IBI announces record revenue and EBITDA:



    
    -   Revenue at $43.3 million; increase of $6.1 million + 16.4%;

    -   Overall organic revenue growth of $4.7 million + 12.7%

    -   EBITDA at $7.7 million; increase of $ 1.0 million + 14.5%;

    -   Distributable cash of $0.4518 per unit vs declared of $0.3400 per
        unit.

    -   6.6% increase in cash distributions to $1.45 per Fund Unit per annum
        from $1.36 effective for the September 2007 distribution payable
        October 31, 2007.
    

    TORONTO, Aug. 8 /CNW/ - IBI Income Fund (the "Fund") (TSX: IBG.UN) today
announced its financial results for the three and six month periods ended
June 30, 2007

    Revenue for the three months ended June 30, 2007 was up $6.1 million
(16.4%) to $43.3 million compared to $37.2 million for the three months ended
June 30, 2006. For the six months ended June 30, 2007, revenue was up
$12.3 million (16.9%) to $84.8 million compared to $72.6 million for the six
months ended June 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 $4.7 million (12.7%) for the three months ended June 30, 2007
and $9.6 million (13.2%) of the increase for the six months ended June 30,
2007. Revenue from strategic growth through acquisitions was approximately
$1.4 million for three months ended June 30, 2007 and $2.6 million of the
increase for the six months ended June 30, 2007. The overall growth in
activity was accomplished through a 19.0% increase in the average number of
staff from 1,167 during the three months ended June 30, 2006 to 1,389 during
the three months ended June 30, 2007. The number of staff as of June 30, 2007
was 1,442, up from 1,206 as of June 30, 2006.

    Net earnings before non-controlling interest of the Fund for the three
months ended June 30, 2007 were $8.8 million or $0.6496 per Unit (on a fully
diluted basis) compared with $4.5 million or $0.3313 per Unit for the three
months ended June 30, 2006. For the six months ended June 30, 2007, net
earnings before non-controlling interest were $14.4 million or $1.0579 per
Unit (on a fully diluted basis) compared with $8.7 million or $0.5960 per Unit
for the six months ended June 30, 2006. As a percentage of revenue, net
earnings before non-controlling interest were 20.4% for the three months ended
June 30, 2007, compared with 12.1% for the three months ended June 30, 2006.
For the six months ended June 30, 2007, net earnings before non-controlling
interest as a percentage of revenue were 17.0% compared with 12.0% for the six
months ended June 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 13.1% for the quarter and 13.2% for the year to
date.

    EBITDA for the three months ended June 30, 2007 was $7.7 million, up
$1.0 million (14.5%) from $6.8 million for the three months ended June 30,
2006. For the six months ended June 30, 2007, EBITDA was up $2.7 million
(21.5%) to $15.4 million compared with $12.6 million for the six months ended
June 30, 2006. As a percentage of revenue, EBITDA was 17.9% for the three
months ended June 30, 2007 compared with 18.2% for the three months ended June
30, 2006. For the six months ended June 30, 2007, EBITDA as a percentage of
revenue was 18.1% compared with 17.4% for the six months ended June 30, 2006.
Higher payroll costs associated with the new staff, partially offset with the
relative reduction in other operating costs (other than interest) as a
percentage of revenue, accounted for the decrease in the percentage for the
three months ended June 30, 2007 as compared to the prior year periods.
Overall, EBITDA as a percentage of revenue was impacted by the lower margin
facilities management business which has generated EBITDA of negative $0.2 for
the three months ended June 30, 2007 compared with positive $0.1 for the three
months ended June 30, 2006 due to one additional payroll period during the
quarter and an increase in seasonal employees over the prior year period.
Excluding the results of the facilities management business, EBITDA as a
percentage of revenue was 19.7% for the three months ended June 30, 2007
compared with 19.1% for the three months ended June 30, 2006.

