IBI Group Inc T.IBG.DB.E

Q4 Earnings

[Calgaryrider]

I'll save everyone the reading.... IBG has a good operational quarter BUT, because of the item below the 12.1% EBIDTA margins were instead 8.8% and instead of EPS of $0.09 they were ($0.08). Fundamentally, IBG is still very strong, but, no doubt, this one short-term hiccup was unexpected. "he Company renegotiated the sub-lease agreement for one of its office spaces, which resulted in an increase to the onerous lease provision to $5.3 million (December 31, 2016 $3.3 million) and an increase to rent expense of $3.0 million during the quarter. This and other factors, including the loss from the fair value of the derivative liability of $2.0 million and the change in the US tax rate on previously recognized deferred tax assets of $1.4 million, reduced net earnings for the three months ended December 31, 2017, but had no impact to adjusted EBITDA. The impact is a reduction in basic and diluted earnings per share in the quarter of $0.17." Good luck!