IBI announces record revenue and EBITDA:



    
    -   Revenue at $54.7 million; increase of $14.0 million + 34.5%;

    -   Overall organic revenue growth of $4.4 million + 10.9%

    -   EBITDA at $10.7 million; increase of $ 3.0 million + 38.7%;

    -   Distributable cash of $7.6 million; increase of $1.4 million + 23.3%

    -   Distributable cash per unit of $0.4829 vs declared of $0.3825
    

    TORONTO, Aug. 6 /CNW/ - IBI Income Fund (the "Fund") (TSX: IBG.UN) today
announced its financial results for the three and six months ended June 30,
2008.

    Revenue for the three months ended June 30, 2008, was up $14.0 million
(34.5%) to $54.7 million compared to $40.7 million for the three months ended
June 30, 2007. For the six months ended June 30, 2008, revenue was up
$26.2 million (32.9%) to $106.0 million compared to $79.8 million for the six
months ended June 30, 2007. Revenue from consulting services is generated
based on chargeable hours with each available working day in 2008 representing
approximately $0.8 million in revenue. The three months ended June 30, 2008
had 64 available working days compared with 63 available days for the three
months ended June 30, 2007. The six months ended June 30, 2008 had 126
available working days compared with 127 available days for the six months
ended June 30, 2007. (Adjusting for the one additional day in 2007, the
relative increase in revenue for the six months ended June 30, 2008 would be
approximately 33.9%).
    Revenue from strategic growth through acquisitions was approximately
$9.6 million of the increase for the three months ended June 30, 2008. This
strategic growth was generated through the additional revenues resulting from
the operations of the merged firms of The RMPK Group, Inc., Planning &
Engineering Initiatives Limited, Bearsch Compeau Knudson Architects &
Engineers, and Landplan Associates Limited during 2007 and of Young + Wright
Architects Limited and Lawrence Doyle, Young + Wright Architects, Piranha
Tendances, Conseil Strategique et Communications Inc., Gescona Inc., Rhon
Ernest-Jones Consulting Engineers, and Martin + Marcotte Architectes during
the first six months of 2008. The organic growth for the quarter of
$4.4 million (10.9% growth) was concentrated in the consulting services
practice with the revenue for the facilities management practice down slightly
from the previous year. The overall growth in activity was accomplished
through a 28.7% increase in the average number of staff from 1,389 during the
three months ended June 30, 2007 to 1,788 during the three months ended June
30, 2008. The number of staff as of June 30, 2008 was 1,857, up from 1,442 as
of June 30, 2007.

    Net earnings before non-controlling interest of the Fund for the
three months ended June 30, 2008 were down $1.1 million to $7.7 million or
$0.4922 per Unit (on a fully diluted basis) compared with $8.8 million or
$0.6496 per Unit (on a fully diluted basis) for the three months ended
June 30, 2007. For the six months ended June 30, 2008, net earnings before
non-controlling interest were down $0.3 million to $14.1 million or
$0.8965 per Unit (on a fully diluted basis) compared with $14.4 million or
$1.0579 per Unit (on a fully diluted basis) for the three months ended June
30, 2007. As a percentage of revenue, net earnings before non-controlling
interest were 14.1% for the three months ended June 30, 2008, compared with
21.7% for the three months ended June 30, 2007. For the six months ended
June 30, 2008, net earnings before non-controlling interest as a percentage of
revenue were 13.3% compared with 18.0% for the six months June 30, 2007. This
relative decrease was primarily due to the tax differential of a credit in
2007, versus the taxes in 2008 and to increases in amortisation of
intangibles.

    EBITDA for the three months ended June 30, 2008 was up $3.0 million
(38.7%) to $10.7 million compared with $7.7 million for the three months ended
June 30, 2007. For the six months ended June 30, 2008, EBITDA was up
$4.5 million (29.6%) to $19.9 million compared with $15.4 million for the six
months ended June 30, 2007. As a percentage of revenue, EBITDA for the three
months ended June 30, 2008 was 19.7% compared with 19.1% for the three months
ended June 30, 2007. For the six months ended June 30, 2008, EBITDA as a
percentage of revenue was 18.8% compared with 19.3% for the six months ended
June 30, 2007. The higher EBITDA as a percentage of revenue for the three
months ended June 30, 2007 was enhanced by the additional available day in the
quarter. The percentage for the six-month period was lowered as a result of
one less available day compared with the six-month period ended June 30, 2007.
(With an additional day of revenue for 63 days of an average quarter, EBITDA
for the three months ended June 30, 2008 would have been reduced to
approximately $9.9 million and 18.5% of revenue. Correspondingly the EBITDA
for the six months ended June 30, 2008, adjusted for the one fewer day than
per 2007, would have been increased to $20.7 million and 19.4% of revenue.)

    Distributable Cash - For the three months ended June 30, 2008, the Fund
generated $7.6 million of Distributable Cash, up $1.4 million, (23.3%)
compared with $6.1 million for the three months ended June 30, 2007. For the
six months ended June 30, 2008, Distributable Cash was up $2.5 million (21.2%)
to $14.1 million compared with $11.6 million for the six months ended June 30,
2007. On a per Unit basis, based on the weighted average number of Units
outstanding, Distributable Cash was $0.4829 for the three months ended June
30, 2008; an increase of $0.0311 compared with $0.4518 for the three months
ended June 30, 2007. This represents a payout ratio of 79.2% for the three
months ended June 30, 2008, compared with 75.3% for the three months ended
June 30, 2007. Distributable cash for the three months ended June 30, 2008 has
been negatively impacted by the increase in capital expenditures related to
leasehold improvements made in Vancouver and Irvine, California to combine
offices of acquired firms and for additional office space in Toronto, Ottawa
and Seattle.

