/NOT FOR DISTRIBUTION IN THE UNITED
STATES.
FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A
VIOLATION OF UNITED STATES
SECURITIES LAW./
TSX-AD.UN
CALGARY, AB, May 6, 2021 /CNW/ - 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 ended March 31,
2021. The results are prepared in accordance with
International Accounting Standard 34. All amounts below are in
Canadian dollars unless otherwise noted.
Q1 2021 Highlights:
- Generated revenue of $32.2
million in the quarter, in line with the previous guidance,
or $0.79 per unit;
- Normalized EBITDA was $28.8
million, an increase of 22.4% on a per unit basis compared
to Q1 2020. The increase is a result of the approximate
$350.0 million of capital deployment
over the preceding twelve months to March
31, 2021;
- Capital deployment in Q1 2021 of approximately $180.0 million:
-
- New partner contribution of US$40.0
million to Falcon Master Holdings LLC ("FNC"),
(US$32.2 million of preferred equity
and a US$7.8 million minority common
equity investment). During the three months ended March 31, 2021, Alaris received US$0.3 million in common distributions from
FNC;
- New partner contribution of US$66.0
million to Brown & Settle Investments, LLC and a
subsidiary thereof (collectively, "Brown & Settle"),
(US$53.7 million of a combination of
subordinated debt and preferred equity and a US$12.3 minority common equity investment);
- Follow-on contribution to Accscient, LLC ("Accscient")
of US$8.0 million; and
- New partner contribution of US$22.5
million of preferred equity to 3E, LLC ("3E"). An
additional US$7.5 million has been
placed into an escrow account to fund up to two additional
preferred unit tranches, once escrow targets are met by 3E.
- Included in earnings in Q1 2021 is a total increase in the fair
value of investments of approximately $5.5
million as well as a bad debt recovery of $4.0 million. The recovery of bad debt is a
reversal of previously recorded credit losses related to long-term
accounts receivable and promissory notes due from Kimco Holdings,
LLC ("Kimco") as their credit risk has improved
substantially as a result of the continued success of the business.
Also, subsequent to March 31, 2021,
Kimco repaid from cash flow US$4.0
million of the total US$18.3
million of accrued long-term accounts receivable and
promissory notes due to Alaris;
- Beginning January 2021, PFGP
began to pay partial distributions of US$0.33 million per month (US$4.0 million per annum) and will continue to do
so until June 2021. While nothing can
be assured, based on PFGP's current forecast including membership
numbers and bank covenants, Alaris currently expect that beginning
in July 2021 distributions will
return to full contracted amounts. A return to full distributions
would add $0.11 per unit of cash flow
and reduce Alaris' pay out ratio by approximately 4%; and
- Both Federal Resources Supply Company ("FED") and Kimco
are continuing 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 of FED is
estimated to be between US$75.0
million and US$85.0 million
and Kimco's is based upon a revised formula factoring in several
valuation factors and is estimated to be between US$70.0 million and US$80.0 million.
"We are pleased to be putting out a first quarter as guided,
which saw revenues increase from the capital deployed in the last
two quarters" said Darren Driscoll,
CFO. "Expected redemptions from FED and Kimco will provide capital
for further growth while maintaining our low payout ratio", said
Mr. Driscoll.
|
|
|
Per Unit
Results
|
Three months
ended
|
Period ending
March 31
|
2021
|
2020
|
%
Change
|
Revenue
|
$
0.79
|
$0.93
|
-15.1%
|
Earnings
|
$0.56
|
$(1.16)
|
+147.7%
|
Normalized
EBITDA
|
$0.71
|
$0.58
|
+22.4%
|
Net cash from
operating activities
|
$0.66
|
$0.72
|
-8.3%
|
Distributions
declared
|
$1.32
|
$1.65
|
-19.8%
|
Basic earnings /
(loss)
|
$0.56
|
$(1.16)
|
+147.7%
|
Fully diluted
earnings / (loss)
|
$0.55
|
$(1.16)
|
+147.2%
|
Weighted average
basic units (000's)
|
40,803
|
36,694
|
|
For the three months ended March 31,
2021, revenue per unit decreased by 15.1%; however, after
excluding the additional US$7.0
million of distributions from Sales Benchmark Index LLC
("SBI") as part of their redemption in January 2020, revenue would have otherwise
increased by approximately $0.11 per
unit or 17%, compared to Q1 2020. The increase is due to the
distributions in Q1 2021 from Alaris' new investments in Carey
Electric, Edgewater, FNC, Brown
& Settle and 3E, as well as the additional distributions from
follow-on investments in GWM, BCC and Accscient. These were
partially offset by the depreciation of the US dollar against the
Canadian dollar compared to the prior year, as the quarterly
average rate was approximately 6% lower in Q1 2021.
