WesternOne Equity Income Fund Reports Solid Growth in 2012 Q3 Results
VANCOUVER, Nov. 14, 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
nine months ended September 30, 2012.
The results, consisting of WesternOne’s interim financial statements for
the three and nine months ended September 30, 2012 and Management’s
Discussion and Analysis (“MD&A”) dated November 14, 2012, are available
on SEDAR (www.sedar.com).
2012 Q3 financial highlights and recent events:
-- Solid year-over-year growth in consolidated revenue (59%), gross profit (57%) and adjusted EBITDA(1) (72%). -- WesternOne's Britco division achieved growth in revenue and adjusted EBITDA of 88% and 127%, respectively, compared to Q3 last year due to strong manufacturing activity in the workforce accommodation and infrastructure sectors. In response to the demand Britco increased its production output through accelerating growth in manufacturing workforce at its four plants in Agassiz and Penticton in BC, Edmonton in Alberta and Waco in Texas. -- WesternOne Rentals & Sales recorded organic growth in revenue and adjusted EBITDA of 8% and 17%, respectively, as the construction and infrastructure industry in BC and Alberta continued to fuel demand for rental equipment and related services in the region. The strong demand resulted in high rental fleet utilization and increase in related service revenues. -- Growth translated to solid operating cash flow, up 76% compared to Q3 2011 (before working capital changes). -- Consolidated payout percentage(2) for Q3 was 49.8%, compared to 70.8% in Q3 2011. Payout percentage for the nine months ended September 30, 2012 was 41.4%, compared to 67.0% a year ago. -- In August 2012, WesternOne Rentals & Sales launched two new branches in Prince George and Kelowna, BC. Management continues to leverage their in-house expertise in construction heating and fuel solutions to provide quality rental equipment and reliable services to the construction and infrastructure sectors of newly identified strategic markets. -- At the special unitholder's meeting on September 5, 2012, the unitholders of WesternOne adopted the special resolution approving the previously announced plan of arrangement under Section 192 of the Canada Business Corporations Act to convert WesternOne's income trust structure to a publicly traded corporation named WesternOne Inc. (the "Conversion"). On September 6, 2012, WesternOne obtained the final order from the Supreme Court of British Columbia approving the Conversion and the Conversion is expected to become effective on December 31, 2012. Under the Conversion, Unitholders will receive, on a tax-deferred basis, one common share of WesternOne Inc. for each Unit held.
“The solid growth that WesternOne has achieved in the third quarter
reflects our ability to execute growth in key strategic areas in the
construction and infrastructure services sectors,” said Mr. Darren
Latoski, Chief Executive Officer. “Wrating results and will continue to
identify and execute services to the construction and infrase will
continue to identify and execute disciplined growth initiatives in
conjunction with ongoing assessments of the domestic and global
Summary For the three months ended For the nine months Financial September 30, ended Overview September 30, (unaudited) ($ in 2012 2011 % Change 2012 2011 % Change millions except unit amounts) Revenue $ 54.0 $ 33.9 59.3% $ $ 132.6% 163.3 70.2 Gross Profit 16.9 10.7 57.9% 50.5 23.1 118.6% Adjusted EBITDA (1) 11.6 6.7 73.1% 36.4 16.8 116.7% Distributable Cash $ $ $ $ Generated (1) 6.3 3.6 75.0% 21.7 10.6 104.7% Distributions 3.1 2.6 19.2% 9.0 7.1 26.8% Declared Distributable Cash per Unit (3) 0.3046 0.2138 1.0966 0.6786 Distributions 0.1500 0.1500 0.4500 0.4500 Declared per Unit Payout Percentage (2) 49.8% 70.8% 41.4% 67.0%
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 November 14, 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 Wednesday, November 14,
2012, to review the financial results and corporate developments for
the three and nine months ended September 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 numbers: Free .......................................................1-888-231-8191 International or Local Toronto ......................1-647-427-7450
Conference Call Replay
If you cannot participate on November 14, 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 November 21, 2012. Please enter the Replay ID number
51884340 followed by the # key.
Replay Toll Free Dial-In: .....................................................1-855-859-2056 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 organic business expansions and
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 and completion 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
November 14, 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