IBI announces record revenue, EBITDA and cash generated:



    
    -   Revenue at $179.9 million; increase of $28.0 million + 18.4%;
    -   Overall organic revenue growth of $21.0 million + 13.8%
    -   EBITDA at $31.8 million; increase of $ 5.1 million + 18.9%;
    -   Distributable cash of $24.9 million; increase of $4.4 million + 21.7%
    -   Distributable cash per unit of $1.8205 vs declared of $1.3733.
    

    TORONTO, March 26 /CNW/ - IBI Income Fund (the "Fund") (TSX: IBG.UN)
today announced its financial results for the year ended December 31, 2007.
    Revenue for the year ended December 31, 2007 was up $28.0 million (18.4%)
to $179.9 million compared to $151.9 million for the year ended December 31,
2006. For the three months ended December 31, 2007, revenue was up
$9.8 million (24.6%) to $49.7 million compared to $39.9 million for the three
months ended December 31, 2006.
    Organic growth for the year was $21.0 million of which $15.7 million
(11.1% growth) was in the professional services practice and $5.3 million
(49.5% growth) was in the facilities management practice. Revenue from
strategic growth through acquisitions was approximately $7.0 million of the
increase for the year ended December 31, 2007 and $3.5 million for three
months ended December 31, 2007. This strategic growth was generated through
the additional revenues resulting from the RMPK acquisition in the second
quarter of 2007 and the PEIL, BCK and Landplan acquisitions during the fourth
quarter of 2007. The overall growth in activity was accomplished through an
18.7% increase in the average number of staff from 1,195 during 2006 to 1,418
during 2007. The number of staff as of December 31, 2007 was 1,584, up from
1,264 as of December 31, 2006.
    Net earnings before non-controlling interest of the Fund for the year
ended December 31, 2007 were $25.4 million or $1.8618 per Unit (on a fully
diluted basis) compared with $17.1 million or $1.3208 per Unit for the year
ended December 31, 2006. For the three months ended December 31, 2007, net
earnings before non-controlling interest were $4.9 million or $0.3527 per Unit
(on a fully diluted basis) compared with $3.5 million or $0.2588 per Unit for
the three months ended December 31, 2006. As a percentage of revenue, net
earnings before non-controlling interest were 14.1% for the year ended
December 31, 2007, compared with 11.3% for the year ended December 31, 2006.
For the three months ended December 31, 2007, net earnings before
non-controlling interest as a percentage of revenue were 9.7% compared with
8.8% for the three months ended December 31, 2006.
    EBITDA for the year ended December 31, 2007 was up $5.1 million (18.9%)
to $31.8 million compared with $26.8 million for the year ended December 31,
2006, compared to 18.7% growth in revenue. For the three months ended
December 31, 2007, EBITDA was $8.2 million, up $1.3 million (19.2%) from
$6.8 million for the three months ended December 31, 2006. As a percentage of
revenue, EBITDA for the year ended December 31, 2007 was up slightly over the
prior year at 17.7%. For the three months ended December 31, 2007, EBITDA was
16.4% as a percentage of revenue compared with 17.1% for the three months
ended December 31, 2006. The facilities management business 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 19.1% for the year ended December 31, 2007
compared with 18.9% for the year ended December 31, 2006, indicating a further
enhancement in profitability.
    Distributable Cash - For the year ended December 31, 2007, the Fund
generated $24.9 million of Distributable Cash, up $4.4 million, (21.7%)
compared with $20.4 million for the year ended December 31, 2006. For the
three months ended December 31, 2007, the Fund generated $6.6 million of
Distributable Cash, up $1.9 million (39.2%), compared with $4.8 million for
the three months December 31, 2006. On a per Unit basis, based on the weighted
average number of Units outstanding, Distributable Cash was $1.8205 for the
year ended December 31, 2007, an increase of $0.2432 compared with $1.5773 for
the year ended December 31, 2006. This represents a payout ratio of 75.4% for
the year ended December 31, 2007, compared with a payout ratio of 77.4% for
the year ended December 31, 2006.

    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 except Florida. Backlog for government and institutional
clients has increased as a percentage of the total.

    
    Operating Highlights and Major Achievements:

    -   Overall organic growth of 13.8% of the firm within the total growth
        of 18.4%, reflecting the effectiveness of the integrated model of
        operations.

    -   EBITDA growth of 18.9% for the year to $31.8 million, exceeding
        revenue growth;

    -   Distributable cash of $1.8205 per unit (a growth of $0.2432 per unit
        and overall growth of $4.4 million - 21.7%) vs declared of
        $1.3733 per unit; exceeding revenue and EBITDA growth

    -   Increased distributions twice during the year, 7.9% in March and
        6.6% in September for a total increase of 15%.

    -   Successfully completed the mergers and/or acquisitions of RMPK Group
        Inc., a planning, design and landscape architecture practice based in
        Sarasota, Florida; Planning & Engineering Initiatives Limited a firm
        planners, civil engineers and landscape architects based in South-
        western Ontario; Bearsch, Compeau, Knudson Architects and Engineers,
        based in Binghamton, NY, and Landplan Associates of Calgary, Alberta.
        These practices added 167 new employees and eight additional offices
        and strengthened functional skills.

    -   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 based on
        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 Thursday, March 27, 2008 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 1 212 231-2900 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 21376240 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
                              ended        ended        ended        ended
                             December     December     December     December
    in thousands except      31, 2007     31, 2006     31, 2007     31, 2006
    for per unit amounts    Unaudited    Unaudited    Unaudited    Unaudited

    Revenue                 $  49,705    $  39,876    $ 179,927    $ 151,912
                            -------------------------------------------------
    Expenses                   41,544       33,053      148,106      125,155
                            -------------------------------------------------
    Earnings before income
     taxes, interest and
     amortization (EBITDA)      8,161        6,823       31,821       26,757
    Interest                      789          811        2,665        2,180
    Income taxes                1,129         (261)      (1,370)         748
    Amortization of property
     and equipment and
     intangible assets          1,432        2,846        5,375        7,051
    Amortization of deferred
     credit - leases              (72)         (90)        (290)        (360)
                            -------------------------------------------------
    Net earnings before
     non-controlling
     interest               $   4,883    $   3,517    $  25,441    $  17,138
                            -------------------------------------------------
    Basic and diluted net
     earnings per Unit      $  0.3527    $  0.2588    $  1.8618    $  1.3208
                            -------------------------------------------------
    Distributable Cash
    Cash flow from operating
     activities             $   8,201    $   6,361    $  12,508    $   1,946
    Less capital
     expenditures                (551)        (684)      (3,588)      (2,647)
                            -------------------------------------------------
    Standardized
     distributable cash         7,650        5,677        8,920         (701)
    Add (deduct):
      Change in non-cash
       operating working
       capital                 (1,774)        (386)      15,052       21,883
      Income taxes                945           37        1,596          748
      Income taxes paid          (192)        (561)        (702)      (1,490)
                            -------------------------------------------------
    Distributable cash      $   6,629    $   4,767       24,866    $  20,440
                            -------------------------------------------------
    Weighted average basic
     and diluted
     distributable cash
     per Unit(1)            $  0.4789    $  0.3507    $  1.8205    $  1.5773
                            -------------------------------------------------
    Aggregate distributions
     declared               $   5,180    $   4,282    $  18,920    $  15,813
                            -------------------------------------------------
    Basic and diluted
     aggregate distributions
     declared per Unit(1)   $  0.3625    $  0.3150    $  1.3733    $  1.2141
                            -------------------------------------------------

    (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".

    IBI is a group of companies providing professional services and is
affiliated with IBI Group Architects.
    %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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