IBI announces record gains in 2006 over 2005:



    
    -   Revenue at $151.9 million up $53.6 million - 54.5%;
    -   Overall organic growth of $16.9 million - 17.2%
    -   EBITDA at $26.8 million up $ 11.8 million - 79.3%;
    -   Distributable cash of $1.5773 per unit vs declared of $1.2141 per
        unit.
    

    TORONTO, March 21 /CNW/ - IBI Income Fund (the "Fund") (TSX: IBG.UN)
today announced its financial results for the year ended December 31, 2006.

    Revenue for the year ended December 31, 2006 was up $53.6 million (54.5%)
to $151.9 million compared to $98.3 million for the year ended December 31,
2005. These increases over the prior year periods were the result of both
strategic growth through acquisitions and organic growth. Revenue from
strategic growth through acquisitions was approximately $41.1 million for year
ended December 31, 2006, of which approximately $4.4 million was the result of
integration and synergy with the ongoing IBI Group practice resulting in
organic growth within the acquired firms. IBI Group achieved organic growth in
revenue of approximately $12.5 million (12.7%) for the year ended December 31,
2006. The combined organic growth of IBI Group and within the acquired firms
was a total of $16.9 million (17.2%) for the year ended December 31, 2006. The
overall growth in activity was accomplished through a 50.9% increase in the
average number of staff from 792 during the year ended December 31, 2005 to
1,195 during the year ended December 31, 2006. The number of staff as of
December 31, 2006 was 1,262, up from 852 as of December 31, 2005. In addition,
IBI Group's standard billing rates increased by approximately 4% compared with
the year ended December 31, 2005 and the percentage of time spent by IBI Group
personnel on chargeable time projects increased 4% compared with the year
ended December 31, 2005.

    Net earnings before non-controlling interest of the Fund for the year
ended December 31, 2006 were up $9.6 million (126.3%) to $17.1 million
compared with $7.6 million for the year ended December 31, 2005. Net earnings
before non-controlling interest per Unit (on a fully-diluted basis) for the
year ended December 31, 2006 were up $0.5675 (75.3%) to $1.3208 compared with
$0.7533 for the year ended December 31, 2005. As a percentage of revenue, net
earnings before non-controlling interest were 11.3% for the year ended
December 31, 2006 compared with 7.7% for the year ended December 31, 2005.

    Earnings before interest, income taxes depreciation and amortization
("EBITDA") for the year ended December 31, 2006 was up $11.8 million (79.3%)
to $26.8 million compared with $14.9 million for the year ended December 31,
2005. As a percentage of revenue, EBITDA was 17.6% for the year ended December
31, 2006 compared with 15.2% for the year ended December 31, 2005. The growth
in revenue, together with the relative reduction in salaries, fees and
employee benefits as a percentage of revenue, accounted for the increases in
the percentages for the year ended December 31, 2006 as compared to the prior
year period.

    Distributable Cash - For the year ended December 31, 2006, the Fund
generated $20.4 million of distributable cash, up $8.3 million, (69.4%)
compared with $12.1 million for the year ended December 31, 2005. On a per
Unit basis, based on the weighted average number of Units outstanding,
distributable cash was $1.5773 for the year ended December 31, 2006, an
increase of $0.3770 compared with $1.2003 for the year ended December 31,
2005. This represents a 31.4% increase in distributable cash per Unit over the
year ended December 31, 2005 and a payout ratio of 76.9% for the year ended
December 31, 2006, compared with a payout ratio of 93.7% for the year ended
December 31, 2005.
    The Fund announced two increases to distributions during 2006. In
February the monthly distribution increased by 6.7% from $0.09375 to $0.10 per
Unit and in September an additional increase in the monthly distribution of
5.0% to $0.105 per Unit was announced.

    
    OPERATING HIGHLIGHTS AND MAJOR ACHIEVEMENTS:

    -   Revenue growth at 54.5% represented by organic growth of 17.2% and
        strategic growth of 37.3%;

    -   Increased the size of the management group from 44 to 55 through the
        election of new Directors and Associate Directors of IBI Group
        Management Partnership;

    -   Completed the merger within IBI of the practice Daniel Arbour &
        Associates Partnership (DAA);

    -   Completed the acquisition of the urban environmental practice that
        was indirectly held in part by DAA;

    -   Completed the acquisition of the practice of Paul Tomasino &
        Associates Inc. of Tampa, Florida and Scharf & Associates
        Incorporated of Fort Lauderdale, Florida, both now integrated within
        IBI Group Inc. in Florida;

    -   Completed the acquisition of the practice of Thomas Blurock
        Architects Inc of Costa Mesa, California, now integrated within IBI
        Group in California;

    -   Organic growth and acquisitions together added 410 professional staff
        raising the total complement of IBI professional staff to
        approximately 1,262; and

    -   Completed a public offering raising gross proceeds of $38 million
        through the issuance of 3,460,000 units at a price of $11.00 per
        unit.
    

