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CIBT Reports Financial Results for Fiscal Year Ended August 31, 2019

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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:
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

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:
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, statements about expectation of continued demand for the Company’s products and services, 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, and expansion plans outside of Metro Vancouver.  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 continued ability to attract students to the Company’s course offerings and, on the student housing side, the ability of the real estate limited partnerships 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, the ability to continue to attract students to reside in GEC® branded accommodations, and the level of competition faced by the Company outside of Metro Vancouver if its expansion plans proceed. 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.

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

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vSync Circuits Adds Verific’s Static Elaborator to Product Mix

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ALAMEDA, Calif., Dec. 03, 2019 (GLOBE NEWSWIRE) — Verific Design Automation today announced long-time customer vSync Circuits added Verific’s static elaboration to its product mix and introduced vLinter, early rule-based design analysis and verification software.

“Our relationship with Verific is one of great mutual admiration,” remarks Dr. Reuven Dobkin, chief executive officer and chief technology officer of vSync. “We respect Verific and value it as a trusted vendor with incomparable support and service.”

vLinter, static analysis-based verification used in early design stages, hunts design bugs due to bad coding practices, including unsynthesizable code, unintentional latches, undriven signals, race conditions, out-of-range indexing, incomplete case statements and simulation and synthesis mismatches. It supports both ASIC and FPGA design flows and allows easy and fast setup by directly loading project files from leading synthesis software.

“VSync takes a clever approach to functional verification using structural and formal verification, RTL and gate-level verification, automatic timing constraints generation and automatic bug fixing,” remarks Michiel Ligthart, Verific’s president and chief operating officer. “The result is a powerful methodology that works in either FPGA or ASIC verification and integration flows with Verific’s parser platforms serving as the front end.”

Verific’s SystemVerilog, VHDL and universal power format (UPF) Parser Platforms are in production and development flows at semiconductor companies worldwide, from emerging companies to established Fortune 500 vendors. Applications range from analysis, simulation, formal verification and synthesis to emulation and virtual prototyping, in-circuit debug and design for test. Verific distributes its Parser Platforms as C++ source code and compiles on all 32- and 64-bit Unix, Linux, Mac OS and Windows operating systems.

About vSync Circuits
vSync Circuits is an EDA and IP solutions company providing integration and verification solutions for ASIC and FPGA design and verification groups. It introduces a novel and unique technology for reliable multiple clock-domain design integration and verification comprised of a tool-based approach that bridges the design and verification worlds. vSync Circuits methodology is generic and is compatible with all different design flows.

About Verific Design Automation
Verific Design Automation is celebrating 20 years as the leading provider of SystemVerilog, Verilog, VHDL and UPF Parser Platforms that enable project groups to develop advanced electronic design automation (EDA) products quickly and cost effective worldwide. Verific, with offices in Alameda, Calif., and Kolkata, India, has shipped more than 60,000 copies of its software used worldwide by the EDA and semiconductor industry. Corporate headquarters is located at: 1516 Oak Street, Suite 115, Alameda, Calif. 94501. Telephone: (510) 522-1555.

Engage with Verific at:
Email: info@verific.com
Website: www.verific.com
LinkedIn: https://www.linkedin.com/company/verific-design-automation-inc/
Facebook: https://www.facebook.com/Verific-Design-Automation-100448363329771/

Verific Design Automation acknowledges trademarks or registered trademarks of other organizations for their respective products and services.

For more information, contact:
Nanette Collins
Public Relations for Verific
(617) 437-1822
nanette@nvc.com

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Rackspace Expands Professional and Managed Services to Accelerate Customer Cloud Adoption with Amazon Web Services

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SAN ANTONIO and LAS VEGAS, Dec. 03, 2019 (GLOBE NEWSWIRE) — Announced today from AWS re:Invent 2019, Rackspace accelerates its growth as a full stack service provider by expanding its portfolio of Rackspace Service Blocks™. This news expands Rackspace’s leadership in providing professional and managed services for Amazon Web Services (AWS).

With the expansion of the Service Blocks portfolio, Rackspace further empowers customers to keep pace with innovation and capitalize on new services and features like Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), and Serverless Computing.

“Our customers need deep AWS expertise that helps them develop, deploy, and integrate the latest applications, improve and secure their infrastructure, and ultimately make the most of what AWS has to offer so that they can move their businesses forward,” said Matt Stoyka, Chief Relationship Officer, Rackspace. “Our enhancement of Rackspace Service Blocks bridges the skills gap faced by customers who are quickly maturing on AWS.”

“For 15 years, we’ve trusted Rackspace to hear and understand our challenges, diagnose our problems, and quickly develop solutions that fit our evolving needs as a company,” said Bill Dalton, Vice President of Firefly Digital. “Today, bringing their expertise to manage our entire container services journey, Rackspace ensures we’re getting the most from AWS so we can focus on innovating and staying competitive.” 

Enhanced Portfolio for AWS Services: Rackspace Introduces Three New Rackspace Service Block Patterns

Rackspace Service Blocks is the modular cloud services portfolio comprised of discrete, customizable services provided on a flexible consumption model, which allows customers to only pay for the cloud services they need, optimizing IT economics. 