Earnings of $0.56 per unit
improved significantly due to the comparable 2020 period including
a $84.9 million decrease in the
investments at fair value, which was a result of the initial impact
to the Partners from COVID-19.
Normalized EBITDA of $0.71 per
unit increased by 22.4% due to the new investments and follow-on
investments outlined above. The reason for the difference from the
decrease in revenue per unit is that the additional US$7.0 million of distributions from SBI were
deducted from Normalized EBITDA as a normalizing item.
Net cash from operating activities of $0.66 per unit decreased by 8.3% in the quarter,
compared to Q1 2020, due to the additional distributions from SBI
that were included in Q1 2020 as part of their redemption.
Outlook
The last twelve months were an incredibly productive period of
capital deployment for Alaris as the total invested in the period
was approximately $350 million. This
included new investments in Carey Electric, Edgewater, FNC, Brown & Settle and 3E, as
well as follow-on contributions into current Partners (GWM, BCC and
Accscient). This increased level of capital deployment for Alaris,
along with consistently positive results amongst the majority of
our current portfolio, is contributing to the Run Rate Revenue of
approximately $135.4 million over the
next twelve months. This includes current contracted amounts, an
aggregate $2.0 million of common
dividends from Partners, agreed upon partial distributions of
US$0.33 million per month from PFGP
and no distributions from ccComm. PFGP plans to resume full
distributions beginning in July 2021
as long as they are compliant with bank covenants. This would add
$6.8 million to Run Rate Revenue and
reduce the Run Rate Payout Ratio by approximately 4%. Alaris
expects total revenue from its Partners in Q2 2021 of approximately
$33.8 million.
Annual general and administrative expenses are currently
estimated at $12.5 million and
include all public company costs. The Trust's Run Rate Payout Ratio
is expected to be within a range of 65% and 70% when including run
rate distributions, overhead expenses and its existing capital
structure. The table below sets out our estimated Run Rate Cash
Flow alongside the after-tax impact of additional PFGP
distributions, 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
|
|
$ 135,400
|
$ 3.01
|
General &
Admin.
|
|
(12,500)
|
(0.28)
|
Interest &
Taxes
|
|
(42,700)
|
(0.95)
|
Free cash
flow
|
|
$ 80,200
|
$ 1.78
|
Annual
Distribution
|
|
55,800
|
1.24
|
Excess Cash
Flow
|
|
$
24,400
|
$
0.54
|
Other
Considerations (after taxes and interest):
|
|
|
PFGP
|
Full distributions of
US$9.4 million per year
|
+5,103
|
+0.11
|
New
Investments
|
Every $50 million
deployed @ 14%
|
+3,188
|
+0.07
|
USD to CAD
|
Every $0.01 change of
USD to CAD
|
+/- 800
|
+/- 0.02
|
The senior debt facility was drawn to $312.3 million at March
31, 2021, with the capacity to draw up to another
$80.7 million based on covenants and
credit terms. The annual interest rate on that debt, inclusive of
the standby charges on available capacity, was approximately 3.8%
for the three months ended March 31,
2021.
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),
Friday, May 7, 2021 to discuss the
financial results and outlook for the Trust.
Participants can access the conference call by dialing toll free
1-888-390-0546. Alternatively, to listen to this event online,
please click the webcast link and follow the prompts given: Q1
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 1-888-390-0541 and
entering the passcode 461381#. 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.
Environmental, Social and Governance ("ESG")
Alaris has recently adopted a formal ESG policy, a copy of which
is available on our website under the "Investors" section. Alaris
expects to begin publishing an ESG report, which will provide its
investors with more information on how our ESG policy is being
implemented. Alaris expects to release its first ESG report within
the next twelve to 18 months, with an annual report following
thereafter. Alaris believes that an awareness of ESG issues is an
important part of being a responsible investor and that integrating
ESG considerations into its investment decisions can help Alaris
mitigate risks and identify strong investment opportunities. Alaris
is also committed to periodically reviewing the ESG policies and
procedures of its existing Private Company Partners to ensure they
adequately address emerging market trends and any areas of concern
for Alaris, the investment industry in general or the specific
industries in which the Partners operate.
