Altus Group Income Fund Announces Fourth Quarter Results-Management to Hold Conference Call on Tuesday, March 7, 2006 at 1:30 p.m. EST.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- Altus Altus (ăl`təs), city (1990 pop. 21,910), seat of Jackson co., SW Okla.; inc. 1907. The city's agricultural products include cotton, wheat, sorghum, and cattle. There is light manufacturing. Group Income Fund ("the Fund")(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AIF AIF Annual Information Form AIF Apoptosis-Inducing Factor AIF Agence Intergouvernementale de la Francophonie (French: Intergovernmental Agency for Francophony) AIF Australian Imperial Force .UN) today announced financial and operating results for the fourth quarter 2005 and for the period from its IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. on May 19 to December December: see month. 31, 2005. Performance Highlights: - Successfully completed an initial public offering, merger and integration of three industry leaders to form the Altus Group Income Fund, Canada's leading independent multidisciplinary mul·ti·dis·ci·pli·nar·y adj. Of, relating to, or making use of several disciplines at once: a multidisciplinary approach to teaching. provider of real estate consulting and advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal - Generated distributable cash of 31 cents per unit in 2005 Q4 and 78 cents per unit in the period from May 19 to December 31, 2005; declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. distributions of 29 cents per unit in 2005 Q4 and 71 cents per unit in the period from May 19 to December 31, 2005 This is the first annual reporting period of the Fund since it commenced business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets on May 19th, 2005 and consequently, no comparative information is provided in the Fund's consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge . However, certain financial and operating results of the Fund are combined with the unaudited financial and operating results of its predecessor predecessor - parent entities for the period January January: see month. 1 to May 18, 2005 to prepare combined financial information for the period January 1 to December 31, 2005 and compared to the combined audited financial statements of Altus Group, Helyar Group and Derbyshire Derbyshire (där`bēshər, –shĭr) county (1991 pop. 915,000), 1,016 sq mi (2,632 sq km), central England. The county seat is Derby. Viceroy Consultants Limited ("Predecessor Entities") for the period January 1 to December 31, 2004. Such information is for reference purposes only and is not intended to represent a comprehensive comparison of the unaudited interim consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results. Revenue for the three months ended December 31, 2005 was $16.3 million, compared to $14.8 million for the comparable period in 2004, a 10% increase. Revenue for the period from May 19 to December 31, 2005 was $39.3 million, and $63.4 million for the 12 months ended December 31, 2005. On a year-over-year basis, revenues increased 5.1%. Revenue per person, a key productivity measure in the consulting industry, averaged $0.155 million for the 12 months ended December 31, 2005, compared with $0.150 million for the same period in 2004. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the fourth quarter 2005 was $4.0 million, compared with $2.9 million the fourth quarter the year before, an increase of 37%. The increase is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to non-recurring employee and shareholder bonuses in 2004 related to fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. planning for the predecessor entities. Net earnings for the fourth quarter 2005 were $1.3 million or 16 cents per Unit (basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ). EBITDA for the period from May 19 to December 31, 2005 was $9.8 million, and $10.8 million for the 12 months ended December 31, 2005, an increase of 42% over the comparable 12 month period in 2004. The increase is primarily due to non-recurring employee and shareholder bonuses in 2004 and pre-initial public offering professional fees incurred by the predecessor entities. Net earnings for the period May 19 to December 31, 2005 were $3.2 million or 40 cents per Unit (basic and diluted). In the fourth quarter 2005, the Fund generated $3.5 million of distributable cash, or 31 cents per Unit, available to both the Fund's Units and the Class B limited partnership units of Altus Group Limited Partnership outstanding at year end. Distributable cash generated from May 19 to December 31, 2005 was $8.9 million, or 78 cents per Unit. "We are pleased with the successful conclusion of our first annual reporting period," said Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. Yeoman yeoman (yō`mən), class in English society. The term has always been ill-defined, but generally it means a freeholder of a lower status than gentleman who cultivates his own land. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Altus Group. "The integration of the predecessor firms into the dynamic, new Altus is now largely complete, and in the year ahead we look forward to reaping the full benefits of our hard work in launching this Fund." "The industry conditions that made the formation of Altus a good business move will continue to drive demand for our services," added Yeoman. "As property owners become larger and more sophisticated, our unparalleled expertise and independent status will help us serve existing clients, attract new ones and facilitate cross-selling Cross-selling is the term used to describe the sale of additional products or services to a customer. Less frequently it is used to describe the sale of services to additional business units at an account or to different geographic units of a customer. our capabilities to both groups." During the fourth quarter, distributions declared to the Fund unitholders and the unitholders of the Class B limited partnership units of Altus Group Limited Partnership were 29 cents per unit for a total of $2.31 million for the Fund Units and $0.99 million for the Class B limited partnership units of Altus Group Limited Partnership. For the period from May 19 to December 31, 2005, distributions declared to the Fund unitholders and the unitholders of the Class B limited partnership units of Altus Group Limited Partnership were 71 cents per unit for a total of $5.7 million for the Fund Units and $2.4 million for the Class B limited partnership units of Altus Group Limited Partnership. The December 31, 2005 distribution of $0.77 million to the Fund unitholders was paid on January 15, 2006. The December 31, 2005 quarterly distribution of $0.99 million to the unitholders of the Class B limited partnership units of Altus Group Limited Partnership was also paid on January 15, 2006. "Although we made great strides in the past year, we know there are even more opportunities in store for Altus," said Yeoman. "We offer a winning combination of industry knowledge and broad geographic reach. Our future growth prospects, both organically and through acquisitions, are very promising." Altus Group Income Fund will hold an analyst conference call at 1:30 PM Eastern Standard Time on Tuesday Tuesday: see week. , March 7, 2006, to discuss these financial results and current industry conditions. Please dial 1-888-789-0150 or 416-695-5261 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 3:30 PM EST EST electroshock therapy. EST abbr. electroshock therapy . To access the recording, please call 1-888-509-0081 or 416-695-5275. The recording will also be available at www.altusgroupincomefund.com. Altus Group Income Fund is the leading independent multidisciplinary provider of real estate consulting and advisory services in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , with a staff of more than 300 professionals. The Fund has a national network of offices in 13 cities and operates as Altus Helyar Research, Valuation and Advisory, Altus Helyar Cost Consulting and Altus Derbyshire Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Tax. Altus' clients include banks, financial institutions, governments, pension funds, asset and fund managers, developers and landlords. The Fund's Units trade on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol AIF.un. