GENIVAR Reports Record Revenues of $1.25 Billion for 2012 and Declares a Dividend of $0.375 per Share

GENIVAR Reports Record Revenues of $1.25 Billion for 2012 and Declares a 
Dividend of $0.375 per Share 
MONTREAL, QUEBEC -- (Marketwire) -- 03/13/13 -- GENIVAR Inc.
(TSX:GNV) ("GENIVAR" or the "Company"), today announced its financial
and operating results for the fourth quarter and year-end 2012. The
fourth quarter results cover the period from September 30, 2012, to
December 31, 2012. Following the closing of the transaction with WSP
Group plc ("WSP"), our results for the year include those of WSP from
August 1, 2012, the date the transaction closed.  
Financial results include respectively $3.5 million, net of income
taxes of $1.0 million of acquisition-related costs and integration
and restructuring expenses for the fourth quarter and $15.1 million,
net of income taxes of $1.7 million for the year 2012. These amounts
are considered unusual costs by Management and are defined as
"Unusual Items." 
FOURTH QUARTER 2012 HIGHLIGHTS 


 
--  Total revenues were $516.5 million, compared to $172.0 million in 2011,
    an increase of 200.3%. Net revenues, expressed as revenues less direct
    costs for subconsultants and direct expenses that are recoverable
    directly from the clients, amounted to $411.9 million, representing a
    210.4% increase as compared to 2011. Revenue gro
wth was mainly
    attributable to the recent acquisition of WSP.
 
--  Excluding Unusual Items, EBITDA stood at $45.3 million or $0.89 per
    share, compared to $21.5 million or $0.80 per share in 2011. Taking
    Unusual Items into account, EBITDA for the quarter was $40.8 million or
    $0.80 per share. 
 
--  The Company reported adjusted net earnings of $26.5 million or $0.52 per
    share, on a basic and diluted basis, as compared to $10.0 million or
    $0.37 per share, on a basic and diluted basis, in 2011. Including
    Unusual Items, net earnings was $23.0 million or $0.45 per share in the
    fourth quarter of 2012.
 
--  WSP's organic growth on net revenues stood at 8.2%, compared to the same
    quarter of 2011. GENIVAR excluding WSP realized a negative organic
    growth of 1.2%
 
--  Free cash flow of $93.1 million, or $1.83 per share generated in the
    fourth quarter.
 
--  The backlog stood at $1,420.6 million, compared to a backlog of $1,360.0
    million at the end of the third quarter of 2012, representing an
    increase of 4.5%, and approximately 8.9 months of revenues.

 
2012 YEAR HIGHLIGHTS 


 
--  Total revenues were $1,257.5 million, compared to $651.9 million in
    2011, an increase of 92.9%. For the same period, net revenues amounted
    to $1,020.1 million, representing a 92.8% increase as compared to 2011.
 
--  Organic growth on net revenues of 4.9% for WSP on a trailing-twelve-
    month basis and a flat organic growth for GENIVAR excluding WSP
    acquisition. 
 
--  On a comparable year-over-year basis, excluding Unusual Items, EBITDA
    increased to $125.4 million or $3.11 per share in 2012, up from $89.7
    million in 2011. As a percentage of net revenues, the EBITDA margin,
    excluding Unusual Items, stood at 12.3% for 2012, compared to 17.0% for
    2011.
 
--  Adjusted net earnings amounted to $61.4 million or $1.52 per share.
 
--  Free cash flow per share without Unusual Items of $2.22, representing
    146.1% of adjusted net earnings per share.
 
--  For the first time in 24 months, DSO decreased below the 100 days
    threshold and reached 97 days.
 
--  Net debt decreased to $127.1 million, which on a combined trailing-
    twelve-month basis puts the net debt to EBITDA ratio at 0.8x.