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-IFRS Measures
The terms EBITDA, Normalized EBITDA,
Run Rate Payout Ratio, Actual Payout Ratio, Run Rate Revenue, Run
Rate Cash Flow, Earnings Coverage Ratio, Per Unit and IRR 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,
Normalized EBITDA, Run Rate Payout Ratio, Actual Payout Ratio, Run
Rate Revenue, Run Rate Cash Flow, Earnings Coverage Ratio, Per Unit
and IRR may differ from the methods used by other issuers.
Therefore, the Trust's EBITDA, Normalized EBITDA, Run Rate Payout
Ratio, Actual Payout Ratio, Run Rate Revenue, Run Rate Cash Flow,
Earnings Coverage Ratio, Per Unit and IRR may not be comparable to
similar measures presented by other issuers.
Run Rate Payout Ratio refers to Alaris' total
distribution per unit expected to be paid over the next twelve
months divided by the estimated net cash from operating activities
per unit that Alaris expects to generate over the same twelve month
period (after giving effect to the impact of all information
disclosed as of the date of this report).
Actual Payout Ratio refers to Alaris' total cash
distributions paid during the period (annually or quarterly)
divided by the actual net cash from operating activities Alaris
generated for the period.
Run Rate Revenue refers to Alaris' total revenue
expected to be generated over the next twelve months.
Run Rate Cash Flow refers to Alaris' total cash flows
expected to be generated and disbursed over the next twelve
months.
EBITDA refers to earnings determined in accordance with
IFRS, before depreciation and amortization, net of gain or loss on
disposal of capital assets, interest expense and income tax
expense. EBITDA is used by management and many investors to
determine the ability of an issuer to generate cash from
operations. Management believes EBITDA is a useful supplemental
measure from which to determine the Trust's ability to generate
cash available for debt service, working capital, capital
expenditures, income taxes and distributions.
Normalized EBITDA refers to EBITDA excluding items that
are non-recurring in nature and is calculated by adjusting for
non-recurring expenses and gains to EBITDA. Management deems
non-recurring items to be unusual and/or infrequent items that
Alaris incurs outside of its common day-to-day operations. For the
three months ended March 31, 2021,
this includes the unit-based compensation expense related to the
quarterly re-valuation of the outstanding RTU's and Options and the
reversal of previously recorded credit losses related to the Kimco
promissory notes and accounts receivable. For the three months
ended March 31, 2020, this includes
the distributions received upon the redemption of SBI. Transaction
diligence costs are recurring but are considered an investing
activity. Foreign exchange unrealized gains and losses are
recurring but not considered part of operating results and excluded
from normalized EBITDA on an ongoing basis. Changes in investments
at fair value are non-cash and although recurring are also removed
from normalized EBITDA. Adjusting for these non-recurring items
allows management to assess cash flow from ongoing operations.
Earnings Coverage Ratio refers to the Normalized 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.
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.
IRR 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.
The terms EBITDA, Normalized EBITDA, Run Rate Payout Ratio,
Actual Payout Ratio, Run Rate Revenue, Run Rate Cash Flow, Earnings
Coverage Ratio, Per Unit and IRR should only be used in conjunction
with the Trust's annual audited financial statements while complete
versions are 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 timing and impact of restarting or
increasing Distributions from Partners not currently paying the
full amount or at all; the Trust's Run Rate Payout Ratio, Run Rate
Cash Flow and Run Rate Revenue; the continued deferral of PFGP's
Distributions and the timing to restart full distributions; the
impact of the new investments in Carey Electric, FNC, Edgewater, Brown & Settle, 3E as well as
the follow-on investments in GWM, BCC and Accscient, including,
without limitation, the expected yield therefrom and the impact on
the Trust's net cash from operating activities, Run Rate Revenue
and Run Rate Payout Ratio; expected resets of Distributions in
2021; the Trust's consolidated expenses; expectations regarding
receipt (and amount of) any common equity distributions 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 impact
of investing in common equity on Alaris' ability to deploy more
capital, overall return and Run Rate Payout Ratio; the amount of
the Trust's distributions to unitholders (both quarterly and on an
annualized basis); the use of proceeds from the senior credit
facility; the Trust's ability to deploy capital; potential Partner
redemptions, including the timing, if at all, thereof and the
amounts to be received by the Trust; impact of new deployment and
restarting Distributions from Partners not paying full contractual
amounts; and the impact of Alaris' ESG Policy and the issuance of
its ESG report. 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
recover from the ongoing economic downturn created by the response
to COVID-19 within the next twelve months, interest rates will not
rise in a material way over the next 12 to 24 months, that those
Alaris Partners detrimentally affected by COVID-19 will recover
from the pandemic's impact and return to their pre-COVID-19
operating environments; following a recovery from the COVID-19
impact, 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, 2020,
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.