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain statements in this press release may constitute "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements which involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Fund and its subsidiary entities, including Altus Group Limited Partnership and Altus Group Limited, or the industry, to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward looking statements. When used in this press release, such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties. Those risks and uncertainties include: the ability to maintain profitability and manage growth; reliance on and retention of professionals; competition; performance obligations and client satisfaction; fixed price and contingency contingency n. an event that might not occur. engagements; collectibility of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying ; general state of the economy; possible acquisitions; possible future litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; interest rate fluctuations; insurance limits; legislative and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes; revenue and cash flow volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the ; operating risks Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. ; residential market risk; protection of intellectual property; appraisal mandates mandates, system of trusteeships established by Article 22 of the Covenant of the League of Nations for the administration of former Turkish territories and of former German colonies. ; restrictions on growth. The Fund's risks are described in more detail in the annual information form and later in this document. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction "Prediction is very difficult, especially if it's about the future." - Niels Bohr A prediction is a statement or claim that a particular event will occur in the future in more certain terms than a forecast. 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, the Fund 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 Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with applicable law, the Fund assumes no obligations to update or revise them to reflect new events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Additionally, the Fund undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Fund, its financial or operating results, or its securities. Non-GAAP Measures - Definition of EBITDA and Distributable Cash Distributable Cash does not have a standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. meaning prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). by GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , but is a measure generally used by Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. open-ended o·pen-end·ed adj. 1. Not restrained by definite limits, restrictions, or structure. 2. Allowing for or adaptable to change. 3. income funds as an indicator of financial performance. The Fund defines distributable cash as net earnings before interest, depreciation, amortization, income taxes ("EBITDA"), and after interest paid, debt repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan , capital expenditures, income taxes paid and contributions to any reserves that the Trustees of the Fund deem to be reasonable and necessary for the operation of the Fund. The Fund's method of calculating distributable cash may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to distributable cash as reported by such entities. The Fund believes that its distributable cash is a useful supplemental measure that may assist investors in assessing the return on their investment in units of the Fund.
Results of Operations
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2005 2005 2005 2005
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For the For the For the For the
in thousands of dollars period 3 months 3 months period
except for per Unit May 19 to ending ending May 19 to
amounts June 30 September December December
30 31 31
---------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (audited)
---------------------------------------------------------------------
Revenues $7,546 $15,477 $16,319 $39,342
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Seasonality represented 11.9% 24.5% 25.8% -
by percentage of (26.0%
annual revenue combined
quarter)
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Salaries, general
and administrative 5,330 11,844 12,313 29,487
---------------------------------------------------------------------
Earnings before
income taxes,
interest,
amortization,
and non-controlling
interest 2,216 3,633 4,006 9,855
---------------------------------------------------------------------
Amortization 1,247 2,668 2,705 6,620
---------------------------------------------------------------------
Interest 81 189 218 488
---------------------------------------------------------------------
Net earnings before
income taxes and
non-controlling
interest 888 776 1,083 2,747
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Income taxes(1) (340) (705) (754) (1,799)
---------------------------------------------------------------------
Net earnings before
non-controlling
interest(1) 1,228 1,481 1,837 4,546
---------------------------------------------------------------------
Net earnings(1) $860 $1,037 $1,285 $3,182
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Earnings per Fund Unit
Basic $0.11 $0.129 $0.162 $0.400
Diluted $0.11 $0.129 $0.162 $0.400
(weighted average
# units)
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---------------------------------------------------------------------
2005 2004 2004
---------------------------------------------------------------------
Combined Combined Combined
---------------------------------------------------------------------
in thousands of dollars For the For the For the
except for per Unit 12 months 3 months 12 months
amounts ending ending ending
December December December
31 31 31
---------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
---------------------------------------------------------------------
Revenues $63,370 $14,835 $60,286
---------------------------------------------------------------------
Seasonality represented
by percentage of annual
revenue 100% 24.5% 100%
---------------------------------------------------------------------
Salaries, general
and administrative 52,591 11,916 52,699
---------------------------------------------------------------------
Earnings before income
taxes, interest,
amortization, and
non-controlling
interest 10,779 2,919 7,587
---------------------------------------------------------------------
Amortization 7,095 436 1,016
---------------------------------------------------------------------
Interest 562 31 204
---------------------------------------------------------------------
Net earnings before
income taxes and
non-controlling
interest 3,122 2,452 6,367
---------------------------------------------------------------------
Income taxes(1) - - -
---------------------------------------------------------------------
Net earnings before
non-controlling
interest(1) - - -
---------------------------------------------------------------------
Net earnings(1) - - -
---------------------------------------------------------------------
Earnings per Fund Unit
Basic - - -
Diluted - - -
(weighted average # units)
---------------------------------------------------------------------
(1) Income taxes and net earnings have not been presented on a
comparative basis due to the changes in the capital structure of
the sellers and the Fund in connection with the IPO on May 19,
2005.
