Q3 2021 Financial Results NOT FOR DISTRIBUTION IN THE UNITED STATES.
FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.
CALGARY, Alberta, Nov. 09, 2021 (GLOBE NEWSWIRE) -- 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 nine months ended September 30, 2021. The results are prepared in accordance with International Accounting Standard 34. All amounts below are in Canadian dollars unless otherwise noted.
Q3 2021 Highlights:
- Generated revenue of $42.9 million in the quarter, the largest quarter of revenue in Alaris’ history and an increase of 44% on a per unit basis compared to Q3 2020. Revenue of $110.0 million in the nine months ended September 30, 2021 represents a per unit increase of 17% compared to the $77.6 million in 2020;
- Normalized EBITDA of $33.3 million in the quarter (Q3 2020 - $20.1 million) and in the nine months ended September 30, 2021 Normalized EBITDA totalled $94.3 million (2020 - $58.5 million). These increases on a per unit basis of approximately 32% are primarily the result of incremental revenue from capital deployment in excess of $400 million in the last twelve months;
- During the quarter, Alaris received an additional US$3.4 million of Distributions from Kimco Holdings, LLC (“Kimco”) related to unaccrued deferred Distributions from prior years. Kimco continues to evaluate the possibility of a full or partial redemption of Alaris’ investment. Nothing is imminent, nor can any redemption be assured; however, the redemption value is estimated to be between US$60.0 million and US$70.0 million, inclusive of unaccrued and unpaid Distributions from prior periods of US$13.6 million;
- Net cash from operating activities during the quarter was $0.66 per unit, which was an increase of more than 100% compared to Q3 2020, which includes $0.10 per unit related to additional collections from Kimco in the quarter. This resulted in $0.33 of net cash per unit in excess cash generated in the quarter after paying $0.33 in Trust distributions to unitholders;
- Subsequent to September 30, 2021, Federal Resources Supply Company (“FED”) redeemed all of Alaris’ FED preferred units and repaid the outstanding loan for total proceeds to Alaris of US$80.9 million. Alaris’ total return on the FED investment was US$75.7 million or 113% which represents an unlevered IRR of over 19% during the six-year partnership. The total proceeds of US$80.9 million included a US$13.9 million premium in excess of the total invested capital of US$67.0 million;
- The weighted average combined Earnings Coverage Ratio (“ECR”) remains above 1.7x on a trailing twelve month basis;
- Based on the financial results of Alaris’ Partners so far in 2021, Alaris currently expects an overall positive reset on Distributions for 2022 of approximately 2.0% which would result in additional revenue of $2.6 million, or $0.06 per unit; and
- Alaris reduced its outstanding debt to $257 million subsequent to quarter end using the proceeds from the FED redemption, additional cash received from Kimco in the quarter (US$3.4 million) and excess cash flow generated in the quarter of US$10.0 million as a result of Alaris’ Actual Payout Ratio of 47%.
“Recovering some previously written off amounts from Kimco made for a record quarter of revenue, along with all of the new partner revenue generated from the last twelve months of deployment. With healthy ECR’s across the board, a sub-70% Run Rate Payout Ratio and over $140 million of dry powder following the FED redemption, we are in a strong position to continue our positive trajectory”, said Darren Driscoll, CFO.
https://www.globenewswire.com/en/news-release/2021/11/09/2330995/0/en/Alaris-Equity-Partners-Income-Trust-Releases-Q3-2021-Financial-Results.html