01:19:16 EDT Tue 07 May 2024
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Altus Group Ltd
Symbol AIF
Shares Issued 29,106,486
Close 2014-08-06 C$ 22.66
Market Cap C$ 659,552,973
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ORIGINAL: Altus Group Reports Second Quarter Financial Results for 2014

2014-08-06 16:11 ET - News Release

TORONTO, ONTARIO -- (Marketwired) -- 08/06/14

Altus Group Limited ("Altus Group" or "the Company") (TSX:AIF) today announced financial and operating results for the second quarter ended June 30, 2014.

The Company's organic growth initiatives, acquisitions, and ongoing focus on strengthening operational execution continued to drive double-digit year over year increases in gross revenue and Adjusted EBITDA. On a consolidated basis, gross revenue increased 15% in the second quarter to $90.3 million (compared to $78.6 million for the same period in 2013), and Adjusted EBITDA increased 16% to $16.0 million (from $13.8 million in the same period last year), achieving an Adjusted EBITDA margin of 18%.

"We are pleased to report another quarter of sustained growth and sound financial performance driven by the strong execution of our strategy," said Robert Courteau, Chief Executive Officer, Altus Group. "We continue to perform well across all of our business units, and enjoy robust demand for our advisory services, and software and data solutions. These results reflect the strategic decisions we made late last year to strengthen our operations, and demonstrate our ability to deliver strong operating results on an organic growth platform while continuing to make longer term investments."

Highlights from the quarter:


--  Sustained growth from high margin Global Asset and Investment Management
    ("GAIM") market focused businesses: 
    --  Rising license sales at ARGUS Software continued to deliver double-
        digit year over year 23% growth in gross revenues and Adjusted
        EBITDA; and 
    --  New client wins and increased diversification of services drove 10%
        year over year gross revenue growth at North America Research,
        Valuation and Advisory ("RVA"). 
--  North America Property Tax achieved double-digit year over year growth
    as organic initiatives and acquisitions in the US drove a 33% increase
    in gross revenue and 53% increase in Adjusted EBITDA. 
--  Strong sector performance in Western Canada drove 19% growth in gross
    revenues and 15% growth in Adjusted EBITDA at Geomatics, which
    benefitted from expanded market share and service offerings from the
    acquisition of Maltais Geomatics Inc. ("MGI") during the quarter. 
--  Adjusted basic earnings per share were $0.28 for the quarter, compared
    to $0.27 in the second quarter of 2013. 
--  Generated $20.5 million in cash flow provided by operating activities. 
--  Declared dividends of $0.15 per common share. 
--  Subsequent to quarter end: 
    --  Reduced long term debt by $50 million and realized approximately
        $0.5 million annual savings in net cash distributions through the
        early redemption of its 5.75% Convertible Debentures ("Debentures")
        (TSX:AIF.DB); and 
    --  Strengthened RVA Canada's data and market research offering through
        acquisition of RealNet Canada Inc. ("RealNet"), a prominent Canadian
        real estate information services company. 

Summary of operating and financial performance:

ARGUS Software sustained double-digit year over year growth during the second quarter, benefitting from increasing license sales, growing maintenance fees from high retention rates, and a favourable exchange rate against the Canadian Dollar (which benefitted gross revenues and Adjusted EBITDA by approximately 6.5%). AEGUS Software continues to experience strong adoption of its ARGUS Enterprise ("AE") product both from converting its DCF customers and winning new clients. As a testament to the momentum, ARGUS was awarded the 2014 technology innovation Digie award at the Realcomm industry conference in June, a prominent industry gathering that brings together global executives from the commercial, corporate, institutional and government real estate industry to explore the latest technology innovations impacting the industry. In the second quarter, ARGUS Software's year over year gross revenue grew by 23.2%, or $2.3 million, to $11.9 million (from $9.6 million), and Adjusted EBITDA grew by 22.8%, or $0.7 million, to $3.9 million (from $3.2 million), achieving an Adjusted EBITDA margin of 33%. During the quarter, $0.2 million of costs were capitalized related to the software development of the latest release of AE, which expands functionality for the European market and delivers a world-class property budgeting solution.

