IBI announces record revenue and EBITDA:



    
    -   Revenue at $45.4 million; increase of $5.9 million + 15.0%;

    -   Overall organic revenue growth of $5.1 million + 12.8%

    -   EBITDA at $8.3 million; increase of $1.0 million + 13.8%;

    -   Distributable cash of $0.4859 per unit vs declared of $0.3474 per
        unit.
    

    TORONTO, Nov. 6 /CNW/ - IBI Income Fund (the "Fund") (TSX: IBG.UN) today
announced its financial results for the three and nine month periods ended
September 30, 2007.

    Revenue for the three months ended September 30, 2007 was up $5.9 million
(15.0%) to $45.4 million compared to $39.5 million for the three months ended
September 30, 2006. For the nine months ended September 30, 2007, revenue was
up $18.2 million (16.2%) to $130.2 million compared to $112.0 million for the
nine months ended September 30, 2006. These increases over the prior year
periods were primarily the result of strong organic growth with a contribution
of strategic growth through acquisitions. IBI Group achieved organic growth in
revenue of approximately $5.1 million (12.8%) for the three months ended
September 30, 2007 and $14.7 million (13.1%) of the increase for the
nine months ended September 30, 2007. Revenue from strategic growth through
acquisitions was approximately $0.9 million for three months ended
September 30, 2007 and $3.5 million of the increase for the nine months ended
September 30, 2007. The overall growth in activity was accomplished through a
14.3% increase in the average number of staff from 1,256 during the three
months ended September 30, 2006 to 1,435 during the three months ended
September 30, 2007. The number of staff as of September 30, 2007 was 1,429, up
from 1,282 as of September 30, 2006.

    Net earnings before non-controlling interest of the Fund for the three
months ended September 30, 2007 were $6.2 million or $0.4544 per Unit (on a
fully diluted basis) compared with $4.9 million or $0.3621 per Unit for the
three months ended September 30, 2006. For the nine months ended September 30,
2007, net earnings before non-controlling interest were $20.6 million or
$1.5123 per Unit (on a fully diluted basis) compared with $13.6 million or
$1.0699 per Unit for the nine months ended September 30, 2006. As a percentage
of revenue, net earnings before non-controlling interest were 13.6% for the
three months ended September 30, 2007, compared with 12.5% for the three
months ended September 30, 2006. For the nine months ended September 30, 2007,
net earnings before non-controlling interest as a percentage of revenue were
15.8% compared with 12.2% for the nine months ended September 30, 2006.
Excluding the impact of the future income tax credit of $3.2 million, net
earnings before non-controlling interest as a percentage of revenue were 13.4%
for the nine months ended September 30, 2007.

    EBITDA for the three months ended September 30, 2007 was $8.3 million, up
$1.0 million (13.8%) from $7.3 million for the three months ended
September 30, 2006. For the nine months ended September 30, 2007, EBITDA was
up $3.7 million (18.7%) to $23.7 million compared with $19.9 million for the
nine months ended September 30, 2006. As a percentage of revenue, EBITDA was
18.3% for the three months ended September 30, 2007 compared with 18.5% for
the three months ended September 30, 2006. For the nine months ended September
30, 2007, EBITDA as a percentage of revenue was 18.2% compared with 17.8% for
the nine months ended September 30, 2006. Higher other operating costs (other
than interest) as a percentage of revenue, accounted for the decrease in the
percentage for the three months ended September 30, 2007 as compared to the
prior year period. The facilities management business, operating as Sodem,
yields a lower EBITDA as a percentage of revenue than the professional
services business of IBI Group. Excluding the results of the facilities
management business, EBITDA as a percentage of revenue was 19.5% for the nine
months ended September 30, 2007 compared with 19.0% for the nine months ended
September 30, 2006.

    Distributable Cash - For the three months ended September 30, 2007, the
Fund generated $6.6 million of distributable cash, up $0.7 million, (11.9%)
compared with $5.9 million for the three months ended September 30, 2006. For
the nine months ended September 30, 2007, the Fund generated $18.2 million of
distributable cash, up $2.6 million, (16.4%) compared with $15.7 million for
the nine months ended September 30, 2006. On a per Unit basis, based on the
weighted average number of Units outstanding, distributable cash was $0.4859
for the three months ended September 30, 2007, an increase of $0.0515 compared
with $0.4344 for the three months ended September 30, 2006. This represents a
payout ratio of 71.5% for the three months ended September 30, 2007, compared
with a payout ratio of 70.2% for the three months ended September 30, 2006.
For the nine months ended September 30, 2007, the payout ratio is 75.3%
compared with 73.6% for the nine months ended September 30, 2006.

