Alaris Equity Partners Income Trust (together, as applicable, with
its subsidiaries, “
Alaris” or the
"
Trust") is pleased to announce its results for
the three and six months ended June 30, 2022. The results are
prepared in accordance with International Accounting Standard 34.
All amounts below are in Canadian dollars unless otherwise noted.
Highlights:
-
Revenue of $56.5 million and cash generated from operations, prior
to changes in working capital of $44.4 million in the second
quarter of 2022 represent 62% and 51% increases respectively, as
compared to the same period in 2021. On a per unit basis, revenue
of $1.25 represents a 60% increase and cash from operations, prior
to changes in working capital of $0.98 represents a 51% increase,
both as compared to Q2 2021;
-
For the six months ended June 30, 2022, total revenue was $96.1
million and cash from operations, prior to changes in working
capital was $79.7 million, representing increases of 43% and 46%
respectively, as compared to the same period in 2021. On a per unit
basis, revenue of $2.12 represents a 35% increase and cash from
operations, prior to changes in working capital of $1.76,
represents a 38% increase, both as compared to the first six months
of 2021;
-
These increases year over year for the three and six months ended
June 30, 2022 primarily relate to the additional US$13.7 million
(CA$17.2 million) of Distributions received in April 2022 from
Kimco Holdings, LLC (“Kimco”) that were deferred
from prior years. The remaining $39.3 million of revenue earned in
Q2 2022 represents a 13% increase as compared to Q2 2021;
-
As part of the Kimco redemption in April 2022, Alaris realized a
premium of US$9.4 million which was recognized as a net realized
gain from investments during the quarter;
-
Subsequent to June 30, 2022, Alaris made a follow-on investment of
US$26.0 million (the “Accscient Contribution”)
into an existing Partner, Accscient, LLC
(“Accscient”). The Accscient Contribution
consisted of US$16.0 million in exchange for additional preferred
units in Accscient (“Accscient Units”) as well as
an investment of US$10.0 million in exchange for a minority
ownership of the common equity in Accscient. The Accscient units
will result in an annualized Distribution to Alaris of US$2.1
million, a pre-tax yield of 13.3%. Accscient used the proceeds of
the Accscient Contribution for investment purposes;
-
Follow-on investment of US$3.5 million to Heritage Restoration, LLC
(“Heritage”) in May 2022 which was comprised of an
additional US$2.5 million of preferred equity at an initial yield
of 15%, as well as an investment of US$1.0 million in exchange for
a minority ownership of the common equity in Heritage;
-
The follow-on investments to Accscient and Heritage resulted in
total 2022 deployment to date of $116 million;
-
For the six months ended June 30, 2022, the Trust has generated
basic earnings per unit of $1.46 and has paid out $0.66 of
distributions per unit, resulting in $0.80 per unit of additional
book value, improving the book value per unit at quarter end to
$18.38;
-
The weighted average combined Earnings Coverage Ratio (5) for
Alaris’ Partners remains greater than 1.75x with fourteen of
eighteen Partners greater than 1.5x; and
-
Alaris reduced its outstanding senior debt during Q2 2022 by
US$77.0 million as a result of the Kimco redemption (US$67.0
million) and repayment through excess cash flow as a result of
Alaris’ low payout ratio (US$10.0 million). The balance of
outstanding senior debt is approximately $287 million as of the
date of this release with $113 million of available capacity based
on covenants and credit terms.