 
"We are extremely pleased with our results and thankful to all our
employees around the world for a strong 2012 performance. This
landmark year for our Company saw our net revenues almost double and
break the $1 billion threshold. This was achieved thanks to a strong
contribution from our merger to WSP, one of the largest transactions
in our industry in 2012," commented Pierre Shoiry, President and
Chief Executive Officer of GENIVAR. "We ended the year with a strong
statement of financial position, were included in the TSX S&P
Composite Index and received continued support from our two main
shareholders, which are Canada's two largest institutional investors;
all the right elements which will be the foundation of our continued
growth," he added.  
GUIDANCE FOR 2013  
Management provided guidance on 2013 operating results in the
Management's Discussion & Analysis ("MD&A") for the year ended
December 31, 2012. The outlook is provided to assist analysts and
shareholders in formalizing their respective views on the 2013
outlook. These measures are subject to change.  
A detailed discussion on each region's operational results for 2012
is also available in the MD&A. 
DIVIDEND  
The Board of GENIVAR declared a dividend of $0.375 per share. This
dividend will be payable on or about April 15, 2013, to shareholders
of record at the close of business on March 31, 2013. 
FINANCIAL REPORT  
This release includes, by reference, the year 2012 financial reports,
including the audited consolidated financial statements and MD&A of
the Company.  
For a copy of our full financial results for the year 2012, including
the MD&A and the audited consolidated financial statements, please
visit our Website at www.genivar.com.  
CONFERENCE CALL  
GENIVAR will hold a conference call at 4 p.m. (Eastern Time) on March
13, 2013, to discuss these results. The telephone numbers to access
the conference call are 1-416-981-9000 or 1-800-734-8507 (toll-free). 
A presentation highlighting the results of the fourth quarter and
year 2012 will be available on the same day in the Investor section
of GENIVAR's Website (www.genivar.com), under Presentations & Events. 
A replay of the call will be available until March 27, 2013. The
telephone numbers to access the replay of the call are 1-416-626-4100
or 1-800-558-5253, access code 21648808. The replay of the conference
call will also be available in the Investor section of the Website
under Presentations & Events, in the days following the event. 
RESULTS OF OPERATIONS 


 
                             -----------------------------------------------
                                                              Fourth quarter
                             -----------------------------------------------
                                        2012                                
                                     without                                
                                     Unusual                                
                                    Items(i)            2012            2011
                             -----------------------------------------------
                                     FOR THE         FOR THE         FOR THE
IN MILLIONS OF DOLLARS,          PERIOD FROM     PERIOD FROM     PERIOD FROM
 EXCEPT NUMBER OF SHARES AND    SEPTEMBER 30    SEPTEMBER 30    OCTOBER 2 TO
 PER SHARE DATA               TO DECEMBER 31  TO DECEMBER 31     DECEMBER 31
----------------------------------------------------------------------------
Revenues                              $516.5          $516.5          $172.0
Less: Subconsultants and                                                    
 direct costs                         $104.6          $104.6           $39.3
----------------------------------------------------------------------------
Net revenues(ii)                      $411.9          $411.9          $132.7
----------------------------------------------------------------------------
Personnel costs                       $308.4          $311.5           $92.6
Other operational costs(1)             $60.5           $61.9           $18.6
Share of income of associates          ($2.3)          ($2.3)              -
----------------------------------------------------------------------------
EBITDA(ii)                             $45.3           $40.8           $21.5
----------------------------------------------------------------------------
Amortization of intangible                                                  
 assets                                 $8.6            $8.6            $4.5
Depreciation of property,                                                   
 plant and equipment                    $6.4            $6.4            $2.4
Financial expenses                      $3.9            $3.9            $1.0
Share of depreciation of                                                    
 associates                             $0.7            $0.7               -
----------------------------------------------------------------------------
Earnings before income taxes           $25.7           $21.2           $13.6
----------------------------------------------------------------------------
Income tax expenses                                                         
 (recovery)                            ($1.2)          ($2.2)           $3.6
Share of tax of associates              $0.4            $0.4               -
----------------------------------------------------------------------------
Net earnings                                           $23.0           $10.0
Attributable to:                                                            
- Shareholders                                         $23.1           $10.0
- Non-controlling interests                            ($0.1)              -
----------------------------------------------------------------------------
Basic and diluted net                                                       
 earnings per share                                    $0.45           $0.37
----------------------------------------------------------------------------
Basic and diluted weighted                                                  
 average number of shares         51,000,772      51,000,772      26,841,888
---------------------------------------------------
-------------------------
 
