Bullboard - Stock Discussion Forum IBI Group Inc T.IBG.DB.E

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IBI Group Inc. is a global design and technology company. The Company offers a range of services, including architectural controls, architecture, bridge engineering, civil engineering, construction management, data analytics, design technology, development engineering, economics/financial analysis, electrical engineering, energy solutions, engineering, environmental assessment, geomatics/land... see more

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TSX:IBG.DB.E - Post Discussion

IBI Group Inc > TD

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Post by retiredcf on Aug 05, 2022 8:36am

TD

IBI Group Inc.

(IBG-T) C$19.28

Q2/22 First Look

Event

IBI Group reported Q2/22 adj. EBITDA that was above expectations.
IBI also raised its 2022 net revenue guidance to $478mm (from $473mm),

slightly above pre-quarter 2022 consensus of $474.5mm.
Conference call at 8:30 a.m. ET today (1-888-390-0546). Impact: NEUTRAL

Although results were ahead of expectations and 2022 revenue guidance was modestly increased, we see the quarterly release as a non-event given the recent takeover offer for IBI Group from Arcadis NV (all-cash offer at a price of $19.50 per IBI share). We rate IBI as TENDER.
IBI reported Q2/22 adjusted EBITDA of $19.8mm, vs. consensus of $19.0mm and our $19.3mm estimate.
Adjusted EBITDA margin was 15.6% (-30bps y/y), vs. consensus and TD, both at 15.9%.
Net revenue was $126.3mm (+12% y/y), vs. consensus of $119.7mm and our $121.3mm estimate.

Organic net revenue growth was strong at +9.6% y/y. The balance of IBI's

y/y net revenue growth was driven by acquisitions and f/x. From a business unit perspective, y/y net revenue growth was broad-based: Buildings +15%, Intelligence +11%, and Infrastructure +6%.

Recurring software support and maintenance billings to clients was $5.9mm in Q2/22 (+16% y/y).
Q2/22 backlog was $685mm, +4% q/q and +13% y/y. Backlog is said to represent 17.5 months of work.
Net debt to adj. EBITDA (TTM) was at 0.8x (vs. 0.6x at Q1/22).
2022 Outlook:
IBI raised its 2022 net revenue guidance to $478mm (from $473mm),

slightly above pre-quarter 2022 consensus of $474.5mm. This implies 7.5% y/y growth, which compares to the 11.2% y/y growth achieved on a year-to- date basis.
Recall, on July 18, it was announced that IBI Group has agreed to be acquired by Arcadis NV at a price of $19.50 per share (all-cash offer). Arcadis' offer price represented a 40% premium to IBI's then 30-day VWAP. The IBI acquisition is unanimously supported by IBI's Board of Directors and IBI's largest shareholder, the IBI Group Management Partnership, which holds approximately 33% of the shares eligible to be voted at the special meeting that IBI intends to hold on September 16 to approve the transaction (requires 66 2/3% approval).