TORONTO, ON–(Marketwired – May 10, 2016) –
- Q1 2016 revenue increased by 14.3% over Q1 2015 to $88.6 million.
- Adjusted EBITDA of $9.2 million or 10.4% of revenue for Q1 2016.
- The Company has approximately 10 months of backlog and is forecasting $355 million in total revenue for the year ended December 31, 2016.
- Decrease in days sales outstanding from 85 days to 82 days since December 31, 2015.
IBI Group Inc. (the “Company”) (TSX: IBG) today announced financial results for the three months ended March 31, 2016.
OPERATIONAL HIGHLIGHTS
- Revenue for the three months ended March 31, 2016 was $88.6 million compared with $77.5 million for the same period in 2015, which reflects an increase of $11.1 million or 14.3%.
- Adjusted EBITDA was $9.2 million (or 10.4% of revenue) for the three months ended March 31, 2016 compared to $6.5 million (or 8.4% of revenue) for the same period in 2015, which reflects an increase of $2.7 million or 41.5% as a result of stronger operating performance.
- Forecasting $355 million in total revenue for the year ended December 31, 2016.
- The Company currently has $411 million of work that is committed and under contract for the three years 2016 through 2018 and approximately 10 months of backlog.
- The days sales outstanding as at March 31, 2016 has decreased by 20 days compared to March 31, 2015 and from 85 days to 82 days since December 31, 2015.
- Cash flows provided by operating activities increased to $5.8 million for the three months ended March 31, 2016 compared to $4.5 million for the same period in 2015, which reflects an increase of $1.3 million or 28.9%.
- The Company paid $4.0 million toward credit facilities during the three months ended March 31, 2016.
- Interest expense decreased to $4.1 million for the three months ended March 31, 2016 compared to $5.1 million for the same period in 2015.
“We are pleased with the continued improvement in our financial and operational performance. We currently have approximately $411 million of committed and under contract work for the three years 2016 through 2018 and are focused on growing that number. We are well positioned to capitalize on the international movement towards greater urbanization that has translated into growing demand for public and private investment in urban infrastructure projects,” said Scott Stewart, Chief Executive Officer, IBI Group Inc.
| FINANCIAL HIGHLIGHTS | ||||||||
| (in thousands of Canadian dollars except for per share amounts) | ||||||||
|
Three Months Ended March 31, 2016 (Unaudited) |
Three Months Ended March 31, 2015 (Unaudited) | |||||||
| Number of working days | 62 | 62 | ||||||
| Revenue | $ | 88,645 | $ | 77,481 | ||||
| Net income (loss) | $ | (3,837 | ) | $ | 2,526 | |||
| Cash flows provided by operating activities | $ | 5,807 | $ | 4,472 | ||||
| Basic and diluted earnings per share | $ | (0.12 | ) | $ | 0.11 | |||
| Adjusted EBITDA1 | $ | 9,231 | $ | 6,546 | ||||
| Adjusted EBITDA1 as a percentage of revenue | 10.4 | % | 8.4 | % | ||||
| 1- See “Definition of Non-IFRS Measures” contained in the MD&A. |
FINANCIAL OVERVIEW
Revenue for the three months ended March 31, 2016 was $88.6 million, an increase of $11.1 million or 14.3%, compared to the same period in 2015. The increase in revenue is due to growth in the Canadian and U.S businesses, including continuing work on significant transit projects, as well as the impact of foreign exchange on U.S and International revenues. The impact of foreign exchange on revenue for the three months ended March 31, 2016 was an additional $2.4 million of revenue compared to the same period in 2015.
For the three months ended March 31, 2016, the Company had a net loss of $3.8 million compared to income of $2.5 million for the same period in 2015. Net loss for the three months ended March 31, 2016 is inclusive of a foreign exchange loss of $7.2 million, compared to a gain of $3.3 million which was included in net income for same period in 2015. The Company recorded a foreign exchange gain of $8.7 million and $2.1 million during the years ended December 31, 2015 and December 31, 2014 respectively, as the Canadian dollar weakened against the U.S dollar and British pound. The foreign exchange loss during the three months ended March 31, 2016 reflects the reversal of that trend in world markets.
Adjusted EBITDA for the three months ended March 31, 2016 increased to $9.2 million from $6.5 million for the same period in 2015. The increase of $2.7 million is a result of stronger operating performance from a decrease in operating expenses and an increase in revenue generated from the Canadian and U.S businesses.
Basic and diluted earnings per share was a loss of $0.12 per share for the three months ended March 31, 2016, compared to earnings per share of $0.11 for the same period in 2015.
OUTLOOK
Management is forecasting approximately $355 million in total revenue for the year ended December 31, 2016. The Company currently has approximately $411 million of work that is committed and under contract for the three years 2016 through 2018. 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 2016 and has approximately 10 months of backlog (calculated on the basis of the current pace of work that the Company has achieved during the 12 months ended March 31, 2016).
INVESTOR CONFERENCE CALL
The Company invites you to join their conference call on Wednesday, May 11th, 2016 at 8:30 a.m. EDT. To participate in the conference call, please dial 1-416-981-9004 in Canada and 1-800-954-0650 for North American access.
A recording of the conference call will be available on our website at www.ibigroup.com/investors/investor-news/ within 24 hours following the call. As well, an audio replay of the call will be available for 14 days by dialing 1-800-558-5253 and entering pass code 21809502 followed by the number sign on your telephone keypad.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and its subsidiary entities, including IBI Group Partnership 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. When used in this news release, such statements use words such as “may”, “will”, “expect”, “believe”, “plan” and other similar terminology. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this news release. These forward-looking statements involve a number of risks and uncertainties, including those related to: (i) the Company’s ability to maintain profitability and manage its growth; (ii) the Company’s reliance on its key professionals; (iii) competition in the industry in which the Company operates; (iv) timely completion by the Company of projects and performance by the Company of its obligations; (v) fixed-price contracts; (vi) the general state of the economy; (vii) risk of future legal proceedings against the Company; (viii) the international operations of the Company; (ix) reduction in the Company’s backlog; (x) fluctuations in interest rates; (xi) fluctuations in currency exchange rates; (xii) upfront risk of time invested in participating in consortia bidding on large projects and projects being contracted through private finance initiatives; (xiii) limits under the Company’s insurance policies; (xiv) the Company’s reliance on distributions from its subsidiary entities and, as a result, its susceptibility to fluctuations in their performance; (xv) unpredictability and volatility in the price of Shares; (xvi) the degree to which the Company is leveraged and the effect of the restrictive and financial covenants in the Company’s credit facilities; (xvii) the possibility that the Company may issue additional Common Shares diluting existing Shareholders’ interests; (xviii) income tax matters. These risk factors are discussed in detail under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended December 31, 2015. 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 news release 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 at May 10, 2016.
The factors used to develop revenue forecast in this news release include the total amount of work the Company has signed an agreement with its clients to complete, the timeline in which that work will be completed based on the current pace of work the Company achieved over the last 12 months and expects to achieve over the next 12 months. The Company updates these assumptions at each reporting period and adjusts its forward looking information as necessary.
ABOUT IBI GROUP INC.
IBI Group Inc.
(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.
FOR FURTHER INFORMATION:
Stephen Taylor, CFO
IBI Group Inc.
55 St. Clair Avenue West
Toronto, ON M4V 2Y7
Tel: 416-596-1930
Media:
Riyaz Lalani
Bayfield Strategy, Inc.
416-907-9365
rlalani@bayfieldstrategy.com