TORONTO, May 22, 2013 /CNW/ - IBI Group Inc. (the "Company") (TSX: IBG)
today announced after careful consideration that the quarterly dividend
on its common shares for the quarter commencing March 1st, 2013 and henceforth will be suspended, effective immediately. The
distributions on the 5,025,778 Class B units of the IBI Group
partnership (which are exchangeable for common shares), held by IBI
Group Management Partnership, will similarly be suspended with respect
to the quarter commencing March 1st 2013 and henceforth.
This decision is based on the Company's commitment to manage cash to
strengthen its balance sheet and manage its operations through a
difficult period. The recession that occurred in the fourth quarter of
2008 and its impact on the economies of the United States and Europe,
affected IBI Group initially in the housing sector, in which IBI had
relatively high exposure. IBI projects in social and transportation
infrastructure have also been affected. Europe continues to contract,
recovery in the United States is encouraging but tentative, and a
slowdown is being indicated in the Canadian economy.
The Company has reduced, and will continue to reduce, staff in line with
committed work to enhance productivity and profitability, as indicated
previously. This, together with the suspension of the dividend will
preserve cash for operations and to reduce debt.
The backlog of committed work continues to increase and the Company had
positive cash flow in April and in May.
The Company will continue to closely monitor profitability and cash
generated. It will revisit the dividend/distribution policy as the
Company moves into solid and sustainable operations and an improved
About IBI GROUP INC. AND IBI GROUP
IBI Group Inc. is a TSX listed company which trades under the symbol
"IBG". IBI Group Inc. holds an indirect 77% interest in IBI Group, a
partnership (of a subsidiary of IBI Group Inc. and IBI Group Management
Partnership) which, directly and through its subsidiary entities,
provides professional services, including planning, design,
implementation, analysis of operations and other consulting services in
relation to four main areas of development, being urban land, building
facilities, transportation networks and systems technology. The
remaining 23% of IBI Group is owned by IBI Group Management
Partnership. On a partially diluted basis, assuming the exchange of
its partnership units of IBI Group for common shares of IBI Group Inc.,
IBI Group Management Partnership together with affiliated entities
holds a combined 41% interest in IBI Group Inc.
This news release contains forward-looking statements that involve risk,
uncertainties and other factors that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements. These forward looking statements include,
or may be based upon, estimates, forecasts, and statements as to
management's expectations. Although IBI believes that the assumptions
inherent in the forward-looking statements are reasonable, such
statements are not guarantees of future performance and actual results
or developments may differ materially from those in forward-looking
statements. A number of factors could cause actual results to differ
materially from those in forward-looking statements, including general
economic, market or business conditions and the factors discussed in
IBI Group Inc.'s Annual Information Form filed with the Canadian
securities regulatory authorities. Undue reliance should not be placed
on these statements, which only apply as of the date of this news
release. IBI undertakes no obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
SOURCE: IBI Group Inc.
For further information:
IBI Group Inc.
230 Richmond Street West, 5th Floor
Toronto, ON M5V 1V6
Tel: 416-596-1930, Fax: 416-596-8024