                             -----------------------------------------------
                                                                        Year
                             -----------------------------------------------
                                        2012                                
                                     without                                
                                     Unusual                                
                                    Items(i)            2012            2011
                             -----------------------------------------------
                                     FOR THE         FOR THE         FOR THE
IN MILLIONS OF DOLLARS,          PERIOD FROM     PERIOD FROM     PERIOD FROM
 EXCEPT NUMBER OF SHARES AND    JANUARY 1 TO    JANUARY 1 TO    JANUARY 1 TO
 PER SHARE DATA                  DECEMBER 31     DECEMBER 31     DECEMBER 31
----------------------------------------------------------------------------
Revenues                            $1,257.5        $1,257.5          $651.9
Less: Subconsultants and                                                    
 direct costs                         $237.4          $237.4          $122.9
----------------------------------------------------------------------------
Net revenues(ii)                    $1,020.1        $1,020.1          $529.0
----------------------------------------------------------------------------
Personnel costs                       $750.4          $753.5          $371.9
Other operational costs(1)            $147.6          $161.3           $67.4
Share of income of associates          ($3.3)          ($3.3)              -
----------------------------------------------------------------------------
EBITDA(ii)                            $125.4          $108.6           $89.7
----------------------------------------------------------------------------
Amortization of intangible                                                  
 assets                                $24.6           $24.6           $17.3
Depreciation of property,                                                   
 plant and equipment                   $16.2           $16.2            $8.0
Financial expenses                      $9.4            $9.4            $4.4
Share of depreciation of                                                    
 associates                             $0.7            $0.7               -
----------------------------------------------------------------------------
Earnings before income taxes           $74.5           $57.7           $60.0
----------------------------------------------------------------------------
Income tax expenses                                                         
 (recovery)                            $12.4           $10.7            $9.9
Share of tax of associates              $0.7            $0.7               -
----------------------------------------------------------------------------
Net earnings                                           $46.3           $50.1
Attributable to:                                                            
- Shareholders                                         $46.3           $50.1
- Non-controlling interests                                -               -
----------------------------------------------------------------------------
Basic and diluted net                                                       
 earnings per share                                    $1.15           $1.91
----------------------------------------------------------------------------
Basic and diluted weighted                                                  
 average number of shares         40,312,474      40,312,474      26,233,234
----------------------------------------------------------------------------
                                                                            
(i)  The financial results are presented before the impact of Unusual Items.
(ii) Non-IFRS measures are described below.                                 
     The other operational costs include the operational exchange loss or   
(1)  gain and the interest income.                                          

 
RECONCILIATION OF NET EARNINGS AND ADJUSTED NET EARNINGS 


 
                     -------------------------------------------------------
                                  Fourth quarter                       Year 
                     -------------------------------------------------------
                              2012          2011         2012          2011 
                     -------------------------------------------------------
                           FOR THE                                          
                       PERIOD FROM       FOR THE      FOR THE       FOR THE 
IN MILLIONS OF        SEPTEMBER 30   PERIOD FROM  PERIOD FROM   PERIOD FROM 
 DOLLARS, EXCEPT PER   TO DECEMBER  OCTOBER 2 TO JANUARY 1 TO  JANUARY 1 TO 
 SHARE DATA                     31   DECEMBER 31  DECEMBER 31   DECEMBER 31 
----------------------------------------------------------------------------
Net earnings                 $23.0         $10.0        $46.3         $50.1 
----------------------------------------------------------------------------
Transaction costs of                                                        
 WSP(i)                          -             -        $12.3             - 
Integration and                                                             
 restructuring                                                              
 costs(i)                     $4.5             -         $4.5             - 
Income taxes related                                                        
 to Transaction,                                                            
 Integration and                                                            
 restructuring                                                              
 costs(i)                    ($1.0)            -        ($1.7)            - 
De
ferred income tax                                                         
 recovery                        -             -            -         ($7.2)
----------------------------------------------------------------------------
Adjusted net                                                                
 earnings(ii)                $26.5         $10.0        $61.4         $42.9 
Adjusted net earnings                                                       
 per share(ii)               $0.52         $0.37        $1.52         $1.64 
----------------------------------------------------------------------------
                                                                            
(i)  Transaction costs of WSP and integration and restructuring costs are   
     considered Unusual Items by Management.                                
(ii) Non-IFRS measures are described below.                                 

