TSX:IBG.DB.E - Post by User
Post by
retiredcfon Mar 11, 2022 8:11am
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Post# 34505825
TD
TDGiven that their target was only $15.50, I don't think this analyst was much of a fan in the first place. GLTA
IBI Group Inc.
(IBG-T) C$14.55
Q4/21 First Look
Event
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IBI Group reported Q4/21 adj. EBITDA that was below expectations.
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Meanwhile, the company introduced 2022 net revenue guidance of
approximately $457mm, vs. consensus at $459mm and TD at $455mm.
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Conference call at 8:30 a.m. ET today (1-888-390-0546).
Impact: SLIGHTLY NEGATIVE
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IBI reported Q4/21 adjusted EBITDA of $14.9mm, vs. consensus of $16.3mm and our $15.9mm estimate.
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Adjusted EBITDA margin was 13.2% (-70bps y/y), vs. consensus of 15.4% and TD at 14.9%.
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Net revenue was $112.8mm (+14% y/y), vs. consensus of $105.4mm and our $107.1mm estimate.
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Organic net revenue growth was +9.6% y/y. The balance of IBI's y/y net
revenue growth was driven by acquisitions, while f/x acted as a headwind.
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Regionally, net revenue increased y/y as follows: Canada +23.6%, U.K. +3.0%, and U.S. +2.5%. Meanwhile, Other International was -12.0%.
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From a business unit perspective, y/y net revenue growth was broad-based: Infrastructure +24.8%, Buildings +10.4%, and Intelligence +9.4%.
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Q4/21 backlog was $623mm, +5% q/q and +8% y/y. Backlog is said to represent ~17 months of work.
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Net debt to adj. EBITDA (TTM) declined to 0.4x (vs. 0.6x at Q3/21).
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2022 Outlook:
IBI introduced 2022 net revenue guidance of approximately $457mm,
which implies 2.8% y/y growth, vs. consensus at $459mm and TD at $455mm. IBI indicated it would continue profitable growth, with notable revenue potential emerging outside of North America.
IBI indicated that the strength of its balance sheet, along with its forecast free cash flow, will enable the company to "continue allocating capital to the pursuit of accretive acquisitions and investing in new products and technologies that can enhance business efficiencies and support overall margins". Targets were said to include smaller transactions within the technology sector that can be leveraged across IBI’s global markets, as well as opportunities in key sectors including transportation, water, wastewater, and the environment. Further, IBI indicated that it would will explore geographic expansion (the southern U.S. was highlighted).