The steady performance from North America RVA was strengthened by increased value-added, higher margin engagements in Canada (such as right of way and economic advisory work) and increased due diligence work in the US. Year over year, RVA's gross revenue increased by 9.9%, or $2.0 million, to $21.8 million (from $19.8 million) and Adjusted EBITDA was comparable to the prior year at $5.6 million, as the Company continued to make investments to support future revenue growth. RVA's Adjusted EBITDA margin in the second quarter was 26%.

Following a strong start to the year, the North America Property Tax business unit experienced another robust quarter. Performance was bolstered by organic and acquisitive growth in the US, as well as the favourable tax cycles in Canada. Compared to the same period in 2013, North America Property Tax gross revenue increased by 33.3%, or $4.8 million, to $19.3 million (from $14.5 million) and Adjusted EBITDA increased by 52.8%, or $2.0 million, to $5.9 million (from $3.9 million), representing an Adjusted EBITDA margin of 31%.

The UK Property Tax group also had a strong quarter, benefiting from favourable exchange rates which improved gross revenues by 16.4% and Adjusted EBITDA by 15.2%. Gross revenue grew 14.3%, or $0.8 million, to $7.0 million (from $6.2 million) and Adjusted EBITDA declined by 11.3%, or $0.2 million, to $2.0 million (from $2.2 million), representing an Adjusted EBITDA margin of 28%.

The strong oil and gas and pipeline activity levels in Western Canada continued into the second quarter and supported growth at the Geomatics business unit. Gross revenue increased by 19.2%, or $3.0 million, to $18.9 million (from $15.9 million) and Adjusted EBITDA increased by 14.7% or $0.5 million, to $4.0 million (from $3.5 million) from the same period in 2013, representing an Adjusted EBITDA margin of 21%. MGI, which was acquired during the second quarter, accounted for 17.9% of the gross revenue growth over 2013.

Altus Group continues to see a positive trend in improving earnings at its Cost Consulting and Project Management business unit, both in North America and in Asia Pacific, largely driven by cost savings and the pursuit of higher margin engagements. Compared to the same period in 2013, gross revenue in North America declined by 11.5%, or $0.8 million, to $6.7 million (from $7.5 million) however Adjusted EBITDA improved by 15.3%, or $0.2 million, to $1.7 million (from $1.5 million), representing Adjusted EBITDA margins of 25%.

In Asia Pacific, gross revenue was slightly down year over year by 5.7%, or $0.3 million, to $4.8 million (from $5.1 million) while Adjusted EBITDA grew by 97.1%, or $0.3 million, to $0.5 million (from $0.2 million), representing an Adjusted EBITDA margin of 10%.

Corporate costs were $7.4 million for the three months ended June 30, 2014, up 21.8% or $1.3 million from $6.1 million in the same period in 2013. The increase in corporate costs was mainly due to higher accrual of variable compensation due to improved performance in the businesses, as well as additional professional fees related to various corporate initiatives.

Under IFRS accounting, profit (loss) for the quarter ended June 30, 2014 was $(0.7) million, or $(0.02) per share basic and diluted, compared to $3.2 million, or $0.14 per share basic, and $0.13 per share diluted, in the same period in 2013. The loss for the quarter reflected the accelerated amortization of $3.9 million of deferred financing charges related to the early redemption of the Debentures.

The Company continues to effectively manage its debt facilities. At the end of the second quarter, the Company's bank debt was $69.6 million, representing a funded debt to EBITDA ratio of 1.01 times. As at June 30, 2014, the Company had $13.6 million in cash and $90.1 million available borrowing room under its credit facility. At the end of the quarter, Altus Group's balance sheet remained strong, giving the Company the financial flexibility to pursue its growth strategy.

Due to the strong performance of Altus Group's share price, during the quarter the Company announced its plans to redeem early all of its outstanding 2010 Debentures in accordance with the terms of the Debenture Trust Indenture. On July 28, 2014, the Company redeemed all outstanding 2010 Debentures. Prior to redemption, a total principal amount of $48.2 million was converted into 2,589,295 common shares at the conversion price of $18.60 per common share. The remaining principal amount of $1.8 million was redeemed using available cash on hand.

Subsequent to quarter end, the Company completed the acquisition of RealNet Canada Inc. ("RealNet"). The acquisition broadens Altus Group's Canadian full service offering, enhances its data and market research revenue stream, and furthers the Company's strategy of building out its data solutions. The transaction was valued at $20 million and was funded through bank debt. Once fully integrated into Altus Group's existing product offerings, management expects that the acquisition synergies will drive improved financial performance. The acquisition is expected to be immediately accretive to Adjusted Basic EPS (earnings per share).


