TORONTO, ONTARIO--(Marketwired - Aug 30, 2013) - Loyalist Group Limited (TSX VENTURE:LOY) ("Loyalist") is pleased to announce record financial results for the three months ending June 30, 2013.
Revenues and earnings continue to rise as a result of four acquisitions made during 2012 and 2013, as well as organic growth arising from higher enrolment and increased tuition fees.
The following table summarizes and compares second-quarter results year over year:
| | Q2 2013 | Q2 2012 | % Change |
| Revenue | $4,751,159 | $3,059,783 | 55% |
| Gross profit | $1,770,766 | $1,274,717 | 39% |
| Net income | $474,021 | $425,023 | 12% |
| Costs relating to acquisitions | $388,715 | 115,136 | 238% |
| Income from operations | $853,424 | $516,974 | 65% |
The following table summarizes and compares six-months results year over year:
| | Q2 2013 | Q2 2012 | % Change |
| Revenue | $9,683,378 | $6,359,705 | 53% |
| Gross profit | $3,902,289 | $2,430,418 | 61% |
| Net income | $1,307,819 | $923,616 | 42% |
| Costs relating to acquisitions | $620,172 | 115,136 | 439% |
| Income from operations | $1,883,578 | $1,048,078 | 80% |
"This quarter highlights two things," said CEO Andrew Ryu. "First, despite the work action by the Professional Association of Foreign Service Officers, who issue student visas, we have continued to deliver strong revenue growth, driven through a combination of acquisitions and organically. We are becoming increasingly well known as the top provider of English as a second language education in our target overseas markets and are therefore seeing very strong demand for our programs. This is evident in our expanding gross margins. Second is the economies of scale we create with our rollup strategy. This is evident in our net margin which, adding back costs directly and indirectly related to acquisitions and financings, was 24% compared to 20% in the year-earlier period. Rising net income should lead to earnings per share growth as we deploy capital and integrate new schools. For the time being EPS is held back by a share count that has risen faster than we can deploy the funds produced by new share issue. In time this will reverse."
"It's also worth noting that our six month costs include personnel increases in the Corporate office as we staff up in anticipation of expected growth. We prefer to have systems and people in place prior to adding new schools to ensure excellent service to our students," Mr. Ryu continued.
Loyalist is happy to report that it attained a number of its half year goals:
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Closed on two acquisitions Urban International School (Toronto) and Pan Pacific College ("PPC" Vancouver);
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Closed on $13,190,237 in gross proceeds through two private placement finance offerings;
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Established a corporate office in downtown Toronto in conjunction with the establishment of the PPC Toronto campus.
Along with a strong cash balance, the company has the funds to close significant acquisitions without raising additional capital, and this should reflect positively on earnings per share going forward.
The Company continues to assess ways to monetize its students lodging requirements in Canada. The Company anticipates offering select services to students in the next fiscal year.
The Company also announces that with six firms providing analyst coverage, the Company plans to provide quarterly analyst calls starting in Q3-2013.
About Loyalist
Loyalist owns and operates private education schools in Toronto, Vancouver, and Victoria offering (i) English as a Second Language Courses for international students; (ii) Training programs for teachers, commonly known as TESL; (iii) Professional Development Courses; and (iv) Corporate English for Professionals.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only the Corporation's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Corporation's control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information contained herein includes, but is not limited to, information with respect to prospective financial performance, anticipated capital funding and sources, proposed or potential acquisitions, estimated operating and sales costs, estimated market drivers and demand, business prospects and strategy, new markets for growth and financial position. By identifying such information and statements in this manner, the Corporation is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such information and statements. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results, including but not limited to: risks related to any of the Corporation's announced or proposed acquisitions failing to close or becoming delayed before closing; the Corporation's reliance on its South Korean contract; carrying on business and activities in international jurisdiction where Canadian laws do not apply; any loss of certain key personnel; levels of student enrolment; delays in rolling out the online education programs; competition in the educational services market; and currency fluctuations. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Although the Corporation believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Accordingly, readers should not place undue reliance on any forward-looking information or statements contained in this press release. The forward-looking information contained in this press release is made as of the date hereof, and the Corporation does not undertake to update any forward-looking information that is contained or referenced herein, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to the Corporation or persons acting on its behalf is expressly qualified in its entirety by this notice.
