Altus Group Limited ("Altus") (TSX:AIF) today announced its annual and fourth
quarter financial results for the year ended December 31, 2012.
2012 Financial Performance Highlights:
-- Delivered healthy year-over-year adjusted EBITDA growth of 30.5%;
-- Positive year-over-year revenue increase of 7.1%;
-- Adjusted earnings per share of $0.95 for the year, compared to $0.59 in
2011; and,
-- Dividends of $0.60 per common share declared for the year.
Full Year Operational Highlights:
-- Appointment of Chief Executive Officer, Robert Courteau; an accomplished
business leader with valuable experience with a number of well-
respected, international technology companies;
-- Launched ARGUS Enterprise 9 - a more robust asset management solution in
a single, integrated platform, subsequent to which customer reception
has been extremely positive;
-- Improved balance sheet flexibility through amendments to our bank credit
facilities with respect to repayments and bank covenant provisions;
-- Settled the US$49.4 million US convertible debenture for a gain of $6.3
million and successfully issued $48.0 million convertible unsecured
subordinated debentures;
-- Completed the sale of Altus Capital Planning for approximately $7.3
million, and realized a gain on sale of $0.4 million; and,
-- Subsequent to year end, consolidated its investment in Real Matters,
thereby increasing the equity interest to 25.7% from 19.0% and
simplifying the investment for future strategic considerations.
"Altus took targeted actions to strengthen the fundamentals of the business in
2012 and closed the year with strong results and a solid foundation for
success," said Robert Courteau, Chief Executive Officer, Altus Group. "We
connect this industry like no one else - with leading expertise and
best-in-class tools Altus is uniquely positioned to support our global clients.
Further integration of our technology assets will enhance client relationships,
increase market penetration and expand our scope of business."
Full Year 2012 Financial Performance
For the year ended December 31, 2012, revenue was $322.6 million, compared to
$301.2 million in 2011, representing an increase of 7.1%. Revenue gains were the
result of higher revenues in Geomatics, RVA, Cost and the UK as well as the
acquisition of ARGUS Software in 2011, offset by office closures of Cost
operations in Asia and the sale of Altus Capital Planning during the year.
For the year, adjusted EBITDA was $51.1 million, up 30.5% from $39.2 million in
2011. Adjusted earnings per share was $0.95, compared to $0.59 in 2011, a 61.0%
increase. The improved performance was due to both higher revenues and improved
operating efficiencies in Asia Pacific Cost and corporate activities.
Loss (as reported under IFRS) was $12.7 million, or $0.55 per share, basic and
$0.76 per share, diluted, compared to a loss of $18.3 million, or $0.80 per
share, basic and diluted, in 2011.
Altus recorded a non-cash impairment charge of $22.5 million, or $0.98 per
share, against the carrying value of ARGUS Software, goodwill and intangibles.
While management believes this charge is justified at this time, it remains
confident about the future prospects of ARGUS both independently and as part of
the Altus enterprise.
Fourth Quarter 2012 Financial Performance
Revenue for the fourth quarter of 2012 was $80.7 million, compared to $86.3
million in the same period in 2011, representing a decrease of 6.4%. The
decrease was mainly due to revenue related to operations that have been
discontinued including office closures in Asia Pacific and the sale of Altus
Capital Planning.
Adjusted EBITDA was $11.8 million, compared to $13.2 million in the same period
last year, a decrease of 10.6%. The decrease was similarly affected by
operations that have been discontinued in the quarter, along with higher
variable compensation costs. Adjusted earnings per share was $0.30, compared to
$0.25 in the same period in 2011.
Q4 Loss (as reported under IFRS) was $21.5 million, or ($0.94) per share, basic
and diluted, compared to a profit of $2.3 million, or $0.10 per share, basic and
$0.08 per share, diluted, in the same period in 2011. This was related to the
non-cash impairment charge taken on ARGUS Software goodwill and intangible
assets.
Subsequent to year end, management undertook restructuring activities within
ARGUS Software. In connection with the restructuring, a total of $1.1 million is
expected to be recorded in the first quarter of 2013, related primarily to
employee severance costs. Into 2013, the ARGUS business will benefit from these
changes and under new leadership, is focused on continuous improvement in
profitability, enhanced sales effectiveness and improved execution on the
product roadmap.
Analyst Call Details
Altus will hold an analyst conference call at 9:30 a.m. Eastern Time on Tuesday,
March 12, 2013, to discuss these financial results and current industry
conditions. Please dial 1-866-226-1792 (toll-free) or 416-340-2216 (GTA) to
access the call. A recording of this call will be made available beginning at
11:00 a.m. ET. To access the recording, please call 1-800-408-3053 or
905-694-9451 (passcode: 1432266). The recording will also be available at
www.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; Property Tax; Geomatics, and ARGUS Software. 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, 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, impairment charges, 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 amounts payable to unitholders, distributions related to amounts
payable to unitholders, 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, impairment charges, 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:
Altus Group Limited
Sayla Nordin
VP, Investor Relations and Corporate Communications
(416) 557-0939
info@altusgroup.com
www.altusgrouplimited.com
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