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Press release from Marketwire

Solid EBITDA Growth and Targeted Dispositions Support Positive Second Quarter Results for Altus Group Limited

Management Team to Hold Conference Call on Friday, August 10, 2012 at 9:30 am EDT

Thursday, August 09, 2012

Solid EBITDA Growth and Targeted Dispositions Support Positive Second Quarter Results for Altus Group Limited12:34 EDT Thursday, August 09, 2012TORONTO, ONTARIO--(Marketwire - Aug. 9, 2012) - Altus Group Limited ("Altus") (TSX:AIF) today announced its financial and operating results for the quarter ended June 30, 2012.Performance Highlights:Year-over-year revenue growth of 12.4% for the quarter and 19.4% year-to-date; Adjusted EBITDA of $11.8 million for the quarter and $25.7 million year-to-date, an increase of 54.6% and 70.9%, respectively, over the prior year; Adjusted earnings per share of $0.14 for the quarter and $0.40 year-to-date, compared to $0.11 and $0.15 in the corresponding periods in 2011; Completed the issuance of $48.0 million convertible unsecured subordinated debentures with a maturity date of June 30, 2017. The net proceeds were used to acquire and cancel the outstanding US convertible debentures for a purchase price of $45.7 million (US$46.0 million), and realized a gain on settlement of $6.3 million; and, Completed the sale of certain business assets relating to Altus Capital Planning ("ACP") for approximately $7.3 million, and realized a gain on sale of $0.5 million. Revenue for the second quarter of 2012 was $78.9 million, as compared to $70.2 million in the same period in 2011, representing an increase of 12.4%. Revenue for the six months ended June 30, 2012 was $165.1 million, as compared to $138.3 million in the same period in 2011, representing an increase of 19.4%. Organic growth and the billing of subcontractor fees contributed 6.1% of total revenue growth for the three months ended June 30, 2012. Organic growth and the billing of subcontractor fees contributed 6.7% and 4.4% of total revenue growth, respectively, for the six months ended June 30, 2012. In addition, the 2011 Argus acquisition contributed 6.3% and 8.3% of the total revenue growth for the three and six months ended June 30, 2012, respectively. Adjusted EBITDA for the second quarter of 2012 was $11.8 million, up 54.6% from $7.6 million in the same period last year. Adjusted EBITDA for the six months ended June 30, 2012 was $25.7 million, up 70.9% from $15.0 million in the same period last year. "Management has embraced a renewed commitment to strengthening our business fundamentals, evidenced by improved revenues, bolstered earnings-per-share ratio and targeted measures to better manage our debt exposure," said Stuart Smith, Acting Chief Executive Officer, Altus Group. "Further, solid growth in the second quarter reflects our determined efforts to reinforce our client relationships by providing a consistently high level of experienced, independent value-added advice." Profit (loss) for the second quarter of 2012 was $3.7 million, or $0.16 per share, basic, and $(0.03) per share, diluted, as compared to $(12.6) million, or $(0.56) per share, basic and diluted, in the same period in 2011. For the six months ended June 30, 2012, profit (loss) was $6.5 million, or $0.28 per share, basic and $0.03 per share, diluted, as compared to $(16.2) million, or $(0.72) per share, basic and diluted, in the same period in 2011. Adjusted earnings per share for the second quarter of 2012 was $0.14, as compared to $0.11 in the same period in 2011. For the six months ended June 30, 2012, adjusted earnings per share was $0.40, compared to $0.15 in the same period in 2011. For the second quarter of 2012, dividends declared were $0.15 per common share. For the six months ended June 30, 2012, dividends declared were $0.30 per common share. During the quarter, Altus completed the sale of certain business assets relating to ACP for approximately $7.3 million, subject to adjustments, and realized a gain on such sale of $0.5 million. During the quarter, Altus also completed the issuance of $48.0 million convertible unsecured subordinated debentures (the "2012 convertible debentures") with a maturity date of June 30, 2017. The 2012 convertible debentures bear interest at a rate of 6.75% per annum, payable semi-annually on June 30 and December 31 each year. On May 1, 2012, Altus used the net proceeds from the offering of the 2012 convertible 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) and an accounting carrying value of $51.7 million (US$52.6 million). Consequently, the cancellation of the US convertible debentures gave rise to an accounting gain of $6.3 million in the second quarter of 2012. "Over the past number of months, our focus has been to ensure Altus enjoys additional flexibility to facilitate decisions in the best interest of this company," continued Smith. "We believe that we have made significant progress, especially this last quarter, and we can continue moving forward with a strengthened long term financial and business outlook." Analyst Call Details Altus will hold an analyst conference call at 9:30 a.m. Eastern Daylight Time on Friday, August 10, 2012 to discuss these financial results and current industry conditions. Please dial 1-866-225-0198 (toll-free) or 416-340-8061 (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: 5714162). The recording will also be available at altusgrouplimited.com. About Altus Group 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 50 offices in a number of countries worldwide, including Canada, the United Kingdom, the United States, Australia and China. 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. Forward-Looking Information 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.Non-IFRS Measures 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, gains (losses) on sale of business assets, 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, gains (losses) on sale of business assets, interest accretion on vendor payables, gain (loss) on settlement of US convertible debentures, 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. FOR FURTHER INFORMATION PLEASE CONTACT: Sayla NordinAltus Group LimitedVP, Investor Relations and Corporate Communications(416) 557-0939www.altusgrouplimited.com