“Alaris’ second quarter results again exceeded
guidance as the Kimco redemption contributed to a record quarter of
revenue and cash flow, which along with our low payout ratio,
allowed for a significant amount of senior debt repayment. The
market for deployment has been soft given the turbulence in the
world financial markets. We are still seeing a large quantity of
deals but not of the quality that we demand. We still expect an
active second half of deployment in 2022 as several of our partners
have acquisition opportunities that will need to be funded and we
still expect to add to our portfolio with new partners. Of
particular interest is the progress that we continue to make on the
asset management strategy, which may include the raising and
managing of third party capital to invest alongside Alaris in
existing Partners and the earning of management fees and carried
interest thereon. Alaris’ portfolio continues to perform remarkably
well and we feel that we’re ideally suited to handle future
economic conditions given the low debt and required service nature
of our portfolio”, said Steve King, President and CEO.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Unit Results |
Three months ended |
Six months ended |
Period ending June 30 |
|
2022 |
|
2021 |
% Change |
|
2022 |
|
2021 |
% Change |
Revenue |
$ |
1.25 |
$ |
0.78 |
+60.3 |
% |
$ |
2.12 |
$ |
1.57 |
+35.0 |
% |
EBITDA (Note 1) |
$ |
1.22 |
$ |
0.95 |
+28.4 |
% |
$ |
2.13 |
$ |
1.79 |
+19.0 |
% |
Cash from operations, prior to changes in working capital |
$ |
0.98 |
$ |
0.65 |
+50.8 |
% |
$ |
1.76 |
$ |
1.28 |
+37.5 |
% |
Distributions declared |
$ |
0.33 |
$ |
0.31 |
+6.5 |
% |
$ |
0.66 |
$ |
0.62 |
+6.5 |
% |
Basic earnings |
$ |
0.85 |
$ |
0.65 |
+30.8 |
% |
$ |
1.46 |
$ |
1.21 |
+20.7 |
% |
Fully diluted earnings |
$ |
0.81 |
$ |
0.63 |
+28.6 |
% |
$ |
1.41 |
$ |
1.17 |
+20.5 |
% |
Weighted average basic units (000’s) |
|
45,272 |
|
44,962 |
|
|
45,217 |
|
42,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2022, revenue per unit
increased by 60.3% compared to the same period in 2021 primarily as
a result of the $17.2 million (US$13.7 million) of Distributions
from Kimco received as part of their redemption that were deferred
from prior years. After reducing the total revenue earned in the
quarter of $56.5 million by the $17.2 million of deferred
Distributions from Kimco, the remaining revenue of $39.3 million
represents a 13% increase compared to $34.9 million of revenue in
Q2 2021. The remaining increase is the result of the new investment
in Vehicle Leasing Holdings, LLC, dba D&M Leasing
(“D&M”) during Q2 2021, follow-on investments
to Body Contour Centers, LLC (“BCC”), Fleet
Advantage, LLC (“Fleet”) and Heritage, as well as
from receiving full Distributions from PF Growth Partners, LLC
(“PFGP”) in Q2 2022 as they were paying partial
Distributions in Q2 2021 as a result of the impact of COVID-19. The
average exchange rate during Q2 2022 was also approximately 4% more
favorable than in the prior year, further contributing to the
improvement in revenue. These increases were partially offset by
the redemption of Federal Resources Supply Company and its
subsidiaries (“FED”) and a partial redemption of
GWM Holdings, Inc. and its subsidiaries (“GWM”),
both during Q4 2021.
For the six months ended June 30, 2022, revenue
per unit increased by 35.0% compared to the first six months of
2021. The largest contributor to the increase is the Distributions
from Kimco from prior years as described above. After reducing the
total revenue of $96.1 million by the deferred Distributions from
Kimco of $17.2 million, the remaining revenue earned in the six
months ended June 30, 2022 is $78.9 million, which represents an
increase of 17% compared to the $67.2 million earned in the
comparable period in 2021. The remaining increase relates to the
investment in D&M and follow-on investments described above, as
well as new investments during Q1 2021 in Falcon Master Holdings
LLC (“FNC”), Brown & Settle Investments, LLC
and a subsidiary thereof (collectively, “Brown &
Settle”) and 3E, LLC (“3E”).
As the Trust’s cash from operations, prior to
changes in working capital, excludes primarily all non-cash items
in the Trust’s consolidated statement of comprehensive income, the
cash from operations, prior to changes in working capital per unit
and the changes from period to period is an important tool to use
to summarize the ability for Alaris to generate cash. The per unit
increases in Q2 2022 of 50.8% and for the six months ended June 30,
2022 of 37.5% are both mainly due to the redemption of Kimco and
the Distributions received that were deferred from prior years.
The Actual Payout Ratio (2) for Alaris for the
six months ended June 30, 2022 was 39%, an improvement from 55% in
the comparable period of 2021, primarily as a result of the
improvements in revenue per unit noted above.
EBITDA per unit increased by 28.4% in Q2 2022
and by 19.0% in the six months ended June 30, 2022, each as
compared to the respective comparable periods in 2021, as a result
of the increases in revenue discussed above with a partial offset
of higher general and administrative expenses in the current period
as compared to the 2021 period. The higher general and
administrative expenses related to higher salaries and benefits
expenses due to the timing of accruing year-end management bonus
accruals as well as higher legal and accounting fees.
