IBI Group third-quarter revenue up 3%

TORONTO – IBI Group Inc. announced its financial results for the three and nine months ended September 30, 2012. Revenue for the third quarter 2012 was approximately $3.0 million less than expectations. This was caused principally by the slowdown of the educational markets in the USA, particularly California, New York and the Pacific North West;...

Date

November 15, 2012

TORONTO – IBI Group Inc. announced its financial results for the three and nine months ended September 30, 2012.

Revenue for the third quarter 2012 was approximately $3.0 million less than expectations. This was caused principally by the slowdown of the educational markets in the USA, particularly California, New York and the Pacific North West; the slowdown in the social infrastructure market in the UK; the suspension of a major toll project in Greece; and the decline in the level of activity in China.

As well, the third quarter of 2012 had one working day less than the average quarter, representing approximately $1.4 million in revenue. Further compounding the lower revenue were greater vacation days typical of the third quarter compared to other quarters in the year.

The highlights of the third quarter ended September 30, 2012 are:

  • Revenue at $86.8 million, up $2.5 million compared to the third quarter of 2011, down $1.7 million compared with the second quarter of 2012 and down $0.1 million compared with the first quarter of 2012.
  • EBITDA of $9.4 million decreased $3.5 million from the third quarter of 2011, decreased $2.6 million compared to the second quarter of 2012 and decreased $2.0 million compared to the first quarter of 2012.
  • EBITDA as a percentage of revenue for the third quarter of 2012 was 10.8%, a decrease of 4.5% when compared to the third quarter of 2011, a decrease of 2.8% when compared to the second quarter of 2012 and a decrease of 2.3% when compared to the first quarter of 2012.
  • Basic and diluted earnings per share (EPS) for the third quarter of 2012 was $0.1250, a decrease of 0.1105 (46.9%) compared with EPS of $0.2355 for the third quarter of 2011, a decrease of $0.1549 (55.3%) compared with EPS of $0.2799 for the second quarter of 2012 and a decrease of $0.0815 (39.5%) compared with the EPS of $0.2065 for the first quarter of 2012.
  • Distributable cash of $4.9 million was down $3.3 million from the third quarter of 2011, down $1.7 million when compared to the second quarter of 2012 and down $1.4 million when compared to the first quarter of 2012. The payout ratio for the third quarter of 2012 was 94.5%, an increase from 71.3% for the third quarter of 2011, an increase from 88.6% for the second quarter of 2012 and an increase from 89.0% for the first quarter of 2012.
  • Cash flows provided by operations for the three months ended September 30, 2012 were $6.0 million compared to cash flows from operations of $2.0 million for the three months ended September 30, 2011 for a net change of $4.0 million. The $6.0 million positive cash flow from operations is due to an improvement in $3.1 million working capital, primarily due to a significant decrease in accounts receivable in the quarter. The $6.0 million from operations exceeds the dividends paid of $4.6 million and purchase of property, plant and equipment of $0.5 million by $0.9 million in the quarter, representing excess cash generation.
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