CIBT Reports Financial Results for Third Quarter Ended May 31, 2017
ACCESSWIRE
VANCOUVER, BC / ACCESSWIRE / July 17, 2017 / CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) ("CIBT" or the "Company") is pleased to report that it has filed on SEDAR its consolidated financial statements and related Management's Discussion Analysis for its third quarter ended May 31st, 2017 (collectively, the "Q3 Filing"). To review the Q3 Filing, please visit CIBT's profile at www.sedar.com. The following is a summary of the Q3 financial results ended May 31st, 2017. Reference should be made to the Q3 Filing in its entirety.
EBITDA
The following reconciles the net income to EBITDA (non-IFRS):
Noteworthy highlights for the nine months ended May 31st, 2017 compared to the same period last year are as follows:
Total revenue increased from $27.28 million to $36.83 million, an increase of 35%
Student housing development fees increased from $3.62 million to $5.6 million, an increase of 54%
Housing rental income increased from $1.44 million to $5.26 million, an increase of 265%
General administration expenses increased from $14.98 million to $17.18 million, an increase of 15%
Gain in fair value on change in investment properties decreased from $7.1 million to $5.74 million, decrease of 19% due to delayed construction schedule of 2 projects. One of these projects is expected to be completed in August 2017; the completion of the other delayed project is now expected to occur in Q1 of F2018 (November 2017)
Net income decreased from $10 million to $8.42 million, a decrease of 16% largely due to restructuring expenses relating to the KGIC Inc. (formerly Loyalist Group Inc.) asset acquisition and associated professional fees
EBITDA (Earnings Before Interest Taxes Depreciation Amortization) decreased from $11.05 million to $10.53 million, a decrease of 5% due to restructuring expenses relating to the KGIC transaction
Earnings Per Share maintained at $0.07 per share without change as compared to same period last year
Total assets increased from $102.35 million to $165.02 million, an increase of 61%
Total liabilities increased from $47.41 million to $87.18 million, an increase of 84%
"The third quarter of Fiscal 2017 was a busy quarter for CIBT due to the successful acquisition and amalgamation of certain KGIC Inc. (formerly Loyalist Group Inc. TSXV: LRN) assets into our portfolio of schools which assisted in boosting our gross revenue from $27.28 million to $36.83 million, an increase of 35% year over year," commented Toby Chu, Chairman, President and CEO of CIBT Education Group Inc. "Our strong top line growth was supported by our fast growing student housing portfolio which provided CIBT with rental income growth of 265% year over year."
"The acquisition of assets of KGIC Inc., which closed on March 29th, 2017, included 9 language colleges, 4 domestic business colleges, 4 international business colleges, and 1 Ontario high school. These newly acquired assets will become substantial assets to CIBT Group expecting to generate over $25 million revenue per year for CIBT Group. Since the closing, CIBT has been actively rebuilding the business of KGIC by streamlining its operations, eliminating the former headquarters in Toronto, reducing and focusing its product lines and helping to re-establish close business relationships with thousands of agents around the world. These efforts are now showing substantial and tangible results with revenue trajectory reaching $1.6 million per month during this summer season. Most importantly, we are proud to state that after two consecutive years of substantial losses incurred by KGIC prior to CIBT's acquisition, the operations are now profitable and sustainable."
Mr. Chu continued "Looking into the remainder of 2017, we expect to continue growing our education business with the acquisition of the KGIC assets while building out our student housing base which will be a steady stream of recurring revenue to CIBT shareholders."
About CIBT Education Group:
CIBT Education Group Inc. is one of the largest educations & student housing investment companies in Canada focused on the global education market since 1994. Listed on the Toronto Stock Exchange and U.S OTCQX International, CIBT owns business & language colleges, student housing properties, recruitment centers and corporate offices at 45 locations in Canada and abroad. Total annual enrollment for the group exceeds 15,000 students. Its education providers include Sprott Shaw College (established in 1903), Sprott Shaw Language College (formerly Vancouver International College), Sprott Shaw College International, Urban International School (Toronto) and CIBT School of Business. Through these schools, CIBT offers business and management programs in healthcare, hotel management, language training, Ontario high school diploma and over 150 career, language and vocational programs. CIBT's property investments are owned by Global Education City Holdings Inc., an investment holding and management company focused on developing education related real estate such as student hotels, serviced apartments and education super centers totalling over $600 million. 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 www.cibt.net.
Toby Chu Chairman, President & CEO CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 318 or | Email: info@cibt.net
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 are subject to various risks, uncertainties and other factors that could cause CIBT's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements, including but not limited to obtaining all necessary regulatory approvals. 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.
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 under the Company's profile on SEDAR.COM.