Conference Call and Webcast Details                                        
Date:            Wednesday, August 6, 2014                                 
Time:            5:00 p.m. ET                                              
Webcast:         www.altusgroup.com (under Investor Relations)             
Live Call:       1-866-226-1792 (toll-free) or 416-340-2216 (GTA &         
                 International)                                            
Replay:          1-800-408-3053 or 905-694-9451 (passcode: 7481879)        

About Altus Group Limited

Altus Group is a leading provider of independent commercial real estate consulting and advisory services, software and data solutions. We operate five Business Units, bringing together years of experience and a broad range of expertise into one comprehensive platform: Research, Valuation and Advisory; ARGUS Software; Property Tax Consulting; Cost Consulting and Project Management; and Geomatics. Our suite of services and software enables clients to analyze, gain insight and recognize value on their real estate investments.

Altus Group has approximately 2,200 employees in multiple offices around the world, including Canada, the United States, the United Kingdom, Australia and Asia Pacific. Altus Group's clients include financial institutions, private and public investment funds, insurance companies, accounting firms, public real estate organizations, real estate investment trusts, healthcare institutions, industrial companies, foreign and domestic private investors, real estate developers, governmental institutions and firms in the oil and gas sector.

Non-IFRS Measures

Altus Group uses certain non-IFRS measures as indicators of financial performance. Readers are cautioned that they are not defined performance measures under IFRS and may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to financial measures as reported by those entities. We believe that these measures are useful supplemental measures that may assist investors in assessing an investment in shares of Altus Group and provide more insight into our performance.

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, ("Adjusted EBITDA"), represents operating profit (loss) adjusted for the effect of amortization of intangibles, depreciation of property, plant and equipment, acquisition-related expenses (income), restructuring costs, share of profit or loss of associates, unrealized foreign exchange gains (losses), gains (losses) on sale of property, plant and equipment, gains (losses) on sale of business assets, impairment charges, Executive Compensation Plan costs, gains (losses) on hedging transactions, gains (losses) on equity derivatives net of mark-to-market adjustments on related RSUs and DSUs being hedged and other expenses or income of a non-operating and/or non-recurring nature.

Adjusted Basic Earnings (Loss) per Share, ("Adjusted Basic EPS"), represents basic earnings per share adjusted for the effect of amortization of intangibles acquired as part of business acquisitions, non-cash finance costs (income) related to the revaluation of amounts payable to unitholders, distributions related to amounts payable to unitholders, acquisition-related expenses (income), restructuring costs, share of profit or loss of associates, unrealized foreign exchange gains (losses), gains (losses) on sale of property, plant and equipment, gains (losses) on sale of business assets, interest accretion on vendor payables, impairment charges, Executive Compensation Plan costs, gains (losses) on hedging transactions, gains (losses) on equity derivatives net of mark-to-market adjustments on related RSUs and DSUs being hedged and other expenses or income of a non-operating and/or non-recurring nature. All of the adjustments are made net of tax.

Forward-Looking Information

Certain information in this press release may constitute "forward-looking information" within the meaning of applicable securities legislation. All information contained in this press release, other than statements of current and historical fact, is forward-looking information. Forward-looking information includes information that relates to, among other things, objectives, strategies and intentions, and future financial and operating performance and prospects. Generally, forward-looking information can be identified by use of words such as "may", "will", "expect", "believe", "plan", "would", "could" and other similar terminology. All of the forward-looking information in this press release is qualified by this cautionary statement.

Forward-looking information includes, but is not limited to, the discussion of Altus Group's business and operating initiatives; its expectations of future performance for its various business units and its consolidated financial results; and its expectations with respect to cash flows and its level of liquidity.

Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by Altus Group at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results, performance or achievements, industry results or events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that were identified and were applied by Altus Group in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to: the successful execution of Altus Group's business strategies; consistent and stable economic conditions or conditions in the financial markets; consistent and stable legislation in the various countries in which Altus Group operates; no disruptive changes in the technology environment; the opportunity to acquire accretive businesses; the successful integration of Altus Group's businesses; and the continued availability of qualified professionals.

