IBI Group Inc. Announces First Quarter 2015 Results

May 14, 2015, 21:49 ET from IBI Group Inc.

  • Q1 revenue increased 5.4% to $77.5 million over Q1 2014
  • Adjusted EBITDA of $6.5 million for Q1 up 31% over same quarter last year
  • Net Income from continuing operations up 211% to $2.5 million from Q1 of the prior year
  • Debt levels reduced by $4.5 million in Q1 2015

TORONTO, May 14, 2015 /CNW/ - IBI Group Inc. (the "Company") (TSX: IBG) today announced financial results for the three months ended March 31, 2015. 

OPERATIONAL HIGHLIGHTS

  • Revenue for the three months ended March 31, 2015 was $77.5 million compared to $73.5 million in the same quarter in 2014, an increase of 5.4%.
  • Adjusted EBITDA was $6.5 million for three months ended March 31, 2015 compared to $5.0 million in the same period last year, an increase of 31%.
  • Net income was $2.5 million for three months ended March 31, 2015 compared to $1.2 million in the same period last year, an increase of 211%.
  • Forecasting $316 million in total revenue for the year ended December 31, 2015, of which 89.6% is committed and under contract.
  • Debt balances reduced by $4.5 million from December 31, 2014 levels.

"We had a plan, we are executing on the plan, and the plan is showing results," said CEO Scott Stewart. "Across the board, our numbers are improving as we grow the business and continue to make enhancements to financial controls, identify synergies, implement cost management initiatives, and strengthen the billings and collections process."

FINANCIAL HIGHLIGHTS

(in thousands of dollars except for per share amounts)

Three months ended

March 31, 2015

(unaudited)

Three months ended

March 31, 2014

(unaudited)

(restated2)

Number of working days

62

62

Revenue

$77,481

$73,456

Net income from continuing operations

$2,526

$1,219

Net income loss from discontinued operations

$ -

$(23)

Net income

$2,526

$1,196

Basic and diluted earnings per share

$0.11

$0.05

Basic and diluted earnings per share from continuing operations

$0.11

$0.05

Basic and diluted earnings per share from discontinued operations

$ -

$ -

Adjusted EBITDA1

$6,546

$4,991

Adjusted EBITDA as a percentage of revenue

8.4%

6.8%

1-  See "Definition of Non-IFRS Measures"

2-  Restatement due to divestment of Quebec operations and 49% equity interest in China. See "Interim Financial Statements – Note 18"

Revenue for the three months ended March 31, 2015 was $77.5 million, compared with $73.5 million in the same period in 2014. Net income from continuing operations for the three months ended March 31, 2015 was $2.5 million, compared with net income in the same period in 2014 of $1.2 million.

Operating expenses from continuing operations for the three months ended March 31, 2015 were $68.6 million compared to $67.7 million in the same period in 2014. As a percentage of revenues, operating expenses for the three months ended March 31, 2015 were 88.5% compared to 92.2% for the same period in 2014.

The impact of foreign exchange on revenue from continuing operations for the three months ended March 31, 2014 was $3.0 million compared to the same period in 2014. The impact of foreign exchange on expenses from continuing operations for the three months ended March 31, 2014 was also $3.0 million compared to the same period in 2014.

Current assets increased by $7.4 million as at March 31, 2015 when compared with December 31, 2014. This is primarily the result of a $4.3 million increase in accounts receivable and a $3.7 million increase in WIP. Cash flows from operating activities for the three months ended March 31, 2015 were $4.5 million compared to $1.9 million for the same period last year.

There has been a total decrease of 12 days in days sales outstanding in the twelve months since March 31, 2014.  These decreases can be attributed to the Company's commitment in 2014 to monitoring accounts receivable with a focus to improve collections, resulting in a decrease in write-offs of accounts receivable.

Foreign exchange gain from continuing operations for the three months ended March 31, 2015 was $3.3 million compared to $1.4 million in the same period in 2014. The gain is attributable to foreign exchange rate movements between the Canadian dollar, U.S. dollar, British pound and other local currencies of international subsidiaries.

