WesternOne Equity Income Fund Reports Significant Growth in 2012 Q2 Results
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
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.
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
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
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
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.
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