Mr. Robert Courteau reports

ALTUS GROUP REPORTS FIRST QUARTER 2016 FINANCIAL RESULTS

Altus Group Ltd. has released its financial and operating results for the first quarter ended March 31, 2016.

First quarter 2016 highlights:

• Formed Altus analytics solutions, a high-growth business unit, through the combination of Altus Group's market-leading Argus software and research, valuation and advisory's U.S., Europe and Voyanta operations;
• Altus analytics total revenues increased 39.2 per cent, and adjusted EBITDA increased 53.8 per cent;
• Property tax expanded its market leadership position with revenues increasing 15.1 per cent, while adjusted earnings before interest, taxes, depreciation and amortization increased 42.1 per cent;
• Consolidated revenues increased 8.4 per cent to $106.7-million;
• Consolidated adjusted EBITDA increased 1.7 per cent to $12.4-million;
• Geomatics impacted overall results with a decline of 37.5 per cent in revenues and 120 per cent in adjusted EBITDA as a result of reduced activity in the oil and gas sector.

"We experienced a very strong start to the year with robust top-line growth and margin contribution coming from Altus analytics while maintaining our leadership position across all of our business practices," said Robert Courteau, chief executive officer at Altus Group. "Our performance during the first quarter reflects the market's rapid adoption rate and need for our value-add innovative technology offerings, complemented by our ability to grow with existing and new customers on a global basis."

First quarter 2016 review

Altus analytics benefited from a 39.2-per-cent increase in revenues driven by a 43.4-per-cent increase in recurring revenues and a 27.5-per-cent increase in non-recurring revenues. Recurring revenues accelerated by 43.4 per cent on increased subscriptions for Argus enterprise, Voyanta and data products, as well as from appraisal management and maintenance revenues. Growth in non-recurring revenues was driven by Argus software perpetual licence sales and services. Licence sales increased by 43.1 per cent over the prior year. In addition, improvements in the exchange rate against the Canadian dollar benefited revenues by 7.6 per cent. The 53.8-per-cent improvement to adjusted EBITDA was the result of robust revenue growth, taking into account investments made to finance the early growth of Voyanta, and enhancements to platform and product development. Changes in foreign exchange benefited adjusted earnings before interest, taxes, depreciation and amortization by 6.6 per cent.

Commercial real estate consulting (CRE) revenues increased 9.5 per cent to $58.4-million when compared with the first quarter of 2015. The CRE consulting business showed healthy growth with property tax revenues up 15.1 per cent and valuation and cost advisory revenues holding steady. The increase in property tax revenues was driven by strong organic growth in Canada, and the U.S. exchange rates benefited revenues by 2.2 per cent. Adjusted EBITDA increased 23.5 per cent to $10.4-million, as a result of strong revenue growth in property tax and offset by slightly lower earnings from valuation and cost advisory.

Geomatics continued to be adversely impacted by the low price of oil and reduced overall activity in the oil and gas sector resulting in revenues decreasing by 37.5 per cent to $11.8-million. Adjusted EBITDA was a loss of $600,000, down 120.0 per cent, as compared with the same period in 2015, driven by reduced revenues and charges related to downsizing operational capacity for current market conditions.

Corporate costs (recovery) were $6.2-million for the quarter ended March 31, 2016, as compared with $5.2-million in the same period in 2015. The increase in corporate costs was due to higher variable compensation.

During the first quarter of 2016, on a consolidated basis, favourable exchange rates against the Canadian dollar benefited consolidated revenues by 3.2 per cent.

Under international financal reporting standard accounting, profit (loss) for the first quarter of 2016 was ($2.2-million) and (six cents) per share, basic and diluted, compared with $700,000 and two cents per share, basic and diluted, during the same period in 2015.

At the end of the first quarter, Altus Group's balance sheet remained strong, with bank debt at $124.0-million, representing a leverage ratio of financed debt to EBITDA of 1.86 times.

First quarter 2016 results conference call and webcast:

Date:  May 5, 2016

Time:  5 p.m. (ET)

Webcast:  at the Altus Group website under the investors tab

Call:  1-866-223-7781 (toll-free) or 416-340-2216 (Toronto area)

Replay:  a replay of the call will be available on the webcast at the Altus Group website

 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
     (expressed in thousands of dollars, except per-share amounts)

                                        For the three months ended March 31,
                                                      2016             2015

Revenues                                          $106,688          $98,465
                                                 ---------        ---------
Expenses
Employee compensation                               70,913           64,303
Occupancy                                            5,216            4,265
Office and other operating                          20,257           16,929
Amortization of intangibles                          7,145            8,180
Depreciation of property,
plant and equipment                                  1,767            1,508
Acquisition-related expenses
(income)                                               161                -
Share of (profit) loss of
associates                                           1,112               34
Restructuring costs                                  1,710                -
                                                 ---------        ---------
Operating profit (loss)                            (1,593)            3,246
                                                 ---------        ---------
Finance costs (income), net                          1,725            2,657
                                                 ---------        ---------
Profit (loss) before income
taxes                                              (3,318)              589
                                                 ---------        ---------
Income tax expense (recovery)                      (1,106)            (127)
                                                 ---------        ---------
Profit (loss) for the period
attributable to equityholders                      (2,212)              716
                                                 ---------        ---------
Other comprehensive income
(loss)
Items that may be reclassified
to profit or (loss) in subsequent
periods
Cash flow hedges                                         -               92
Currency translation
differences                                       (15,690)           16,927
Share of other comprehensive
income (loss) of associates                          (709)              342
                                                 ---------        ---------
Other comprehensive income
(loss), net of tax                                (16,399)           17,361
                                                 ---------        ---------
Total comprehensive income
(loss) for the period, net of
tax, attributable to equity-
holders                                           (18,611)           18,077
                                                 =========        =========
Earnings (loss) per share
attributable to the equity-
holders of the company during
the period
Basic earnings (loss) per share                     (0.06)             0.02
Diluted earnings (loss) per
share                                               (0.06)             0.02
                                                 =========        =========

We seek Safe Harbor.