    Distributable Cash - For the three months ended June 30, 2007, the Fund
generated $6.1 million of distributable cash, up $1.3 million, (27.3%)
compared with $4.8 million for the three months ended June 30, 2006. For the
six months ended June 30, 2007, the Fund generated $11.6 million of
distributable cash, up $1.9 million, (19.1%) compared with $9.8 million for
the six months ended June 30, 2006. On a per Unit basis, based on the weighted
average number of Units outstanding, distributable cash was $0.4518 for the
three months ended June 30, 2007, an increase of $0.0968 compared with $0.3550
for the three months ended June 30, 2006. This represents a payout ratio of
75.3% for the three months ended June 30, 2007, compared with a payout ratio
of 84.5% for the three months ended June 30, 2006. For the six months ended
June 30, 2007, the payout ratio is 77.5% compared with 75.6% for the six
months ended June 30, 2006.
    The Fund concluded on the basis of this strong financial performance that
the monthly cash distributions would be increased by 6.6% to $1.45 per Fund
Unit on an annual basis from $1.36. This increase will be effective with the
Distribution for the month of September 2007, payable on October 31, 2007 to
unitholders of record on September 28, 2007

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

    Operating Highlights and Major Achievements:

    
    -   Revenue growth at 16.4% including organic growth of 12.7%;

    -   EBITDA growth of 14.5% for the quarter to $7.7 million;

    -   Distributable cash of $0.4518 per unit vs declared of $0.3400 per
        unit;

    -   6.6% increase in cash distributions to $1.45 per Fund Unit per annum
        from $1.36 effective for the September 2007 distribution payable
        October 31, 2007.

    -   Successfully completed an amendment to the Fund's credit facilities
        with its bank lender, increasing the credit facilities by
        $15.0 million to $65.0 million, consisting of a $15.0 million
        operating facility and $50.0 million term facility;

    -   Successfully completed on May 3, 2007, the merger of the practice of
        The RMPK Group, Inc. of Sarasota, Florida, a firm of 18 planners,
        designers and landscape architects, which has been serving government
        and private clients in Florida for over 25 years;

    -   Established an operating office in Dubai with the relocation of an
        IBI associate partner to lead the build up of the office and expand
        on the existing IBI work in the Saudi Kingdom and Gulf Emirates;

    -   Established an operating office in Shanghai on the strength of a
        major new architectural assignment along with the continuation of
        other current project work;

    -   Established an operating office in Delhi on the basis of a major a
        major new 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, August 9, 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 (416) 620-2408 for local and
international access, or 1 877 331-7860 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 21345726 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,
    in thousands except           2007        2006        2007        2006
    for per unit amounts       Unaudited   Unaudited   Unaudited   Unaudited

    Revenue                    $  43,253   $  37,161   $  84,809   $  72,559
                              -----------------------------------------------
    Expenses                      35,508      30,399      69,450      59,918
                              -----------------------------------------------
    Earnings before income
     taxes, interest and
     amortization (EBITDA)         7,745       6,762      15,359      12,641
    Interest                         646         481       1,228         829
    Income taxes                  (3,017)        342      (2,699)        515
    Amortization of property
     and equipment and
     intangible assets             1,358       1,525       2,595       2,778
    Amortization of deferred
     credit - leases                 (72)        (90)       (145)       (180)
                              -----------------------------------------------
    Net earnings before
     non-controlling interest  $   8,830   $   4,504   $  14,380   $   8,699
                              -----------------------------------------------
    Basic and diluted net
     earnings per Unit         $  0.6496   $  0.3313   $  1.0579   $  0.7069
                              -----------------------------------------------

    Distributable Cash
    Cash flow from operating
     activities                $   2,775   $  (1,379)  $     966   $  (7,001)
    Add (deduct):
      Change in non-cash
       operating working
       capital                     7,341       7,318      15,864      18,298
      Capital expenditures          (848)       (842)     (2,242)     (1,429)
      Income taxes                (3,017)        342      (2,699)        515
      Income taxes paid             (109)       (613)       (257)       (615)
                              -----------------------------------------------
    Distributable cash         $   6,142   $   4,826   $  11,632   $   9,768
                              -----------------------------------------------
    Weighted average basic
     and diluted distributable
     cash per Unit (1)            0.4518      0.3550   $  0.8557   $  0.7926
                              -----------------------------------------------
    Aggregate distributions
     declared                  $   4,622   $   4,078   $   9,017   $   7,385
                              -----------------------------------------------
    Basic and diluted
     aggregate distributions
     declared per Unit (1)     $  0.3400   $  0.3000   $  0.6633   $  0.5941
                              -----------------------------------------------
        (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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