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WesternOne Equity Income Fund Reports Solid Growth in 2012 Q3 Results

November 14, 2012

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
economic environment.”


    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.

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 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

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 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
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