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CALGARY, Alberta, Aug. 09, 2022 (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 six months ended June 30, 2022. The results are prepared in accordance with International Accounting Standard 34. All amounts below are in Canadian dollars unless otherwise noted.
- Revenue of $56.5 million and cash generated from operations, prior to changes in working capital of $44.4 million in the second quarter of 2022 represent 62% and 51% increases respectively, as compared to the same period in 2021. On a per unit basis, revenue of $1.25 represents a 60% increase and cash from operations, prior to changes in working capital of $0.98 represents a 51% increase, both as compared to Q2 2021;
- For the six months ended June 30, 2022, total revenue was $96.1 million and cash from operations, prior to changes in working capital was $79.7 million, representing increases of 43% and 46% respectively, as compared to the same period in 2021. On a per unit basis, revenue of $2.12 represents a 35% increase and cash from operations, prior to changes in working capital of $1.76, represents a 38% increase, both as compared to the first six months of 2021;
- These increases year over year for the three and six months ended June 30, 2022 primarily relate to the additional US$13.7 million (CA$17.2 million) of Distributions received in April 2022 from Kimco Holdings, LLC (“Kimco”) that were deferred from prior years. The remaining $39.3 million of revenue earned in Q2 2022 represents a 13% increase as compared to Q2 2021;
- As part of the Kimco redemption in April 2022, Alaris realized a premium of US$9.4 million which was recognized as a net realized gain from investments during the quarter;
- Subsequent to June 30, 2022, Alaris made a follow-on investment of US$26.0 million (the “Accscient Contribution”) into an existing Partner, Accscient, LLC (“Accscient”). The Accscient Contribution consisted of US$16.0 million in exchange for additional preferred units in Accscient (“Accscient Units”) as well as an investment of US$10.0 million in exchange for a minority ownership of the common equity in Accscient. The Accscient units will result in an annualized Distribution to Alaris of US$2.1 million, a pre-tax yield of 13.3%. Accscient used the proceeds of the Accscient Contribution for investment purposes;
- Follow-on investment of US$3.5 million to Heritage Restoration, LLC (“Heritage”) in May 2022 which was comprised of an additional US$2.5 million of preferred equity at an initial yield of 15%, as well as an investment of US$1.0 million in exchange for a minority ownership of the common equity in Heritage;
- The follow-on investments to Accscient and Heritage resulted in total 2022 deployment to date of $116 million;
- For the six months ended June 30, 2022, the Trust has generated basic earnings per unit of $1.46 and has paid out $0.66 of distributions per unit, resulting in $0.80 per unit of additional book value, improving the book value per unit at quarter end to $18.38;
- The weighted average combined Earnings Coverage Ratio (5) for Alaris’ Partners remains greater than 1.75x with fourteen of eighteen Partners greater than 1.5x; and
- Alaris reduced its outstanding senior debt during Q2 2022 by US$77.0 million as a result of the Kimco redemption (US$67.0 million) and repayment through excess cash flow as a result of Alaris’ low payout ratio (US$10.0 million). The balance of outstanding senior debt is approximately $287 million as of the date of this release with $113 million of available capacity based on covenants and credit terms.
“Alaris’ second quarter results again exceeded guidance as the Kimco redemption contributed to a record quarter of revenue and cash flow, which along with our low payout ratio, allowed for a significant amount of senior debt repayment. The market for deployment has been soft given the turbulence in the world financial markets. We are still seeing a large quantity of deals but not of the quality that we demand. We still expect an active second half of deployment in 2022 as several of our partners have acquisition opportunities that will need to be funded and we still expect to add to our portfolio with new partners. Of particular interest is the progress that we continue to make on the asset management strategy, which may include the raising and managing of third party capital to invest alongside Alaris in existing Partners and the earning of management fees and carried interest thereon. Alaris’ portfolio continues to perform remarkably well and we feel that we’re ideally suited to handle future economic conditions given the low debt and required service nature of our portfolio”, said Steve King, President and CEO.
