Alaris Equity Partners Income Trust (together, as applicable, with
its subsidiaries, “
Alaris” or the
"
Trust") is pleased to announce its results for
the three months and year ended December 31, 2021. The results are
prepared in accordance with International Accounting Standard 34.
All amounts below are in Canadian dollars unless otherwise noted.
Highlights:
-
Revenue of $37.6 million and cash generated from operating
activities of $34.5 million in the fourth quarter of 2021 represent
18% and 29% increases respectively, as compared to the same period
in 2020. On a per unit basis, revenue of $0.83 represents a 5.7%
decrease and cash generated from operating activities of $0.76
represents a 4.1% increase, both as compared to Q4 2020;
-
Full year 2021 revenue of $147.7 million and cash generated from
operating activities of $124.7 million represent 35% and 44%
increases each, as compared to 2020. On a per unit basis, revenue
of $3.36 and cash generated from operating activities of $2.83 are
each up by 10.9% and 17.9% compared to 2020;
-
Capital deployment of $92.9 million in the quarter and $357.8
million in the year resulted in a record year of deployment for
Alaris in 2021. This annual deployment is expected to generate
additional annualized preferred distributions of approximately
$41.7 million, or $0.92 per unit, in addition to common
distributions if declared, as $51.0 million of the total $357.8
million invested was in exchange for minority common equity
positions in certain Alaris Partners;
-
Alaris is expecting an overall positive reset of approximately 2.4%
for preferred distributions that are resetting in 2022, resulting
in additional Run Rate Revenue (3) of $2.6 million or $0.06 per
unit;
-
The weighted average combined Earnings Coverage Ratio (5) for
Alaris’ Partners has increased further and is now above 1.8x for
the year ended December 31, 2021, with fifteen of nineteen Partners
greater than 1.5x;
-
Alaris had a $63.2 million net increase in fair value of
investments in 2021, resulting in a Book Value per unit (9) of
$17.93 at December 31, 2021 as compared to $16.75 at the end of
2020, an improvement of 7.0%;
-
Subsequent to December 31, 2021, the Trust completed a $65.0
million bought deal offering of senior unsecured debentures at a
price of $1,000 per debenture. The offering closed on February 4,
2022 and the debentures will bear interest at a rate of 6.25% per
annum, with a maturity date of March 31, 2027. The net proceeds to
Alaris after underwriters’ fees and expenses was approximately
$62.0 million, which was used to repay senior indebtedness;
-
For 2021 Alaris realized an Actual Payout Ratio (2) of 53%, thereby
generating approximately $49 million of excess cash that was used
for a combination of follow-on investments and repaying senior
debt; and
-
Alaris reduced its outstanding senior debt to $265 million as of
the date of this release with approximately $135 million of
available capacity based on covenants and credit terms.
President’s Message
“The momentum that started in the second half of
2020 continued on throughout 2021 as we had sustained success in
deploying capital in an extremely competitive environment. Going
back 18 months, Alaris has now deployed more than $500 million into
both new partners as well as helping our current partners grow and
we have done this without sacrificing on our return expectations.
On just a cash yield basis, we are receiving more than a 13% return
on our preferred equity holdings and while the common equity
holdings that we have are contributing a lower cash yield, the
capital appreciation we expect on those investments will help our
overall return profile going forward.
In 2021 it also marked our 12th straight year of
positive overall partner resets on our preferred distributions. The
2.4% increase is a solid number but the underlying portfolio is
showing stronger numbers than that, considering that our one
un-collared investment, LMS, saw an approximate 18% year over year
decrease in gross profit. Excluding LMS, the rest of the portfolio
is expected to have a net positive reset of approximately 4%. With
12 straight years of organic growth, a dynamic growth engine
provided by accretive deployment and an all-time low 65% Run Rate
Payout Ratio (4), we offer a secure and growing cashflow stream to
our unitholders that we are very proud of.
