Altus Group Limited Announces Second Quarter Results

Altus Group Limited 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.

About Altus Group Limited

Altus.JPGAltus 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.
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