IBI Group boosts capital structure, strengthens balance sheet in 2015

By Lisa Kerner

Charlotte, N.C., March 18 – IBI Group Inc. chief executive officer Scott Stewart said that last year the company “took significant steps to strengthen our underlying business, leading to material improvements in our balance sheet and capital structure.”

Stewart made his comments during the company’s fourth-quarter and full-year 2015 earnings conference call on Friday.

On Oct. 5, IBI refinanced its credit facilities under an existing banking arrangement with its senior lenders. The new arrangement consists of a C$90 million revolving facility that will mature on June 30, 2018.

In December, IBI financed the redemption of its 5.75% convertible debentures using C$20 million in cash from the credit facilities. The company also issued common shares under a rights offering for gross proceeds of C$5.6 million. Proceeds were used to repay IBI’s credit facilities and the company’s debt to IBI Group Management Partnership, according to the earnings release.

On Dec. 31, IBI completed a private placement, issuing shares to the management partnership in full satisfaction of the remainder of the debt.

Revenue rises

Revenue for the fourth quarter was up 13.2% year over year at C$84.9 million. For the full year, revenue increased 9.7% to C$327.1 million. Management is forecasting total revenue of about C$355 million for the full year 2016.

Fourth-quarter adjusted EBITDA was C$8.3 million, or 9.7% of revenue, compared to C$4.5 million, or 6% of revenue for the same period in 2014. Adjusted EBITDA for the year ended Dec. 31 was C$34.4 million, or 10.5% of revenue, compared with C$23.7 million, or 8% of revenue, for 2014, according to the earnings release.

Net income from continuing operations was C$1.0 million for the quarter and C$11.3 million for the full year.

Looking ahead in 2016, Stewart said IBI remains “cautiously optimistic,” “particularly amid the prospect of an increase in public infrastructure spending in Canada and the continued acceleration of the U.S. economy.”

IBI Group is an architecture, planning, engineering and technology firm based in Toronto.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.