Inherent in the forward-looking information are known and unknown risks, uncertainties and other factors that could cause Altus Group's actual results, performance or achievements, or industry results, to differ materially from any results, performance or achievements expressed or implied by such forward-looking information. Those risks, uncertainties and other factors that could cause actual results to differ materially from the forward-looking information include, but are not limited to: general state of the economy; competition in the industry; ability to attract and retain professionals; commercial real estate market; integration of acquisitions; oil and gas sector; Canadian multi-residential market; customer concentration; currency risk; interest rate risk; reliance on larger software transactions with longer and less predictable sales cycles; success of new product introductions; ability to respond to technological change and develop products on a timely basis; ability to maintain profitability and manage growth; revenue and cash flow volatility; credit risk; protection of intellectual property or defending against claims of intellectual property rights of others; weather; fixed-price and contingency engagements; operating risks; performance of obligations/maintenance of client satisfaction; appraisal mandates; information technology governance and security; legislative and regulatory changes; risk of future legal proceedings; insurance limits; income tax matters; ability to meet solvency requirements to pay dividends; leverage and restrictive covenants; unpredictability and volatility of common share price; capital investment; and issuance of additional common shares diluting existing shareholders' interests, as well as those described in Altus Group's publicly filed documents, including the Annual Information Form (which are available on SEDAR at www.sedar.com).

Given these risks, uncertainties and other factors, investors should not place undue reliance on forward-looking information as a prediction of actual results. The forward-looking information reflects management's current expectations and beliefs regarding future events and operating performance and is based on information currently available to management. Although Altus Group has attempted to identify important factors that could cause actual results to differ materially from the forward-looking information contained herein, there are other factors that could cause results not to be as anticipated, estimated or intended. The forward-looking information contained herein is current as of the date of this press release and, except as required under applicable law, Altus Group does not undertake to update or revise it to reflect new events or circumstances. Additionally, Altus Group undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Altus Group, its financial or operating results, or its securities.


--------------------------------------------------------------------------
                                  For the three months  For the six months
Selected Financial Information          ended June 30,      ended June 30,
--------------------------------------------------------------------------
In thousands of Canadian Dollars,                                         
 except for per share amounts         2014        2013      2014      2013
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Operations                                                                
--------------------------------------------------------------------------
Gross revenues                   $  90,348   $  78,572 $ 177,039 $ 154,726
Adjusted EBITDA                     16,038      13,828    30,920    26,081
Operating profit (loss)              9,318       7,822    19,429    19,546
Profit (loss)                         (673)      3,207     4,210    10,050
Earnings (loss) per share:                                                
  Basic                          $   (0.02)  $    0.14 $    0.15 $    0.44
  Diluted                        $   (0.02)  $    0.13 $    0.14 $    0.39
  Adjusted basic                 $    0.28   $    0.27 $    0.54 $    0.52
Dividends declared per share     $    0.15   $    0.15 $    0.30 $    0.30
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                                                                            
--------------------------------------------------------------------------- 
Segmented                                                                   
 Information:                                                               
Gross Revenues     Three months ended June 30,    Six months ended June 30, 
--------------------------------------------------------------------------- 
In thousands of                                                             
 Canadian Dollars      2014      2013 % Change      2014      2013 % Change 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 
Property Tax:                                                               
 North America                                                              
  Property Tax    $  19,281  $ 14,469    33.3%  $ 37,892  $ 29,642    27.8% 
 UK                   7,039     6,157    14.3%    13,222    11,394    16.0% 
Global Asset and                                                            
 Investment                                                                 
 Management:                                                                
 North America                                                              
  RVA                21,804    19,839     9.9%    42,063    38,503     9.2% 
 ARGUS Software      11,884     9,645    23.2%    23,435    18,250    28.4% 
North America                                                               
 Geomatics           18,940    15,886    19.2%    38,035    31,680    20.1% 
Cost Consulting                                                             
 and Project                                                                
 Management:                                                                
 North America                                                              
  Cost                6,669     7,534   (11.5%)   13,619    15,222   (10.5%)
 Asia Pacific                                                               
  Cost                4,837     5,131    (5.7%)    9,094    10,185   (10.7%)
Eliminations           (106)      (89)  (19.1%)     (321)     (150) (114.0%)
--------------------------------------------------------------------------- 
Gross Revenues    $  90,348  $ 78,572    15.0%  $177,039  $154,726    14.4% 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 
                                                                            