Looking forward, the network of advisors that
show us new opportunities as well as the reputation that we have
earned over the last 18 years continues to generate excellent
choices for us as we look to expand our business. Our structure
presents us with opportunities in a very unique asset class that
competitors have a difficult time penetrating.
Thank you to our partners, board of trustees,
service providers and most importantly our incredible team of
employees at Alaris for another record year.”
|
|
|
|
|
|
|
Per Unit Results |
Three months ended |
Year ended |
Period ending December 31 |
|
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
Revenue |
$0.83 |
$0.88 |
-5.7 |
% |
$3.36 |
$3.03 |
+10.9 |
% |
EBITDA |
$1.26 |
$1.12 |
+12.5 |
% |
$4.35 |
$1.48 |
+193.9 |
% |
Cash
generated from operating activities |
$0.76 |
$0.73 |
+4.1 |
% |
$2.83 |
$2.40 |
+17.9 |
% |
Distributions declared |
$0.33 |
$0.31 |
+6.5 |
% |
$1.28 |
$1.32 |
-3.0 |
% |
Basic earnings |
$1.02 |
$0.85 |
+20.0 |
% |
$3.28 |
$0.56 |
+485.7 |
% |
Fully
diluted earnings |
$0.97 |
$0.80 |
+21.3 |
% |
$3.13 |
$0.56 |
+458.9 |
% |
Weighted average basic units (000’s) |
|
45,121 |
|
36,472 |
|
|
43,994 |
|
36,121 |
|
|
|
|
|
|
|
|
For the three months ended December 31, 2021,
revenue per unit decreased by 5.7% compared to the same period in
2020 due to Alaris receiving a full year of Distributions from
Kimco Holdings, LLC (“Kimco”) in Q4 2020 and
additional payments from Body Contour Centers, LLC
(“BCC”) that were deferred in Q2 2020, as well as
fewer distributions in Q4 2021 from Federal Resources Supply
Company and its subsidiaries (“FED”) following
their redemption in October 2021. These were partially offset by
additional distributions in the three months ended December 31,
2021 from the new investments in Edgewater Technical Associates,
LLC (“Edgewater”), Falcon Master Holdings LLC
(“FNC”), Brown & Settle Investments, LLC and a
subsidiary thereof (collectively, “Brown &
Settle”), 3E, LLC (“3E”) and Vehicle
Leasing Holdings, LLC (“D&M”), as well as full
distributions from PF Growth Partners, LLC
(“PFGP”) as they were still deferring their
distributions during Q4 2020 as a result of the impact of
COVID-19.
In the year ended December 31, 2021, revenue per
unit increased by 10.9% compared to 2020 due to the additional new
investments listed above, follow-on investments in GWM Holdings,
Inc. and its subsidiaries (“GWM”), BCC and
Accscient, LLC (“Accscient”), receiving
Distributions from PFGP (partial in the first half of 2021 and full
Distributions in Q3 and Q4) as well as receiving additional
Distributions from Kimco in 2021 that were deferred from a prior
year. These were partially offset by the redemption of Sales
Benchmark Index LLC (“SBI”) in 2020, the
redemption of FED in Q4 2021 and also a lower average exchange rate
in 2021 as the average exchange rate from USD to CAD deteriorated
approximately 7% from 2020.
As cash generated from operating activities
excludes all non-cash items in the Trust’s consolidated statement
of comprehensive income, the cash generated from operating
activities per unit and the changes from period to period is an
important tool to use to summarize the ability for Alaris to
generate cash.
Cash generated from operating activities per
unit in Q4 2021 increased by 4.1% compared to Q4 2020 due to
changes in working capital, primarily related to changes in the
income tax receivable and payable balances related to the timing
and amounts of tax payments and provisions, as well as a slight
improvement in general and administrative expenses per unit.
Partially offset by the decrease in revenue per unit discussed
above.
In the year ended December 31, 2021, cash
generated from operating activities increased by 17.9% compared to
2020 due to the increase in revenue per unit discussed above as
well as fewer general and administrative expenses. These
improvements were partially offset by a higher average exchange
rate in the prior year, which increased USD revenues in 2020, as
well as higher finance costs per unit in the current year due to a
higher amount of average senior debt outstanding.