Basic earnings per unit increased by 30.8% in Q2
2022 and by 20.7% in the six months ended June 30, 2022, each as
compared to the respective comparable periods in 2021, as a result
of the increases in EBITDA per unit as discussed above.
Outlook
The Trust deployed approximately $86.8 million
in the six months ended June 30, 2022, consistent with Alaris’
acquisition of investments in its condensed consolidated interim
statement of cash flows. As a result of this deployment along with
the Distributions received as part of the Kimco redemption that
were deferred from prior years, Alaris’ Q2 2022 total revenue of
$56.5 million was a record quarter of revenue for the Trust and was
slightly ahead of the expected $56.1 million, due to a higher
average US dollar. As outlined below, the outlook for the next
twelve months includes Run Rate Revenue (3) expected to be
approximately $159.3 million. This includes current contracted
amounts, an additional US$2.4 million from PFGP related to deferred
Distributions during COVID-19 and an estimated $3.7 million of
common dividends. Alaris expects total revenue from its Partners in
Q3 2022 of approximately $39.3 million.
The Run Rate Cash Flow (6) table below outlines
the Trust’s expectation for revenue, general and administrative
expenses, interest expense, tax expense and distributions to
unitholders for the next twelve months. The Run Rate Cash Flow is a
Non-GAAP financial measure and outlines the net cash from operating
activities, net of distributions paid, that Alaris is expecting to
have after the next twelve months. This measure is comparable to
net cash from operating activities less distributions paid, as
outlined in Alaris’ condensed consolidated interim statements of
cash flows. The Trust’s method of calculating this Non-GAAP
financial measure may differ from the methods used by other
issuers. Therefore, it may not be comparable to similar measures
presented by other issuers.
Annual general and administrative expenses are
currently estimated at $16.0 million and include all public company
costs. The Trust’s Run Rate Payout Ratio (4) is expected to be
within a range of 60% and 65% when including Run Rate Revenue (3),
overhead expenses and its existing capital structure. The table
below sets out our estimated Run Rate Cash Flow alongside the
after-tax impact of positive net deployment, the impact of every 1%
increase in LIBOR based on current outstanding USD debt and the
impact of every $0.01 change in the USD to CAD exchange rate.
|
|
|
|
|
|
|
|
|
|
Run Rate Cash Flow ($ thousands except per
unit) |
|
Amount ($) |
$ / Unit |
|
Revenue |
|
$ |
159,300 |
|
$ |
3.52 |
|
|
General
and administrative expenses |
|
(16,000 |
) |
|
(0.35 |
) |
|
Interest
and taxes |
|
|
(50,500 |
) |
|
(1.12 |
) |
|
Net cash from operating activities |
$ |
92,800 |
|
$ |
2.05 |
|
|
Distributions paid |
|
|
(59,800 |
) |
|
(1.32 |
) |
|
Run Rate Cash Flow |
|
$ |
33,000 |
|
$ |
0.73 |
|
|
|
|
|
|
|
Other considerations (after taxes and
interest): |
|
|
|
New
investments |
Every $50 million deployed @ 14% |
|
+3,188 |
|
|
+0.07 |
|
|
Interest
rates |
Every 1.0% increase in LIBOR |
|
-1,800 |
|
|
-0.04 |
|
|
USD to CAD |
Every $0.01 change of USD to CAD |
+/- 900 |
+/- 0.02 |
|
|
|
|
|
|
|
|
|
|
|
The senior debt facility was drawn to $244.5 million at June 30,
2022 in the Trust’s statement of financial position. The annual
interest rate on that debt, inclusive of standby charges on
available capacity, was approximately 4.7% for the six months ended
June 30, 2022. Subsequent to June 30, 2022 following an additional
contribution of US$26.0 million to Accscient, Alaris has the
capacity to draw up to an additional $113 million based on
covenants and credit terms.
The Condensed Consolidated Interim Statements of
Financial Position, Condensed Consolidated Interim Statements of
Comprehensive Income, and Condensed Consolidated Interim Statements
of Cash Flows are attached to this news release. Alaris’ financial
statements and MD&A are available on SEDAR at www.sedar.com and
on our website at www.alarisequitypartners.com.
