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 Financial Overview |
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For
the three months ended
September 30, |
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For the nine months
ended
September 30, |
(unaudited) |
($ in millions except unit
amounts) |
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2012 |
2011 |
% Change |
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2012 |
2011 |
% Change |
Revenue |
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$ 54.0 |
$ 33.9 |
59.3% |
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$ 163.3 |
$ 70.2 |
132.6% |
Gross Profit |
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16.9 |
10.7 |
57.9% |
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50.5 |
23.1 |
118.6% |
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Adjusted EBITDA (1) |
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11.6 |
6.7 |
73.1% |
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36.4 |
16.8 |
116.7% |
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Distributable Cash Generated
(1) |
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$ 6.3 |
$
3.6 |
75.0% |
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$ 21.7 |
$ 10.6 |
104.7% |
Distributions Declared |
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3.1 |
2.6 |
19.2% |
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9.0 |
7.1 |
26.8% |
Distributable Cash per Unit (3) |
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0.3046 |
0.2138 |
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1.0966 |
0.6786 |
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Distributions Declared per Unit |
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0.1500 |
0.1500 |
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0.4500 |
0.4500 |
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Payout Percentage (2) |
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49.8% |
70.8% |
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41.4% |
67.0% |
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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 numbers: |
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Toll
Free .......................................................1-888-231-8191 |
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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 Dial-In: |
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Toll Free
.....................................................1-855-859-2056 |
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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