IBI Group Inc. Announces Second Quarter 2016 Financial Results

IBI Group Inc. Announces Second Quarter 2016 Financial Results

IBI-investors-reporting1

Thursday, August 11, 2016

  • Q2 2016 revenue increased by 11.7% over Q2 2015 to $90.4 million.
  • Adjusted EBITDA increased to $12.3 million in Q2 2016 representing a $2.2 million or 21.8% increase compared to Q2 2015.
  • The Company is forecasting $350 million in total revenue for the year ended December 31, 2016 and has approximately 9 months of backlog.
  • Decrease in days sales outstanding by 13 days compared to Q2 2015.

Toronto, ON /Marketwired/ August 11, 2016/ – IBI Group Inc. (the “Company”) (TSX:IBG) today announced financial results for the three months ended June 30, 2016.

OPERATIONAL HIGHLIGHTS

  • Revenue for the three months ended June 30, 2016 was $90.4 million compared to $80.9 million for the same period in 2015, which reflects an increase of $9.5 million or 11.7%.
  • Adjusted EBITDA was $12.3 million for the three months ended June 30, 2016 (13.6% of revenue) compared to $10.1 million for the same period in 2015, which reflects an increase of $2.2 million or 21.8% as a result of stronger operating performance.
  • Forecasting $350 million in total revenue for the year ended December 31, 2016.
  • The Company currently has $471 million of work that is committed and under contract for the three years 2016 through 2018 and approximately 9 months of backlog.
  • The days sales outstanding as at June 30, 2016 of 83 days have decreased by 13 days from 96 days when compared to June 30, 2015.
  • The Company repaid its vendor notes payable of $4.1 million upon maturity on June 30, 2016.
  • Interest expense decreased to $4.1 million for the three months ended June 30, 2016 compared to $5.7 million for the same period in 2015, due to lower interest rates under the new credit facilities refinanced on October 5, 2015.

 

“We are pleased with the sustained and consistent strength we are seeing in our business. We currently have approximately $471 million of work that is committed and under contract through 2018 and our adjusted EBITDA margins compare favourably with historical industry averages and our peer group,” said Scott Stewart, Chief Executive Officer, IBI Group Inc.

FINANCIAL HIGHLIGHTS

(in thousands of Canadian dollars except for per share amounts)

 

THREE MONTHS ENDED     JUNE 30, 2016 (unaudited) THREE MONTHS ENDED   JUNE 30, 2015 (unaudited) SIX MONTHS ENDED         JUNE 30, 2016 (unaudited) SIX MONTHS ENDED       JUNE 30, 2015 (unaudited)
Number of working days 64 63 126 125
Revenue $   90,443 $   80,879 $ 179,088 $ 158,360
Net income $     4,464 $     1,594 $         627 $     4,120
Cash flows provided by (used in) operating activities $   (6,099) $       481 $       (293) $     4,952
Basic and diluted earnings per share $       0.14 $       0.07 $       0.02 $       0.18
Adjusted EBITDA1 $   12,317 $   10,106 $   21,548 $   16,652
Adjusted EBITDA1 as a percentage of revenue 13.6% 12.5% 12.0% 10.5%
 

 

1- See “Definition of Non-IFRS Measures” contained in the MD&A

FINANCIAL OVERVIEW

Revenue for the three months ended June 30, 2016 was $90.4 million, an increase of $9.5 million or 11.7%, compared to the same period in 2015. The increase in revenue is due to growth across all geographical segments, including continuing work on significant transit projects. Revenue for the six months ended June 30, 2016 was $179.1 million compared to $158.4 million for the same period in 2015, which reflects an increase of $20.7 million or 13.1%.

For the three months ended June 30, 2016, the Company had net income of $4.5 million compared to $1.6 million for the same period in 2015. Net income for the three months ended June 30, 2016 is inclusive of a foreign exchange loss of $1.7 million, compared to $0.3 million which was included in net income for same period in 2015. The Company recorded a foreign exchange gain of $8.7 million and $2.1 million during the years ended December 31, 2015 and December 31, 2014 respectively, as the Canadian dollar weakened against the U.S dollar and British pound. The foreign exchange loss during the three months ended June 30, 2016 reflects the reversal of that trend in world markets.

