- Q1 revenue increased 5.4% to $77.5 million over Q1 2014
- Adjusted EBITDA of $6.5 million for Q1 up 31% over same quarter last year
- Net Income from continuing operations up 211% to $2.5 million from Q1 of the prior year
- Debt levels reduced by $4.5 million in Q1 2015
TORONTO, May 14, 2015 /CNW/ - IBI Group Inc. (the "Company") (TSX: IBG) today announced financial results for the three months ended March 31, 2015.
OPERATIONAL HIGHLIGHTS
- Revenue for the three months ended March 31, 2015 was $77.5 million compared to $73.5 million in the same quarter in 2014, an increase of 5.4%.
- Adjusted EBITDA was $6.5 million for three months ended March 31, 2015 compared to $5.0 million in the same period last year, an increase of 31%.
- Net income was $2.5 million for three months ended March 31, 2015 compared to $1.2 million in the same period last year, an increase of 211%.
- Forecasting $316 million in total revenue for the year ended December 31, 2015, of which 89.6% is committed and under contract.
- Debt balances reduced by $4.5 million from December 31, 2014 levels.
"We had a plan, we are executing on the plan, and the plan is showing results," said CEO Scott Stewart. "Across the board, our numbers are improving as we grow the business and continue to make enhancements to financial controls, identify synergies, implement cost management initiatives, and strengthen the billings and collections process."
FINANCIAL HIGHLIGHTS
| (in thousands of dollars except for per share amounts) | Three months ended March 31, 2015 (unaudited) | Three months ended March 31, 2014 (unaudited) (restated2) |
| Number of working days | 62 | 62 |
| Revenue | $77,481 | $73,456 |
| Net income from continuing operations | $2,526 | $1,219 |
| Net income loss from discontinued operations | $ - | $(23) |
| Net income | $2,526 | $1,196 |
| Basic and diluted earnings per share | $0.11 | $0.05 |
| Basic and diluted earnings per share from continuing operations | $0.11 | $0.05 |
| Basic and diluted earnings per share from discontinued operations | $ - | $ - |
| Adjusted EBITDA1 | $6,546 | $4,991 |
| Adjusted EBITDA as a percentage of revenue | 8.4% | 6.8% |
| 1- See "Definition of Non-IFRS Measures" |
| 2- Restatement due to divestment of Quebec operations and 49% equity interest in China. See "Interim Financial Statements – Note 18" |
Revenue for the three months ended March 31, 2015 was $77.5 million, compared with $73.5 million in the same period in 2014. Net income from continuing operations for the three months ended March 31, 2015 was $2.5 million, compared with net income in the same period in 2014 of $1.2 million.
Operating expenses from continuing operations for the three months ended March 31, 2015 were $68.6 million compared to $67.7 million in the same period in 2014. As a percentage of revenues, operating expenses for the three months ended March 31, 2015 were 88.5% compared to 92.2% for the same period in 2014.
The impact of foreign exchange on revenue from continuing operations for the three months ended March 31, 2014 was $3.0 million compared to the same period in 2014. The impact of foreign exchange on expenses from continuing operations for the three months ended March 31, 2014 was also $3.0 million compared to the same period in 2014.
Current assets increased by $7.4 million as at March 31, 2015 when compared with December 31, 2014. This is primarily the result of a $4.3 million increase in accounts receivable and a $3.7 million increase in WIP. Cash flows from operating activities for the three months ended March 31, 2015 were $4.5 million compared to $1.9 million for the same period last year.
There has been a total decrease of 12 days in days sales outstanding in the twelve months since March 31, 2014. These decreases can be attributed to the Company's commitment in 2014 to monitoring accounts receivable with a focus to improve collections, resulting in a decrease in write-offs of accounts receivable.
Foreign exchange gain from continuing operations for the three months ended March 31, 2015 was $3.3 million compared to $1.4 million in the same period in 2014. The gain is attributable to foreign exchange rate movements between the Canadian dollar, U.S. dollar, British pound and other local currencies of international subsidiaries.
OUTLOOK
Management is forecasting approximately $316 million in total revenue for the year ended December 31, 2015 of which 89.6% is committed and under contract. The forecast is consistent with the Company's 3.5% annual growth expectation plus the impact of the weaker Canadian dollar. The Company currently has $356 million of work that is committed and under contract for the next three years, of which $283 million is committed for 2015. 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 ten months of backlog, calculated on the basis of the current pace of work that the Company has achieved during the last 12 months ended March 31, 2015.