VANCOUVER,
March 15, 2012 /PRNewswire/ -
WesternOne Equity Income Fund ("WesternOne Equity") (Toronto Stock
Exchange: WEQ.UN, WEQ.DB.B and WEQ.DB.C) today announced the
release of its financial results for the year ended December 31, 2011.
The results, consisting of WesternOne Equity's
audited financial statements for the year ended December 31, 2011 and Management's Discussion and
Analysis ("MD&A") dated March 15,
2012, are available on SEDAR (www.sedar.com).
2011 Financial highlights and recent events:
- Significant growth in consolidated revenue (127%), gross profit
(123%) and adjusted EBITDA(1) (81%) compared to 2010 due
to organic growth in the WesternOne Rentals & Sales ("WRS")
segment and the acquisition of the Britco group of companies
("Britco") in June 2011
- Annual consolidated payout percentage(2) of 66.5%
compared to 99.4% in 2010
- Britco contributed incremental revenue of $52.4 million and adjusted EBITDA of $9.2 million for the seven-month period since
June 1, 2011
- WRS achieved annual organic growth of 19% in revenue and 12% in
adjusted EBITDA. The growth was driven by strong demand for
equipment rentals and related services in Western Canada's construction and
infrastructure sectors, in spite of an unseasonably warm winter in
the fourth quarter.
- Significant growth in consolidated revenue (175%), gross profit
(107%) and adjusted EBITDA (56%) for the fourth quarter compared to
the same period in 2010
- Britco commenced work on an 880-room, 280,000-square foot
workforce accommodation project valued at approximately
$45 million for a large energy
company in Alberta; piling work
started on site in November 2011 and
production of the workforce accommodation units started in
December 2011
- Britco entered into full-production mode at the facility in
Waco, Texas, with the first
modular buildings completed in early 2012
- Britco acquired Alberta Modulars Inc. in Edmonton, Alberta in February 2012 and enhanced manufacturing capacity
and market presence in Alberta
- WRS successfully launched the construction heat division in
Southern British Columbia,
providing construction heat and humidity control solutions to the
construction and movie production sectors
"We are very pleased to see the solid growth in
the operating results due to both organic growth and business
acquisition," said Mr. Darren
Latoski, Chief Executive Officer. "Our disciplined growth
strategy has led to record revenue, gross profit and adjusted
EBITDA in 2011, along with significant improvements to our annual
payout percentage."
"Going forward we see our two strategic
operating segments, WRS and Britco, continue to benefit from the
positive economic environment in Western
Canada," continued Mr. Latoski. "Capital investments in the
construction and infrastructure and resource sectors are expected
to fuel demand for WRS' rental equipment and services and Britco's
modular space products. To achieve continued growth we will make
disciplined fleet acquisitions, and will increase Britco's
production capacity by streamlining manufacturing processes and
adding staff at its four facilities in BC, Alberta and Texas. We will also continue to seek accretive
acquisition opportunities to grow WesternOne Equity's
businesses."
Summary Financial
Overview
(unaudited)
|
Three months
ended
December 31, |
Year
ended
December 31, |
($ millions except unit
amounts) |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
Revenue |
$ |
39.3 |
$ |
14.3 |
$ |
109.4 |
$ |
48.2 |
Gross Profit |
|
11.0 |
|
5.3 |
|
34.1 |
|
15.3 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1) |
$ |
7.6 |
$ |
4.8 |
$ |
24.4 |
$ |
13.5 |
|
|
|
|
|
|
|
|
|
Distributable Cash Generated
(1) |
$ |
4.1 |
$ |
3.6 |
$ |
14.7 |
$ |
8.4 |
Distributions Declared |
|
2.7 |
|
2.1 |
|
9.8 |
|
8.4 |
Distributable Cash per Unit
(3) |
|
0.2345 |
|
0.2564 |
|
0.9137 |
|
0.6035 |
Distributions Declared per Unit |
|
0.1500 |
|
0.1500 |
|
0.6000 |
|
0.6000 |
|
|
|
|
|
|
|
|
|
Payout Percentage
(2) |
|
65.1% |
|
58.5% |
|
66.5% |
|
99.4% |
___________________
Notes:
(1) |
"Adjusted EBITDA" and "Distributable
Cash" are not recognized measures under IFRS and do not have a
standardized meaning prescribed by IFRS. "Adjusted EBITDA" refers
to earnings before interest, income taxes, depreciation,
amortization, accretion, gain/loss on financial derivatives
relating to changes in the fair market value of the fixed interest
rate swap, business acquisition costs, debenture issuance costs,
gain/loss on debentures relating to changes in their fair values,
gain/loss on Unit issuances relating to conversion of debentures,
gain/loss on WesternOne Equity's exchangeable units relating to
changes in their fair values, unit based compensation, distribution
to unitholders, foreign exchange gains/losses, write-down of fleet
assets, intangible assets and goodwill, and fees associated with
franchise termination. "Distributable Cash" refers to cash
available for distribution to the unitholders by WesternOne Equity.
