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GENIVAR Income Fund Reports on First Quarter 2007 Results

A Strong Start for 2007

Montreal, May 9, 2007 – GENIVAR Income Fund (the Fund) announced, today, its financial and operating results (unaudited) for the period from January 1 to March 31, 2007. This is the fourth reporting period of the Fund since it commenced business operations on May 25, 2006 and, consequently, no comparative information is provided in the Fund’s interim consolidated financial statements. However, in order to provide investors with a meaningful assessment of its performance, we have included selected financial information of the Fund and its predecessor company, GENIVAR Inc. (Engineering consulting services company), for the three months ended March 31, 2006.

Highlights

• Net revenues, in the first quarter of 2007, were $44.2 million, up from $27.3 million for the same period, in 2006.
• EBITDA stood at $8.1 million, a 38.9 % increase from $5.8 million in the first quarter of 2006.
• Distributable cash generated totalled $6.6 million before a non-recurring expenditure, of which $4.7 million was distributed to unitholders, representing a payout ratio of 71.8 %.
• Backlog increased to $156.4 million.
• The Fund completed the integration of four recent acquisitions.

Revenues for the period from January 1 to March 31, 2007 were $54.3 million. The net earnings, before non-controlling interest, were $4.6 million or 24 cents per unit.

“The Fund is off to a strong start with these excellent results and we are pleased with the contribution of our recent acquisitions,” said Pierre Shoiry, President and CEO of the GENIVAR Income Fund.

The Fund continued revenue growth and profitability over its first three complete quarters since its Initial Public Offering of May 25, 2006. Capital expenditures during the first quarter were significant, totalling $2.1 million. A non-recurring expenditure of $0.8 million, net of the sale of a building, was incurred in connection with the expansion of our Quebec City office, which is owned by the Fund. Construction will be completed by July 2007 and all the Quebec City personnel will thereafter be consolidated at that location.

Gross margins remained stable while management, general and administrative expenses increased following the integration of our four recent acquisitions.

“This has been a very active quarter for our team and, we have initiated work on numerous challenging projects in all of our operating regions. Demand for our services is high and the volume of new mandates is indicative of our firm’s capacity for service and, the confidence our clients place in our team,” concluded Shoiry.

Recent awards include:

• The development of a water and wastewater master plan of Trinidad and Tobago and the program management for the modernisation of these installations.
• Project management services for the CHUM and Grey Bruce Hospital, in Ontario; the John Molson School of Business of Concordia University and the Savannah East Development Project for the National Insurance Bureau of Trinidad and Tobago.
• A 45.5 MW renewable energy cogeneration plant for the Fort-Frances division of Abitibi-Consolidated, in Ontario.
• The modernisation and subsequent reduction of greenhouse gases of the SFK Pulp Plant in St-Felicien.
• The implementation of a water and sewer system for East Selkirk, in Manitoba.

Subsequent to March 31, 2007, the Fund announced the closing of the acquisition of Nove Environment, a 30-employee firm specialized in environmental studies.

The Fund will hold its first annual meeting on May 17, 2007, at 10:30 a.m., Montreal Convention Centre, 201 Viger St. West, Room 523, Montreal, Quebec.

GENIVAR is a leading Canadian engineering services firm providing private and public sector clients with a full range of professional consulting services through all execution phases of a project including planning, design, construction and maintenance. Its clients, who are of varying sizes, fall into various market segments such as building, industrial and power, urban infrastructure, transportation and environment. GENIVAR is one of the largest engineering services firm in Canada, in terms of number of employees, with more than 1,800 managers, professionals, technicians and technologists and support staff, in over 40 offices in Canada and abroad.

The Fund’s financial statements, as well as management’s discussion and analysis of this reporting period can be obtained via the GENIVAR website, in the Investor Relations section, at www.genivar.com or at www.sedar.com.

 

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For further information, please contact:

Pierre Shoiry, President and CEO
GENIVAR
Tel.: 514 340-0046, ext. 5104

For media inquiries:
Marlene Casciaro, Director of Communications
GENIVAR
Tel.: 514 340-0046, ext. 5184

 

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