Alaris Equity Partners Income Trust
Condensed
consolidated interim statements of financial position
|
|
|
|
|
31-Mar
|
|
31-Dec
|
$
thousands
|
2021
|
|
2020
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
19,054
|
|
$
|
16,498
|
Prepayments
|
|
195
|
|
|
177
|
Derivative
contracts
|
|
1,666
|
|
|
1,489
|
Accounts
receivables
|
|
607
|
|
|
804
|
Income taxes
receivable
|
|
10,333
|
|
|
12,669
|
Promissory notes
receivable
|
|
4,000
|
|
|
4,000
|
Current
Assets
|
$
|
35,855
|
|
$
|
35,637
|
Promissory notes and
other assets
|
|
32,479
|
|
|
19,233
|
Deposits
|
|
20,206
|
|
|
20,206
|
Property and
equipment
|
|
775
|
|
|
846
|
Investments
|
|
1,048,538
|
|
|
880,512
|
Non-current
assets
|
$
|
1,101,998
|
|
$
|
920,797
|
Total
Assets
|
$
|
1,137,853
|
|
$
|
956,434
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$ 8,076
|
|
|
$ 5,351
|
Distributions
payable
|
|
13,938
|
|
|
12,089
|
Office
Lease
|
|
618
|
|
|
659
|
Income tax
payable
|
|
-
|
|
|
723
|
Current
Liabilities
|
$
|
22,632
|
|
$
|
18,822
|
Deferred income
taxes
|
|
17,236
|
|
|
16,112
|
Loans and
borrowings
|
|
310,071
|
|
|
229,477
|
Convertible
debenture
|
|
86,950
|
|
|
86,029
|
Other long-term
liabilities
|
|
1,115
|
|
|
980
|
Non-current
liabilities
|
$
|
415,372
|
|
$
|
332,598
|
Total
Liabilities
|
$
|
438,004
|
|
$
|
351,420
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Unitholders'
capital
|
$
|
751,207
|
|
$
|
659,988
|
Equity
reserve
|
|
17,621
|
|
|
17,621
|
Translation
reserve
|
|
7,339
|
|
|
12,431
|
Retained earnings /
(deficit)
|
|
(76,318)
|
|
|
(85,026)
|
Total
Equity
|
$
|
699,849
|
|
$
|
605,014
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
$
|
1,137,853
|
|
$
|
956,434
|
Alaris Equity Partners Income Trust
Condensed
consolidated interim statements of comprehensive income /
(loss)
|
|
|
Three months
ended
March 31
|
$ thousands
except per unit amounts
|
2021
|
2020
|
|
|
|
|
|
Revenues, net of
realized foreign exchange gain or loss
|
$
|
32,234
|
$
|
33,971
|
Net realized gain
from investments
|
|
-
|
|
11,603
|
Net unrealized gain /
(loss) of investments at fair value
|
|
5,534
|
|
(96,527)
|
Bad debt
recovery
|
|
4,030
|
|
-
|
Total revenue and
other operating income / (loss)
|
$
|
41,798
|
$
|
(50,953)
|
|
|
|
|
|
General and
administrative
|
|
2,408
|
|
2,773
|
Transaction diligence
costs
|
|
1,902
|
|
1,977
|
Unit-based
compensation
|
|
1,530
|
|
743
|
Depreciation and
amortization
|
|
75
|
|
77
|
Total operating
expenses
|
|
5,915
|
|
5,570
|
Earnings / (loss)
from operations
|
$
|
35,883
|
$
|
(56,523)
|
Finance
costs
|
|
5,621
|
|
4,754
|
Unrealized (gain) /
loss on foreign exchange
|
|
1,845
|
|
(6,993)
|
Earnings / (loss)
before taxes
|
$
|
28,417
|
$
|
(54,284)
|
Current income tax
expense / (recovery)
|
|
4,490
|
|
(5,586)
|
Deferred income tax
expense / (recovery)
|
|
1,281
|
|
(6,036)
|
Total income tax
expense / (recovery)
|
|
5,771
|
|
(11,622)
|
Earnings /
(loss)
|
$
|
22,646
|
$
|
(42,662)
|
|
|
|
|
|
Other
