basis, puts the net debt to EBITDA ratio at 1.1x.
•Day sales outstanding ratio of accounts receivable and costs and anticipated profits in excess of billings (“DSO”) stood at 93 days and decreased by 4 days during the quarter.
•Funds from operations amounted to $23.2 million, compared to $14.8 million for the same quarter of 2012.
“I am pleased with our performance, which meets our targets within our previously disclosed outlook. Emerging markets such as Colombia, the Middle East, China and India posted double-digit organic growth in the first quarter. Our largest regions continue to be resilient and stable, and as we build upon our global reach and expertise, these results reinforce our confidence in our ability to meet our 2013 targets,” commented Pierre Shoiry, President and Chief Executive Officer of GENIVAR. “On the revenue synergy front, we continue to see increased collaboration across all our markets and with many of our clients. As an example, our global client connectivity initiatives have led to many project wins this quarter, including biomass energy audits for plants in France, the Czech Republic and the US; a geological study for a quarry in Honduras; geotechnical work for mining companies in Finland; environmental permit work in East Africa; shopping centre due diligence in Sweden and airport work in Qatar,” 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 first quarter ended March 30, 2013, Management reiterates that it is confident as regards the previously disclosed outlook.
The Board of GENIVAR declared a dividend of $0.375 per share. This dividend will be payable on or about July 15, 2013, to shareholders of record at the close of business on June 30, 2013.
This release includes, by reference, the 2013 first 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 first 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 May 8, 2013, to discuss these results. The telephone numbers to access the conference call are 1-416-981-9000 or 1-800-745-9830 (toll-free).
A presentation highlighting the results of the first 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 May 15, 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 21655660. 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
IN MILLIONS OF DOLLARS, EXCEPT NUMBER OF SHARES AND PER SHARE DATA FOR THE PERIOD
FROM JANUARY 1 TO
FOR THE PERIOD
FROM JANUARY 1 TO
Revenues $478.7 $163.7
Less: Subconsultants and direct costs $71.9 $26.6
Net revenues* $406.8 $137.1
Personnel costs $307.8 $98.9
Other operational costs(1) $64.6 $17.0
Share of income of associates ($2.7 ) –
EBITDA* $37.1 $21.2
Amortization of intangible assets $8.5 $4.3
Depreciation of property, plant and equipment $6.1 $2.2
Financial expenses $2.6 $0.7
Share of depreciation of associates $0.9 –
Earnings before income taxes $19.0 $14.0
Income tax expenses $4.3 $4.0
Share of tax of associates $0.6 –
Net earnings $14.1 $10.0
– Shareholders $14.5 $10.0
– Non-controlling interests ($0.4 ) –
Basic and diluted net earnings per share $0.27 $0.31
Basic and diluted weighted average number of shares 51,357,337 32,668,079
* Non-IFRS measures are described below.
(1) The other operational costs include the operational exchange loss or gain and the interest income.
GENIVAR 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. GENIVAR believes these measures are useful supplemental information that may assist investors in assessing an investment in the Company’s shares.
Non-IFRS measures used by GENIVAR are net revenues, EBITDA, EBITDA per share, net earnings excluding amortization of intangible assets related to acquisitions (net of income taxes), net earnings excluding amortization of intangible assets related to acquisitions (net of income taxes) per share and funds from operations.
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 GENIVAR’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 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 is calculated using the basic weighted average number of shares.
Net earnings excluding amortization of intangible assets related to acquisitions (net of income taxes) and net earnings excluding amortization of intangible assets related to acquisitions (net of income taxes) per share
Net earnings excluding amortization of intangible assets related to acquisitions (net of income taxes) is not an IFRS measure. It provides a comparative measure of the Company performance in a context of significant business combinations. This measure is defined as net earnings 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 excluding amortization of intangible assets related to acquisitions (net of income taxes) per share is calculated using the basic weighted average number of shares.
Funds from operations
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.
ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS
The annual and special meeting of shareholders will be held on May 23, 2013, at 10:00 a.m. (Eastern time) at the McCord Museum (J. Armand Bombardier Hall) situated at 690 Sherbrooke Street West, Montreal, Quebec.
ABOUT GENIVAR INC.
GENIVAR, 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.
For further information:
Chief Financial Officer
514-340-0046, ext. 5310
Director, Communications and Investor Relations
514-340-0046, ext. 5648
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