|Per Unit Results||Three months ended||Six months ended|
|Period ending June 30||2022||2021||% Change||2022||2021||% Change|
|EBITDA (Note 1)||$||1.22||$||0.95||+28.4||%||$||2.13||$||1.79||+19.0||%|
|Cash from operations, prior to changes in working capital||$||0.98||$||0.65||+50.8||%||$||1.76||$||1.28||+37.5||%|
|Fully diluted earnings||$||0.81||$||0.63||+28.6||%||$||1.41||$||1.17||+20.5||%|
|Weighted average basic units (000’s)||45,272||44,962||45,217||42,894|
For the three months ended June 30, 2022, revenue per unit increased by 60.3% compared to the same period in 2021 primarily as a result of the $17.2 million (US$13.7 million) of Distributions from Kimco received as part of their redemption that were deferred from prior years. After reducing the total revenue earned in the quarter of $56.5 million by the $17.2 million of deferred Distributions from Kimco, the remaining revenue of $39.3 million represents a 13% increase compared to $34.9 million of revenue in Q2 2021. The remaining increase is the result of the new investment in Vehicle Leasing Holdings, LLC, dba D&M Leasing (“D&M”) during Q2 2021, follow-on investments to Body Contour Centers, LLC (“BCC”), Fleet Advantage, LLC (“Fleet”) and Heritage, as well as from receiving full Distributions from PF Growth Partners, LLC (“PFGP”) in Q2 2022 as they were paying partial Distributions in Q2 2021 as a result of the impact of COVID-19. The average exchange rate during Q2 2022 was also approximately 4% more favorable than in the prior year, further contributing to the improvement in revenue. These increases were partially offset by the redemption of Federal Resources Supply Company and its subsidiaries (“FED”) and a partial redemption of GWM Holdings, Inc. and its subsidiaries (“GWM”), both during Q4 2021.
For the six months ended June 30, 2022, revenue per unit increased by 35.0% compared to the first six months of 2021. The largest contributor to the increase is the Distributions from Kimco from prior years as described above. After reducing the total revenue of $96.1 million by the deferred Distributions from Kimco of $17.2 million, the remaining revenue earned in the six months ended June 30, 2022 is $78.9 million, which represents an increase of 17% compared to the $67.2 million earned in the comparable period in 2021. The remaining increase relates to the investment in D&M and follow-on investments described above, as well as new investments during Q1 2021 in Falcon Master Holdings LLC (“FNC”), Brown & Settle Investments, LLC and a subsidiary thereof (collectively, “Brown & Settle”) and 3E, LLC (“3E”).
As the Trust’s cash from operations, prior to changes in working capital, excludes primarily all non-cash items in the Trust’s consolidated statement of comprehensive income, the cash from operations, prior to changes in working capital per unit and the changes from period to period is an important tool to use to summarize the ability for Alaris to generate cash. The per unit increases in Q2 2022 of 50.8% and for the six months ended June 30, 2022 of 37.5% are both mainly due to the redemption of Kimco and the Distributions received that were deferred from prior years.
The Actual Payout Ratio (2) for Alaris for the six months ended June 30, 2022 was 39%, an improvement from 55% in the comparable period of 2021, primarily as a result of the improvements in revenue per unit noted above.
EBITDA per unit increased by 28.4% in Q2 2022 and by 19.0% in the six months ended June 30, 2022, each as compared to the respective comparable periods in 2021, as a result of the increases in revenue discussed above with a partial offset of higher general and administrative expenses in the current period as compared to the 2021 period. The higher general and administrative expenses related to higher salaries and benefits expenses due to the timing of accruing year-end management bonus accruals as well as higher legal and accounting fees.
Basic earnings per unit increased by 30.8% in Q2 2022 and by 20.7% in the six months ended June 30, 2022, each as compared to the respective comparable periods in 2021, as a result of the increases in EBITDA per unit as discussed above.
The Trust deployed approximately $86.8 million in the six months ended June 30, 2022, consistent with Alaris’ acquisition of investments in its condensed consolidated interim statement of cash flows. As a result of this deployment along with the Distributions received as part of the Kimco redemption that were deferred from prior years, Alaris’ Q2 2022 total revenue of $56.5 million was a record quarter of revenue for the Trust and was slightly ahead of the expected $56.1 million, due to a higher average US dollar. As outlined below, the outlook for the next twelve months includes Run Rate Revenue (3) expected to be approximately $159.3 million. This includes current contracted amounts, an additional US$2.4 million from PFGP related to deferred Distributions during COVID-19 and an estimated $3.7 million of common dividends. Alaris expects total revenue from its Partners in Q3 2022 of approximately $39.3 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 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’ condensed consolidated interim statements of cash flows. The Trust’s method of calculating this Non-GAAP financial measure may differ from the methods used by other issuers. Therefore, it may not be comparable to similar measures presented by other issuers.