Earnings Release Date and Conference
Call Details
Alaris management will host a conference call at
9am MT (11am ET), Wednesday, August 10, 2022 to discuss the
financial results and outlook for the Trust.
Participants must register for the call using
this link: Q2 2022 Conference Call. Pre-register to receive the
dial-in numbers and unique PIN to access the call seamlessly. It is
recommended that you join 10 minutes prior to the event start
(although you may register and dial in at any time during the
call). Participants can access the webcast here: Q2 webcast. A
replay of the webcast will be available two hours after the call
and archived on the same web page for six months. Participants can
also find the link on our website, stored under the “Investors”
section – “Presentations and Events”, at
www.alarisequitypartners.com.
An updated corporate presentation will be posted
to the Trust’s website within 24 hours at
www.alarisequitypartners.com.
About the Trust:
Alaris, through its subsidiaries, provides
alternative financing to private companies
(“Partners”) in exchange for distributions,
dividends or interest (collectively,
“Distributions”) with the principal objective of
generating stable and predictable cash flows for distribution
payments to its unitholders. Distributions from the Partners are
adjusted annually based on the percentage change of a “top-line”
financial performance measure such as gross margin or same store
sales and rank in priority to the owner’s common equity
position.
Non-GAAP and Other Financial
MeasuresThe terms EBITDA, Actual Payout Ratio, Run Rate
Revenue, Run Rate Payout Ratio, Earnings Coverage Ratio, Run Rate
Cash Flow and Per Unit amounts (collectively, the “Non-GAAP
and Other Financial Measures”) are financial measures used
in this news release that are not standard measures under
International Financial Reporting Standards
(“IFRS”). The Trust’s method of calculating
EBITDA, Actual Payout Ratio, Run Rate Revenue, Run Rate Payout
Ratio, Earnings Coverage Ratio, Run Rate Cash Flow and Per Unit
amounts may differ from the methods used by other issuers.
Therefore, the Trust’s EBITDA, Actual Payout Ratio, Run Rate
Revenue, Run Rate Payout Ratio, Earnings Coverage Ratio, Run Rate
Cash Flow and Per Unit amounts may not be comparable to similar
measures presented by other issuers.
(1) “EBITDA” and
“EBITDA per unit” are Non-GAAP financial measures
and refer to earnings determined in accordance with IFRS, before
depreciation and amortization, interest expense (finance costs) and
income tax expense and the same amount divided by weighted average
basic units outstanding. EBITDA and EBITDA per unit are used by
management and many investors to determine the ability of an issuer
to generate cash from operations, aside from still including
fluctuations due to changes in exchange rates and changes in the
Trust’s investments at fair value. Management believes EBITDA and
EBITDA per unit are useful supplemental measures from which to
determine the Trust’s ability to generate cash available for
servicing its loans and borrowings, income taxes and distributions
to unitholders. Refer to the reconciliation of EBITDA and
calculation of EBITDA per unit in the table below.
|
|
|
|
|
|
|
|
Three months ended June 30 |
Six months endedJune 30 |
$ thousands except per unit amounts |
|
2022 |
|
2021 |
% Change |
|
2022 |
|
2021 |
% Change |
Earnings |
$ |
38,626 |
$ |
29,318 |
+31.7 |
% |
$ |
66,031 |
$ |
51,964 |
+27.1 |
% |
Depreciation and amortization |
|
53 |
|
45 |
+17.8 |
% |
|
106 |
|
120 |
-11.7 |
% |
Finance costs |
|
7,095 |
|
5,786 |
+22.6 |
% |
|
13,561 |
|
11,407 |
+18.9 |
% |
Total income tax expense |
|
9,396 |
|
7,699 |
+22.0 |
% |
|
16,683 |
|
13,470 |
+23.9 |
% |
EBITDA |
$ |
55,170 |
$ |
42,848 |
+28.8 |
% |
$ |
96,381 |
$ |
76,961 |
+25.2 |
% |
Weighted average basic units (000's) |
|
45,272 |
|
44,962 |
|
|
45,217 |
|
42,894 |
|
EBITDA per unit |
$ |
1.22 |
$ |
0.95 |
+28.4 |
% |
$ |
2.13 |
$ |
1.79 |
+19.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) “Actual Payout Ratio” is a supplementary
financial measure and refers to Alaris’ total distributions paid
during the period (annually or quarterly) divided by the actual net
cash from operating activities Alaris generated for the period. It
represents the net cash from operating activities after
distributions paid to unitholders available for either repayments
of senior debt and/or to be used in investing activities.
