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Press release from CNW Group

IBI announces highest annual and quarterly revenue to date:

Monday, March 26, 2012

IBI announces highest annual and quarterly revenue to date:18:55 EDT Monday, March 26, 2012Annual revenue $332.3 million increase of $43.0 million, +14.9% Quarterly revenue $88.0 million - the highest quarter of revenue to date; increase of $12.3 million, +16.3%  Annual EBITDA1 $48.5 million, increase of $7.5 million, +18.2% Annual adjusted earnings per share of $0.8774Quarterly EBITDA1 $12.2 million,  increase of $0.8 million, +6.8% Quarterly earnings per share of $0.2311Annual Distributable Cash1 of $27.8 million; increase of $0.8 million, + 3.0%Quarterly Distributable Cash1 of $6.5 million; decrease of $0.7 million, - 10.0% Annual Distributable Cash1 earned per share and unit of $1.5473 vs declared of $1.2426.  Payout ratio of 80.3% Quarterly Distributable Cash1 earned per share and unit of $0.3608 vs declared of $0.3230.  Payout ratio of 89.5% Backlog increase to equivalent level of work exceeding 9.5 monthsTORONTO, March 26, 2012 /CNW/ - IBI Group Inc (the "Company") (TSX: IBG) today announced its financial results for the three months and year ended December 31, 2011, reported now for the fourth time under International Financial Reporting Standards ("IFRS").Operating Highlights 2011 was a year of improved performance, demonstrating the continued growth of the operating results of IBI Group as compared to 2010.  The results for the year ended December 31, 2011 are based on 250 available working days, compared with 251 available working days for the year ended December 31, 2010.  The one additional day in the year would have resulted in approximately $1.3 million of additional annual revenue.  The results of the fourth quarter of 2011 are based on 62 available working days, compared with 63 working days for the fourth quarter of 2010, 63 working days for the third quarter of 2011, 63 working days for the second quarter of 2011, and 62 working days for the first quarter of 2011. The one additional day in the first quarter of 2011 would have resulted in approximately $1.3 million of additional revenue. The one additional day in the fourth quarter of 2011 would have resulted in approximately $1.4 million of additional revenue.The highlights are:Revenue at $332.3 million ($333.6 million normalized to 251 working days to be equal with the number of working days in 2010) for the year ended December 31, 2011 was up $43.0 million ($44.3 million normalized) compared with $289.3 million for the year ended December 31, 20101.  Revenue for the fourth quarter of 2011 at $88.0 million, the highest quarterly amount to date ($89.4 million normalized to 63 working days to be equal with the number of working days in 2010), was $12.3 million above the fourth quarter of 2010 ($13.7 million normalized), up $3.7 million ($5.1 million normalized) compared with the third quarter of 2011, up $5.6 million ($7.1 million normalized) compared with the second quarter of 2011, and up $10.1 million compared with the first quarter of 2011.EBITDA2 of $48.5 million ($49.8 million normalized) for the year ended December 31, 2011 was up $7.5 million ($8.8 million normalized) compared with $41.1 million for the year ended December 31, 20101.  EBITDA2 for the fourth quarter of 2011 of $12.2 million ($13.6 million normalized) was up $0.8 million compared to fourth quarter of 2010 (up $2.2 million normalized), down $0.7 million compared with the third quarter of 2011 (up $0.7 million normalized), down $0.4 million compared with the second quarter of 2011 (up $1.0 million normalized), and up $1.5 million compared with the first quarter of 2011.EBITDA2 as a percentage of revenue for the year ended December 31, 2011 was 14.6% (14.9% normalized), up 0.4% compared with the year ended December 31, 20101 (up 0.7% normalized). This improvement in productivity is demonstrated by the increase in EBITDA as a percentage of the increase in revenue, which for the year 2011 over 2010 was 17.4% (19.8% normalized). Ona quarterly basis, EBITDA2 as a percentage of revenue for the fourth quarter of 2011 was 13.9% (15.3% normalized), a decrease of 1.2% (up 0.2% normalized) compared with the fourth quarter of 2010, down 1.4% (unchanged normalized) compared with the third quarter of 2011, down 1.5% (down 0.1% normalized) compared with the second quarter of 2011, and up 0.1% compared with the first quarter of 2011.Adjusted Net Earnings2 per share ("Adjusted EPS") for the year ended December 31, 2011 was $0.8774 ($0.9799 normalized), compared with Adjusted Net Earnings2 per unit of $0.8740 for the year ended December 31, 20101.  On a quarterly basis, Earnings per share ("EPS") for the fourth quarter of 2011 was $0.2311 ($0.3402 normalized), compared with Adjusted Net Earnings2 per unit of $0.2700 for the fourth quarter of 2010, EPS of $0.2355 for the third quarter of 2011, EPS of $0.2360 for the second quarter of 2011, and Adjusted EPS of $0.2423 for the first quarter of 2011.Distributable cash2 for the year ended December 31, 2011 of $27.8 million ($29.2 million normalized) was up $0.8 million (up $2.1 million normalized) compared with distributable cash1 for the year ended December 31, 20101 of $27.0 million.  