Annual general and administrative expenses are currently estimated at $16.0 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 alongside the after-tax impact of positive net deployment, the impact of every 1% increase in LIBOR based on current outstanding USD debt 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|
|General and administrative expenses||(16,000||)||(0.35||)|
|Interest and taxes||(50,500||)||(1.12||)|
|Net cash from operating activities||$||92,800||$||2.05|
|Run Rate Cash Flow||$||33,000||$||0.73|
|Other considerations (after taxes and interest):|
|New investments||Every $50 million deployed @ 14%||+3,188||+0.07|
|Interest rates||Every 1.0% increase in LIBOR||-1,800||-0.04|
|USD to CAD||Every $0.01 change of USD to CAD||+/- 900||+/- 0.02|
The senior debt facility was drawn to $244.5 million at June 30, 2022 in the Trust’s statement of financial position. The annual interest rate on that debt, inclusive of standby charges on available capacity, was approximately 4.7% for the six months ended June 30, 2022. Subsequent to June 30, 2022 following an additional contribution of US$26.0 million to Accscient, Alaris has the capacity to draw up to an additional $113 million based on covenants and credit terms.
The Condensed Consolidated Interim Statements of Financial Position, Condensed Consolidated Interim Statements of Comprehensive Income, and Condensed Consolidated Interim Statements 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), Wednesday, August 10, 2022 to discuss the financial results and outlook for the Trust.
Participants must register for the call using this link: Q2 2022 Conference Call. Pre-register to receive the dial-in numbers and unique PIN to access the call seamlessly. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call). Participants can access the webcast here: Q2 webcast. A replay of the webcast will be available two hours after the call and archived on the same web page for six months. Participants can also find the link on our website, stored under the “Investors” section – “Presentations and Events”, 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 Measures
The terms EBITDA, Actual Payout Ratio, Run Rate Revenue, Run Rate Payout Ratio, Earnings Coverage Ratio, Run Rate Cash Flow 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 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 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 ended |
|Six months ended|
|$ thousands except per unit amounts||2022||2021||% Change||2022||2021||% Change|
|Depreciation and amortization||53||45||+17.8||%||106||120||-11.7||%|
|Total income tax expense||9,396||7,699||+22.0||%||16,683||13,470||+23.9||%|
|Weighted average basic units (000's)||45,272||44,962||45,217||42,894|
|EBITDA per unit||$||1.22||$||0.95||+28.4||%||$||2.13||$||1.79||+19.0||%|
(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, excluding any potential Partner redemptions, it also includes 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) “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.
The terms EBITDA, Actual Payout Ratio, Run Rate Revenue, Run Rate Payout Ratio, Earnings Coverage Ratio, Run Rate Cash Flow 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.
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; 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 asset management strategy and impact thereof; 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; Q3 2022 revenue; and the Trust’s expenses for the remainder of 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, any 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, the Russia/Ukraine conflict and other global economic pressures over the next twelve months, interest rates will not rise in a material way from market expectations 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; that those Partners detrimentally affected by COVID-19 will recover from the pandemic’s impact and return to their pre-pandemic operating environments; 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 and other global economic factors (including, without limitation, the Russia/Ukraine conflict, inflationary measures and global supply chain disruptions on the Trust and the Partners (including how many Partners will experience a slowdown of their business and the length of time of such slowdown); the dependence of Alaris on the Partners; leverage and restrictive covenants under credit facilities; reliance on key personnel; general economic conditions, including any 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:
