This decision is based on the Company’s commitment to manage cash to strengthen its balance sheet and manage its operations through a difficult period. The recession that occurred in the fourth quarter of 2008 and its impact on the economies of the United States and Europe, affected IBI Group initially in the housing sector, in which IBI had relatively high exposure. IBI projects in social and transportation infrastructure have also been affected. Europe continues to contract, recovery in the United States is encouraging but tentative, and a slowdown is being indicated in the Canadian economy.

The Company has reduced, and will continue to reduce, staff in line with committed work to enhance productivity and profitability, as indicated previously. This, together with the suspension of the dividend will preserve cash for operations and to reduce debt.

The backlog of committed work continues to increase and the Company had positive cash flow in April and in May.

The Company will continue to closely monitor profitability and cash generated. It will revisit the dividend/distribution policy as the Company moves into solid and sustainable operations and an improved balance sheet.

INDX Condos, designed by Page + Steele / IBI Group Architects, won the People’s Choice Award. INDX is a 54-storey condominium tower at Bay and Adelaide.

88 Scott, also designed by Page + Steele / IBI Group Architects, won Best Suite Design Under 750 Square Feet. The project is a mixed residential and retail development at the north-west corner of Wellington and Scott Streets.

The Perry (shown in a rendering above), designed by Young & Wright / IBI Group Architects, won for Best Suite Design Over 1500 Square Feet. The Perry is a luxury 11-storey, 45-unit development at Avenue Road and Davenport in Toronto.

Launched in 1995 by the Architect’s Journal, a UK trade publication, the AJ100 ranking has become a mark of business success.

IBI Group’s number eight position puts it in the company of such celebrated practices as Foster + Partners (ranked #1), establishing the firm as a strong contender in the UK market.

“It’s very exciting to see IBI Group at the forefront of UK architecture,” said Mario Bozzo, IBI Group Director. “We have a very talented and dedicated team of designers across IBI Nightingale and IBI TaylorYoung. Operating as an integrated global business, we are blending this architectural capability with our intelligent systems expertise, where technology is inherent to our solution. This means the buildings and communities we design are operationally smarter, more productive and highly sustainable. This is a blueprint we will actively evolve through research and innovation.”

As part of the AJ100 survey, IBI Group’s innovative BedPod was shortlisted for the Value Excellence award. The BedPod is a fully integrated, rapidly deployable, modular patient environment suitable for retrofit and new-build projects. Currently undergoing independent in-use evaluation at Castle Hill Hospital in Hull and at King’s College Hospital in London, the BedPod was praised for its construction and clinical benefits including flexibility, patient privacy, and improved infection control.

Revenue for the first quarter ended March 31, 2013 was $84,599,000, ($87,373,000 to normalize to an average quarter of 63 days) compared to $86,896,000 for the first quarter of 2012. Net earnings for the first quarter of 2013 were $656,000 ($2,856,0000 to normalize to an average quarter of 63 days), compared to $3,733,000 for the first quarter of 2012.

The results for the first quarter of 2013 are based on 61 available working days, which is two days fewer than both the average quarter and the first quarter of 2012, each being 63 days. The impact on the results of an extra two working days would be $2.8 million of revenue, based on the average revenue achieved in the quarter ended March 31, 2013. Operating costs are assumed to remain constant since these are monthly costs not dependent on number of working days.

Update on the recovery plan

The recession that commenced in the fourth quarter of 2008 and its impact on the economies of the United States and Europe, impaired IBI Group initially in the housing sector, in which IBI had relatively high exposure, and subsequently in IBI projects in social and transportation infrastructure. Europe continues to contract, recovery in the United States is encouraging but tentative, and a slowdown is being indicated in the Canadian economy.

IBI Group continues to move forward with its recovery program. The recovery plan is a series of actions to enhance profitability and to improve billings and collections, which will lead to a reduction of working capital and debt. The recovery plan was outlined in full in the 2012 year-end reporting.

During the first quarter of 2013, IBI continued action on the recovery plan including:

1. Aligning staff levels with levels of committed work. At the end of first quarter of 2013 staff members numbered 2,814 compared to 2,852 at the end of 2012 for a decrease of 38 staff members or a 1.3% reduction of staff. This represents a savings of approximately $2.5 million per annum. The process is continuing in the second quarter of 2013 in an orderly fashion, to ensure the firm’s ability to perform work for its clients and to achieve higher productivity.
2. Improved cash generation. Cash used in operations in the first quarter of 2013 was a significant improvement of $6.4 million over the first quarter of 2012. The cash used in operations for the first quarter of 2013 would have been even lower had it not been for the dampening impact of the timing of contract billings (fees collectible at completion of certain events only). Management is committed to sustaining this trend over the ensuing quarters.

Download the full Q1 news release

Ridgeview High School, in Redmond, Oregon, 80 miles southeast of Portland, was completed in the fall of 2012 at a cost of $73 million.

“Our goal in designing Ridgeview High School was to provide a facility that addressed the district’s vision for innovation in education while minimizing the impacts to the environment,” said Alina Graham, DOWA-IBI designer. “The entire process was a collaborative effort with student and staff input during design and a team-oriented relationship with Skanska USA, the general contractor, during construction.”