(3) “Run Rate Revenue” is a
supplementary financial measure and refers to Alaris’ total revenue
expected to be generated over the next twelve months based on
contracted distributions from current Partners, excluding any
potential Partner redemptions, it also includes an estimate for
common dividends or distributions based on past practices, where
applicable. Run Rate Revenue is a useful metric as it provides an
expectation for the amount of revenue Alaris can expect to generate
in the next twelve months based on information known.
(4) “Run Rate Payout Ratio” is
a Non-GAAP financial ratio that refers to Alaris’ distributions per
unit expected to be paid over the next twelve months divided by the
net cash from operating activities per unit calculated in the Run
Rate Cash Flow table. Run Rate Payout Ratio is a useful metric for
Alaris to track and to outline as it provides a summary of the
percentage of the net cash from operating activities that can be
used to either repay senior debt during the next twelve months
and/or be used for additional investment purposes. Run Rate Payout
Ratio is comparable to Actual Payout Ratio as defined above.
(5) “Earnings Coverage Ratio
(“ECR”)” is a supplementary financial measure and refers
to the EBITDA of a Partner divided by such Partner’s sum of debt
servicing (interest and principal), unfunded capital expenditures
and distributions to Alaris. Management believes the earnings
coverage ratio is a useful metric in assessing our partners
continued ability to make their contracted distributions.
(6) “Run Rate Cash Flow” is a
Non-GAAP financial measure and outlines the net cash from operating
activities, net of distributions paid, that Alaris is expecting to
have after the next twelve months. This measure is comparable to
net cash from operating activities less distributions paid, as
outlined in Alaris’ consolidated statements of cash flows.
(7) “Per Unit” values, other
than earnings per unit, refer to the related financial statement
caption as defined under IFRS or related term as defined herein,
divided by the weighted average basic units outstanding for the
period.
The terms EBITDA, Actual Payout Ratio, Run Rate
Revenue, Run Rate Payout Ratio, Earnings Coverage Ratio, Run Rate
Cash Flow and Per Unit amounts should only be used in conjunction
with the Trust’s annual audited financial statements, complete
versions of which available on SEDAR at www.sedar.com.
Forward-Looking Statements
This news release contains forward-looking
information and forward-looking statements (collectively,
“forward-looking statements”) under applicable securities laws,
including any applicable “safe harbor” provisions. 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 Trust and the
Partners, the future financial position or results of the Trust,
business strategy and plans and objectives of or involving the
Trust 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 financial and operating performance of the Partners;
the Trust’s Run Rate Payout Ratio, Run Rate Cash Flow and Run Rate
Revenue; the impact of recent new investments and follow-on
investments; the Trust’s consolidated expenses; expectations
regarding receipt (and amount of) any common equity distributions
or dividends from Partners in which Alaris holds common equity,
including the impact on the Trust’s net cash from operating
activities, Run Rate Revenue, Run Rate Cash Flow and Run Rate
Payout Ratio; the use of proceeds from the senior credit facility;
the Trust’s ability to deploy capital and expectations regarding
the same; the yield on the Trust’s investments; the Trust’s asset
management strategy and impact thereof; the Trust’s return on its
investments; potential Partner redemptions, including the timing,
if at all, thereof and the amounts to be received by the Trust; Q3
2022 revenue; and the Trust’s expenses for the remainder of 2022.
To the extent any forward-looking statements herein constitute a
financial outlook or future oriented financial information
(collectively, “FOFI”), including estimates
regarding revenues, Distributions from Partners (including expected
resets, restarting full or partial Distributions and common equity
distributions), Run Rate Payout Ratio, Run Rate Cash Flow, net cash
from operating activities, expenses and impact of capital
deployment, 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 over the next 24 months and how that
will affect Alaris’ business and that of its Partners (including,
without limitation, any ongoing impact of COVID-19) 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 continue to
stabilize from the economic downturn created by COVID-19, the
Russia/Ukraine conflict and other global economic pressures over
the next twelve months, interest rates will not rise in a material
way from market expectations over the next 12 months, that those
Alaris Partners previously affected by COVID-19 will not see a
detrimental impact from COVID-19 over the next 12 months; that
those Partners detrimentally affected by COVID-19 will recover from
the pandemic’s impact and return to their pre-pandemic operating
environments; the businesses of the majority of our Partners will
continue to grow; more private companies will require access to
alternative sources of capital; the businesses of new Partners and
those of existing Partners will perform in line with Alaris’
expectations and diligence; 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 the Canadian and U.S.
dollar trading pair will remain in a range of approximately plus or
minus 15% of the current rate over the next 6 months. 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 as well as
prevailing economic conditions at the time of such
determinations.