OUTLOOK

Management is forecasting approximately $316 million in total revenue for the year ended December 31, 2015 of which 89.6% is committed and under contract. The forecast is consistent with the Company's 3.5% annual growth expectation plus the impact of the weaker Canadian dollar. The Company currently has $356 million of work that is committed and under contract for the next three years, of which $283 million is committed for 2015. This committed workload is a material factor and assumption used to develop revenue forecasts. The Company continues to see an increase in committed work to be delivered in 2015. The Company has approximately ten months of backlog, calculated on the basis of the current pace of work that the Company has achieved during the last 12 months ended March 31, 2015.

Caution Regarding Forward-Looking Information

Statements in this news release that describe the Company's or management's expectations, forecasts, guidance or estimates may constitute "forward-looking" statements, and such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. Forward-looking statements also include statements that are not historical facts. Forward-looking statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, IBI Group, or the industry in which they operate, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, including those related to: (i) IBI's ability to maintain profitability and manage its growth; (ii) IBI's reliance on its key professionals; (iii) competition in the industry in which IBI operates; (iv) timely completion by IBI of projects and performance by IBI of its obligations; (v) fixed-price contracts; (vi) the general state of the economy; (vii) acquisitions by IBI; (viii) risk of future legal proceedings against IBI; (ix) the international operations of IBI; * reduction in IBI's backlog; (xi) fluctuations in interest rates; (xii) fluctuations in currency exchange rates; (xiii) potential undisclosed liabilities associated with acquisitions; (xiv) upfront risk for time invested in participating in consortiums bidding on large projects; (xv) limits under IBI's insurance policies; (xvi) the Company's reliance on distributions from IBI Group LP and IBI Group and, as a result, its susceptibility to fluctuations in IBI's performance; (xvii) unpredictability and volatility of the price of the Company's shares; (xviii) the degree to which IBI is leveraged; (xix) the possibility that the Company may issue additional shares diluting existing shareholders' interests; (xx) income tax matters; and (xxi) refinancing the convertible debentures which mature December 31, 2014.. See "Risk Factors" discussed in the Company's Annual Information Form filed with the Canadian securities regulatory authorities. New risk factors may arise from time to time and it is not possible for management of the Company to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance or achievements of the Company to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Although the forward-looking statements contained in this annual information form are based upon what management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligations to update or revise them to reflect new events or circumstances.

Investor Conference Call

The Company will hold a conference call on May 15 at 8:30 a.m. Eastern Time. To participate in the conference call, please dial in before 8:30 a.m. EST to 1-800-728-2056 for local and toll-free North American access, or 1-212-231 2902 for international access.

An audio replay of the call will be available for 14 days by dialing 1-416-626-4100 for international access or 1-800-558-5253 for local and toll-free North American access, enter pass code 21767665 followed by the number sign on your telephone keypad.

About IBI Group Inc.:

The Company is a TSX listed corporation and its common shares trade under the symbol "IBG".

IBI Group is a globally integrated architecture, planning, engineering, and technology firm with over 2,300 professionals around the world. For more than 40 years, our dedicated professionals have helped clients create livable, sustainable, and advanced urban environments. We are one of the largest architecture firms in the world, and more than 300 of our staff architects, planners, designers and engineers are LEED accredited.

From high-rises to industrial buildings, schools to state-of-the-art hospitals, transit stations to highways, airports to toll systems, bike lanes to parks, we design every aspect of a truly integrated city for people to live, work, and play.

We organize our expertise into three areas:

  1. Intelligence: systems designer, software development, systems integration
  2. Buildings: building architecture, building engineering (mechanical, structural, electrical).
  3. Infrastructure: planning, urban design, landscape architecture, transportation, and engineering.

Our collaborative and combined approach focuses not only on creating the best solutions today, but also creating the right solutions for tomorrow.

We believe cities must be designed with intelligent systems, sustainable buildings, efficient infrastructure, and a human touch.

IBI, defining the cities of tomorrow.

SOURCE IBI Group Inc.



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