For further description of Adjusted EBITDA and Distributable Cash
refer to "Non-IFRS Measures" in the MD&A dated March 15,
2012. |
(2) |
Amounts calculated using
distributable cash and distributions declared for the related
period, not on per Unit amounts. Calculated as distribution
declared divided by distributable cash generated. |
(3) |
Calculated based on basic weighted
average number of units. |
|
|
WesternOne Equity today announced that its Board
of Trustees has approved a cash distribution of $0.05 per trust unit for the month of
March 2012 (equivalent to
$0.60 per trust unit on an annualized
basis). This distribution will be paid on April 16, 2011 to unitholders of record at the
close of business on March 30,
2011.
The policy of WesternOne Equity is to pay cash
distributions on or about the 15th day of each month to unitholders
of record on the last business day of the preceding month.
WesternOne Equity announced that during
February 2012, 440,476 trust units
were issued at $5.25 per trust unit
in connection with the conversion of $2,288,000 principal amount in Convertible
Unsecured Subordinated Debentures (plus accrued interest). As at
February 29, 2012, WesternOne Equity
had 19,114,089 trust units, $17,121,000 principal amount of the Convertible
Unsecured Subordinated Debentures and $86,250,000 principal amount of the Extendible
Convertible Series 2 Unsecured Subordinated Debentures
outstanding.
Conference Call
Darren Latoski,
CEO, Carlos Yam, CFO and
Geoff Shorten, COO, of WesternOne
Equity GP Inc. will host a conference call at 4:30pm (Eastern time) or 1:30pm (Pacific time), on Thursday, March 15, 2012, to review the financial
results and corporate developments for the year ended December 31, 2011.
To participate in this conference call, please
dial one of the following numbers approximately 10 minutes prior to
the commencement of the call, and ask to join the WesternOne Equity
conference call.
Dial in numbers: |
Toll Free
.......................................................... 1-888-231-8191 |
|
International or Local Toronto .........................
1-647-427-7450 |
|
|
Conference Call Replay
If you cannot participate on March 15, 2012, a replay of the conference call
will be available by dialing one of the following replay numbers.
You will be able to dial in and listen to the conference two hours
after the meeting end time, and the replay will be available until
March 29, 2012. Please enter the
Replay ID number 56155033 followed by the # key.
Replay Dial-In: |
Toll Free
...................................................... 1-855-859-2056 |
|
International or Local
Toronto....................... 1-416-849-0833 |
|
|
Forward-looking Information
Certain statements in this press release may
constitute "forward-looking" information that involves known and
unknown risks, uncertainties and other factors, and it may cause
actual results, performance or achievements or industry results, to
be materially different from any future results, performance or
achievements or industry results expressed or implied by such
forward-looking information. Forward-looking information is
identified by the use of terms and phrases such as "anticipate",
"believe", "could", "estimate", "expect", "intend", "may", "plan",
"predict", "project", "will", "would", and similar terms and
phrases, including references to assumptions. Such information
includes, without limitation, statements with respect to: the
enhancement of WesternOne Equity's product and service offering and
customer base derived from acquisitions completed by WesternOne
Equity or its subsidiaries, the growth prospects in sectors where
WesternOne Equity's businesses are conducted, market expansions
under WesternOne Equity's current and future strategies, and the
benefits that may accrue to WesternOne Equity and its unitholders
as a result of such market expansions. Actual events or results may
differ materially.
Forward-looking information contained in this
press release is based on certain key expectations and assumptions
made by WesternOne Equity, including, without limitation,
expectations and assumptions respecting: the outlook of WesternOne
Equity's business and the economy in Western Canada and the US, the supply and
demand for WesternOne Equity's products and services, and
management's assessment of future plans and operations. Although
the forward-looking information contained in this press release is
based upon what the WesternOne Equity's management believes to be
reasonable assumptions, WesternOne Equity cannot assure investors
that actual results will be consistent with such information.
Forward-looking information reflects current expectations of
management regarding future events and operating performance as of
the date of this press release. Such information involves
significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results
will be achieved. A number of factors could cause actual results to
differ materially from the results discussed in the forward-looking
information, and a description of these factors can be found under
"Risk Factors" in WesternOne Equity's Annual Information Form dated
March 31, 2011 and Management's
Discussion and Analysis dated March 15,
2012, which are available on SEDAR (www.sedar.com).
The forward-looking information contained herein
is expressly qualified in its entirety by this cautionary
statement. Forward-looking information reflects management's
current beliefs and is based on information currently available to
WesternOne Equity. The forward-looking information is made as of
the date of this press release and WesternOne Equity assumes no
obligation to update or revise such information to reflect new
events or circumstances, except as may be required by applicable
law.
About WesternOne Equity
WesternOne Equity seeks to acquire and grow
businesses in the sector of construction and infrastructure
services in order to generate stable and growing distributions to
its unitholders as well as to achieve overall capital
appreciation.
Additional Information
Additional information relating to WesternOne
Equity, including WesternOne Equity's Annual Information Form and
other public filings, is available on SEDAR at www.sedar.com or on
WesternOne Equity's website at www.weq.ca.
Trading Symbols
Toronto Stock Exchange: WEQ.UN, WEQ.DB.B and
WEQ.DB.C
THE TORONTO
STOCK EXCHANGE HAS NOT REVIEWED
AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY
OF THIS RELEASE.
SOURCE WesternOne Equity Income Fund