WesternOne Inc. Reports Solid Growth in 2013 Q2 Results

VANCOUVER, Aug. 14, 2013 /CNW/ - WesternOne Inc. ("WesternOne") (Toronto Stock Exchange: WEQ, WEQ.DB, WEQ.DB.B and WEQ.DB.C) today announced the release of its financial results for the three and six months ended June 30, 2013.

The results, consisting of WesternOne's interim financial statements for the three and six months ended June 30, 2013 and Management's Discussion and Analysis ("MD&A") dated August 14, 2013, are available on SEDAR (www.sedar.com).

2013 Q2 financial highlights:

• WesternOne recorded consolidated revenue, gross profit and adjusted EBITDA⁽¹⁾ of $103.2 million, $23.9 million and $14.8 million, respectively, an increase of 80%, 48%, 24%, respectively, compared with Q2 in 2012.
  
  
• WesternOne's Britco division achieved 101% and 48% growth in revenue and adjusted EBITDA, respectively, compared with Q2 last year due to strong manufacturing activity and increased site-related transportation and installation work in the workforce accommodation and infrastructure and utility sectors in North America. In response to the demand, Britco increased its manufacturing workforce and achieved higher production output at its four manufacturing facilities in Canada and the US.
  
  
• WesternOne Rentals & Sales recorded normalized organic growth in revenue and adjusted EBITDA of 16% and 5%, respectively, compared with Q2 in 2012. The growth was driven by higher fleet utilization and incremental fleet investments, due to strong demand for aerial equipment and construction heating and power services in Western Canada's commercial construction, infrastructure and film production segments.
  
  
• Operating cash flow (before working capital changes) grew by 20% from $10.3 million in Q2 2012 to $12.4 million.
  
  
• Consolidated payout percentage⁽²⁾ for Q2 was 42.9%, compared with 49.5% in Q2 in 2012. Year-to-date payout percentage was 41.4% for the six months ended June 30, 2013.

"We are pleased with the solid financial results from our two operating platforms, driven by strong business activity in the key industry sectors that we operate in," said Mr. Darren Latoski, Chief Executive Officer. "This in turn generates sustainable growth in the operating cash flow, which will allow us to facilitate further business growth and deliver consistent dividends at a low payout ratio."

Summary Financial Overview	Three months ended June 30,						Six months ended June 30,
($ millions except per share /unit amounts)
	2013			2012			2013			2012
Revenue	$	103.2		$	57.4		$	180.2		$	109.3
Gross Profit		23.9			16.1			45.0			33.6
Adjusted EBITDA ^(1) (2)	$	14.8		$	12.0		$	27.5		$	24.8
Net Income (Loss) ^(2)	$	3.8		$	(1.4)		$	4.5		$	(5.1)
Earnings (Loss) per Share/Unit ^(2)
- Basic		0.16			(0.07)			0.19			(0.26)
- Diluted		0.15			(0.07)			0.19			(0.26)
Distributable Cash Generated ^(1)	$	8.4		$	6.0		$	17.0		$	15.4
Dividends/Distributions Declared		3.6			3.0			7.0			5.9
Distributable Cash per Share ^(4)		0.35			0.30			0.73			0.80
Dividends/Distributions Declared per Share		0.15			0.15			0.30			0.30
Payout Percentage ^(3)		42.9%			49.5%			41.4%			38.0%

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 trust conversion costs, debenture issuance costs, gain/loss on debentures relating to changes in their fair values, gain/loss on trust unit issuances relating to conversion of debentures, gain/loss on WesternOne 's exchangeable units relating to changes in their fair values, share/unit based compensation, foreign exchange gains/losses, and write-down of capital assets, intangible assets and goodwill. "Distributable Cash" refers to cash available for dividend/distribution to the shareholders/unitholders by WesternOne. For further description of Adjusted EBITDA and Distributable Cash refer to "Non-IFRS Measures" in the MD&A dated August 14, 2013.
(2)	Represents amount attributable to shareholders.
(3)	Amounts calculated using distributable cash and dividends/distributions declared for the related period, not on per share/unit amounts. Calculated as dividend/distribution declared divided by distributable cash generated.
(4)	Calculated based on basic weighted average number of shares/units.

Conference Call

Darren Latoski, CEO, Geoff Shorten, President and COO and Carlos Yam, CFO, of WesternOne will host a conference call at 4:30pm (Eastern time) or 1:30pm (Pacific time), on Wednesday, August 14, 2013, to review the financial results and corporate developments for the three and six months ended June 30, 2013.

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:					Toll Free .......................................................1-888-390-0605
					International or Local Toronto ......................1-416-764-8609

Conference Call Replay

If you cannot participate on August 14, 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 August 21, 2013. Please enter the Replay ID number 167663 followed by the # key.

Replay Dial-In:					Toll Free ..........................................................1-888-390-0541
					International or Local Toronto .........................1-416-764-8677

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 growth prospects in sectors where WesternOne's businesses are conducted, the generation of operating cash flow and WesternOne's plan to facilitate business growth and distribute dividends to its shareholders. 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 28, 2013 and Management's Discussion and Analysis dated August 14, 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 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, 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 Inc.

For more information about this press release, please contact:

Carlos Yam, Chief Financial Officer
WesternOne Inc.
Suite 910, 925 West Georgia Street
Vancouver, BC  V6C 3L2
Phone:  [phone]
E-mail:  [email protected]

For investor relations information, please contact:

Andrew Greig, Manager of Investor Relations
WesternOne Inc.
Suite 910, 925 West Georgia Street
Vancouver, BC  V6C 3L2
Phone:  [phone]
E-mail:  [email protected]