Alaris Equity Partners Income Trust
Alaris Equity Partners Income Trust
Condensed consolidated interim statements of financial position
|Cash and cash equivalents||$||25,263||$||18,447|
|Accounts receivable and prepayments||790||3,181|
|Income taxes receivable||23,000||28,991|
|Promissory notes and other assets||1,038||13,555|
|Property and equipment||572||658|
|Accounts payable and accrued liabilities||$||6,886||$||8,214|
|Income tax payable||830||740|
|Deferred income taxes||53,493||43,903|
|Loans and borrowings||244,498||326,569|
|Senior unsecured debenture||62,375||-|
|Other long-term liabilities||1,115||1,933|
|Total Liabilities and Equity||$||1,308,087||$||1,275,209|
Alaris Equity Partners Income Trust
Condensed consolidated interim statements of comprehensive income
|Three months ended June 30||Six months ended June 30|
|$ thousands except per unit amounts||2022||2021||2022||2021|
|Revenues, including realized foreign exchange gain||$||56,497||$||34,933||$||96,061||$||67,167|
|Net realized gain from investments||11,948||-||11,948||-|
|Net unrealized gain / (loss) of investments at fair value||(12,416||)||16,224||(2,388||)||21,758|
|Bad debt recovery||-||-||-||4,030|
|Total revenue and other operating income||$||56,029||$||51,157||$||105,621||$||92,955|
|General and administrative||6,173||1,907||9,660||4,315|
|Transaction diligence costs||945||834||1,853||2,736|
|Depreciation and amortization||53||45||106||120|
|Total operating expenses||7,094||3,862||13,419||9,777|
|Earnings from operations||$||48,935||$||47,295||$||92,202||$||83,178|
|Unrealized (gain) / loss on derivative contracts||1,333||453||(727||)||276|
|Foreign exchange (gain) / loss||(7,515||)||4,039||(3,346||)||6,061|
|Earnings before taxes||$||48,022||$||37,017||$||82,714||$||65,434|
|Current income tax expense||5,967||3,656||7,521||8,146|
|Deferred income tax expense||3,429||4,043||9,162||5,324|
|Total income tax expense||9,396||7,699||16,683||13,470|
|Other comprehensive income|
|Foreign currency translation differences||17,684||(7,776||)||4,459||(12,868||)|
|Total comprehensive income||$||56,310||$||21,542||$||70,490||$||39,096|
|Earnings per unit|
|Weighted average units outstanding|
Alaris Equity Partners Income Trust
Condensed consolidated interim statements of cash flows
|Six months ended June 30|
|Cash flows from operating activities|
|Earnings for the period||$||66,031||$||51,964|
|Deferred income tax expense||9,162||5,324|
|Depreciation and amortization||106||120|
|Bad debt recovery||-||(4,030||)|
|Net realized (gain) / loss from investments||(11,948||)||-|
|Net unrealized (gain) / loss of investments at fair value||2,388||(21,758||)|
|Unrealized (gain) / loss on derivative contracts||(727||)||276|
|Unrealized foreign exchange (gain) / loss||(2,497||)||6,061|
|Transaction diligence costs||1,853||2,736|
|Cash from operations, prior to changes in working capital||79,729||54,706|
|Changes in working capital:|
|Accounts receivable and prepayments||2,391||(879||)|
|Income tax receivable / payable||6,509||2,337|
|Accounts payable, accrued liabilities||(1,328||)||(17||)|
|Cash generated from operating activities||87,301||56,147|
|Cash interest paid||(10,156||)||(9,140||)|
|Net cash from operating activities||$||77,145||$||47,007|
|Cash flows from investing activities|
|Acquisition of investments||$||(86,816||)||$||(260,666||)|
|Transaction diligence costs||(1,853||)||(2,736||)|
|Proceeds from partner redemptions||58,275||1,208|
|Promissory notes and other assets issued||-||(9,556||)|
|Promissory notes and other assets repaid||12,531||10,868|
|Net cash used in investing activities||$||(17,863||)||$||(260,882||)|
|Cash flows from financing activities|
|Repayment of loans and borrowings||$||(165,636||)||$||(114,705||)|
|Proceeds from loans and borrowings||83,473||273,585|
|Debt amendment and extension fees||-||(552||)|
|Issuance of unitholders' capital, net of unit issue costs||-||90,287|
|Proceeds from senior unsecured debenture, net of fees||62,192||-|
|Office lease payments||(75||)||(81||)|
|Net cash from / (used in) financing activities||$||(49,881||)||$||222,506|
|Net increase in cash and cash equivalents||$||9,401||$||8,631|
|Impact of foreign exchange on cash balances||(2,585||)||(1,346||)|
|Cash and cash equivalents, Beginning of period||18,447||16,498|
|Cash and cash equivalents, End of period||$||25,263||$||23,783|
|Cash taxes paid||$||1,470||$||4,785|