Distributable cash2 of $6.5 million for the fourth quarter of 2011 ($7.9 million normalized) compared with $7.2 million for the fourth quarter of 2010 was a decrease of $0.7 million (up $0.7 million normalized). Distributable cash2 was down $1.7 million (down $0.2 million normalized) compared with the third quarter of 2011, down $0.8 million (up $0.6 million normalized) compared with the second quarter of 2011, and up $0.7 million compared with the first quarter of 2011. As a result, the payout ratio for the year ended December 31, 2011 was 80.3%, an improvement from 105.7% for the year ended 2010. The payout ratio for the fourth quarter of 2011 decreased to 89.5% compared to 99.3% for the fourth quarter of 2010, and increased from 71.3% for the third quarter of 2011, increased from 79.2% for the second quarter 2011, and improved from 84.1% for the first quarter 2011. IBI is making progress to increase the level of earnings such that dividends and distributions will decrease to be in the range of 60% to 65%.Additionally, as part of these efforts progress has been made in reducing the working capital tied up in accounts receivable, work in process and deferred revenue measured in the equivalent numbers of working days of IBI fee revenue, tied up from the peak of 195 days at the end of the second quarter 2010 down to 173 days at the end of the fourth quarter 2011. Significant progress was achieved in the fourth quarter of 2011 as the amount of working capital decreased to 173 days from 186 days equivalent at the end of the third quarter 2011. This progress was primarily through the collection of accounts receivable.Working capital tied up, measured in number of days of gross billings equals 138 days at the end of 2011. This measurement of gross work in process and accounts receivable measured in similar gross earnings per day provides the more representative measure of actual performance. This is increasingly relevant as IBI assumes the lead role on large projects with more subconsultant participation in fee volume and recoverable expenses. Management continues to strive to reduce the working capital tied up.Revenue ActivityRevenue for the year ended December 31, 2011 exceeded that of the year ended December 31, 2010.  Revenue for the fourth quarter of 2011 was the best quarter ever. Work is underway on a wide range of projects (approximately 5500 active projects). Intensive efforts continue on major projects including the McGill Health Centre, Glasgow Southern General Hospital, Women's College Hospital in Toronto, and other health care facilities; highway tolling projects and traffic management projects worldwide; a large number of educational facilities; continued strength in housing developments in Canada and China; and some major transit and highway projects. In July, the Government of the State of Israel announced the selection by NTA - Metropolitan Mass Transit System Ltd. (Tel Aviv), of IBI Group as the prime contractor for the design contract for the ten underground stations of the planned LRT Red Line. The work on the contract was delayed some three months due to a legal challenge which has now been resolved and work is now underway.Organic growth in the fourth quarter of 2011 is $9.3 million, (12.5%) as compared with the fourth quarter of 2010. The percent of organic growth total year over year was 7.3%, above the 2.5% to 5% that IBI Group had anticipated for 2011.Public sector work represented approximately 69% of the $88.0 million of revenue in the fourth quarter.Building the Practice of IBI as Global Designers of Local CommunitiesThe program of strategic growth outlined above is directed to achieve the basic objective of IBI Group; to build a Global Professional Practice in the planning, design and development of the physical components of urbanization throughout the world.  Urbanization is one of the main driving forces in social and economic systems worldwide.  While there are cultural differences, much of the physical aspects in the formation of cities; transportation and other infrastructure, buildings and public spaces for the accommodation of human activity are subject to the same professional and technical substance.  Accordingly, the expanding knowledge and experience of IBI Group is transferrable throughout these world markets.  IBI Group's core areas of activity in Urban Land, Building Facilities, Transportation Infrastructure, and Intelligent Systems are the primary elements of the physical development of such urban areas. IBI Group is building this broad based expertise that provides the intelligence and knowledge that informs the work of IBI Group to address urbanization in metropolitan areas throughout the world.   