The school optimizes energy performance by using high-efficiency heat pumps, which allow different parts of the building to have unique climate control settings simultaneously. The building’s tilt-up concrete walls, seven to 11 inches thick, serve as a thermal mass, decreasing the need for heating and cooling.

This brings the total number of LEED Gold projects for DOWA-IBI to six.

For more information, contact Amy Friendy at Dull Olson Weekes-IBI Group Architects.

Sandy High School, in Sandy, Oregon, won a 2013 CAE Design Excellence award. These awards honour schools that the jury believes “should serve as an example of a superb place in which to learn, furthering the client’s mission, goals and educational program while demonstrating excellence in architectural design.”

Trillium Creek Primary School, in West Linn, Oregon, was the 2013 American Association of School Administrators/Shirley Cooper Award winner, presented to the project that best meets the educational needs of its students.

For more information, contact Amy Friendy at Dull Olson Weekes-IBI Group Architects.

The new science facility at San Jacinto College’s Central campus in suburban Houston received the top CEFPI Southern Region “Ed Sevcik Architecture Award,” and will be sent to represent CEFPI Southern Region at the International Architectural Awards.

“Bay-IBI had a great opportunity to help San Jacinto College take their science facilities to the next level,” said Robert Trabanino, design architect for Bay-IBI Group.

“One of the main reasons this project was so successful was the desire on the College’s part to work as a team member,” he added, “and to have a state-of-the-art facility that would respond to today’s modern students by including the colorful open areas, multiple spaces for collaboration, and an abundance of natural daylight and technology throughout the facility.”

Also honoured at the CEFPI conference was a Bay-IBI Group middle-school project for Cypress-Fairbanks Independent School District. David Anthony Middle School received one of the two Architecture Merit Awards at the conference.

The new private hospital in Hove, Sussex, has been elegantly refurbished to provide cutting-edge medical facilities for Spire Healthcare, the second largest private healthcare provider in the United Kingdom.

Eno, an accomplished musician, composer, producer, and visual artist, produced two works for the hospital.

77 Million Paintings, in the reception area, uses eight plasma screens arranged in a pattern to display transforming shapes and colours, accompanied by “generative” music whose sounds constantly change.

The Quiet Room for Montefiore, on a lower level, combines Eno’s ambient music with a three-screen display of Mondrian-style images to create a space for patients, visitors and staff to think, take stock, or simply relax.

“Artwork is so important within the design of healing environments,” said Richard Ager, Project Architect at IBI Nightingale. “We actively encourage sensory design in all our hospital schemes, but the works by Brian Eno have been extraordinary. They represent ‘patient care’ and fully support the mounting evidence that art and music delivers beneficial treatment to patients.”

Robin Turner, a surgeon at the hospital, contacted Eno about his work after noticing the calming effect it had on his mother-in-law at a festival in Brighton. In working on the project, Eno was inspired by Florence Nightingale, who observed in 1859 that “variety of form and brilliancy of colour in the objects presented to patients have a powerful effect and are actual means of recovery.”

BBC news story

Independent news story

World Architecture News story and video

The planner was a web and mobile application used by ticket holders to plan trips by public transport, bicycle, and road to the games.

More than two and a half million people used the planner, representing three-quarters of all ticket holders for the games. It’s credited with helping avert overcrowding of the London transportation system, which carried 50 million people between July 27th and August 10.

The journey planner received many compliments in the press and passengers were impressed by the range and value of the travel advice they received. Nearly 75% of respondents to survey research said that information from the planner had been relevant.

Duncan Elder, who led the work on behalf of IBI, said “The development of the Spectator Journey Planner and travel information for the Games helped to give spectators confidence about travelling in London. The award is credit to the work of all the organizations involved including Transport Direct, Transport for London, London2012 and the Olympic Delivery Authority. The experience and expertise we have developed from this project are helping us to deliver solutions for other clients across the world.”

For more information, contact Duncan Elder.

Read more about our London2012 projects

Philip Beinhaker, Chief Executive Officer, together with Scott Stewart and David Thom, Co-Presidents and Co-Chief Operating Officers, and Tony Long, Chief Financial Officer, will present the Company’s operating and financial results followed by a Question & Answer session.

To participate in the conference call, please dial in before 8:30 a.m. EST to 1-800-755-6634 for local and toll-free North American access, or 1-416-981-9033 for international access.

An audio replay of the call will be available for 14 days, by dialling 416-626-4100 for local and international access or 1-800-558-5253 for toll-free North American access, pass code 21654567 followed by the number sign on your telephone keypad.

About IBI Group Inc.

The Company is a TSX-listed Corporation which pays quarterly dividends and trades under the symbol “IBG”.

The Company through IBI Group provides professional services, including planning, design, implementation, analysis of operations and other consulting services in relation to four main areas of development, being urban land, building facilities, transportation networks and systems technology.

For further information:
Tony Long
Email: Tony Long
Tel: 416-596-1930