Vancouver, BC, Dec. 02, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — CIBT Education Group Inc. (“CIBT” or the “Company”) (TSX: MBA, OTCQX International: MBAIF) is pleased to report that it has filed on SEDAR its annual audited consolidated financial statements (the “Annual Financial Statements”) and related Management’s Discussion & Analysis (“MD&A”) (collectively, the “2019 Financial Report”) for the fiscal year ended August 31, 2019 (“Fiscal 2019”). This news release should be read in conjunction with the 2019 Financial Report in its entirety. To review the 2019 Financial Report, please visit CIBT’s profile at www.sedar.com.
The following table presents selected financial data from the 2019 Financial Report with comparisons:
| For the years ended August 31, | ||||||
| 2019 | 2018 | 2017 | ||||
| Total revenues | $ | 70,997 | $ | 74,900 | $ | 53,558 |
| Cost of operations | $ | 30,723 | $ | 28,907 | $ | 24,143 |
| Gross margin | $ | 40,274 | $ | 45,993 | $ | 29,415 |
| Other operating expenses | $ | 36,496 | $ | 34,468 | $ | 26,077 |
| Finance costs | $ | 6,594 | $ | 5,636 | $ | 2,640 |
| Gain on change in fair value of investment properties | $ | 20,116 | $ | 43,497 | $ | 10,470 |
| Other income (expense), net | $ | (1,213) | $ | 2,968 | $ | (993) |
| Income before income taxes | $ | 16,087 | $ | 52,354 | $ | 10,175 |
| Income tax expense | $ | 1,155 | $ | 6,983 | $ | 1,891 |
| Net income | $ | 14,932 | $ | 45,371 | $ | 8,284 |
| Income per share – CIBT shareholders | ||||||
| Basic | $ 0.03 | $ 0.25 | $ 0.03 | |||
| Diluted | $ 0.03 | $ 0.25 | $ 0.03 | |||
| EBITDA [non-IFRS] | $ | 23,752 | $ | 57,496 | $ | 13,120 |
| Total assets | $ | 389,670 | $ | 340,835 | $ | 166,918 |
| Total non-current liabilities | $ | 113,824 | $ | 95,392 | $ | 30,208 |
“Fiscal 2019 showed strong double-digit growth for the fifth consecutive year through our rental revenue, while our education segment displayed moderate growth,” commented Mr. Toby Chu, President, CEO and Chairman of CIBT. “Fiscal 2018 was a very strong year for our group and although 2019 revenues are slightly below those in our last fiscal year, our growth and profitability patterns over the last three years have been significant. In fiscal 2018, property value for Metro Vancouver’s real estate sector experienced its highest peak in decades. The Company successfully completed several transactions in fiscal 2018, outpacing the financial performance of all other years. While the financial and real estate markets were undergoing a series of adjustments in 2019, we successfully accomplished many material milestones associated with our GEC® branded properties under development which have moved these projects closer to completion.”
Some noteworthy milestones for Fiscal 2019 are:
- Sustained steady growth and profitability for our education subsidiaries: Sprott Shaw College, Vancouver International College and our overseas education subsidiaries, Beihai International College and CIBT China
- Successfully integrated the assets purchased in 2017 from the receiver of KGIC Inc. (formerly Loyalist Group Inc.), rebranding them as Sprott Shaw Language College
- Took possession of GEC® Pearson in August 2018 and achieved full occupancy of the property in August 2019
- Successfully completed $60 million capital raise for Global Education City (Richmond) Limited Partnership
- Secured three parcels of lands to develop another new project called GEC® Oakridge at an expected cost of $103 million
- Completed US$8 million (CAD$10.7 million) equity financing for the GEC® Oakridge project
- Completed $12 million convertible bond and equity financing for CIBT and one of its subsidiaries limited partnership
- Purchased 2.722 million common shares of the Company from the open market and cancelled 1.76 million shares pursuant to normal course issuer bids. This action reduced the market float which positively impacts the earnings per share for CIBT shareholders.
- Refinanced $89.5 million in mortgages at a reduced interest rate and increased the profitability for our portfolio of GEC® branded properties
- Took possession of the GEC Education Mega Center® land in Surrey, B.C. for $22.6 million (before development fees and closing costs) with a market value appraised at $49.34 million according to the appraisal report.
- Commenced construction of Global Education City® (Richmond), and re-submitted the rezoning and development applications of GEC Education Mega Center® in Surrey and GEC® CyberCity in Richmond
“According to a recent report published by ICEF Monitor, a dedicated market intelligence resource for the international education industry (*1), the number of international students studying in Canada has grown to 572,000 students from 492,000 in 2018,” Mr. Chu noted. “This trend reaffirms our international expansion plan for Sprott Shaw College commenced 12 years ago and reflects an increase in demand for student housing.
“According to a Canada Mortgage and Housing report (*2), the vacancy rate for rental housing in Vancouver remains at 0.3% to 1%. Management of CIBT believes the shortage will continue which should cause the rental rate to move-up and resale value of rental properties to also increase. Since 2015, our student housing portfolio has grown to ten projects under the GEC® brand. Total portfolio value including both revenue-producing properties and properties under-development when fully built-out is estimated to be $1.38 billion.
“In the future, we plan to continue to exit certain GEC® projects when attractive divestment opportunities arise, while staying on as master-lease tenant so that we can grow the recurring rental income. We intend to add more properties to our portfolio, increase the scale of each new GEC® project, and repeat our business model throughout Metro Vancouver with possible future expansion to the east coast and abroad. In addition to exploring acquisition opportunities in Metro Vancouver, we plan to investigate opportunities in Metro Toronto so that our future education assets in Toronto can become our stepping stone to establish our Global Education City® model in Eastern Canada.”
(*1) ICEF Monitor: https://monitor.icef.com/2019/02/canadas-foreign-student-enrolment-took-another-big-jump-2018/
(*2) Canada Mortgage and Housing report: https://www.cmhc-schl.gc.ca/en/media-newsroom/news-releases/2018/national-vacancy-rate-down-for-second-year
| About CIBT Education Group:
CIBT Education Group Inc. is one of the largest education, and 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 and language colleges, student housing properties, recruitment centres and corporate offices at 45 locations in Canada and abroad. Total annual enrollment for the group, including students recruited for partner schools, is approximately 12,000 students. Its education providers include Sprott Shaw College (established in 1903), Sprott Shaw Language College, Vancouver International College and CIBT School of Business & Technology. Through these schools, CIBT offers business and management programs in healthcare, hotel management, language training, and over 150 career, language and vocational programs. CIBT owns Global Education City Holdings Inc., an investment holding and development company focused on developing education-related real estate such as student hotels, serviced apartments and education super centres. The total portfolio and development budget of projects under the GEC® brand is more than C$1 billion. CIBT also owns Global Education Alliance (“GEA”) and Irix Design Group (“Irix Design”). GEA recruits international students on behalf of many elite kindergartens, primary and secondary schools, colleges and universities in North America. Irix Design is a leading design and advertising company based in Vancouver, Canada. Visit us online and watch our corporate video at www.cibt.net. For more information contact: NON-IFRS FINANCIAL MEASUREMENTS The Company has included non-IFRS performance measures throughout this press release, including Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”). These non-IFRS financial measurements do not have any standardized meaning as prescribed by International Financial Reporting Standards (“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 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 income (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: |