IBI Group sees this intelligence in various perspectives:   1)     Intelligence regarding operations of facilities and infrastructure and the impact of change in technology on these operations. In major transportation and social infrastructure and in cities, the increasing scale of work of IBI Group provides the growing intelligence to enable IBI Group to establish centres of excellence that operate on a world scale throughout the whole of the firm.  This intelligence can then be deployed through the local offices serving local communities;   2)     Intelligence on human senses and interaction with the infrastructure and the built urban environment; the expanding body of work that IBI Group has implemented enables IBI Group to assess with the participation of users of the infrastructure and facilities the human reactions to these environments and to learn what functions better for the human senses;   3)     Intelligence on the technical aspects of the product of the work implemented; construction details in infrastructure and in building details regarding constructability, maintenance, costs; and   4)     Intelligence in the doing of the work; intelligent systems to access the body of knowledge; organisation for the planning design and implementation.As IBI Group grows, the knowledge base of the intelligence is both extended and intensified, heightening the quality of the work that IBI can produce.  The IBI Group model is to operate as one integrated global firm to access this intelligence and apply it by the delivery of that expertise through local communities.  Accordingly, IBI Group is growing in its diversity of professional skills and in establishing physical presence in local offices throughout the world.   The business benefits of this strategy are multiple:   1)     IBI Group has expanding and intensifying access to professional business opportunities with decreasing competition due to the IBI Group growing intelligence and expertise;   2)     IBI Group can move this intelligence to clients with needs in urban areas that are growing and be present where markets are robust as economies fluctuate; and   3)     IBI Group can access human talent in various areas of the world with the IBI global platform.Accordingly, IBI Group will continue in this long term strategy through both organic and strategic growth.  The organic growth is the long term core of growth. IBI Group has achieved an average of 12% organic growth per year since 1995.  Organic growth in 2011 was 7.3%, and 12.5% in Q4 of 2011, demonstrating the continuing recovery from the recession that impacted operations in Q4 2008 and thereafter. Once IBI Group has established the base global platform, the continuing emphasis will be primarily on organic growth.IBI Group also will grow via strategic growth from acquisitions, to advance IBI Group in reaching the base global platform and to strengthen areas of expertise. IBI Group pursued this strategy through the recession that started in late 2008. During this time, IBI Group continued to build a platform of world leading expertise in the design of health care facilities and in education facilities and intelligent systems, while addressing the reduction in housing developments in the USA and other markets.  IBI Group's long term strategy will be consistently pursued but with adjustments necessary from time to time, as was the case during this recent recession with respect to housing.IBI Group will continue to pursue work directly on behalf of the owners in what is commonly termed the "conventional" method, in which architects, engineers and other professionals are engaged directly for the owners. (The owners then subsequently engage directly construction contractors and suppliers).  IBI Group will also continue to grow in the new methods of delivery in Design Build and Private Finance Initiative (PFI), and/or Public Private Partnerships (P3).  IBI Group's expanding relationships with world leading construction contractors and financiers/ investors in such work provides an alternate to delivery of facilities for public agencies who are lacking capital to invest in transport infrastructure and social infrastructure required for their societies.  This method has been effectively adopted in Canada, in Great Britain and other countries throughout the world. IBI Group is also broadening relationships with investors and financiers of facilities for private ownership.  IBI Group will work on a continuing basis to build the global practice of the firm.This global platform within one fully integrated firm, and with local delivery of diversity of world experience in services, provides IBI Group the growth opportunities and dexterity to continue to succeed while facing the economic slowdowns and turmoil.To operate on this basis requires leadership in the professional development of the centres of excellence on a global basis, as well as leadership of the delivery of services on local levels to specific clients.  This leadership is provided by the owners of the IBI Group Management Partnership ("IBIGMP") who, in effect, are owner managers of the professional practice and business of the IBI Group Partnership.  The number of partners of IBIGMP has grown in line with the rapid growth of the firm.  