    Backlog:

    The current backlog of fee volume is at an all time high, in excess of
the equivalent of nine months of work at the fee volume of last twelve months.
The backlog has increased in all four areas of IBI activity and in all
geographic regions except Florida. Backlog for government and institutional
clients has increased as a percentage of the total.

    
    Operating Highlights and Major Achievements:

    -   Revenue growth at 15.0% including organic growth of 12.8%;

    -   EBITDA growth of 13.8% for the quarter to $8.3 million;

    -   Distributable cash of $0.4859 per unit vs declared of $0.3474 per
        unit;

    -   Successfully completed on October 31, 2007, the acquisition of the
        practice of Planning & Engineering Initiatives Limited of Kitchener,
        Ontario, a firm of 63 planners, civil engineers and landscape
        architects, which has been serving municipal government and private
        clients in South-western Ontario for 30 years;

    -   Building up the operations in Dubai with the relocation of an IBI
        associate partner to lead the build up with additional new staff to
        support a major new project in the region and expand on the existing
        IBI work in the Saudi Kingdom and Gulf Emirates;

    -   Building up the recently opened operating office in Shanghai to
        support a significant architectural assignment along with the
        continuation of other current project work;

    -   Building up the recently opened operating offices in Delhi and
        Bangalore to support a major contract that comprises a number of
        projects for a leading firm in infrastructure.
    

    Investor Conference Call

    The Fund will hold a conference call on Wednesday, November 7, 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 (800) 926-5171 for toll-free North
American access, or 1 212 231-2901 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, passcode 21353862 followed by the number sign
on your telephone keypad.

    
    Selected Consolidated Financial Information and Reconciliation of
    Non-GAAP Measures

                                 Three       Three        Nine        Nine
                                 months      months      months      months
                                 ended       ended       ended       ended
                               September   September   September   September
    in thousands except         30, 2007    30, 2006    30, 2007    30, 2006
     for per unit amounts      Unaudited   Unaudited   Unaudited   Unaudited

    Revenue                    $  45,413   $  39,477   $ 130,222   $ 112,036
                              -----------------------------------------------
    Expenses                      37,112      32,184     106,562      92,102
                              -----------------------------------------------
    Earnings before income
     taxes, interest and
     amortization (EBITDA)         8,301       7,293      23,660      19,934
    Interest                         648         540       1,876       1,369
    Income taxes                     200         494      (2,499)      1,009
    Amortization of property
     and equipment and
     intangible assets             1,347       1,427       3,942       4,205
    Amortization of deferred
     credit - leases                 (72)        (90)       (217)       (270)
                              -----------------------------------------------
    Net earnings before
     non-controlling interest  $   6,178   $   4,922   $  20,558   $  13,620
                              -----------------------------------------------
    Basic and diluted net
     earnings per Unit         $  0.4544   $  0.3621   $  1.5123   $  1.0699
                              -----------------------------------------------
    Distributable Cash
    Cash flow from operating
     activities                $   2,628   $   2,556   $   4,307   $  (4,415)
    Less capital expenditures       (795)       (534)     (3,037)     (1,963)
                              -----------------------------------------------
    Standardized
     distributable cash            1,833       2,022       1,270      (6,378)
    Add (deduct):
      Change in non-cash
       operating working
       capital                     4,825       3,703      16,826      21,971
      Income taxes                   200         494         651       1,009
      Income taxes paid             (253)       (314)       (510)       (929)
                              -----------------------------------------------
    Distributable cash         $   6,605   $   5,905   $  18,237   $  15,673
                              -----------------------------------------------
    Weighted average basic
     and diluted distributable
     cash per Unit(1)          $  0.4859   $  0.4344   $  1.3416   $  1.2289
                              -----------------------------------------------
    Aggregate distributions
     declared                  $   4,723   $   4,146   $  13,740   $  11,531
                              -----------------------------------------------
    Basic and diluted
     aggregate distributions
     declared per Unit(1)      $  0.3474   $  0.3050   $  1.0108   $  0.8988
                              -----------------------------------------------

    (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

Organization Profile

IBI Group Inc.

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