 
NON-IFRS MEASURES  
GENIVAR uses non-IFRS measures that are considered by companies as
indicators of financial performance, measures which are not
recognized under IFRS and may differ from similar computations as
reported by other similar entities and, accordingly, may not be
comparable. GENIVAR believes these measures are useful supplemental
information that may assist investors in assessing an investment in
the Company's shares. 
Non-IFRS measures used by GENIVAR are net revenues, EBITDA, EBITDA
per share, EBITDA margin, adjusted net earnings and adjusted net
earnings per share. 
Net revenues  
Net revenues are defined as revenues from professional consulting
services less direct costs for subconsultants and other direct
expenses that are recoverable directly from the clients. Net revenues
is not an IFRS measure and does not have a standardized definition
within IFRS. Therefore, net revenues may not be comparable to similar
measures presented by other issuers. Investors are advised that net
revenues should not be construed as an alternative to revenues for
the year (as determined in accordance with IFRS) as an indicator of
GENIVAR's performance. 
EBITDA and EBITDA per share  
EBITDA is defined as earnings before financial expenses, income tax
expenses, depreciation and amortization. EBITDA is not an IFRS
measure and does not have a standardized definition within IFRS.
Investors are cautioned that EBITDA should not be considered an
alternative to net earnings for the year (as determined in accordance
with IFRS) as an indicator of GENIVAR's performance, or an
alternative to cash flows from operating, financing and investing
activities as a measure of GENIVAR's liquidity and cash flows.
GENIVAR's method of calculating EBITDA may differ from the methods
used by other issuers and, accordingly, GENIVAR's EBITDA may not be
comparable to similar measures used by other issuers. 
EBITDA per share is calculated using the basic weighted average
number of shares. 
EBITDA margin  
EBITDA margin is defined as EBITDA expressed as a percentage of net
revenues. EBITDA margin is not an IFRS measure. 
Adjusted net earnings and adjusted net earnings per share  
Adjusted net earnings is not an IFRS measure. This measure provides
Management with net earnings without the effect of significant
non-recurring items. The adjusted net earnings is defined as the net
earnings for the year, excluding the effect in the financial results
of the significant items identified.  
Adjusted net earnings per share is calculated using the basic
weighted average number of shares. 
ABOUT GENIVAR INC.  
GENIVAR, through its combination with WSP, is one of the world's
leading professional services firms, working with governments,
businesses, architects and planners and providing integrated
solutions across many disciplines. The firm provides services to
transform the built environment and restore the natural environment,
and its expertise ranges from environmental remediation to urban
planning, from engineering iconic buildings to designing sustainable
transport networks, and from developing the energy sources of the
future to enabling new ways of extracting essential resources. It has
approximately 15,000 employees, mainly engineers, technicians,
scientists and architects, as well as various environmental experts,
based in more than 300 offices, across 35 countries, on every
continent. 
www.genivar.com 
Forward-looking statements  
Certain information regarding GENIVAR contained herein may constitute
forward-looking statements. Forward-looking statements may include
estimates, plans, expectations, opinions, forecasts, projections,
guidance or other statements that are not statements of fact.
Although GENIVAR believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to have been correct. These
statements are subject to certain risks and uncertainties and may be
based on assumptions that could cause actual results to differ
materially from those anticipated or implied in the forward-looking
statements. GENIVAR's forward-looking statements are expressly
qualified in their entirety by this cautionary statement. The
complete version of the cautionary note regarding forward-looking
statements as well as a description of the relevant assumptions and
risk factors likely to affect GENIVAR's actual or projected results
are included in the Management Discussion and Analysis for the fourth
quarter and year ended December 31, 2012, which are available on
SEDAR at www.sedar.com. The forward-looking statements contained in
this press release are made as of the date hereof and GENIVAR does
not assume any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise unless expressly required by applicable securities laws.
Contacts:
Alexandre L'Heureux
Chief Financial Officer
GENIVAR Inc.
514-340-0046, ext. 5310
alexandre.lheureux@genivar.com 
Isabelle Adjahi
Director, Communications and Investor Relations
GENIVAR Inc.
514-340-0046, ext. 5648
isabelle.adjahi@genivar.com
 
 
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