    Backlog:

    The current backlog of fee volume is at an all time high, in excess of
the equivalent of eight 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 including Florida. Backlog for government and institutional
clients has increased as a percentage of the total.

    
    Operating Highlights and Major Achievements:

    -   Revenue growth of 34.5% for the quarter to the highest ever of $54.7
        million, which includes organic growth of 10.9%, reflecting the
        continuing strength of the core IBI practice and the effectiveness of
        the integrated model of operations.

    -   EBITDA growth of 38.7% for the quarter to the highest ever of $10.7
        million;

    -   Distributable cash of $0.4829 per unit (a growth of $0.0311 per unit
        and overall growth of $1.4 million - 23.3%), both to highest ever
        figures vs declared of $0.3825 per unit;

    -   Successfully completed the mergers and/or acquisitions of practices
        of Rhon Ernest-Jones Consulting Engineers of Coral Springs, Florida
        and Martin + Marcotte Architectes of Montreal. These practices added
        59 new employees, four additional offices, strengthened functional
        skills and diversifications of clientele with particular emphases on
        the institutional sectors.

    -   In July, successfully completed the strategic acquisition of Giffels
        Professional Engineering practice, adding 375 staff in total.
        Giffels Professional Engineering with offices in Canada, the USA and
        Dubai adds transportation engineering and detailed design in
        transportation, and extends IBI Group's skills to cover the full
        range of services to the transportation industry; building
        engineering to complement IBI Group's related architectural
        practices; US operations in the Great Lakes urban region; and
        increases US operating staff to 540 people and doubles Gulf based
        operating staff.

    -   In July, successfully completed the strategic acquisition of Page +
        Steele Inc., Architects, adding 100 staff.  Page + Steele is a
        leading design practice to the institutional and private development
        industries and adds considerable breadth and depth of talent and
        clientele to IBI Group.
    

    Investor Conference Call

    The Fund will hold a conference call on Thursday, August 7, 2008 at 8:30
a.m. Eastern Standard Time (EST). To participate in the conference call,
please dial in before 8:30 a.m. EST to (800) 777-5134 for toll-free North
American access, or 1 212 231-2902 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 21388883 followed by the number sign
on your telephone keypad.

    
    Selected Consolidated Financial Information and Reconciliation of Non-
    GAAP Measures

                                 Three      Three         Six         Six
                                months     months       months      months
                                 ended      ended        ended       ended
                                June 30,   June 30,     June 30,    June 30,
                                  2008      2007(2)       2008       2007(2)
                               Unaudited   Unaudited   Unaudited   Unaudited
    in thousands of dollars
     except for per Unit
     amounts

    Revenue                    $  54,678   $  40,654   $ 106,047   $  79,787
                             ------------------------------------------------
    Expenses                      43,932      32,909      86,136      64,428
                             ------------------------------------------------
    Earnings before income
     taxes, interest and
     amortization (EBITDA)        10,746       7,745      19,911      15,359
    Interest                         728         646       1,431       1,228
    Income taxes                     211      (3,017)        547      (2,699)
    Amortisation of property
     and equipment and
     intangible assets             2,143       1,358       3,981       2,595
    Amortization of deferred
     credit - leases                 (52)        (72)       (103)       (145)
                             ------------------------------------------------
    Net earnings before
     non-controlling
     interest                  $   7,716   $   8,830   $  14,055   $  14,380
                             ------------------------------------------------
    Basic and diluted net
     earnings per Unit         $  0.4922   $  0.6496   $  0.8965   $  1.0579
                             ------------------------------------------------
    Distributable Cash
    Cash flow from (used in)
     operating activities      $   1,507   $   2,993   $ (12,136)  $   1,679
    Less: Capital
     expenditures                 (1,813)       (848)     (2,960)     (2,242)
                             ------------------------------------------------
    Standardized
     distributable cash        $    (306)  $   2,145   $ (15,096)  $    (563)
    Add (deduct):
      Change in non-cash
       operating working
       capital                     7,891       3,973      29,448      12,001
      Current income tax
       expense                       620         133       1,168         451
      Income taxes paid             (634)       (109)     (1,428)       (257)
                             ------------------------------------------------
    Distributable cash         $   7,571   $   6,142   $  14,092   $  11,632
                             ------------------------------------------------
    Weighted average basic
     and diluted
     distributable cash per
     Unit(1)                   $  0.4829   $  0.4518   $  0.8989   $  0.8557
                             ------------------------------------------------
    Aggregate distributions
     declared                  $   5,996   $   4,622   $  11,888   $   9,017
                             ------------------------------------------------
    Basic and diluted
     aggregate distributions
     declared per Unit(1)      $  0.3825   $  0.3400   $  0.7583   $  0.6633
                             ------------------------------------------------

        (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.

        (2)  2007 revenue, salaries, fees and employee benefits, and other
             cash operating costs (other than interest) have been adjusted
             to reflect a retrospective adjustment of direct project
             expenses in the facilities management practice.
    

    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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