    Investor Conference Call

    The Fund will hold a conference call on Thursday, March 22, 2007 at 9:00
a.m. Eastern Standard Time (EST). To participate in the conference call,
please dial in before 9:00 a.m. EST to (706) 758 3561 for local and
international access, or 1 877 587 8920 for toll-free North American 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, passcode 21333102 followed by the number sign
on your telephone keypad.

    
    Selected Consolidated Financial Information and Reconciliation of
    Non-GAAP Measures

                              Three        Three
                              months       months        Year         Year
     in thousands             ended        ended        ended        ended
     except for              December     December     December     December
     per unit                31, 2006     31, 2005     31, 2006     31, 2005
     amounts                Unaudited    Unaudited

    Revenue                 $  39,876    $  26,208    $ 151,912    $  98,329
                           --------------------------------------------------
    Expenses                   33,053       22,224      125,155       83,403
                           --------------------------------------------------
    Earnings before income
     taxes, interest and
     amortization (EBITDA)      6,823        3,984       26,757       14,926
    Interest                      811          271        2,180          907
    Income taxes                 (261)        (137)         748          289
    Amortization of
     property and equipment
     and intangible assets      2,846        1,284        7,051        6,558
    Amortization of
     deferred credit
     - leases                     (90)        (100)        (360)        (400)
                           --------------------------------------------------
    Net earnings
     before non-controlling
     interest               $   3,517    $   2,666    $  17,138    $   7,572
                           --------------------------------------------------
    Basic and diluted net
     earnings per Unit      $  0.2587    $  0.2652    $  1.3208    $  0.7533
                           --------------------------------------------------

    Distributable Cash
    Cash flow from
     operating activities   $   4,899    $   3,357    $   2,526    $  10,239
    Add (deduct):
      Change in non-cash
       operating working
       capital                  1,374          493       21,303        3,491
      Capital expenditures       (684)        (415)      (2,647)      (1,499)
      Income taxes               (261)        (137)         748          289
      Income taxes paid          (561)         (91)      (1,490)        (455)
                           --------------------------------------------------
    Distributable cash      $   4,767    $   3,207    $  20,440    $  12,065
                           --------------------------------------------------
    Weighted average basic
     and diluted
     distributable cash
     per Unit(1)            $  0.3507    $  0.3190    $  1.5773    $  1.2003
                           --------------------------------------------------
    Aggregate distributions
     declared               $   4,282    $   2,827    $  15,813    $  11,308
                           --------------------------------------------------
    Basic and diluted
     aggregate distributions
     declared per Unit(1)   $  0.3150    $  0.2812    $  1.2141    $  1.1250
                           --------------------------------------------------
    (1) Distributable cash per Unit amounts are calculated by including both
        the Class A partnership units and the Class B partnership units in
        the denominator.
    

    Non-GAAP Measures - Distributable Cash

    Distributable cash does not have a standardized meaning prescribed by
GAAP, but is a measure generally used by Canadian open-ended income funds as
an indicator of financial performance. The Fund defines distributable cash as
cash flow from operating activities before change in non-cash working capital
and income taxes and after capital expenditures and income taxes paid. A
reconciliation of distributable cash to cash flow from operating activities
has been provided under the heading "Selected Consolidated Financial
Information and Reconciliation of Non-GAAP Measures".
    The Fund's method of calculating distributable cash may differ from
similar computations as reported by other similar entities and, accordingly,
may not be comparable to distributable cash as reported by such entities. The
Fund believes that its distributable cash is a useful supplemental measure
that may assist prospective investors in assessing the return on their
investment in Units.
    References to "EBITDA" are to earnings before interest, income taxes,
depreciation and amortization. Management of the Fund believes that in
addition to net earnings, EBITDA is a useful supplemental measure as it
provides readers with an indication of cash available for distribution prior
to debt service, capital expenditures and income taxes. Readers should be
cautioned, however, that EBITDA should not be construed as an alternative to
net earnings determined in accordance with GAAP as an indicator of the Fund's
performance or to cash flows from operating, investing and financing
activities as a measure of liquidity and cash flows. EBITDA is not a
recognized measure under GAAP and does not have a standardized meaning
prescribed by GAAP, and the Fund's method of calculating EBITDA may differ
from other issuers. Accordingly, EBITDA may not be comparable to similar
measures used by other issuers. A reconciliation of net earnings with EBITDA
has been provided under the heading "Selected Consolidated Financial
Information and Reconciliation of Non-GAAP Measures"

    %SEDAR: 00021044E




For further information:

For further information: Allan J. Kamerman, IBI Income Fund, 230
Richmond Street West, 5th Floor, Toronto, ON, M5V 1V6, Tel: (416) 596-1930

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IBI Group Inc.

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