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 Trust 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 ongoing impact of the COVID-19
pandemic and other global economic factors (including, without
limitation, the Russia/Ukraine conflict, inflationary measures and
global supply chain disruptions on the Trust and the Partners
(including how many Partners will experience a slowdown of their
business and the length of time of such slowdown); the dependence
of Alaris on the Partners; leverage and restrictive covenants under
credit facilities; reliance on key personnel; general economic
conditions, including any ongoing impact of COVID-19 on the
Canadian, U.S. and global economies; failure to complete or realize
the anticipated benefit of Alaris’ financing arrangements with the
Partners; 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 Partner or the industries they operate in;
inability to close additional Partner contributions or collect
proceeds from any redemptions in a timely fashion on anticipated
terms, or at all; a change in the ability of the Partners to
continue to pay Alaris at expected Distribution levels or restart
distributions (in full or in part); a failure to collect material
deferred Distributions; a change in the unaudited information
provided to the Trust; and a failure to realize the benefits of any
concessions or relief measures provided by Alaris to any Partner or
to successfully execute an exit strategy for a Partner where
desired. Additional risks that may cause actual results to vary
from those indicated are discussed under the heading “Risk Factors”
and “Forward Looking Statements” in Alaris’ Management Discussion
and Analysis and Annual Information Form for the year ended
December 31, 2021, which is filed under Alaris’ profile at
www.sedar.com and on its website at
www.alarisequitypartners.com.
Readers are cautioned that the assumptions used
in the preparation of forward-looking statements, including FOFI,
although considered reasonable at the time of preparation, based on
information in Alaris’ possession as of the date hereof, may prove
to be imprecise. In addition, there are a number of factors that
could cause Alaris’ actual results, performance or achievement to
differ materially from those expressed in, or implied by, forward
looking statements and FOFI, or if any of them do so occur, what
benefits the Trust will derive therefrom. As such, undue reliance
should not be placed on any forward-looking statements, including
FOFI.
The Trust has included the forward-looking
statements and FOFI in order to provide readers with a more
complete perspective on Alaris’ future operations and such
information may not be appropriate for other purposes. The
forward-looking statements, including FOFI, contained herein are
expressly qualified in their entirety by this cautionary statement.
Alaris disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
For more information please
contact:Investor RelationsAlaris Equity Partners
Income Trust403-260-1457ir@alarisequity.com
Alaris Equity Partners Income
TrustCondensed consolidated interim statements of
financial position
|
|
|
|
30-Jun |
31-Dec |
$
thousands |
|
2022 |
|
2021 |
Assets |
|
|
Cash and cash equivalents |
$ |
25,263 |
$ |
18,447 |
Derivative contracts |
|
796 |
|
71 |
Accounts receivable and
prepayments |
|
790 |
