CIBT Reports Financial Results for Fiscal Year Ended August 31st 2016
ACCESS Newswire
VANCOUVER, BC / ACCESSWIRE / December 1, 2016 / CIBT Education Group Inc. ("CIBT" or "Company") (TSX: MBA, OTCQX International: MBAIF) is pleased to report that it has filed on SEDAR its annual audited financial statements and related Management's Discussion & Analysis (the "2016 Financial Report") for the fiscal year ended August 31st 2016 ("Fiscal 2016"). To review the filing, please visit CIBT's profile at www.sedar.com.
The following table presents selected financial data from the 2016 Financial Report:
Noteworthy highlights for the fiscal year ended August 31, 2016 are as follows:
Total revenue increased from $32.18 million to $36.11 million, an increase of 12%
Student housing development fees decreased from $2.58 million to $1.71 million due to reversal of $1.5M development fee in the fourth quarter of Fiscal 2016, now expected to be earned in the first quarter of the fiscal year ending August 31, 2017 ("Q1 F2017");
Student housing rental income increased from $0.65M in Fiscal 2015 to $4.96 million, an increase of 666%
General administration expenses increased from $19.33 million to $19.83 million, marginal increase of 3%
Gain in fair value on change in investment properties increased from $7.62 million in Fiscal 2015 to $9.78 million, an increase of 28%
Net income increased from $6.00 million in Fiscal 2015 to $9.22 million, an increase of 54%
Net income attribute to CIBT shareholders for Fiscal Year 2016 increased from $1.04 million to $3.91 million, an increase of 276%
Earnings per share attributable to CIBT shareholders increased from $0.02 per share in Fiscal 2015 to $0.06, an increase of 200%
Total assets increased from $80.67 million as at August 31, 2015 to $102.35 million as at August 31, 2016, an increase of 27%
Corresponding long-term liabilities increased from $24.3 million in Fiscal 2015 to $29.3 million, an increase of 20%
EBITDA (Earnings Before Interest Taxes Depreciation Amortization) increased from $8.08 million in Fiscal 2015 to $12.32 million, an increase of 53%
"We are very pleased with our Fiscal 2016 year end results as we continue to see our student housing segment grow exponentially while our education business continues to remain consistent and strong," commented Mr. Toby Chu, President, CEO and Chairman of CIBT. "With over 666% year over year revenue growth in student housing rental income, it is evident that we have been able to capitalize on an underserved market. We have numerous projects in development and a robust pipeline of students eager for affordable and high quality student housing. We are pleased to be the leading student housing provider in the province."
"We look to build on our success from 2016 as we head into the new year with several projects on the go," Mr. Chu continued. "We expect to launch development on both the GEC Education Mega Center and GEC Education Super Center in 2017 with expected completion dates of 2020 - 2021. At the same time, we will continue growing our student housing portfolio at strategic locations. These mid-size projects are expected to add value and expand our market share, complementing the GEC Education Super Center and GEC Mega Center locations. As the flow of domestic and international students into BC grew by more than 50% in the past 2 years according to BC's Ministry of Education, the actual results to date have far exceeded our initial planning estimates from the time when we undertook this endeavor. This further cements our belief that the student housing sector will continue to be active for the foreseeable future and validates our market strategy."
In conjunction with equity investment partners at the project level, the Company acquired a number of student housing properties without diluting the share structure of CIBT. These properties are either in operation or currently under-development. A summary of property acquisitions is as follows:
Fiscal 2014 – entered into binding agreement for acquisition of one property
Fiscal 2015 - completed acquisition of one property
Fiscal 2016 - entered into binding agreement for acquisition of two properties (one of which closed in October 2016) and completed acquisition of one property
Fiscal 2017 - completed acquisition of one property (in September 2016) in addition to the October 2016 property acquisition noted above
Pending Completion – in the process of negotiating the property purchase agreement for Education Mega Center in Surrey, BC
To date, the total development budget (including acquisition costs) has exceeded $600 million
By utilizing the Company's 22 years' experience in the education sector, a well established education platform in Canada and Asia, a steady pipeline of students staying at our properties, complemented by our extensive experience in the corporate finance sector, the Company is able to earn significant development fees for each project. The Company has also invested in these projects, therefore owning a carrying equity interest in the limited partnerships that own the properties we manage. Given the rising property prices and ongoing shortage of rental housing in Vancouver, with less than 0.8% vacancy rate according to CMHC, management believes the equity gains from these properties will generate solid returns for our shareholders. As of today, the estimated increase in value of the six properties under management or development by the Company has exceeded $80 million from the original aggregate purchase cost.