--------------------------------------------------------------------------- 
Segmented                                                                   
 Information:                                                               
Adjusted EBITDA    Three months ended June 30,    Six months ended June 30, 
--------------------------------------------------------------------------- 
In thousands of                                                             
 Canadian Dollars      2014      2013 % Change      2014      2013 % Change 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 
Property Tax:                                                               
 North America                                                              
  Property Tax    $   5,947  $  3,893    52.8%  $ 10,983  $  7,191    52.7% 
 UK                   1,966     2,217   (11.3%)    3,482     3,508    (0.7%)
Global Asset and                                                            
 Investment                                                                 
 Management:                                                                
 North America                                                              
  RVA                 5,553     5,499     1.0%     9,910    10,531    (5.9%)
 ARGUS Software       3,875     3,155    22.8%     7,534     5,260    43.2% 
North America                                                               
 Geomatics            3,968     3,458    14.7%     8,295     6,601    25.7% 
Cost Consulting                                                             
 and Project                                                                
 Management:                                                                
 North America                                                              
  Cost                1,696     1,471    15.3%     3,528     2,891    22.0% 
 Asia Pacific                                                               
  Cost                  469       238    97.1%       392       363     8.0% 
Corporate            (7,436)   (6,103)  (21.8%)  (13,204)  (10,264)  (28.6%)
--------------------------------------------------------------------------- 
Adjusted EBITDA   $  16,038  $ 13,828    16.0%  $ 30,920  $ 26,081    18.6% 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 
                                                                           
-------------------------------------------------------------------------- 
Reconciliation of Adjusted              Three months            Six months 
 EBITDA to Profit (Loss)              ended June 30,        ended June 30, 
-------------------------------------------------------------------------- 
In thousands of Canadian Dollars     2014       2013       2014       2013 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
Adjusted EBITDA                 $  16,038  $  13,828  $  30,920  $  26,081 
Depreciation and amortization      (5,189)    (4,542)    (9,739)    (9,191)
Acquisition related (expenses)                                             
 income                               (37)       (45)      (196)      (255)
Share of profit (loss) of                                                  
 associate                           (410)        21       (813)       (57)
Unrealized foreign exchange gain                                           
 (loss)                              (935)      (442)      (434)       (71)
Gain (loss) on sale of property,                                           
 plant and equipment                 (111)      (186)       (86)      (192)
Gain (loss) on sale of certain                                             
 business assets                        -        (59)         -      5,219 
Executive Compensation Plan                                                
 costs                               (208)      (116)      (329)      (218)
Gain (loss) on equity                                                      
 derivatives net of mark-to-                                               
 market adjustments on related                                             
 RSUs and DSUs being hedged           123          -         54          - 
Restructuring costs                    (8)       (17)       (30)    (1,150)
Other non-operating and/or non-                                            
 recurring income (costs)              55       (620)        82       (620)
-------------------------------------------------------------------------- 
Operating profit (loss)             9,318      7,822     19,429     19,546 
Finance (costs) income, net        (8,774)    (3,547)   (12,535)    (7,490)
-------------------------------------------------------------------------- 
Profit (loss) before income tax       544      4,275      6,894     12,056 
-------------------------------------------------------------------------- 
Income tax recovery (expense)      (1,217)    (1,068)    (2,684)    (2,006)
-------------------------------------------------------------------------- 
Profit (loss) for the period    $    (673) $   3,207  $   4,210  $  10,050 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
                                                                           
Interim Condensed                                                          
Consolidated Statements of Comprehensive Income (Loss)                     
For the Three and Six Months Ended June 30, 2014 and 2013                  
(Unaudited)                                                                
(Expressed in Thousands of Canadian Dollars, Except for Shares and Per     
 Share Amounts)                                                            
                                                                           
-------------------------------------------------------------------------- 
                                         Three months           Six months 
                                        ended June 30        ended June 30 
-------------------------------------------------------------------------- 
                                      2014       2013       2014      2013 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
Revenues                                                                   
Gross revenues                   $  90,348  $  78,572  $ 177,039 $ 154,726 
Less: disbursements                  6,481      6,139     14,489    13,436 
-------------------------------------------------------------------------- 
Net revenue                         83,867     72,433    162,550   141,290 
-------------------------------------------------------------------------- 
                                                                           