Basic earnings per unit increased by 20.0% in
the three months ended December 31, 2021, as compared to the Q4
2020, as a result of the unrealized gain on foreign exchange in the
current period as well as a reduced income tax expense.
For the year ended December 31, 2021, basic
earnings per unit improved significantly as a result of the
improvement in revenue per unit and a reduction in general and
administrative expenses. Further contributing to the increase in
earnings per unit of $3.28 was a net increase in investments at
fair value of $63.2 million in 2021, compared to 2020 earnings per
unit of $0.56 including a net unrealized and realized loss on
investments of $41.5 million. The net increase in investments at
fair value in 2021 outlines the recovery in the financial
performance of Alaris’ Partners since 2020, while the $41.5 million
net decrease in 2020 was due to the initial impact that COVID-19
had collectively on all the Partners.
Outlook
The Trust deployed approximately $357.8 million
in 2021, consistent with the Trust’s total acquisition of
investments in its consolidated statement of cash flows. This
deployment has contributed to a record year of revenue for Alaris
of $147.7 million or $3.36 per unit. Total revenue in Q4 2021 of
$37.6 million was higher than expected due to follow-on investments
in 3E, D&M and BCC, incremental common distributions from FNC,
as well as a higher average exchange rate than forecasted. As
outlined below, the outlook for the next twelve months remains
positive with Run Rate Revenue (3) in 2022 expected to be
approximately $150.7 million. This includes current contracted
amounts, an additional US$2.4 million from PFGP related to deferred
distributions from during COVID-19 and an estimated $3.1 million of
common dividends or distributions. Alaris expects total revenue
from its Partners in Q1 2022 of approximately $38.6 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
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. Annual general and
administrative expenses are currently estimated at $14.0 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 (6) alongside the after-tax impact of positive net
deployment 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 |
|
$ |
150,700 |
|
$ |
3.34 |
|
|
General and administrative expenses |
|
(14,000 |
) |
|
(0.31 |
) |
|
Interest and taxes |
|
|
(44,600 |
) |
|
(0.99 |
) |
|
Net cash from operating activities |
$ |
92,100 |
|
$ |
2.04 |
|
|
Distributions paid |
|
|
(59,600 |
) |
|
(1.32 |
) |
|
Run Rate Cash Flow |
|
$ |
32,500 |
|
$ |
0.72 |
|
|
|
|
|
|
|
Other considerations (after taxes and
interest): |
|
|
|
New investments |
Every $50
million deployed @ 14% |
|
+3,563 |
|
|
+0.08 |
|
|
USD to CAD |
Every $0.01 change of USD to CAD |
+/- 900 |
|
+/- 0.02 |
|
|
|
|
|
|
|
The senior debt facility was drawn to $326.6
million at December 31, 2021 in the Trust’s statement of financial
position. The annual interest rate on that debt, inclusive of
standby charges on available capacity, was approximately 4.5% for
the year ended December 31, 2021. Subsequent to year-end, the
proceeds from the senior unsecured debentures issued in February
2022 of $62.0 million ($65.0 million of proceeds net of $3.0
million of transaction costs) were used to repay senior debt.
Following this repayment the total drawn as of the date of this
release is approximately $265 million, with the capacity to draw up
to an additional $135 million based on covenants and credit
terms.
The Consolidated Statement of Financial
Position, Statement of Comprehensive Income, and Statement 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), Thursday, March 10, 2022 to discuss the financial
results and outlook for the Trust.
Participants in North America can access the
conference call by dialing toll free 1-866-475-5449. Alternatively,
to listen to this event online, please click the webcast link and
follow the prompts given: Q4 Webcast. Please connect to the call or
log into the webcast at least 10 minutes prior to the beginning of
the event.
