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WesternOne Equity Income Fund Reports Significant Growth in 2012 Q2 Results

August 9, 2012

VANCOUVER, Aug. 9, 2012 /PRNewswire/ – WesternOne Equity Income Fund
(“WesternOne”) (Toronto Stock Exchange: WEQ.UN, WEQ.DB.B and WEQ.DB.C)
today announced the release of its financial results for the three and
six months ended June 30, 2012.

The results, consisting of WesternOne’s interim financial statements for
the three and six months ended June 30, 2012 and Management’s
Discussion and Analysis (“MD&A”) dated August 9, 2012, are available on
SEDAR (www.sedar.com).

2012 Q2 financial highlights and recent events:

        --  Significant growth in consolidated revenue (197%), gross profit
            (169%) and adjusted EBITDA(1) (178%) compared to Q2 2011 due to
            organic growth in WesternOne Rentals & Sales ("WRS") and
            additional earnings from Britco.

        --  Growth translated to solid operating cash flow, up 163%
            compared to Q2 2011 (before working capital changes).

        --  Consolidated payout percentage(2) for Q2 was 49.5%,
            significantly improved from 94.9% in Q2 2011. Payout percentage
            for the six months ended June 30, 2012 was 38.0%, compared to
            65.1% a year ago.

        --  WRS generated year-over-year organic growth of 15.0% for
            revenue and 63.0% for adjusted EBITDA for Q2. The robust
            construction and film production segments in Western Canada has
            led to higher fleet utilization and rental rates and
            opportunities for fleet expansion.

        --  Britco contributed revenue of $43.0 million and adjusted EBITDA
            of $7.2 million for Q2 due to strong manufacturing activity in
            the workforce accommodations sector. Compared to $6.8 million
            of revenue and $1.4 million of adjusted EBITDA for the month of
            June 2011 after WesternOne's acquisition of the business on
            June 1, 2011, the increase in revenue and adjusted EBITDA was
            due to (i) the full quarter of operation in Q2 2012 and (ii)
            increased production output through accelerated growth in
            manufacturing workforce and recent geographical expansions into
            Edmonton, Alberta and Waco, Texas.

        --  On July 18, WesternOne announced that its board of trustees had
            approved a proposed transaction providing for the
            reorganization of WesternOne into a corporate structure (the
            "Conversion"). Completion of the Conversion is subject to
            conditions including regulatory approvals and approval from
            unitholders. Further details of the Conversion are available in
            WesternOne's information circular dated July 30, 2012, which is
            available on SEDAR
            (www.sedar.com).

“We are delighted with the strong growth in our operating results for Q2
and year-to-date,” said Mr. Darren Latoski, Chief Executive Officer.
“WesternOne stands to benefit from continuous capital investments in
the construction and infrastructure and resource sectors. We will
continue to capitalize on this positive economic trend through
executing disciplined growth initiatives.”


    Summary
    Financial
    Overview                For the three months ended               For the six months ended

    (unaudited)                           June 30,                               June 30,

    ($ in
    millions
    except unit                                        %                                      %
    amounts)              2012         2011       Change         2012         2011       Change

    Revenue
                      $   57.4     $   19.3       197.4%     $  109.3     $   36.3       201.5%

    Gross Profit          16.1          6.0       168.6%         33.6         12.4       171.7%

    Adjusted
    EBITDA (1)            12.0          4.3       178.1%         24.8         10.1       146.8%

    Distributable
    Cash
    Generated (1)     $    6.0     $    2.5       143.3%     $   15.4     $    7.0       120.8%

    Distributions
    Declared               3.0          2.4        26.8%          5.9          4.6        28.9%

    Distributable
    Cash per Unit
    (3)                 0.3048       0.1596                    0.7963       0.4667             

    Distributions
    Declared per
    Unit                0.1500       0.1500                    0.3000       0.3000             

    Payout
    Percentage
    (2)                  49.5%        94.9%                     38.0%        65.1%             

    ________________________

    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, gain/loss
            on financial derivatives relating to changes in the fair market
            value of the fixed interest rate swap, business acquisition and
            Conversion 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 's exchangeable units relating to
            changes in their fair values, unit based compensation,
            distribution to unitholders, foreign exchange gains/losses, and
            write-down of fleet assets, intangible assets and goodwill.
            "Distributable Cash" refers to cash available for distribution
            to the unitholders by WesternOne. For further description of
            Adjusted EBITDA and Distributable Cash refer to "Non-IFRS
            Measures" in the MD&A dated August 9, 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.

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, August 9, 2012,
to review the financial results and corporate developments for the
three and six months ended June 30, 2012.

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 conference call.


    Dial in         Toll                                                    1-888-231-8191
    numbers:        Free ..........................................

                    International or Local Toronto..........                1-647-427-7450

Conference Call Replay

If you cannot participate on August 9, 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
August 16, 2012. Please enter the Replay ID number 97379705 followed by
the # key.


    Replay          Toll                                                     1-855-859-2056
    Dial-In:        Free..............................................

                    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’s product and service
offering and customer base derived from acquisitions completed by
WesternOne or its subsidiaries, the growth prospects in sectors where
WesternOne’s businesses are conducted, market expansions under
WesternOne’s current and future strategies, the benefits that may
accrue to WesternOne and its unitholders as a result of such market
expansions, completion of the Conversion and approvals of the
Conversion. 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, including,
without limitation, expectations and assumptions respecting:
WesternOne’s ability to obtain requisite consents or approvals related
to the Conversion and the ability to realize the anticipated benefits
of the Conversion, the outlook of WesternOne’s business and the economy
in Western Canada and the US, the supply and demand for WesternOne’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’s management believes
to be reasonable assumptions, WesternOne 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’s Annual Information Form
dated March 29, 2012 and Management’s Discussion and Analysis dated
August 9, 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. The forward-looking
information is made as of the date of this press release and WesternOne
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

WesternOne seeks to acquire and grow businesses in the construction and
infrastructure services sectors 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, including WesternOne’s
Annual Information Form and other public filings, is available on SEDAR
at www.sedar.com or on WesternOne’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


Source: PR Newswire