Liquidity and Capital Resources
---------------------------------------------------------------------
Cash Flow 2005 2005 2005 2005
---------------------------------------------------------------------
in thousands of For the For the For the For the
dollars period 3 months 3 months period
except for May 19 ending ending May 19 to
per Unit to September December December
amounts June 30 30 31 31
---------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (audited)
---------------------------------------------------------------------
Cash from operations $1,146 $2,185 $2,382 $5,713
---------------------------------------------------------------------
Cash from financing
activities 79,113 (2,640) (3,572) 72,901
---------------------------------------------------------------------
Cash from investing
activities (68,497) (6,180) (1,175) (75,852)
---------------------------------------------------------------------
Cash end of period 11,762 5,127 2,762 2,762
---------------------------------------------------------------------
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Distributions paid - (2,640) (3,771) (6,411)
---------------------------------------------------------------------
Capital expenditures
Gross expenditure (100) (646) (260) (1,006)
Funds provided by
sellers(2) - 351 - 351
--------------------------------------------
Net expenditure on
distributable cash
calculation (100) (295) (260) (655)
--------------------------------------------
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(2) Capital expenditures in the statement of cash flow statements
include the cost of an accounting system. The cost of the
accounting system is excluded from distributable cash as amounts
were reserved from proceeds on closing and were not paid out of
the Fund's operating cash flow.
Distributable Cash
---------------------------------------------------------------------
2005 2005 2005 2005
---------------------------------------------------------------------
in thousands of For the For the For the For the
dollars except period 3 months 3 months period
for per Unit May 19 ending ending May 19 to
amounts to September December December
June 30 30 31 31
---------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (audited)
---------------------------------------------------------------------
Earnings before
income taxes,
interest,
amortization
and
non-controlling
interest $2,216 $3,633 $4,006 $9,855
---------------------------------------------------------------------
Capital
expenditures(3) 100 295 260 655
---------------------------------------------------------------------
Interest 81 189 218 488
---------------------------------------------------------------------
Taxes paid(3) - - - -
---------------------------------------------------------------------
Benefit of large
corporation
and capital tax
reserve(4) - (199) (45) (244)
---------------------------------------------------------------------
Distributable cash(5) $2,035 $3,348 $3,573 $8,956
---------------------------------------------------------------------
Payout ratio 77.2% 98.5% 92.4% 91.2%
---------------------------------------------------------------------
Distributions
Declared(6)
Fund Units 1,100 2,310 2,310 5,720
LP Class B
limited
partnership units - 1,461 990 2,451
---------------------------------------------------------------------
Distributions
Declared(6),
per unit
Fund Units $0.1368 $0.2874 $0.2874 $0.7116
LP Class B
limited
partnership units - $0.4242 $0.2874 $0.7116
---------------------------------------------------------------------
(3) Certain capital expenditures and taxes paid are excluded from
distributable cash as amounts were reserved from proceeds on
closing and were not paid out of the Fund's operating cash flow.
(4) An amount was reserved from proceeds on closing equivalent to
the net present value of large corporation and capital taxes
through fiscal 2011. The benefit of the reserve is being
recognized as taxes are expensed.
(5) Distributable cash and distributable cash per Unit amounts are
calculated for the combined interest of the Fund's Units and
the Class B limited partnership units of Altus LP, which total
11,482,195.
(6) Distributions on the Altus LP Class B limited partnership units
commenced September 30, 2005 and may be paid quarterly
thereafter, subject to certain subordination restrictions, until
the first conversion date at which specific defined criteria are
met.
Altus Group Income Fund (TSX:AIF.UN) |
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