For those unable to participate in the
conference call at the scheduled time, it will be archived for
instant replay for a week. You can access the replay by dialing
toll free 1-855-859-2056 and entering the Conference ID: 8765653
with Web PIN: 7852. The webcast will be archived and is available
for replay by using the same link as above or by finding the link
we’ll have stored under the “Investor” section – “Presentation and
Events”, on our website 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, IRR 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, IRR, Book Value
per unit 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, IRR, Book Value per unit 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 endedDecember 31 |
Year endedDecember 31 |
$ thousands except per unit amounts |
|
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
Earnings |
$46,102 |
$30,847 |
+49.5 |
% |
$144,244 |
$20,291 |
+610.9 |
% |
Depreciation and amortization |
|
46 |
|
53 |
-13.2 |
% |
|
211 |
|
222 |
-5.0 |
% |
Finance
costs |
|
6,723 |
|
4,772 |
+40.9 |
% |
|
24,988 |
|
18,103 |
+38.0 |
% |
Total
income tax expense |
|
3,756 |
|
5,181 |
-27.5 |
% |
|
21,801 |
|
14,757 |
+47.7 |
% |
EBITDA |
$56,627 |
$40,853 |
+38.6 |
% |
$191,244 |
$53,373 |
+258.3 |
% |
Weighted
average basic units (000's) |
|
45,121 |
|
36,472 |
|
|
43,994 |
|
36,121 |
|
EBITDA per unit |
$1.26 |
$1.12 |
+12.5 |
% |
$4.35 |
$1.48 |
+193.9 |
% |
|
|
|
|
|
|
|
(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 as well as 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) “IRR” is a supplementary
financial measure and refers to internal rate of return, which is a
metric used to determine the discount rate that derives a net
present value of cash flows to zero. Management uses IRR to analyze
partner returns.
(8) “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.
(9) “Book Value per unit” – is
a supplementary financial measure and refers to Alaris’ total
equity divided by the basic weighted average number of units
outstanding. Management uses Book Value per unit to outline an
approximate equity value of each unit as at each reporting
date.
The terms EBITDA, Actual Payout Ratio, Run Rate
Revenue, Run Rate Payout Ratio, Earnings Coverage Ratio, Run Rate
Cash Flow, IRR, Book Value per unit 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; expected resets of Distributions in 2022; 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 return on its investments; potential
Partner redemptions, including the timing, if at all, thereof and
the amounts to be received by the Trust (including, specifically,
the potential Kimco redemption); Q1 2022 revenue; and the Trust’s
expenses for 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, the 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 and will
not be detrimentally impacted over the next twelve months, interest
rates will not rise in a material way 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; 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 on the Trust and the Partners (including how many Partners
will experience a slowdown or closure of their business and the
length of time of such slowdown or closure); management’s ability
to assess and mitigate the impacts of COVID-19; the dependence of
