IBG IBI Group Inc

• Q2 revenue increased by 6.2% to $80.9 million over Q2 2014
• Adjusted EBITDA of $10.1 million or 12.5% of revenue for Q2
• Backlog has grown to 11 months
• Days sales outstanding improved by 6 days in the quarter

TORONTO, Aug. 14, 2015 /CNW/ - IBI Group Inc. (the "Company") (TSX: IBG) today announced financial results for the three months ended June 30, 2015. 

OPERATIONAL HIGHLIGHTS

• Revenue for the three months ended June 30, 2015 was $80.9 million compared to $76.2 million in the same quarter in 2014, an increase of 6.2%.
  
  
• Adjusted EBITDA was $10.1 million (12.5% of revenue) for three months ended June 30, 2015 compared to $8.6 million (11.3% of revenue) in the same period last year.
  
  
• Net Income for the three months ended June 30, 2015 was $1.6 million compared to $0.9 million in the same quarter in 2014.
  
  
• Forecasting $316 million in total revenue for the year ended December 31, 2015, backlog is now at 11 months.
  
  
• Subsequent to quarter end, on July 31, 2015, the Company paid $5.0 million toward the principal of the term facility as a step-down payment out of operating cash flow.
  
  
• Days sales outstanding improved by 6 days in the quarter.

"We are pleased with our continued efforts to strengthen our balance sheet and we continue to see growth in committed work, particularly in Canada," said CEO Scott Stewart. "In Q2, we successfully executed on our business plan and in doing so brought our EBITDA margin in line with industry standards. Customers have continued to seek out IBI as their designer of choice, resulting in a backlog which has grown to 11 months."

FINANCIAL HIGHLIGHTS

FINANCIAL OVERVIEW

Revenue for the three months ended June 30, 2015 was $80.9 million, compared with $76.2 million in the same period in 2014. The increase in revenue is due to the growth in the Canadian business. The United States ("U.S.") and International revenues have remained fairly consistent for both comparative periods. EBITDA in the quarter increased to $10.1 million from $8.6 in Q2 2014. 

Net income from continuing operations for the three months ended June 30, 2015 decreased to $1.6 million from $1.8 million from the same period in 2014. The primary drivers of the change in net income from continuing operations for both comparative periods was an increase in revenue, offset by the increase in accretion expense on the convertible debentures and an increase in income taxes.

Basic and diluted earnings per share from continuing operations was $0.07 per share for the three months ended June 30, 2015, compared to basic and diluted earnings per share from continuing operations of $0.08 for the same period in 2014. Although revenue has increased, earnings per share from continuing operations has decreased primarily as a result of an increase in accretion expense on the convertible debentures and income taxes.

OUTLOOK

Management is forecasting approximately $316 million in total revenue for the year ended December 31, 2015.  The Company currently has $332 million of work that is committed and under contract for the next three years. This committed workload is a material factor and assumption used to develop revenue forecasts. The Company continues to see an increase in committed work to be delivered in 2015. The Company has approximately eleven months of backlog, calculated on the basis of the current pace of work that the Company has achieved during the last 12 months ended June 30, 2015.

Caution Regarding Forward-Looking Information

Statements in this news release that describe the Company's or management's expectations, forecasts, guidance or estimates may constitute "forward-looking" statements, and such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. Forward-looking statements also include statements that are not historical facts. Forward-looking statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, IBI Group, or the industry in which they operate, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Although the Company 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. Forward-looking statements involve a number of risks and uncertainties, including those related to: (i) IBI's ability to maintain profitability and manage its growth; (ii) IBI's reliance on its key professionals; (iii) competition in the industry in which IBI operates; (iv) timely completion by IBI of projects and performance by IBI of its obligations; (v) fixed-price contracts; (vi) the general state of the economy; (vii) acquisitions by IBI; (viii) risk of future legal proceedings against IBI; (ix) the international operations of IBI; * reduction in IBI's backlog; (xi) fluctuations in interest rates; (xii) fluctuations in currency exchange rates; (xiii) potential undisclosed liabilities associated with acquisitions; (xiv) upfront risk for time invested in participating in consortiums bidding on large projects; (xv) limits under IBI's insurance policies; (xvi) the Company's reliance on distributions from IBI Group LP and IBI Group and, as a result, its susceptibility to fluctuations in IBI's performance; (xvii) unpredictability and volatility of the price of the Company's shares; (xviii) the degree to which IBI is leveraged; (xix) the possibility that the Company may issue additional shares diluting existing shareholders' interests; (xx) income tax matters; and (xxi) refinancing the convertible debentures which mature December 31, 2014. See "Risk Factors" discussed in the Company's Annual Information Form filed with the Canadian securities regulatory authorities. New risk factors may arise from time to time and it is not possible for management of the Company to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance or achievements of the Company to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Although the forward-looking statements contained in this annual information form are based upon what management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligations to update or revise them to reflect new events or circumstances.

Investor Conference Call

The Company will hold a conference call on August 14^th at 8:30 a.m. Eastern Time. To participate in the conference call, please dial in before 8:30 a.m. to 1-800-926-9197 for local and toll-free North American access, or 1-212-231-2912 for international access.

An audio replay of the call will be available for 14 days by dialing 1-416-626-4100 for international access or 1-800-558-5253 for local and toll-free North American access, enter pass code 21771563 followed by the number sign on your telephone keypad.

About IBI Group Inc.

IBI Group (TSX:IBG) is a globally integrated architecture, planning, engineering, and technology firm with over 2,200 professionals around the world. For more than 40 years, its dedicated professionals have helped clients create livable, sustainable, and advanced urban environments. IBI Group believes that cities must be designed with intelligent systems, sustainable buildings, efficient infrastructure, and a human touch.

SOURCE IBI Group Inc.