comprehensive income / (loss)
|
|
|
|
|
Foreign currency
translation differences
|
|
(5,092)
|
|
29,501
|
Total
comprehensive income / (loss)
|
$
|
17,554
|
|
(13,161)
|
|
|
|
|
|
Earnings / (loss)
per unit
|
|
|
|
|
Basic
|
|
$ 0.56
|
|
$ (1.16)
|
Fully
diluted
|
|
$ 0.55
|
|
$ (1.16)
|
Weighted average
units outstanding
|
|
|
|
|
Basic
|
|
40,803
|
|
36,694
|
Fully
Diluted
|
|
41,276
|
|
37,104
|
Alaris Equity Partners Income Trust
Condensed
consolidated interim statements of cash flows
|
|
|
Three months ended
March 31
|
$
thousands
|
2021
|
2020
|
Cash flows from
operating activities
|
|
|
|
|
Earnings / (loss) for
the period
|
$
|
22,646
|
$
|
(42,662)
|
Adjustments
for:
|
|
|
|
|
Finance
costs
|
|
5,621
|
|
4,754
|
Deferred income tax
expense / (recovery)
|
|
1,281
|
|
(6,036)
|
Depreciation and
amortization
|
|
75
|
|
77
|
Bad debt
recovery
|
|
(4,030)
|
|
-
|
Net realized gain
from investments
|
|
-
|
|
(11,603)
|
Net unrealized (gain)
/ loss of investments at fair value
|
|
(5,534)
|
|
96,527
|
Unrealized (gain) /
loss on foreign exchange
|
|
1,845
|
|
(6,993)
|
Transaction diligence
costs
|
|
1,902
|
|
1,977
|
Unit-based
compensation
|
|
1,530
|
|
743
|
Changes in working
capital:
|
|
|
|
|
- accounts
receivables
|
|
197
|
|
(683)
|
- income tax
receivable / payable
|
|
1,456
|
|
(5,369)
|
-
prepayments
|
|
(18)
|
|
(338)
|
- accounts payable,
accrued liabilities
|
|
2,860
|
|
(1,046)
|
Cash generated
from operating activities
|
|
29,831
|
|
29,348
|
Cash interest
paid
|
|
(3,076)
|
|
(2,796)
|
Net cash from
operating activities
|
$
|
26,755
|
$
|
26,552
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Acquisition of
investments
|
$
|
(174,062)
|
$
|
(4,941)
|
Transaction diligence
costs
|
|
(1,902)
|
|
(1,977)
|
Proceeds from partner
redemptions
|
|
-
|
|
111,306
|
Proceeds on disposal
of assets and liabilities held for sale
|
|
-
|
|
38,491
|
Promissory notes and
other assets issued
|
|
(9,556)
|
|
-
|
Promissory notes and
other assets repaid
|
|
-
|
|
450
|
Net cash from /
(used in) investing activities
|
$
|
(185,520)
|
$
|
143,329
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Repayment of loans
and borrowings
|
$
|
(99,939)
|
$
|
(151,102)
|
Proceeds from loans
and borrowings
|
|
185,453
|
|
7,903
|
Debt amendment and
extension fees
|
|
(552)
|
|
-
|
Issuance of
unitholders' capital, net of unit issue costs
|
|
90,287
|
|
-
|
Distributions
paid
|
|
(12,089)
|
|
(15,142)
|
Trust unit
repurchases
|
|
-
|
|
(2,441)
|
Office lease
payments
|
|
(40)
|
|
(63)
|
Net cash from /
(used in) financing activities
|
$
|
163,120
|
$
|
(160,845)
|
|
|
|
|
|
Net increase in
cash and cash equivalents
|
$
|
4,355
|
$
|
9,036
|
Impact of foreign
exchange on cash balances
|
|
(1,799)
|
|
(1,769)
|
Cash and cash
equivalents, Beginning of period
|
|
16,498
|
|
17,104
|
Cash and cash
equivalents, End of period
|
$
|
19,054
|
$
|
24,371
|
|
|
|
|
|
Cash taxes paid /
(received)
|
$
|
3,049
|
$
|
(555)
|
SOURCE Alaris Equity Partners Income Trust