In 2004, at the time of the IPO, there were 35 partners and associate partners of IBIGMP.  This number has now grown in 2012 to 91 including the election of a net additional 10 over 2011.  These partners are compensated through management compensation, as well as dividends and distribution from IBI Group.  This aligns the interest of the partners in IBIGMP with the interest of the investors in the IBI Group business through the Company.The IBIGMP with 91 partners has grown to a scale that requires the clustering of the partners within geographic regions/and or functional areas of excellence so as to perform effectively.  The top leadership of the IBIGMP is represented by the chairman partner and CEO, the two managing partners, and now five operating partners forming an executive group of 8 senior directors. Four of the five operating directors were appointed to their positions effective February 1, 2012.  IBIGMP intends that with the continued growth of the practice and the business of IBI Group, and the election of more partners within IBIGMP, that additional operating partners will be appointed. The exposure to the full range of activities of the firm to this executive level will provide both the experience and continuity in the leadership of the firm.Strategic Program of Growth in 2011In September 2011, IBI Group concluded arrangements for the merger/acquisition of the professional practice of Dull Olson Weekes Architects, Inc., ("DOWA"), based in Portland, Oregon.  DOWA has established an outstanding reputation providing professional architectural services.  The practice is known for its high quality of design, technical competence, as well as social consciousness in its approach to sustainability and other societal values.  Focus of the work of the firm has been in educational facilities, social infrastructure and health and community facilities.  The merger of this practice within the IBI Group of Firms will complement the existing practice of IBI Group in Northwest U.S. which to date has been primarily based in the transportation infrastructure sectors including intelligent systems and functional planning and design of transportation/transit facilities.  This combination of social infrastructure along with transportation infrastructure is providing IBI Group with a strong, sustainable base across the United States as IBI Group succeeds in its plan of establishing national practices in these broad areas.In June 2011, through the professional practice of IBI Group Architects, Engineers and Landscape Architects of New York, the IBI Group of firms formed a strategic alliance by merging with CRJA, Landscape Architects ("CRJA"), based in Boston, Massachusetts. CRJA will continue as a distinct entity within the IBI Group of Firms. CRJA has established a highly regarded recognised name in the practice of Landscape Architecture in the USA and worldwide, including numerous assignments at embassies of the government of the USA throughout the world.  The firm is known for its creative talent, technical expertise and consistency of professional services to its clients in successfully realising many landscape projects in educational campuses and building facilities in prestigious embassies, urban development of mixed uses; and design of public realm of streetscapes and public places of all kinds. CRJA can now participate in projects of the IBI Group of Firms on this global basis, enhancing their reach in China and elsewhere and more effectively contribute in the USA through the network of IBI Group offices.In March 2011, IBI Group concluded arrangements for the merger/acquisition of Bay Architects Inc, ("Bay") in Southeast Texas, based in Houston.  Bay is an architectural firm that specializes in educational facilities (schools and community colleges), along with other areas of architectural practice in civic, other institutional, retail, office and industrial facilities.  Bay-IBI is a further strategic component of the growing international practice of IBI Group in education.  Bay-IBI will also provide the strategic platform for IBI Group for growth in the State of Texas. New opportunities in the transportation sector are now being pursued combining the transportation experience of IBI Group from California and elsewhere with the Texas presence of Bay-IBI.In January 2011, the merger of the practice of Cardinal Hardy Architectes, ("CHA") with Beinhaker Architects was completed. This practice continues as Cardinal Hardy Beinhaker Architects ("CHBA") affiliated with the IBI Group of firms.  In parallel, the merger of the Company Groupe Cardinal Hardy Inc. ("GCHI") directly within IBI Group was completed as well. CHBA is a full services architectural practice known for its outstanding design and technical work ranging from institutional projects in transportation, social infrastructure including building facilities in education and health, private development projects by leading developers in the Greater Montreal Region. The firm is also an expert with an outstanding portfolio of work in urban design and landscape architecture. This merger and the ongoing integration is proceeding very effectively and has resulted in additional assignments secured from clientele of the previously separate firms.At the end of the fourth quarter of 2010, IBI Group completed the acquisition and merger of CSM Engineering Ltd. ("CSM"), based in Fort McMurray, Alberta.  