Global Education Communities Corp. (" GECC " or the " Company ") (TSX:GEC)(OTCQB:GECSF) reports that it has filed on SEDAR+ its fiscal 2025 first quarter financial statements (the " Q1 2025Financial Statements ") and related Management's Discussion & Analysis (the " MD&A ") (collectively, the " 2025 Q1 Financial Report ") for the first quarter ended November 30, 2024 (" Q12025 "). This news release should be read in conjunction with the 2025 Q1 Financial Report in its entirety. To review the 2025 Q1 Financial Report, please visit GECC's profile at www.sedarplus.ca.
The following table presents selected financial data from the 2025 Q1 Financial Report with comparisons to the quarter ended November 30, 2023 (" Q12024 "). All figures are in thousands of Canadian dollars, except share and per share data, unless otherwise noted.
The following table reconciles these non-IFRS measures to the most directly comparable IFRS measure disclosed in the Annual Financial Statements, which is net income (loss).
"GECC's Q1 2025 financial results reveal positive performance in domestic education and student housing, coupled with strategic cost reductions, while the international education sector faces challenges," commented Toby Chu, President, CEO, and Chairman of GECC. Q1 2025 included the following highlights:
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The domestic education division demonstrated stability, registering a marginal decrease of 1% as compared to Q1 2024.
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Q1 2024 rental revenue included $2.33 million derived from hotel operations. Following the divestiture of this asset in Q1 2024, this revenue stream is no longer reflected in the Q1 2025 report. Adjusting for this non-recurring revenue, GECH's student housing revenue exhibited a 7% increase in Q1 2025 as compared to Q1 2024.
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The decline in interest rates commencing in mid-2024, in conjunction with the Company's debt reduction initiatives, resulted in a 27% year-over-year reduction in finance costs.
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International education subsidiaries experienced a 37% contraction in revenue in Q1 2025 as compared to Q1 2024. This is attributable to Federal government policies implemented in January 2024, which restricts international student enrollment in Canada for a two-year period. The Company anticipates a return to normalized operations within the international education sector in 2026 and is implementing appropriate adjustments to the scale of its international college operations.
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GECC's rental housing division saw a significant shift in its tenant base, with domestic tenants increasing by 159% in
Q1 2025 as compared to Q1 2024 and replacing international tenants as the primary demographic.
Mr. Chu further commented,"The financial market anticipates continued downward pressure on interest rates in subsequent quarters, which will further mitigate finance costs. Demand for student housing is projected to remain robust, driven by Metro Vancouver's persistent housing shortage and a 1% vacancy rate, exerting upward pressure on rental rates. Furthermore, limitations in new housing supply are evident. Data published by the City of Vancouver *1 *2 indicates a significant decline in building permits issued for multiple dwellings, decreasing from 437 in December 2021 to 251 in 2022, 44 in 2023, and 85 in 2024-a 414% reduction over the four-year period.
*1 https://vancouver.ca/files/cov/statement-of-building-permits-issued-december-2022.pdf *2 https://vancouver.ca/files/cov/statement-of-building-permits-issued-december-2024.pdf
"GECC remains committed to optimizing operational efficiency, minimizing interest expense, and expanding its student housing portfolio to address current and prospective market demand."
About GECC, a Leader in Education and Student Housing:
Since 1994, GECC has established itself as a leading player in the Canadian education and student housing sector, serving both domestic and international markets. GECC offers a comprehensive range of services, encompassing business and language colleges, student-centric rental apartments, recruitment services for educational opportunities, and a network of campuses and offices across 40 locations.
Through its subsidiaries, GECC provides a holistic educational experience for over 12,500 students annually. These subsidiaries include established institutions like Sprott Shaw College (founded in 1903), Sprott Shaw Language College, Vancouver International College, and CIBT. These subsidiaries offer programs covering healthcare, business, and technology.
GECC also addresses student housing needs through its subsidiary, Global Education City Holdings Inc. (" GECH "). GECH focuses on developing and managing student-centric rental apartments and education super-centers in Metro Vancouver, boasting a portfolio exceeding $1.3 billion, including operational properties and projects under development.
GECC also owns Global Education Alliance Inc. (" GEA "), a subsidiary that specializes in placing students in elite North American schools and universities and Irix Design, a leading design and media communication company based in Vancouver, Canada.
Visit GECC online at www.GEChq.com to explore our services and watch our corporate video.
Toby Chu
Chairman, President & CEO
Global Education Communities Corp.
Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: info@GEChq.com
FORWARD-LOOKING STATEMENTS
Some statements in this news release contain forward-looking information (the " forward-looking statements ") about the Company and its plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include, without limitation, the expected continued downward pressure on interest rates. The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the " Risks ") that could cause GECC's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. The Risks include, without limitation, customary risks of the construction industry, unexpected delays or requirements of the applicable municipalities, an increase in inflation rates and the risk factors identified in the MD&A forming part of the 2025 Q1 Financial Report. Forward-looking statements are based on the beliefs, opinions and expectations of GECC's management at the time they are made, and the Company 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 MEASURES
The Company has included certain non-IFRS financial measures throughout this document including: (a) Earnings before Interest, Taxes, Depreciation and Amortization (" EBITDA "); (b) Adjusted EBITDA which is EBITDA adjusted for the gain (loss) on change in fair value of the Company's investment properties, the gain (loss) on change in fair value of derivative instruments, one-off gains from sale of property and equipment; and (c) Gross Profit (" Gross Profit ") which is the difference between revenue and direct costs of sales. 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. Accordingly, these performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management uses EBITDA and Adjusted 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. Management uses Gross Profit to assess how efficiently the Company generates profit from the sale of goods or services. 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 income (loss) or any other financial measure of performance prescribed by IFRS. Reconciliation of the non-IFRS measures have been provided throughout the Company's MD&A, as applicable, filed under the Company's profile on www.sedarplus.ca .
SOURCE: Global Education Communities Corp
