Altus Group Limited ("Altus") (TSX: AIF) today announced financial
and operating results for the quarter ended June 30, 2011.
Performance Highlights
-- Year-over-year revenue growth of 12.4% for the quarter and 12.2% for the
year-to-date;
-- Adjusted EBITDA of $7.6 million for the quarter and $15.0 million for
the year-to-date, a margin of 10.9% in both periods;
-- Adjusted earnings per share of $0.18 for the quarter and $0.26 for the
year-to-date; and,
-- Completed merger of Realm Solutions Inc., owner of ARGUS Software.
Revenue for the second quarter of 2011 was $70.2 million,
compared to $62.4 million for the comparable period in 2010, a
12.4% increase. Acquisitions contributed 12.0% to overall growth in
the quarter. Revenue for the six months ended June 30, 2011 was
$138.3 million, compared to $123.2 million for the comparable
period in 2010, a 12.2% increase. Acquisitions contributed 10.1% to
overall growth in the six month period.
Adjusted EBITDA for the second quarter of 2011 was $7.6 million,
compared to $11.5 million in the same period last year, a decrease
of 33.4%. Adjusted EBITDA for the six months ended June 30, 2011
was $15.0 million, compared to $20.5 million in the same period
last year, a decrease of 26.6%.
"Notwithstanding broader economic challenges, Altus is managing
through a period of transition with an increased focus on the
development and delivery of a more rigorous, technology based
platform," said Gary Yeoman, Chief Executive Officer, Altus Group.
"Designed to complement our core service offerings, as well as add
additional data and analytics, our continued focus on further
integration and operational elements will make Altus unique so as
to maximize its potential for growth in both the near and long
term."
Profit (loss) for the second quarter of 2011 was $(12.3)
million, or $(0.54) per share, basic and diluted, compared to $5.1
million, or $0.26 per unit, basic and $0.08 per unit, diluted for
the second quarter of 2010. For the six months ended June 30, 2011,
profit (loss) was $(14.8) million, or $(0.65) per share, basic and
diluted, compared to $(3.2) million, or $(0.16) per unit, basic and
diluted.
Adjusted earnings per share for the second quarter of 2011 was
$0.18, compared to $0.34 for the same period in 2010. For the six
months ended June 30, 2011, adjusted earnings per share was $0.26,
compared to $0.62 for the same period in 2010.
During the quarter, the company commenced a restructuring
program of the Global Cost practice. As a result of this program,
earnings were impacted by a restructuring charge of $3.2 million.
Also during the quarter, a non-cash impairment charge was taken on
Asia-Pacific intangibles and goodwill in the amount of $9.2
million. These charges were not included in Adjusted EBITDA and
Adjusted earnings per share.
"While these results are in line with expectations based on
trends established earlier in the year, Altus has responded with
clear actions that will help mitigate ongoing challenges," said
Gary Yeoman, Chief Executive Officer, Altus Group, "As we move into
Q3, we expect to see some of the timing issues in the UK being
resolved and continue to focus proactively on opportunities that
will boost profitability across the company to ensure a solid year
end for 2011."
For the second quarter, dividends declared totaled $0.15 per
common share. For the six months ended June 30, 2011, dividends
declared totaled $0.45 per common share.
During the quarter, Altus completed the previously announced
merger of Realm Solutions Inc. ("Realm"), owner of ARGUS Software,
for aggregate consideration of US$126.5 million, subject to
adjustments. The consideration paid to the vendors included US$80.0
million cash and US$49.5 million principal amount of convertible
unsecured debentures issued by Altus to certain shareholders of
Realm. This acquisition will enable Altus to create a powerful new
platform that will offer clients value-added commercial real estate
data and analytics.
"With one month of revenues, the ARGUS acquisition has had an
immediately positive impact on operations," continued Yeoman.
"These gains will intensify with the addition of other innovative
products and services; leveraging the data stores across our core
business lines. This will ensure Altus is able to maintain an
aggressive schedule of debt pay down as we continue to explore the
possibility of divesting selected non-strategic operations."
Analyst Call Details
Altus Group Limited will hold an analyst conference call at 9:00
a.m. Eastern Daylight Time on Thursday, August 11, 2011 to discuss
these financial results and current industry conditions. Please
dial 1-866-226-1798 (toll free) or 416-340-2219 (GTA) to access the
call. You will be required to identify yourself and your
organization. A recording of this call will be made available
beginning at 12:30 p.m. EDT. To access the recording, please call
1-800-408-3053 or 905-694-9451 (passcode: 5440254). The recording
will also be available at altusgrouplimited.com.
About Altus Group Limited
Altus Group is the leading multidisciplinary provider of
independent real estate consulting, professional advisory services
and data, software and analytics worldwide. With a staff of over
1,700, Altus Group has a network of over 70 offices in 14 countries
worldwide, including Canada, UK, Australia, Asia and the United
States. We operate five interrelated Business Units, bringing years
of expertise together into one comprehensive platform: Research,
Valuation and Advisory; Cost Consulting and Project Management;
Realty Tax Consulting; Geomatics; and ARGUS Software. Altus'
clients include banks, financial institutions, governments, pension
funds, asset and fund managers, developers and landlords and
companies engaged in the oil and gas industry.
Forward Looking Statements
Certain statements in this press release may constitute
"forward-looking" statements, which involve known and unknown
risks, uncertainties and other factors, which may cause the actual
results, performance or achievements of Altus and its subsidiary
entities to be materially different from any future results,
performance or achievements expressed or implied by such forward
looking statements. This press release has statements using words
such as "may", "will", "expect", "believe", "plan", "would",
"could" and other similar terminology.
These statements are not assurances of future performance and
are subject to numerous risks and uncertainties which could cause
actual results to differ materially from the forward-looking
statements. Those risks and uncertainties include: general state of
the economy; competition in the industry; ability to attract and
retain professionals; integration of acquisitions; dependence on
oil and gas sector; dependence on Canadian multi-residential
market; customer concentration; currency risk; interest rate risk;
reliance on larger software transactions with longer and
unpredictable sales cycles; success of new product introductions;
ability to respond to technological change and develop products on
a timely basis; ability to maintain profitability and manage
growth; revenue and cash flow volatility; credit risk; protection
of intellectual property or defending against claims of
intellectual property rights of others; weather; fixed-price and
contingency engagements; operating risks; performance of
obligations/maintenance of client satisfaction; appraisal mandates;
legislative and regulatory changes; risk of future legal
proceedings; insurance limits; income tax matters; ability to meet
solvency requirements to pay dividends; leverage and restrictive
covenants; unpredictability and volatility of common share price;
capital investment; issuance of additional common shares diluting
existing shareholders' interests, as well as those described in
Altus' publicly filed documents, including the Annual Information
Form (which are available on SEDAR at www.sedar.com). Given these
risks and uncertainties, investors should not place undue reliance
on forward-looking statements as a prediction of actual results.
These statements reflect management's current expectations
regarding future events and operating performance and speak only as
of the date of this press release. Although the forward-looking
statements contained in this press release are based upon what
management believes to be reasonable assumptions, Altus cannot
assure investors that actual results will be consistent with these
forward-looking statements. These forward-looking statements are
made as of the date of this press release and, except in accordance
with applicable law, Altus will not update or revise them to
reflect new events or circumstances. Additionally, Altus undertakes
no obligation to comment on analyses, expectations or statements
made by third parties in respect of Altus, its financial or
operating results, or its securities.
Contacts: Altus Group Limited Sayla Nordin VP, Investor
Relations and Corporate Communications (416) 557-0939
altusgrouplimited.com
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