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.
Contacts: Altus Group Limited Sayla Nordin VP, Investor
Relations and Corporate Communications (416)
557-0939info@altusgroup.com www.altusgrouplimited.com
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