ENP Newswire -
Release date- 25072014 -
Alaris experienced significant increases in revenue, Normalized EBITDA, net cash from operating activities and dividends on a per share basis in the quarter, a direct result of the continued execution of our business plan to fund well run, successful new private company partners ('Partners') with a long track record of sustainable cash flow. For the three months ended
On a per share basis, the increase was over 22%. The increase was due to the addition of four new Partners in the past 13 months:
Each of these transactions added new revenues in the current period compared to the prior year. Expenses were as expected in the quarter with legal and accounting expenses higher compared to the prior year period due to increased tax compliance matters.
At each quarter end, the Corporation reviews the fair value of the preferred units in each of the Partners. At
For the three and six months ended
The decrease in earnings and EBITDA is due to the gain on the reduction of the Corporation's financial interest in LifeMark in 2013. The significant increase in Normalized EBITDA in the quarter was due to the new revenue streams noted above as they were added with minimal additional costs. On a per share basis, the increase in Normalized EBITDA was 24.2%. The Corporation has raised the dividend three times in the past twelve months resulting in another double digit percentage increase in the dividends paid per share compared to the prior year periods.
'We're pleased to be reporting another strong quarter with results in line with our previously disclosed guidance. The quarter was highlighted by the addition of another new Partner in June (
The accretive Kimcotransaction, along with accretive follow-on contributions to SMi and Sequel, which we are scheduled to close shortly, are expected to continue to fuel our growth on a gross and per share basis in the quarters to follow,' said
The Corporation intends to make an additional contribution of
The Corporation also expects to make an additional contribution of
The Additional Sequel Contribution was part of a package to allow Sequel to buyout a non-executive owner of the business. The Additional Partner Contributions are subject to customary approval and closing conditions.
The Additional Partner Contributions are expected to provide Alaris with approximately
Alaris' agreements with its Partners, after giving effect to the Additional Partner Contributions, provide for estimated revenues to Alaris of approximately
General and administrative expenses are currently estimated to be
About the Corporation
Alaris provides alternative financing to the Partners in exchange for distributions with the principal objective of generating stable and predictable cash flows for dividend payments to its shareholders. Distributions from the Partners are structured as a percentage of a 'top line' financial performance measure such as gross margin and same-store sales and rank in priority to the owners' common equity position.
The terms EBITDA and Normalized EBITDA are financial measures used in this news release that are not standard measures under International Financial Reporting Standards ('IFRS'). The Corporation's method of calculating EBITDA and Normalized EBITDA may differ from the methods used by other issuers. Therefore, the Corporation's EBITDA and Normalized EBITDA may not be comparable to similar measures presented by other issuers.
EBITDA refers to net earnings (loss) determined in accordance with IFRS, before depreciation and amortization, interest expense and income tax expense. EBITDA is used by management and many investors to determine the ability of an issuer to generate cash from operations. Management believes EBITDA is a useful supplemental measure from which to determine the Corporation's ability to generate cash available for debt service, working capital, capital expenditures, income taxes and dividends.
Normalized EBITDA refers to EBITDA excluding items that are non-recurring in nature. 'Normalized EBITDA' is calculated by adjusting for non-recurring charges and gains to EBITDA. Management deems non-recurring charges or gains to be unusual and/or infrequent charges that the Corporation incurs or realizes outside of its common day-to-day operations.
For the three months ended
The term EBITDA should only be used in conjunction with the Corporation's annual audited and quarterly reviewed financial statements, excerpts of which are available below, while complete versions are available on SEDAR at www.sedar.com. The Corporation has provided a reconciliation of net income to EBITDA and Normalized EBITDA in this news release.
This news release contains forward-looking statements as defined under applicable securities laws. Statements other than statements of historical fact contained in this news release are forward-looking statements, including, without limitation, management's expectations, intentions and beliefs concerning the growth, results of operations, performance of the Corporation and the Partners, the future financial position or results of the Corporation, business strategy, and plans and objectives of or involving the Corporation or the Partners.
Many of these statements can be identified by looking for words such as 'believe', 'expects', 'will', 'intends', 'projects', 'anticipates', 'estimates', 'continues' or similar words or the negative thereof.
In particular, this news release contains forward-looking statements regarding the anticipated revenues to be received by Alaris and its general and administrative expenses in 2014 (in aggregate and quarterly), the cash requirements of Alaris in 2014, Alaris' general and administrative costs for 2014, the balance available on the Corporation's credit facility and the Additional Partner Contributions (including the timing, the additional distribution payable to Alaris and the impact on Alaris' net cash from operating activities).
To the extent any forward-looking statements herein constitute a financial outlook, they were approved by management as of the date hereof and have been included to provide an understanding with respect to Alaris' financial performance and are subject to the same risks and assumptions disclosed herein. There can be no assurance that the plans, intentions or expectations upon which these forward looking statements are based will occur.
By their nature, forward-looking statements require Alaris to make assumptions and are subject to inherent risks and uncertainties. Assumptions about the performance of the Canadian and U.S. economies in 2014 and how that will affect Alaris' business and that of its Partners are material factors considered by Alaris management when setting the outlook for Alaris.
Key assumptions include, but are not limited to, assumptions that the Canadian and U.S. economies will grow moderately over the next 12 months, that interest rates will not rise in a material way over the next 12 to 24 months, that the Partners will continue to make distributions to Alaris as and when required, that the businesses of the Partners will continue to grow, what the Corporation expects to experience regarding resets to its annual royalties and distributions from its Partners in 2014, and that Alaris will have the ability to raise required equity and/or debt financing on acceptable terms.
Management of Alaris has also assumed that capital markets will remain stable and that the Canadian dollar will remain in a range of approximately plus or minus 5% of par relative to the U.S. dollar. In determining expectations for economic growth, management of Alaris primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.
There can be no assurance that the assumptions, plans, intentions or expectations upon which these forward-looking statements are based will occur. Forward-looking statements are subject to risks, uncertainties and assumptions and should not be read as guarantees or assurances of future performance.
The actual results of the Corporation and the Partners could materially differ from those anticipated in the forward-looking statements contained herein as a result of certain risk factors, including, but not limited to, the following: the dependence of Alaris on the Partners; reliance on key personnel; general economic conditions; failure to complete or realize the anticipated benefit of Alaris' financing arrangements with the Partners; government regulations; a failure to obtain required regulatory approvals on a timely basis or at all; changes in legislation and regulations and the interpretations thereof; risks relating to the Partners and their businesses, including, without limitation, a material change in the operations of a Private Company Partner or the industries they operate in: a change in the ability of the Partners to continue to pay Alaris' preferred distributions and material adjustments to the unaudited financial information provide to Alaris by the Partners.
Additional risks that may cause actual results to vary from those indicated are discussed under the heading 'Risk Factors' in the Corporation's Annual Information Form for the year ended
Statements containing forward-looking information reflect management's current beliefs and assumptions based on information in its possession on the date of this news release. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.
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