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Press release from Marketwire

GENIVAR Reports its Results for the Third Quarter and First Nine Months of the Year 2012 and Declares a Dividend of $0.375 per Share

Wednesday, November 07, 2012

GENIVAR Reports its Results for the Third Quarter and First Nine Months of the Year 2012 and Declares a Dividend of $0.375 per Share07:00 EST Wednesday, November 07, 2012MONTREAL, QUEBEC--(Marketwire - Nov. 7, 2012) - GENIVAR Inc. (TSX:GNV) ("GENIVAR" or the "Company") today announced its financial and operating results for the third quarter and first nine months ended September 29, 2012. The third quarter results cover the period from July 1, 2012, to September 29, 2012. Following the closing of the transaction with WSP Group plc ("WSP"), which occurred on August 1, 2012, results for the third quarter and nine months include those of WSP for the period beginning August 1, 2012 and ending September 29, 2012.Financial results for the first nine months of 2012 include $11.6 million, net of income taxes, of non-recurring expenses related to the acquisition of WSP ("Unusual Items").THIRD QUARTER OF 2012 HIGHLIGHTSTotal revenues were $396.1 million compared to $173.1 million in 2011, an increase of 128.8%. Net revenues, expressed as revenues less direct costs for subconsultants and direct expenses that are recoverable directly from the clients, amounted to $321.4 million, representing a 131.9% increase as compared to 2011. Without the effect of foreign exchange variances, EBITDA would have been $39.6 million compared to $24.7 million in 2011. Including these fluctuations, EBITDA stood at $37.8 million, compared to $26.6 million in 2011. The Company reported net earnings of $16.2 million or $0.36 per share, on a basic and diluted basis, as compared to net earnings of $14.1 million or $0.54 per share, on a basic and diluted basis, in 2011. Without foreign exchange variances, net earnings would have stood at $18.1 million in 2012, compared to $12.2 million in 2011. The backlog stood at $1,360.0 million compared to a backlog of $468.8 million at the end of the second quarter of 2012, representing an increase of 190.1%, and approximately 8.5 months of revenues.FIRST NINE MONTHS OF THE YEAR 2012 HIGHLIGHTSTotal revenues were $741.0 million compared to $479.9 million in 2011, an increase of 54.4%. For the same period, net revenues amounted to $608.2 million, which represents a 53.5% increase as compared to 2011. EBITDA stood at $67.8 million, down from $68.2 million in 2011. Without Unusual Items, EBITDA for the first nine months of the year stood at $80.1 million. EBITDA would have been $82.1 million in 2012, compared to $66.6 million in 2011 without the foreign exchange and Unusual Items effects. Net earnings amounted to $23.3 million or $0.64 per share, as compared to $40.1 million or $1.54 per share in 2011. Adjusted net earnings, eliminating the effect of Unusual Items, such as the transaction costs related to the WSP acquisition and the deferred income tax recovery accounted for in January 2011, following the plan of arrangement, amounted to $34.9 million or $0.95 per share, as compared to $32.9 million or $1.26 per share in 2011."Now that the transaction with WSP is closed, our main focus is on managing the integration of our global support functions and connecting our operations in order to optimize collaborative working and capitalize on the opportunities made possible by the transaction. While we have already begun the integration of WSP's former Environment and Energy division into our regional structure, our next focus will be to fully integrate U.S. operations so that we can leverage this solid platform to pursue growth. As for potential revenue synergies, we have identified key sectors where synergies are most evident. We are currently in the process of auditing each of these sectors and should have a more precise analysis of our opportunities in the months to come," stated Pierre Shoiry, President and Chief Executive Officer of GENIVAR. "Finally, while organic growth remains flat in Canada and below our expectations after three quarters in 2012, we are pleased with WSP's 4.6% organic growth over the same period," he added.DIVIDENDThe Board of GENIVAR declared a dividend of $0.375 per share. This dividend will be payable on or around January 15, 2013, to shareholders of record at the close of business on December 31, 2012.FINANCIAL REPORTThis release includes, by reference, the 2012 third quarter financial reports, including the unaudited