|
3,181 |
Income taxes receivable |
|
23,000 |
|
28,991 |
Promissory notes and other
assets |
|
1,038 |
|
13,555 |
Current
Assets |
$ |
50,887 |
$ |
64,245 |
Deposits |
|
25,040 |
|
24,979 |
Property and equipment |
|
572 |
|
658 |
Investments |
|
1,231,588 |
|
1,185,327 |
Non-current assets |
$ |
1,257,200 |
$ |
1,210,964 |
Total
Assets |
$ |
1,308,087 |
$ |
1,275,209 |
|
|
|
Liabilities |
|
|
Accounts payable and accrued
liabilities |
$ |
6,886 |
$ |
8,214 |
Distributions payable |
|
14,943 |
|
14,899 |
Office Lease |
|
424 |
|
500 |
Income tax payable |
|
830 |
|
740 |
Current
Liabilities |
$ |
23,083 |
$ |
24,353 |
Deferred income taxes |
|
53,493 |
|
43,903 |
Loans and borrowings |
|
244,498 |
|
326,569 |
Convertible debenture |
|
91,455 |
|
89,592 |
Senior unsecured
debenture |
|
62,375 |
|
- |
Other long-term
liabilities |
|
1,115 |
|
1,933 |
Non-current
liabilities |
$ |
452,936 |
$ |
461,997 |
Total
Liabilities |
$ |
476,019 |
$ |
486,350 |
|
|
|
Equity |
|
|
Unitholders' capital |
$ |
757,220 |
$ |
754,622 |
Translation reserve |
|
19,511 |
|
15,052 |
Retained earnings |
|
55,337 |
|
19,185 |
Total
Equity |
$ |
832,068 |
$ |
788,859 |
|
|
|
Total Liabilities and Equity |
$ |
1,308,087 |
$ |
1,275,209 |
|
|
|
Alaris Equity Partners Income TrustCondensed
consolidated interim statements of comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30 |
|
Six months ended June 30 |
$
thousands except per unit amounts |
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
Revenues, including realized
foreign exchange gain |
$ |
56,497 |
|
$ |
34,933 |
|
|
$ |
96,061 |
|
$ |
67,167 |
|
Net realized gain from
investments |
|
11,948 |
|
|
- |
|
|
|
11,948 |
|
|
- |
|
Net unrealized gain / (loss)
of investments at fair value |
|
(12,416 |
) |
|
16,224 |
|
|
|
(2,388 |
) |
|
21,758 |
|
Bad debt recovery |
|
- |
|
|
- |
|
|
|
- |
|
|
4,030 |
|
Total revenue and
other operating income |
$ |
56,029 |
|
$ |
51,157 |
|
|
$ |
105,621 |
|
$ |
92,955 |
|
|
|
|
|
|
|
General and
administrative |
|
6,173 |
|
|
1,907 |
|
|
|
9,660 |
|
|
4,315 |
|
Transaction diligence
costs |
|
945 |
|
|
834 |
|
|
|
1,853 |
|
|
2,736 |
|
Unit-based compensation |
|
(77 |
) |
|
1,076 |
|
|
|
1,800 |
|
|
2,606 |
|
Depreciation and
amortization |
|
53 |
|
|
45 |
|
|
|
106 |
|
|
120 |
|
Total operating
expenses |
|
7,094 |
|
|
3,862 |
|
|
|
13,419 |
|
|
9,777 |
|
Earnings from
operations |
$ |
48,935 |
|
$ |
47,295 |
|
|
$ |
92,202 |
|
$ |
83,178 |
|
Finance costs |
|
7,095 |
|
|
5,786 |
|
|
|
13,561 |
|
|
11,407 |
|
Unrealized (gain) / loss on
derivative contracts |
|
1,333 |
|
|
453 |
|
|
|
(727 |
) |
|
276 |
|
Foreign exchange (gain) /
loss |
|
(7,515 |
) |
|
4,039 |
|
|
|
(3,346 |
) |
|
6,061 |
|
Earnings before
taxes |
$ |
48,022 |
|
$ |
37,017 |
|
|
$ |
82,714 |
|
$ |
65,434 |
|
Current income tax
expense |
|
5,967 |
|
|
3,656 |
|
|
|
7,521 |
|
|
8,146 |
|
Deferred income tax
expense |
|
3,429 |
|
|
4,043 |
|
|
|
9,162 |
|
|
5,324 |
|
Total income tax expense |
|
9,396 |
|
|
7,699 |
|
|
|
16,683 |
|
|
13,470 |
|
Earnings |
$ |
38,626 |
|
$ |
29,318 |
|
|
$ |
66,031 |
|
$ |
51,964 |
|
|
|
|
|
|
|
Other comprehensive
income |
|
|
|
|
|
Foreign currency translation
differences |
|
17,684 |
|
|
(7,776 |
) |
|
|
4,459 |
|
|
(12,868 |
) |
|
|
|
|
|
|
Total comprehensive income |
$ |
56,310 |
|
$ |
21,542 |
|
|
$ |
70,490 |
|
$ |
