Skip to main content

This site uses cookies to provide you with a better user experience. By using ibigroup.com, you accept our use of cookies.Learn More

IBI Group announces third-quarter earnings, update on recovery program

TORONTO – IBI Group Inc. has announced financial results for the three and nine months ended September 30, 2013. The Company reported: Revenue for the three months ended September 30, 2013 of $38.8 million and revenue for the nine months ended September 30, 2013 of $210.1 million. EBITDA for the three months ended September 30,...

Date

November 15, 2013

TORONTO – IBI Group Inc. has announced financial results for the three and nine months ended September 30, 2013.

The Company reported:

  • Revenue for the three months ended September 30, 2013 of $38.8 million and revenue for the nine months ended September 30, 2013 of $210.1 million.
  • EBITDA for the three months ended September 30, 2013 of $(49.6) million and EBITDA1 for the nine months ended September 30, 2013 of $(35.0) million.
  • Net loss for the three months ended September 30, 2013 of $47.2 million and net loss for the nine months ended September 30, 2013 of $122.6 million.

Results for the third quarter of 2013 were impacted by the following items:

  • Write down of unbilled Work In Process (WIP) of $35.0 million. These write downs of WIP are reflected in the Company’s income statement as a reduction of revenue for the third quarter of 2013.
  • Write down of accounts receivable of $12.9 million. This write down of accounts receivable is reflected in the Company’s income statement as an increase in other operating expenses for the third quarter of 2013.

During the quarter, the Company undertook a comprehensive review of unbilled WIP and accounts receivable balances. Changes to the factors that management used to assess its project balances included age, client, geographic location, time since last activity, and status of negotiation. Estimates related to the recoverability of the projects were reassessed under new management, and unbilled WIP and accounts receivable were identified as unlikely to be billed and collected.

As a result of that review, the Company provided for $35.0 million of unbilled WIP and $12.9 million of accounts receivable to recognize the uncertainty of converting these balances to cash. The Company will continue to pursue these amounts for collection.

Excluding the $35.0 million WIP and the $12.9 million accounts receivable Adjustment Items,
IBI Group reported:

  • Adjusted revenue for the three months ended September 30, 2013 of $73.8 million and adjusted revenue1 for the nine months ended September 30, 2013 of $245.1 million.
  • Adjusted revenue of $73.8 million for the three months was impacted by the expense of approximately $10.5 million of unbilled WIP, recognized in 2013.
  • Adjusted EBITDA for the three months ended September 30, 2013 of $(1.7) million and adjusted EBITDA1 for the nine months ended September 30, 2013 of $12.9 million.
  • Adjusted net loss for the three months ended September 30, 2013 of $7.6 million and adjusted net loss1 for the nine months ended September 30, 2013 of $4.6 million.

“We had to make some difficult, but necessary, decisions this quarter,” said Scott Stewart, Chief Executive Officer, IBI Group. “We are, however, very pleased with the Company’s improvement in cash flow, attributable to improved collections, and the implementation of lasting efficiencies throughout the Company. The management team and our employees remain enthusiastic about our progress and committed to the new direction of the Company.”

Full text of the news release

Related Tags

Contact UsContact Us