Subsequent to August 31st, approximately $15 million in phase 1 equity financing has been committed and substantially received for GEC Education Super Center and Education Mega Center.
Going forward, CIBT will continue to increase the value of its student housing business by structuring each transaction, managing the development of the project, and filling each property with students from CIBT's pipeline of international and domestic students, thereby generating an attractive return for our investors. In addition to expanding our student housing portfolio, CIBT will continue to seek school acquisition opportunities, both as part of its core business and to continue to fill the pipeline of students feeding our student housing properties.
About CIBT Education Group:
CIBT Education Group Inc. is an education and student-housing investment company focused on the global education market since 1994. Listed on the TSE and U.S OTCQX International, CIBT owns business and language colleges with 27 locations enrolling over 8,000 students annually. Its education providers include Sprott Shaw College (established in 1903), Vancouver International College and CIBT School of Business. Through these schools, CIBT offers business and management programs in healthcare, hotel management, language training, and over 150 career and vocational programs. CIBT's property investments are owned by Global Education City Holdings Inc ("GEC"), an investment holding and management company focused on developing education related real estate such as student hotels, serviced apartments and education super centers. CIBT also owns Global Education Alliance ("GEA") and Irix Design Group ("Irix Design"). GEA recruits international students for many elite kindergarten, primary & secondary schools, colleges and universities in North America. Irix Design is a leading design and advertising company based in Vancouver, Canada. Visit us online at www.cibt.net, www.studenthotel.ca and watch our corporate video at http://cibt.net/about/
For more information contact:
Toby Chu Chairman, President & CEO CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 310 or | Email: info@cibt.net
NON-IFRS FINANCIAL MEASUREMENTS
Earnings before interest, taxes, depreciation and amortization ("EBITDA") are non-IFRS financial metric used in this Management's Discussion & Analysis. These non-IFRS financial measurements do not have any standardized meaning as prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other issuers. Management uses EBITDA metrics to measure the profit trends of the business units and segments in the consolidated group since it eliminates the effects of financing decisions. Certain investors, analysts and others utilize these non-IFRS financial metrics in assessing the Company's financial performance. These non-IFRS financial measurements have not been presented as an alternative to net loss or any other financial measure of performance prescribed by IFRS. Reconciliation of the non-IFRS measure has been provided throughout the Company's MD&A filed with SEDAR.COM.
FORWARD-LOOKING STATEMENTS:
Some statements in this news release contain forward-looking information (the "forward-looking statements") about CIBT Education Group Inc. and its future plans. Forward-looking statements are statements that are not historical facts. The forward-looking statements in this news release include, without limitation, that development of both the GEC Education Mega Center and GEC Education Super Center is expected to launch in 2017 with expected completion dates of 2020 – 2021, and that CIBT will continue to increase the value of its student housing business by structuring each transaction, managing the development of the project, and filling each property with students from CIBT's pipeline of international and domestic students. The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the "Risks") that could cause CIBT's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. The Risks include, without limitation, the ability to arrange equity investment and secure other required funding to acquire and build projects, usual construction risks, the ability to obtain all required municipal approvals, and the ability to continue to attract students to reside in GEC branded accommodations. Forward-looking statements are based on the beliefs, opinions and expectations of CIBT's management at the time they are made, and CIBT does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change, except as may be required by law.
