IBI Income Fund (TSX: IBG.UN) today announced its financial results for the three and nine months ended September 30, 2008.
- Revenue at $69.4 million; increase of $26.9 million + 63.3%;
- Overall organic revenue growth of $4.4 million + 10.3%
- EBITDA at $12.8 million; increase of $ 4.5 million + 54.2%;
- Distributable cash of $10.4 million; increase of $3.8 million + 57.4%
- Distributable cash per unit of $0.6633 vs declared of $0.3941- payout
Revenue For the three months ended September 30, 2008 was up $26.9 million (63.3%) to $69.4 million compared to $42.5 million for the three months ended September 30, 2007. For the nine months ended September 30, 2008, revenue was up $53.1 million (43.5%) to $175.4 million compared to $122.3 million for the nine months ended September 30, 2007. Revenue from consulting services is generated based on chargeable hours with each available working day in 2008 representing approximately $0.9 million in revenue. The three months ended September 30, 2008 had 63 available working days compared with 62 available days for the three months ended September 30, 2007.
Revenue from strategic growth through acquisitions was approximately $22.5 million of the increase for the three months ended September 30, 2008. This strategic growth was generated through the additional revenues resulting from the operations of the merged firms during 2007 and 2008. The organic growth for the quarter of $4.4 million (10.3% growth) was concentrated in the consulting services practice, with the revenue for the facilities management practice down slightly from the previous year. The overall growth in activity was accomplished through a 54.4% increase in the average number of staff from 1,435 during the three months ended September 30, 2007 to 2,216 during the three months ended September 30, 2008. The number of staff as of September 30, 2008 was 2,314, up from 1,429 as of September 30, 2007.
Net earnings before non-controlling interest of the Fund for the three months ended September 30, 2008 were up $1.3 million to $7.5 million compared with $6.2 million for the three months ended September 30, 2007. For the nine months ended September 30, 2008, net earnings before non-controlling interest were up $2.1 million to $21.5 million compared with 19.4 million for the nine months ended September 30, 2007. As a percentage of revenue, net earnings before non-controlling interest were 10.8% for the three months ended September 30, 2008, compared with 14.5% for the three months ended September 30, 2007. For the nine months ended September 30, 2008, net earnings before non-controlling interest as a percentage of revenue were 12.3% compared with 15.9% for the nine months September 30, 2007. This relative decrease was primarily due to the impact of the increase in income taxes and to the increase in amortisation of intangibles for the nine months September 30, 2008 compared with 2007.
EBITDA for the three months ended September 30, 2008 was up 4.5 million (54.2%) to $12.8 million compared with $8.3 million for the three months ended September 30, 2007. For the nine months ended September 30, 2008, EBITDA was up $9.1 million (38.3%) to $32.7 million compared with $23.7 million for the nine months ended September 30, 2007. As a percentage of revenue, EBITDA for the three months ended September 30, 2008 was 18.5% compared with 19.5% for the three months ended September 30, 2007. For the nine months ended September 30, 2008, EBITDA as a percentage of revenue was 18.7% compared with 19.43% for the nine months ended September 30, 2007. The lower EBITDA as a percentage of revenue for the three months ended September 30, 2008 was the result of additional time spent by staff working on the integration of the acquired practices, as well as the impact of the GPE practice, acquired at the start of the third quarter that operates at a lower percentage of revenue.
Distributable Cash - For the three months ended September 30, 2008, the Fund generated $10.4 million of Distributable Cash, up $3.8 million, (57.4%) compared with $6.6 million for the three months ended September 30, 2007. For the nine months ended September 30, 2008, Distributable Cash was up $6.3 million (34.3%) to $24.5 million compared with $18.2 million for the nine months ended September 30, 2007. On a per Unit basis, based on the weighted average number of Units outstanding, Distributable Cash was $0.6633 for the three months ended September 30, 2008; an increase of $0.1774 compared with $0.4859 for the three months ended September 30, 2007. This represents a payout ratio of 59.4% for the three months ended September 30, 2008, compared with 71.5% for the three months ended September 30, 2007. -- www.cnxmarketlink.com
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