Adjusted EBITDA for the three months ended June 30, 2016 increased to $12.3 million from $10.1 million for the same period in 2015. The increase of $2.2 million is a result of stronger operating performance from a decrease in operating expenses and an increase in revenue generated from all geographical segments. Adjusted EBITDA was $21.5 million for the six months ended June 30, 2016 compared to $16.7 million for the same period in 2015, which reflects an increase of $4.8 million or 28.7%.

Basic and diluted earnings per share was $0.14 per share for the three months ended June 30, 2016, compared to $0.07 for the same period in 2015.

OUTLOOK

Management is forecasting approximately $350 million in total revenue for the year ended December 31, 2016. The Company currently has approximately $471 million of work that is committed and under contract for the three years 2016 through 2018. 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 2016 and has approximately 9 months of backlog (calculated on the basis of the current pace of work that the Company has achieved during the 12 months ended June 30, 2016).

INVESTOR CONFERENCE CALL

The Company invites you to join their conference call on Friday, August 12th, 2016 at 8:30 a.m. EDT. To participate in the conference call, please dial 1-888-225-2703 for North American access and 1-303-223-4382 for United States access.

A recording of the conference call will be available on our website at www.ibigroup.com/investors/investor-news/ within 24 hours following the call. As well, an audio replay of the call will be available for 14 days by dialing 1-800-558-5253 and entering pass code 21814038 followed by the number sign on your telephone keypad.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this news release may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and its subsidiary entities, including IBI Group Partnership 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. When used in this news release, such statements use words such as “may”, “will”, “expect”, “believe”, “plan” and other similar terminology. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this news release. These forward- looking statements involve a number of risks and uncertainties, including those related to: (i) the Company’s ability to maintain profitability and manage its growth; (ii) the Company’s reliance on its key professionals; (iii) competition in the industry in which the Company operates; (iv) timely completion by the Company of projects and performance by the Company of its obligations; (v) fixed-price contracts; (vi) the general state of the economy; (vii) risk of future legal proceedings against the Company; (viii) the international operations of the Company; (ix) reduction in the Company’s backlog; (x) fluctuations in interest rates; (xi) fluctuations in currency exchange rates; (xii) upfront risk of time invested in participating in consortia bidding on large projects and projects being contracted through private finance initiatives; (xiii) limits under the Company’s insurance policies; (xiv) the Company’s reliance on distributions from its subsidiary entities and, as a result, its susceptibility to fluctuations in their performance; (xv) unpredictability and volatility in the price of Shares; (xvi) the degree to which the Company is leveraged and the effect of the restrictive and financial covenants in the Company’s credit facilities; (xvii) the possibility that the Company may issue additional Common Shares diluting existing Shareholders’ interests; (xviii) income tax matters. These risk factors are discussed in detail under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended December 31, 2015. 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 news release 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 at August 11, 2016.

The factors used to develop revenue forecast in this news release include the total amount of work the Company has signed an agreement with its clients to complete, the timeline in which that work will be completed based on the current pace of work the Company achieved over the last 12 months and expects to achieve over the next 12 months. The Company updates these assumptions at each reporting period and adjusts its forward looking information as necessary.

ABOUT IBI GROUP INC.

IBI Group Inc. (TSX:IBG) is a globally integrated architecture, planning, engineering, and technology firm with over 2,200 professionals around the world. For more than 40 years, its dedicated professionals have helped clients create livable, sustainable, and advanced urban environments. IBI Group believes that cities must be designed with intelligent systems, sustainable buildings, efficient infrastructure, and a human touch.

SOURCE: IBI Group Inc.

FOR FURTHER INFORMATION:

Stephen Taylor, CFO
IBI Group Inc.
55 St. Clair Avenue West Toronto, ON M4V 2Y7
Tel: 416‐596‐1930

Media:
Riyaz Lalani
Bayfield Strategy, Inc.
Tel: 416‐907‐9365
rlalani@bayfieldstrategy.com

 

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