Alaris on the Partners; leverage and restrictive covenants under
credit facilities; reliance on key personnel; general economic
conditions, including the 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
TrustConsolidated statements of financial position
|
|
|
|
31-Dec |
31-Dec |
$ thousands |
2021 |
2020 |
Assets |
|
|
Cash and cash equivalents |
$ 18,447 |
$ 16,498 |
|
Derivative contracts |
|
71 |
|
1,489 |
|
Accounts
receivable and prepayments |
|
3,181 |
|
981 |
|
Income taxes
receivable |
|
28,991 |
|
12,669 |
|
Promissory
notes and other assets |
|
13,555 |
|
4,000 |
|
Current Assets |
$ 64,245 |
$ 35,637 |
|
Promissory
notes and other assets |
|
- |
|
19,233 |
|
Deposits |
|
24,979 |
|
20,206 |
|
Property and
equipment |
|
658 |
|
846 |
|
Investments |
|
1,185,327 |
|
880,512 |
|
Non-current
assets |
$ 1,210,964 |
$ 920,797 |
|
Total Assets |
$ 1,275,209 |
$ 956,434 |
|
|
|
|
Liabilities |
|
|
Accounts
payable and accrued liabilities |
$
8,214 |
$ 5,351 |
|
Distributions payable |
|
14,899 |
|
12,089 |
|
Office
Lease |
|
500 |
|
659 |
|
Income tax
payable |
|
740 |
|
723 |
|
Current Liabilities |
$ 24,353 |
$ 18,822 |
|
Deferred
income taxes |
|
43,903 |
|
16,112 |
|
Loans and
borrowings |
|
326,569 |
|
229,477 |
|
Convertible
debenture |
|
89,592 |
|
86,029 |
|
Other
long-term liabilities |
|
1,933 |
|
980 |
|
Non-current liabilities |
$ 461,997 |
$ 332,598 |
|
Total Liabilities |
$ 486,350 |
$ 351,420 |
|
|
|
|
Equity |
|
|
Unitholders'
capital |
$
754,622 |
$ 659,988 |
|
Equity
reserve |
|
- |
|
17,621 |
|
Translation
reserve |
|
15,052 |
|
12,431 |
|
Retained
earnings / (deficit) |
|
19,185 |
|
(85,026 |
) |
Total Equity |
$ 788,859 |
$ 605,014 |
|
|
|
|
Total Liabilities and Equity |
$ 1,275,209 |
$ 956,434 |
|
|
|
|
Alaris Equity Partners Income TrustConsolidated
statements of comprehensive income
|
|
|
|
Year ended December 31 |
$ thousands except per unit amounts |
2021 |
2020 |
|
|
|
Revenues, including realized foreign exchange gain |
$ 147,664 |
|
$ 109,568 |
|
Net realized gain / (loss) from investments |
|
9,921 |
|
|
(26,863 |
) |
Net
unrealized gain / (loss) of investments at fair value |
|
53,275 |
|
|
(14,623 |
) |
Bad debt
recovery |
|
4,030 |
|
|
183 |
|
Total revenue and other operating income |
$ 214,890 |
|
$ 68,265 |
|
|
|
|
General and
administrative |
|
13,273 |
|
|
14,519 |
|
Transaction
diligence costs |
|
4,246 |
|
|
5,532 |
|
Unit-based
compensation |
|
5,362 |
|
|
2,708 |
|
Depreciation
and amortization |
|
211 |
|
|
222 |
|
Total operating expenses |
|
23,092 |
|
|
22,981 |
|
Earnings from operations |
$ 191,798 |
|
$ 45,284 |
|
Finance
costs |
|
24,988 |
|
|
18,103 |
|
Unrealized
(gain) / loss on derivative contracts |
|
1,419 |
|
|
(935 |
) |
Unrealized
foreign exchange (gain) / loss |
|
(654 |
) |
|
206 |
|
Non-cash
impact of trust conversion |
|
- |
|
|
(7,138 |
) |
Earnings before taxes |
$ 166,045 |
|
$ 35,048 |
|
Current
income tax (recovery) |
|
(5,682 |
) |
|
(875 |
) |
Deferred
income tax expense |
|
27,483 |
|
|
15,632 |
|
Total income
tax expense |
|
21,801 |
|
|
14,757 |
|
Earnings |
$ 144,244 |
|
$ 20,291 |
|
|
|
|
Other comprehensive income |
|
|
Foreign
currency translation differences |
|
2,621 |
|
|
(4,645 |
) |
Total comprehensive income |
$ 146,865 |
|
$ 15,646 |
|
|
|
|