CSM has been leading the civil engineering practice in the development of land and infrastructure in Fort McMurray, for over a decade. The acquisition is now enabling IBI Group and CSM to jointly continue the practice of civil engineering for land development and infrastructure in Fort McMurray and Northern Alberta.  The professional engineering team of CSM now being integrated within the IBI Group constitutes an experienced and broadly based professional team to serve the community and infrastructure needs in Fort McMurray, arising from the continuing developments of the oil sands. CSM and IBI Group have collaborated on projects previously, and are doing work in joint venture currently for mutual clients. This merging of the CSM professional engineering practise within IBI Group facilitates a more comprehensive and effective service to clients. The merger with IBI Group enables CSM to broaden and strengthen the talent and experience of CSM to undertake larger scale projects with more comprehensive services. It also opens broader horizons for the growth of the CSM professional team over the longer term within the IBI Group.During the second quarter of 2010, IBI Group completed the acquisition of Nightingale Architects Ltd ("Nightingale"). Nightingale is a leading architectural practice, specialising in facilities for health care and for education and science. The practice has been in existence for over twenty years and has grown steadily to its current complement of 230 members operating in six offices in the UK, as well as an office in South Africa.  Nightingale is a practice leader in social infrastructure in the UK, actively engaged in major building projects and in these and in other projects internationally including Eastern Europe, the Gulf, Australia and South Africa.  The firm is an architect of choice of public agencies, as well as private development proponents/construction contractors for the delivery of health care facilities through private finance initiatives, public private partnerships and design build.  These major private companies, operating in the UK, are also similarly engaged in other world markets affording Nightingale the opportunity to provide architectural services for these clients for projects elsewhere.  The integration of the executive team of Nightingale is a strategic advancement in relation to three basic objectives of IBI Group: building the world platform of IBI Group; becoming a leader in world scale projects in health care and other areas of social infrastructure, and strengthening the business of IBI Group.  In fact, as we approach the end of the first year of working together, joint efforts and business development initiatives targeting professional work opportunities have yielded results in new joint work of Nightingale within the IBI Group.During the first quarter of 2010, IBI Group completed the acquisition of MAAK Technologies Inc. ("MAAK").  This firm's expertise in water engineering and systems applications extends IBI Group's work in systems technology to the important area of water resources.  It also broadens the IBI Group practice geographically with further strengthening in the Caribbean.IBI Group focused on strategic growth in Canada from the IPO in 2004 through to the third quarter of 2008.  During that period of time, IBI Group acquired numerous firms of outstanding quality bringing the Canadian practice to a national leader in the areas of IBI's professional expertise.  This focus on Canada first for strategic growth, enabled the acquisition of many firms in a short period of time as the greatest strength of IBI Group managerial and professional leadership was Canadian based.  It was also financially efficient as the public entity within the IBI Group Partnership was a business income trust.  Now that IBI Group has reached a leadership position professionally within the Canadian market, the strategic focus of acquisitions is outside Canada.  Notwithstanding the focus shifting to attractive areas for IBI Group's practice outside Canada, IBI Group continues to consider acquisitions/strategic alliances that will enhance the IBI Group within Canada.The USA continues to be the largest economy in the world and as such IBI will continue to focus on building our American business.  As noted in the second quarter report, IBI Group activity in industrial buildings, (the reawakened automotive industry), in education facilities, (charter schools, high schools, community colleges and university buildings), in intelligent systems; (traffic management, traveller information), and transportation including transportation oriented development, continued to be productive areas of IBI Group activity during the recession from late 2008 to present. IBI Group made acquisitions/strategic alliances on a selective basis of a series of prominent firms in various regions of the US with strength in the architecture of education facilities.  