Expenses                                                                   
  Employee compensation             54,316     47,475    106,634    93,218 
  Occupancy                          3,559      3,448      7,133     6,988 
  Office and other operating        11,030      9,046     18,576    16,104 
  Amortization of intangibles        3,827      3,374      7,219     6,895 
  Depreciation of property, plant                                          
   and equipment                     1,362      1,168      2,520     2,296 
  Acquisition related expenses                                             
   (income)                             37         45        196       255 
  Share of (profit) loss of                                                
   associates                          410        (21)       813        57 
  Restructuring costs                    8         17         30     1,150 
  (Gain) loss on sale of certain                                           
   business assets                       -         59          -    (5,219)
-------------------------------------------------------------------------- 
Operating profit (loss)              9,318      7,822     19,429    19,546 
-------------------------------------------------------------------------- 
Finance costs (income), net          8,774      3,547     12,535     7,490 
-------------------------------------------------------------------------- 
Profit (loss) before income tax        544      4,275      6,894    12,056 
-------------------------------------------------------------------------- 
Income tax expense (recovery)        1,217      1,068      2,684     2,006 
-------------------------------------------------------------------------- 
Profit (loss) for the period                                               
 attributable to equity holders  $    (673) $   3,207  $   4,210 $  10,050 
-------------------------------------------------------------------------- 
Other comprehensive income                                                 
 (loss):                                                                   
Items that may be reclassified to                                          
 profit or loss in subsequent                                              
 periods:                                                                  
  Cash flow hedges                     198        531        359       582 
  Currency translation                                                     
   differences                      (4,326)     4,643      1,217     5,942 
  Share of other comprehensive                                             
   income (loss) of associates         (28)         -         34         - 
-------------------------------------------------------------------------- 
Other comprehensive income                                                 
 (loss), net of tax                 (4,156)     5,174      1,610     6,524 
-------------------------------------------------------------------------- 
Total comprehensive income (loss)                                          
 for the period, net of tax,                                               
 attributable to equity holders  $  (4,829) $   8,381  $   5,820 $  16,574 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
                                                                           
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
Earnings (loss) per share                                                  
 attributable to the equity                                                
 holders of the Company during                                             
 the period                                                                
Basic earnings (loss) per share  $   (0.02) $    0.14  $    0.15 $    0.44 
Diluted earnings (loss) per share$   (0.02) $    0.13  $    0.14 $    0.39 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
                                                                           
Interim Condensed Consolidated Balance Sheets                               
As at June 30, 2014 and 2013                                                
(Unaudited)                                                                 
(Expressed in Thousands of Canadian Dollars)                                
------------------------------------------------------- ------------------ 
                                          June 30, 2014  December 31, 2013 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
Assets                                                                     
Current assets                                                             
  Cash and cash equivalents             $        13,609  $          16,664 
  Trade and other receivables                   112,214            109,589 
  Income taxes recoverable                        1,470              1,294 
-------------------------------------------------------------------------- 
                                                127,293            127,547 
-------------------------------------------------------------------------- 
Non-current assets                                                         
  Trade and other receivables                       365                304 
  Derivative financial instruments                  738                  - 
  Investment in associates                       16,454             14,130 
  Deferred income taxes                          12,434             13,018 
  Property, plant and equipment                  20,391             18,213 
  Intangibles                                    81,296             76,964 
  Goodwill                                      195,598            192,262 
-------------------------------------------------------------------------- 
                                                327,276            314,891 
-------------------------------------------------------------------------- 
Total Assets                            $       454,569  $         442,438 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
Liabilities                                                                
Current liabilities                                                        
  Trade and other payables              $        61,844  $          59,851 
  Income taxes payable                            1,295                678 
  Borrowings                                     50,596              1,441 
  Provisions                                        444              1,738 
-------------------------------------------------------------------------- 
                                                114,179             63,708 
-------------------------------------------------------------------------- 
Non-current liabilities                                                    
  Trade and other payables                       11,784             10,981 
  Borrowings                                    112,877            155,420 
  Derivative financial instruments                1,151              1,637 
  Provisions                                        104                141 
  Deferred income taxes                           3,538              2,692 
  Amounts payable to unitholders                  7,039              5,646 
-------------------------------------------------------------------------- 
                                                136,493            176,517 
-------------------------------------------------------------------------- 
Total Liabilities                               250,672            240,225 
-------------------------------------------------------------------------- 
Shareholders' Equity                                                       
  Share capital                                 344,423            340,445 
  Equity component of convertible                                          
   debentures                                     6,298              6,338 
  Contributed surplus                             6,722              6,130 
  Accumulated other comprehensive                                          
   income (loss)                                 11,050              9,440 
  Deficit                                      (164,596)          (160,140)
-------------------------------------------------------------------------- 
Total Shareholders' Equity                      203,897            202,213 
-------------------------------------------------------------------------- 
Total Liabilities and Shareholders'                                        
 Equity                                 $       454,569  $         442,438 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
                                                                            
