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SOURCE WesternOne Inc.
VANCOUVER, March 11, 2013 /PRNewswire/ - WesternOne Inc. ("WesternOne")
(Toronto Stock Exchange: WEQ, WEQ.DB.B and WEQ.DB.C) today announced
the release of its financial results for the year ended December 31,
2012.
The results, consisting of WesternOne Equity's audited financial
statements for the year ended December 31, 2012 and Management's
Discussion and Analysis ("MD&A") dated March 11, 2013, are available on
SEDAR (www.sedar.com).
2012 annual and Q4 financial highlights and recent events are as
follows:
-
Growth in Q4 consolidated revenue (39%), gross profit (50%) and adjusted
EBITDA(1) (44%) compared with Q4 in 2011 due to organic growth from WesternOne's
Britco and WesternOne Rentals & Sales ("WRS") divisions. For the 2012 fiscal year the annual growth was 99% for
revenue, 97% for gross profit and 94% for adjusted EBITDA compared with
the 2011 fiscal year.
-
In Q4, Britco achieved growth in revenue and adjusted EBITDA of 52% and
34%, respectively, compared with Q4 in 2011 as solid demand for modular
buildings led to strong manufacturing activity and related services in
the workforce accommodation and infrastructure sectors. Britco's annual
growth in 2012 was 197% for revenue, 188% for gross profit and 206% for
adjusted EBITDA compared with 2011.
-
In Q4, WRS recorded organic growth in revenue and adjusted EBITDA of 19%
and 47%, respectively, compared with Q4 in 2011 due to solid demand for
construction heating services and aerial equipment rentals in Western
Canada's commercial construction and infrastructure segments. Following
the successful launches of the new construction heating operations in
central and southern BC in the fall of 2012, incremental revenue and
earnings were added to the platform. WRS's annual growth in 2012 was 9%
for revenue, 27% for gross profit and 27% for adjusted EBITDA compared
with 2011.
-
The growth in revenues and operating earnings led to solid operating
cash flow, which was up 40% (before working capital changes) in Q4
compared with the same period in 2011. The annual growth in the
operating cash flow was 77% compared with 2011.
-
Consolidated payout percentage(2) for Q4 was 39.9%, compared with 65.1% in Q4 in 2011. Annual payout
percentage for 2012 was 41.0%, compared with 66.5% a year ago.
-
On December 20, 2012, WesternOne announced that Britco executed a
contract to design, build and install the first phase of a 2,000 room
workforce accommodation complex for Manitoba Hydro. The two phases of
the project are aggregately valued at approximately $207 million, with
phase one totaling about $101 million and phase two $106 million. Phase
one is expected to be complete in June 2014. Phase two of the project
is subject to Manitoba Hydro receiving regulatory approval for the
Keeyask Generating Station Project, which is anticipated in early June
2014.
-
On December 31, 2012, WesternOne completed the conversion from an income
trust structure to a publicly-traded corporation, in which all publicly
traded units of WesternOne Equity Income Fund then outstanding were
exchanged to common shares of WesternOne Inc. on a one-for-one basis.
-
On January 18, 2013, WesternOne announced that Britco, through its
wholly owned subsidiary Britco International Inc., completed the
purchase of 80% of the modular building construction business and 10%
of the modular leasing business of APB Holding Australia Pty Limited
and its subsidiaries (collectively, "APB") for a total price of A$31.4 million. the Company funded the purchase
from existing working capital and a banking facility. The purchase is
subject to customary post-closing adjustments including net asset
adjustments. APB manufactures and leases modular buildings throughout
Australia including Sydney (New South Wales), Brisbane (Queensland) and
Perth (Western Australia). APB serves the mining, resource, commercial,
industrial and government industry sectors and designs and builds a
wide variety of temporary and permanent buildings including workforce
accommodations, office complexes, classrooms, health care facilities,
switch rooms and a variety of construction site offices.
"Our disciplined growth strategy has led to record revenue, gross profit
and adjusted EBITDA in 2012," said Mr. Darren Latoski, Chief Executive
Officer. "Along with these results our Britco and WRS platforms have
delivered strong operating cash flow. This allowed us to distribute
monthly dividends to our shareholder with a 41% payout ratio for the
year and redeploy capital towards growth mandates such as rental fleet
expansion and the recent acquisition of APB in Australia."
"WesternOne is well positioned for growth with our deep management team
across corporate, Britco and WRS," continued Mr. Latoski. "We look
forward to another exciting year in 2013 as we diversify our revenue
base into the Australian markets and the utility sector as we commence
the Manitoba Hydro project in the spring of 2013. We will also identify
ways to enhance returns on our rental fleet and profitability, through
targeting new niche rental markets. We will continue to seek accretive
acquisition opportunities to grow WesternOne's businesses."
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Summary Financial Overview
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Three months ended
December 31,
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Year ended
December 31,
|
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($ millions except unit amounts)
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2012
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2011
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2012
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2011
|
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Revenue
|
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$
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54.5
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$
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39.3
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|
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$
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217.8
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$
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109.4
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Gross Profit
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16.5
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11.0
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67.0
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34.1
|
|
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Adjusted EBITDA (1)
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$
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10.9
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$
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7.6
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$
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47.3
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$
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24.4
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Distributable Cash Generated (1)
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$
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8.1
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$
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4.1
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$
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29.8
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$
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14.7
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Distributions Declared
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3.2
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2.7
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12.2
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9.8
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Distributable Cash per Unit (3)
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0.3773
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0.2345
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1.4740
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0.9137
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Distributions Declared per Unit
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0.1500
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0.1500
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0.6000
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0.6000
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Payout Percentage (2)
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39.9%
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65.1%
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41.0%
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66.5%
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_____________________________________
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Notes:
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(1)
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"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 trust conversion costs, debenture issuance
costs, gain/loss on debentures relating to changes in their fair
values, gain/loss on trust unit or share 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
March 11, 2013.
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(2)
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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.
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(3)
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Calculated based on basic weighted average number of units.
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Conference Call
Darren Latoski, CEO, Geoff Shorten, President and COO and Carlos Yam,
CFO, of WesternOne will host a conference call at 5:30pm (Eastern time)
or 2:30pm (Pacific time), on Monday, March 11, 2013, to review the
financial results and corporate developments for the year ended
December 31, 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.
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Dial in numbers:
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Toll Free
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1-888-390-0546
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International or Local Toronto
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1-416-764-8688
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Conference Call Replay
If you cannot participate on March 11, 2013, 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
March 18, 2013. Please enter the Replay ID number 911071 followed by
the # key.
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Replay Dial-In:
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Toll Free
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1-888-390-0541
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International or Local Toronto
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1-416-764-8677
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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 commencement and completion dates of the Manitoba
Hydro Keeyask work camp project, 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 and acquisitions under
WesternOne's current and future strategies and the benefits that may
accrue to WesternOne and its shareholders as a result of such market
expansions and acquisitions. 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: the
outlook of WesternOne's business and the economy in Western Canada, the
US and Australia, 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
March 11, 2013, 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
dividends to its shareholders and to achieve capital appreciation.
Additional Information
Additional information relating to WesternOne, including the Annual
Information Form of WesternOne Equity Income Fund 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, 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.
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