The most recent example is DOWA in the northwest of the USA, operating in Oregon and Washington State.  IBI Group will continue to pursue this strategy with respect to these professional areas as well as an enhanced focus going forward on the architecture of health care facilities.  In the context of the continuing under-performing economic environment in the USA, there are outstanding opportunities for acquisition/strategic alliances with outstanding professional firms.  The resources from these firms can also participate with IBI Group on work in Canada as well as other international markets as the economy of the USA recovers.IBI Group is now more intensively engaged in pursuing strategic acquisitions/alliances in other international markets that include China, India, Eastern Europe, and South America, notably Brazil.  IBI Group has projects in all of these market areas and is increasing IBI Group personnel and presence in these markets through organic growth.  This organic growth will form the basis of integrating new firms within IBI Group through acquisition/strategic alliance.BacklogCommitted fee volume for the ensuing 12 months represents in excess of 9.5 months equivalent of work, based on the current pace of work that IBI Group has achieved during the past year of 2011. Backlog for government and public institutional clients now represents approximately 69% of total backlog.  Backlog is continuing to increase in building facility areas in health care, education, housing, the industrial sector, in transportation terminals, transportation networks and intelligent systems.  IBI Group is increasingly receiving new mandates in the design stage of new private sector projects, as well as some of these now moving into design development and working drawings as projects proceed to sales.The scope of these efforts is validation of IBI Group's integrated operating model of providing comprehensive professional services to clients in Canada, the USA and in international markets resulting in the achievement of the highest quarterly revenue of the firm to date.IBI Group has grown in numbers of people reflecting the growth and revenue and now comprises some 2,901 members of the firm as compared to 2,484 as at December 31, 2010, appropriately sized for the backlog.With this growth in personnel and professional excellence, IBI Group increasingly is awarded leading professional and managerial roles for proponents and owners of development projects.  These include major projects in social infrastructure such as the McGill University Health Centre in Montreal; major transportation projects in transit facilities, as well as increasingly in the highway/road modes; the comprehensive provision of intelligent systems based on IBI Group software, integration of hardware, and the delivery of complete systems including ongoing operations; and now with a turn in certain private property markets, the leadership of major real property developments in Canada, Eastern Europe and Asia.  The progress of the firm in extending the excellence of its professional capability and the breadth and depth of resources provides an increasingly effective platform for IBI Group as a significant participant in the design of physical aspects of urbanization across the world with IBI Group's global experience complemented by IBI Group's established physical and operating presence in communities throughout the world.Investor Conference CallThe Company will hold a conference call on March 27, 2012 at 8:30 a.m. Eastern Standard Time (EST).  To participate in the conference call, please dial in before 8:30 a.m. EST to 1-888-612-1050 for local and toll-free North American access, or 1-303-223-2681 for international access.An audio replay of the call will be available for 14 days, by dialling 416-626-4100 for local and international access, or 1-800-558-5253 for toll-free North American access, passcode 21579612 followed by the number sign on your telephone keypad.Selected Consolidated Financial Information and Reconciliation of Non-IFRS Measuresin thousands of  dollars except for per Share and per Unit amounts and ratios  Three monthsendedDecember 31,2011 Three monthsendedDecember 31,2010 Year endedDecember 31,2011 Year endedDecember 31,2010Revenue      $     87,956$75,615      $332,307      $289,340Expenses 75,740 64,177 283,792 248,285Earnings before income taxes, interest and   amortization (EBITDA1) 12,216 11,438 48,515 41,055Interest 3,867 3,305 15,250 11,561Change in fair value and other finance costs (income) 313      (13,287) 792 (38,526)Income taxes - current 426 (507) 5,129 2,751Income taxes - deferred (423) (734) 1,310 (2,403)Amortization of property and equipment and intangible   assets 3,467 2,633 11,463 11,166Foreign exchange loss (gain) (15) 250 346 264Acquisition-related costs 416 1,733 1,570 2,510Net earnings before