39,096 |
|
|
|
|
|
|
|
Earnings per
unit |
|
|
|
|
|
Basic |
$ |
0.85 |
|
$ |
0.65 |
|
|
$ |
1.46 |
|
$ |
1.21 |
|
Fully diluted |
$ |
0.81 |
|
$ |
0.63 |
|
|
$ |
1.41 |
|
$ |
1.17 |
|
Weighted average units
outstanding |
|
|
|
|
|
Basic |
|
45,272 |
|
|
44,962 |
|
|
|
45,217 |
|
|
42,894 |
|
Fully
Diluted |
|
49,749 |
|
|
49,559 |
|
|
|
49,694 |
|
|
47,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alaris Equity Partners Income TrustCondensed
consolidated interim statements of cash flows
|
|
|
|
Six months ended June 30 |
$
thousands |
|
2022 |
|
|
2021 |
|
Cash flows from
operating activities |
|
|
Earnings for the period |
$ |
66,031 |
|
$ |
51,964 |
|
Adjustments for: |
|
|
Finance costs |
|
13,561 |
|
|
11,407 |
|
Deferred income tax expense |
|
9,162 |
|
|
5,324 |
|
Depreciation and amortization |
|
106 |
|
|
120 |
|
Bad debt recovery |
|
- |
|
|
(4,030 |
) |
Net realized (gain) / loss from investments |
|
(11,948 |
) |
|
- |
|
Net unrealized (gain) / loss of investments at fair value |
|
2,388 |
|
|
(21,758 |
) |
Unrealized (gain) / loss on derivative contracts |
|
(727 |
) |
|
276 |
|
Unrealized foreign exchange (gain) / loss |
|
(2,497 |
) |
|
6,061 |
|
Transaction diligence costs |
|
1,853 |
|
|
2,736 |
|
Unit-based compensation |
|
1,800 |
|
|
2,606 |
|
Cash from operations, prior to
changes in working capital |
|
79,729 |
|
|
54,706 |
|
Changes in working
capital: |
|
|
Accounts receivable and prepayments |
|
2,391 |
|
|
(879 |
) |
Income tax receivable / payable |
|
6,509 |
|
|
2,337 |
|
Accounts payable, accrued liabilities |
|
(1,328 |
) |
|
(17 |
) |
Cash generated from
operating activities |
|
87,301 |
|
|
56,147 |
|
Cash interest paid |
|
(10,156 |
) |
|
(9,140 |
) |
Net cash from
operating activities |
$ |
77,145 |
|
$ |
47,007 |
|
|
|
|
Cash flows from
investing activities |
|
|
Acquisition of
investments |
$ |
(86,816 |
) |
$ |
(260,666 |
) |
Transaction diligence
costs |
|
(1,853 |
) |
|
(2,736 |
) |
Proceeds from partner
redemptions |
|
58,275 |
|
|
1,208 |
|
Promissory notes and other
assets issued |
|
- |
|
|
(9,556 |
) |
Promissory notes and other
assets repaid |
|
12,531 |
|
|
10,868 |
|
Net cash used in
investing activities |
$ |
(17,863 |
) |
$ |
(260,882 |
) |
|
|
|
Cash flows from
financing activities |
|
|
Repayment of loans and
borrowings |
$ |
(165,636 |
) |
$ |
(114,705 |
) |
Proceeds from loans and
borrowings |
|
83,473 |
|
|
273,585 |
|
Debt amendment and extension
fees |
|
- |
|
|
(552 |
) |
Issuance of unitholders'
capital, net of unit issue costs |
|
- |
|
|
90,287 |
|
Proceeds from senior unsecured
debenture, net of fees |
|
62,192 |
|
|
- |
|
Distributions paid |
|
(29,835 |
) |
|
(26,028 |
) |
Office lease payments |
|
(75 |
) |
|
(81 |
) |
Net cash from / (used
in) financing activities |
$ |
(49,881 |
) |
$ |
222,506 |
|
|
|
|
Net increase in cash
and cash equivalents |
$ |
9,401 |
|
$ |
8,631 |
|
Impact of foreign exchange on
cash balances |
|
(2,585 |
) |
|
(1,346 |
) |
Cash and cash equivalents,
Beginning of period |
|
18,447 |
|
|
16,498 |
|
Cash and cash equivalents, End of period |
$ |
25,263 |
|
$ |
23,783 |
|
|
|
|
Cash taxes paid |
$ |
1,470 |
|
$ |
4,785 |
|
|
|
|
Alaris Equity Partners I... (TSX:AD.UN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Alaris Equity Partners I... (TSX:AD.UN)
Historical Stock Chart
From Apr 2023 to Apr 2024