condensed 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 2012, including the MD&A and the unaudited interim consolidated financial statements, please visit our Website at www.genivar.com.CONFERENCE CALLGENIVAR will hold a conference call at 4 p.m. (Eastern time) on November 7, 2012, to discuss these results. The telephone numbers to access the conference call are as follows:Montreal and International, dial 514-861-2255 Elsewhere in Canada and United States, dial 877-405-9213 Conference number: 3013936 A replay of the call will be available until November 14, 2012. The telephone numbers to access the replay of the call are 514-861-2272 or 800-408-3053, access code 5425344. The replay of the conference call will also be available in the Investor section of the Website under Presentations and Events, in the days following the event.RESULTS OF OPERATIONSThird quarterYear-to-date2012201120122012withoutUnusualItems*2011 IN MILLIONS OF DOLLARS, EXCEPT NUMBER OF SHARES AND PER SHARE DATAFOR THE PERIOD FROM JULY 1 TO SEPTEMBER 29FOR THE PERIOD FROM JULY 3 TO OCTOBER 1FOR THE PERIOD FROM JANUARY 1 TO SEPTEMBER 29FOR THE PERIOD FROM JANUARY 1 TO SEPTEMBER 29FOR THE PERIOD FROM JANUARY 1 TO OCTOBER 1Revenues$396.1$173.1$741.0$741.0$479.9Less: Subconsultants and direct costs$74.7$34.5$132.8$132.8$83.6Net revenues**$321.4$138.6$608.2$608.2$396.3Personnel costs$235.2$96.8$442.0$442.0$279.3Other operational costs(1)$49.4$15.2$99.4$87.1$48.8Share of income of associates($1.0)-($1.0)($1.0)-EBITDA**$37.8$26.6$67.8$80.1$68.2Amortization of intangible assets$7.2$4.2$16.0$16.0$12.8Depreciation of property, plant and equipment$5.1$2.1$9.8$9.8$5.6Financial expenses$3.0$1.2$5.5$5.5$3.4Earnings before income taxes$22.5$19.1$36.5$48.8$46.4Income tax expenses$6.0$5.0$12.9$13.6$6.3Share of tax of associates$0.3-$0.3$0.3-Net earnings$16.2$14.1$23.3$40.1Attributable to:- Shareholders$16.1$14.1$23.2$40.1- Non-controlling interest$0.1-$0.1-Basic and diluted net earnings per share$0.36$0.54$0.64$1.54Basic and diluted weighted average number of shares44,489,28326,055,93836,671,40636,671,40626,031,089*The financial results are presented before the impact of the Unusual Items amounting to $12.3 million for the year-to-date period, net of income taxes of $0.7 million, pertaining to the acquisition of WSP.**Non-IFRS measures are described below.(1)The other operational costs include the operational exchange loss or gain and the interest income.RECONCILIATION OF NET EARNINGS AND ADJUSTED NET EARNINGSThird quarterYear-to-date2012201120122011 IN MILLIONS OF DOLLARS, EXCEPT PER SHARE DATAFOR THE PERIOD FROM JULY 1 TO SEPTEMBER 29FOR THE PERIOD FROM JULY 3 TO OCTOBER 1FOR THE PERIOD FROM JANUARY 1 TO SEPTEMBER 29FOR THE PERIOD FROM JANUARY 1 TO OCTOBER 1Net earnings$16.2$14.1$23.3$40.1Transaction costs of WSP--$12.3-Income taxes related to Transaction costs--($0.7)-Deferred income tax recovery---($7.2)Adjusted net earnings*$16.2$14.1$34.9$32.9Adjusted net earnings per share*$0.36$0.54$0.95$1.26*Non-IFRS measures are described below.NON-IFRS MEASURESGENIVAR uses non-IFRS measures that are considered by Canadian 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, adjusted net earnings and adjusted net earnings per share.Net revenuesNet 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 shareEBITDA 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.Adjusted net earnings and adjusted net earnings per shareAdjusted net earnings is not an IFRS measure. This measure provides Management with net earnings without the effect of significant non-recurring items. The adjusted net earnings is defined as the net earnings for the period, excluding the effect in the financial results of the significant items identified.Adjusted net earnings per share is calculated using the basic weighted average number of shares.ABOUT GENIVARGENIVAR, 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 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.comForward-looking informationCertain information regarding GENIVAR contained herein may constitute forward-looking statements. Forward-looking statements may include statements with respect to, among other things, 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 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 PLEASE CONTACT: Contact Information: Alexandre L'HeureuxChief Financial OfficerGENIVAR Inc.514-340-0046, ext. 5310alexandre.lheureux@genivar.comIsabelle AdjahiDirector, Communications and Investor RelationsGENIVAR Inc.514-340-0046, ext. 5648isabelle.adjahi@genivar.com