Earnings per unit |
|
|
Basic |
$ 3.28 |
|
$ 0.56 |
|
Fully
diluted |
$ 3.13 |
|
$ 0.56 |
|
Weighted average units outstanding |
|
|
Basic |
|
43,994 |
|
|
36,121 |
|
Fully Diluted |
|
48,432 |
|
|
36,482 |
|
|
|
|
Alaris Equity Partners Income TrustConsolidated
statements of cash flows
|
|
|
|
Year ended December 31 |
$ thousands |
2021 |
2020 |
Cash
flows from operating activities |
|
|
Earnings for the period |
$ 144,244 |
|
$ 20,291 |
|
Adjustments
for: |
|
|
Finance costs |
|
24,988 |
|
|
18,103 |
|
Deferred
income tax expense |
|
27,483 |
|
|
15,632 |
|
Depreciation
and amortization |
|
211 |
|
|
222 |
|
Bad debt
recovery |
|
(4,030 |
) |
|
- |
|
Net realized
(gain) / loss from investments |
|
(9,921 |
) |
|
26,863 |
|
Net
unrealized (gain) / loss of investments at fair value |
|
(53,275 |
) |
|
14,623 |
|
Unrealized
(gain) / loss on derivative contracts |
|
1,419 |
|
|
(935 |
) |
Unrealized
foreign exchange (gain) / loss |
|
(654 |
) |
|
206 |
|
Non-cash
impact of trust conversion |
|
- |
|
|
(7,138 |
) |
Transaction
diligence costs |
|
4,246 |
|
|
5,532 |
|
Unit-based
compensation |
|
5,362 |
|
|
2,708 |
|
Changes in
working capital: |
|
|
- accounts
receivable and prepayments |
|
(2,200 |
) |
|
(183 |
) |
- income tax
receivable / payable |
|
(15,997 |
) |
|
(11,424 |
) |
- accounts
payable, accrued liabilities |
|
2,805 |
|
|
2,327 |
|
Cash
generated from operating activities |
|
124,681 |
|
|
86,827 |
|
Cash
interest paid |
|
(20,523 |
) |
|
(14,965 |
) |
Net
cash from operating activities |
$ 104,158 |
|
$ 71,862 |
|
|
|
|
Cash
flows from investing activities |
|
|
Acquisition
of investments |
$ (357,750 |
) |
$ (170,465 |
) |
Transaction
diligence costs |
|
(4,246 |
) |
|
(5,532 |
) |
Proceeds
from partner redemptions |
|
119,600 |
|
|
117,698 |
|
Proceeds on
disposal of assets and liabilities held for sale |
|
- |
|
|
39,196 |
|
Promissory
notes and other assets issued |
|
(1,030 |
) |
|
- |
|
Promissory
notes and other assets repaid |
|
14,435 |
|
|
2,499 |
|
Net
cash used in investing activities |
$ (228,991 |
) |
$ (16,604 |
) |
|
|
|
Cash
flows from financing activities |
|
|
Repayment of
loans and borrowings |
$ (219,624 |
) |
$ (228,970 |
) |
Proceeds
from loans and borrowings |
|
318,130 |
|
|
184,465 |
|
Debt
amendment and extension fees |
|
(552 |
) |
|
- |
|
Issuance of
unitholders' capital, net of unit issue costs |
|
90,287 |
|
|
43,375 |
|
Proceeds
from convertible debenture, net of fees |
|
- |
|
|
- |
|
Distributions paid |
|
(54,844 |
) |
|
(41,511 |
) |
Trust unit
repurchases |
|
- |
|
|
(10,051 |
) |
Office lease
payments |
|
(159 |
) |
|
(178 |
) |
Deposits
with CRA |
|
(4,773 |
) |
|
- |
|
Net
cash from / (used in) financing activities |
$ 128,465 |
|
$ (52,870 |
) |
|
|
|
Net
increase in cash and cash equivalents |
$ 3,632 |
|
$ 2,388 |
|
Impact of
foreign exchange on cash balances |
|
(1,683 |
) |
|
(2,994 |
) |
Cash and
cash equivalents, Beginning of year |
|
16,498 |
|
|
17,104 |
|
Cash and cash equivalents, End of year |
$ 18,447 |
|
$ 16,498 |
|
|
|
|
Cash taxes
paid |
$ 14,267 |
|
$ 7,616 |
|
|
|
|
Alaris Equity Partners I... (TSX:AD.UN)
Graphique Historique de l'Action
De Fév 2024 à Mar 2024
Alaris Equity Partners I... (TSX:AD.UN)
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De Mar 2023 à Mar 2024