Interim Condensed Consolidated Statements of Cash Flows                     
For the Six Months Ended June 30, 2014 and 2013                             
(Unaudited)                                                                 
(Expressed in Thousands of Canadian Dollars)                                
-------------------------------------------------------------------------- 
                                                  Six months ended June 30 
-------------------------------------------------------------------------- 
                                                   2014               2013 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
                                                                           
  Cash flows from operating activities                                     
    Profit (loss) before income tax     $         6,894  $          12,056 
                                                                           
    Adjustments for:                                                       
    Amortization of intangibles                   7,219              6,895 
    Depreciation of property, plant and                                    
     equipment                                    2,520              2,296 
    Amortization of lease inducements                47                 53 
    Amortization of deferred software                                      
     development costs                               41                  - 
    Tax credits recorded through                                           
     employee compensation                            -               (521)
    Finance costs (income), net                  12,535              7,490 
    Share-based compensation                        814                325 
    Unrealized foreign exchange (gain)                                     
     loss                                           434                 71 
    (Gain) loss on sale of certain                                         
     business assets                                  -             (5,278)
    (Gain) loss on disposal of                                             
     property, plant and equipment                   86                192 
    (Gain) loss on equity derivative                                       
     instruments recorded through                                          
     employee compensation                         (738)                 - 
    Share of (profit) loss of                                              
     associates                                     813                 57 
    Net changes in operating working                                       
     capital                                     (3,991)            (1,997)
-------------------------------------------------------------------------- 
  Net cash generated by (used in)                                          
   operations                                    26,674             21,639 
    Less: interest paid                          (4,867)            (3,182)
    Less: income taxes paid                      (1,471)            (1,613)
    Add: income taxes received                      117                174 
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  Net cash provided by (used in)                                           
   operating activities                          20,453             17,018 
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  Cash flows from financing activities                                     
    Proceeds from exercise of options             2,846                713 
    Redemption of Altus UK LLP Class B                                     
     and D limited liability                                               
     partnership units                                -               (170)
    Proceeds from borrowings                     11,000                817 
    Repayment of borrowings                      (9,338)            (5,016)
    Dividends paid                               (6,877)            (6,894)
    Treasury shares purchased under                                        
     Restricted Share Plan                       (3,086)            (2,277)
    Interest paid to other unitholders              (97)              (106)
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  Net cash provided by (used in)                                           
   financing activities                          (5,552)           (12,933)
-------------------------------------------------------------------------- 
  Cash flows from investing activities                                     
    Purchase of investment in                                              
     associates                                  (3,004)                 - 
    Purchase of intangibles                      (1,263)              (473)
    Purchase of property, plant and                                        
     equipment                                   (3,047)            (1,621)
    Proceeds from disposal of property,                                    
     plant and equipment                             94                 43 
    Acquisitions                                (10,934)                 - 
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  Net cash provided by (used in)                                           
   investing activities                         (18,154)            (2,051)
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Effect of foreign currency translation              198                 (4)
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Net increase (decrease) in cash and                                        
 cash equivalents                                (3,055)             2,030 
Cash and cash equivalents                                                  
    Beginning of period                          16,664              4,703 
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    End of period                       $        13,609  $           6,733 
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Contacts:
Altus Group Limited
Camilla Bartosiewicz
Vice President, Investor Relations
(416) 641-9773
camilla.bartosiewicz@altusgroup.com
www.altusgroup.com

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