non-controlling interest      $  4,165      $   18,045      $ 12,655      $53,732Non-controlling interest 1,161 - 3,531 -Net earnings attributable to owners of the Company   (owners of the Fund in 2010)    $3,004      $   18,045   $9,124      $     53,732Distribution paid to unitholders - 5,164 - 20,558Distribution paid to exchangeable unitholders - 2,010 - 8,039Change in fair value of trust units - (14,099) - (44,565)Change in fair value of exchangeable interest liability - (5,478) - (17,489)Change in fair value of derivative liability embedded in   convertible debentures - (800) - (4,678)One time non-cash tax on conversion to a corporation - - 3,131 -Proportion of earning attributable to Class B   Partnership Units - (1,356) (874) (4,367)Adjusted Net Earnings1      $3,004   $3,486   $11,381      $11,230Basic net earnings per Share (units in 2010)2      $0.2311      $0.2700      $0.8774      $0.8740Distributable Cash1        Cash flow from (used in) operating activities 9,338 7,341 (6,219) 11,426Less: Capital expenditures (1,065) (448) (3,037) (2,399)Standardized Distributable Cash1 8,273 6,893 (9,256) 9,027Add (deduct):            Change in non-cash operating working (3,054) (1,290) 28,674 12,071    Deferred transaction costs 456 143 1,384 424    Acquisition-related costs 416 1,733 1,570 2,510    Current income tax expense 427 (507) 5,129 2,751    Exchange (gain) loss (15) 250 346 264Distributable Cash1      $6,503      $7,222      $27,847      $27,047Weighted average basic distributable cash per Share   (units in 2010)3      $0.3608      $0.4027      $1.5473      $1.5129Aggregate distributions declared      $5,822      $7,172      $22,362      $28,595Payout ratio      89.5%      99.3%      80.3%      105.7%  (1)     See "Definition of Adjusted Net Earnings, EBITDA, Distributable Cash and Non-IFRS Measures"(2)     Basic Adjusted Net Earnings per Share (Units in 2010) are calculated by including Common shares of the Company in 2011 and Units of Fund in 2010 which is a non-IFRS measure.(3)     Distributable cash per Share amounts (units in 2010) are calculated by including both the common shares of the Company and the Class B partnership units in the denominator in 2011 and the Units of the Fund and the Class B partnership units of the Fund in 2010 which is a non-IFRS measure.Definition of Adjusted Net Earnings, EBITDA, Distributable Cash and Non-IFRS Measures Adjusted Net Earnings is equal to the Net earnings for the period plus distributions treated as an expense and fair value adjustments on Trust Units and exchangeable interest liabilities.Distributable Cash does not have a standardized meaning prescribed by IFRS. The Company defines Distributable Cash as cash flow from operating activities before change in non-cash working capital and income taxes and after capital expenditures, income taxes paid, deferred transaction costs, acquisition-related costs and foreign exchange gains and losses.  A reconciliation of Distributable Cash to cash flow from operating activities has been provided in the MD&A under the heading "Selected Consolidated Financial Information and Reconciliation of Non-IFRS Measures".The Company's method of calculating distributable cash may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to distributable cash as reported by such entities. The Company believes that its distributable cash is a useful supplemental measure that may assist prospective investors in assessing the return on their investment in Units.References to "EBITDA" are to earnings before interest, income taxes, depreciation and amortization, deferred transaction costs, change in fair value of interest rate swap and acquisition-related cost. Management of the Company believes that in addition to net earnings, EBITDA is a useful supplemental measure as it provides readers with an indication of cash available for distribution prior to debt service, capital expenditures and income taxes. Readers should be cautioned, however, that EBITDA should not be construed as an alternative to net earnings determined in accordance with IFRS as an indicator of the Company's performance or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. EBITDA is not a recognized measure under IFRS and does not have a standardized meaning prescribed by IFRS, and the Company's method of calculating EBITDA may differ from other issuers. Accordingly, EBITDA may not be comparable to similar measures used by other issuers. A reconciliation of net earnings with EBITDA has been provided in the MD&A under the heading "Selected Consolidated Financial Information and Reconciliation of Non-IFRS Measures".(1)     The December 31, 2010 amounts previously reported have been corrected for amounts identified during the 2011 financial statement audit. See "Correction of 2010 Comparative Figures" for a description of the impact of these changes.(2)     See "Definition of Adjusted Net Earnings, EBITDA, Distributable Cash and Non-IFRS Measures"  For further information: Tony Long, CFO IBI Group Inc. 230 Richmond Street West, 5th Floor Toronto, ON M5V 1V6 Tel: 416-596-1930