Today’s newly introduced Rackspace Service Block patterns are designed to streamline the adoption of AWS by consolidating broad expertise across infrastructure, applications, data, strategy and integration. This expertise is distilled into solution roadmaps designed to help customers deploy three key types of solutions:

  • Container Services Journey – A combination of Professional Services, Managed Cloud and Advanced Kubernetes Management Service Blocks, this offering helps customers outline their container strategy, build containerized applications and transition them into ongoing management.
  • Hybrid Transformation with VMware Cloud on AWS – A grouping of managed and professional services designed to provide customers with the tools and expertise needed to make a smooth transition to hybrid cloud with VMware Cloud on AWS.
  • Data Modernization – This configuration helps customers streamline analytics processes, uncover deficiencies within processes and derive meaning from data to enable better data-driven business decisions and serve their customers with accurate and timely data.

Learn more about Rackspace Service Blocks at rackspace.com/lp/new-aws-service-blocks. 

Visit Rackspace at Booth #1637 in the Venetian at AWS re:Invent 2019.

About Rackspace
At Rackspace, we accelerate the value of the cloud during every phase of digital transformation. Across applications, data, security, hybrid and multiple clouds worldwide, we provide cloud specialists with unbiased expertise, continuous modernization and Rackspace Service Blocks. We work with leading partners and alliances. As a recognized Gartner Magic Quadrant leader, we deliver Fanatical Experience™ across every interaction. Rackspace has been honored by Fortune, Forbes, Glassdoor and others as one of the best places to work.

Media Contact
Mikala Ferguson
mikala.ferguson@rackspace.com
210-550-6452

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New Research Finds Latest Accounting Regulations Are Significantly Driving Up Audit Costs

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LOS ANGELES, Dec. 03, 2019 (GLOBE NEWSWIRE) — FloQast, a provider of close management software created by accountants for accountants to close the books faster and more accurately, today announced the results of a just released survey entitled “The Ugliness of the Audit.” The study, based on feedback from more than 200 financial audit stakeholders, clearly demonstrates that audits are becoming significantly more costly and burdensome for companies of all sizes and the situation is not expected to improve in the next two years. It is important to note that these cost increases are driven primarily by changing accounting rules and regulations such as ASC 606.

“The audit is an essential part of the accounting process, but it is abundantly clear that the process has become overly taxing and expensive for companies of all sizes,” said Diane Hagglund, senior research analyst at Dimensional Research. “As audits become increasingly painful and burdensome, it is driving demand for innovative software solutions that help mitigate this pain by delivering a level of sanity into the process.”

Key findings in the report include:

  • Audit costs are rapidly growing – Audits are becoming increasingly expensive for organizations of all sizes, with over half of finance teams (53%) reporting substantial increases in audit costs in the past two years, driven primarily (64%) by new accounting regulations. The vast majority (81%) of companies that have adopted ASC 606 in their audit procedures report that it has negatively impacted their audit, increasing the cost and time to complete it and adding additional stress and frustration to the process. Ninety percent (90%) expect audit costs to further increase in the next two years and more than half (55%) of large companies (over 1,000 employees) have annual audit fees of more than $250,000.
  • Audits are lengthy and disruptive for finance teams The audit process places a big strain on finance and accounting departments with ninety-five percent (95%) stating they face challenges with their audits, including conflicts with other work (82%), the complexity of accounting rules (58%), and dealing with the stressful time that has a personal impact on their staff (50%). Most telling, 66% say that CFOs and controllers live with persistent fear that they may have missed something in their financials that will come under the scrutiny of the auditors.
  • Financial software improves the audit process – Close management software is providing improvements to the audit process for 91% of the finance teams that use it, and they are less likely to expect significant increases in the cost of their audit in the future. Eighty-nine percent (89%) of those surveyed indicated they would benefit from additional software capabilities, commonly found in close management, during their audit.

“This survey validates what we hear from our customers every day – the audit has become a black hole that sucks the money, time and morale from accounting teams every year,” said Mike Whitmire, CPA*, co-founder and CEO of FloQast. “FloQast’s goal is to provide controllers and CFOs with the financial software and tools that drive more efficient audits meaning less billable hours by auditors and a quicker return to focusing on what really matters, and that’s running the business.”

A complimentary copy of the report is available at www.floqast.com/auditsurvey.

Join Dimensional Research and FloQast for a live webinar on “The Ugliness of the Audit – and How to Avoid It” on December 11 at 11:00 am PT/2:00 pm ET during which they will walk through the survey results and share best practices for how to improve audit readiness. Register at www.floqast.com/auditsurveywebinar.

To learn about FloQast close management software and how it will help your accounting team to streamline your annual audit, visit www.floqast.com/audit.

Survey Methodology
The survey was conducted by Dimensional Research, on behalf of FloQast, in November 2019. A total of 203 accounting and finance professionals participated in the survey, all of whom were directly responsible for activities and outcomes of year-end financial audits. The purpose of the survey was to gauge finance and accounting professionals’ opinions of and experiences with the annual audit process, particularly in the light of the adoption of new accounting regulations such as ASC 606 and 842.

About Dimensional Research
Dimensional Research® provides practical market research to help technology companies make their customers more successful. Our researchers are experts in the way technology organizations operate to meet the needs of their business stakeholders. We partner with our clients to deliver actionable information that reduces risks, increases customer satisfaction, and improves business results. For more information, visit dimensionalresearch.com.

About FloQast
FloQast is close management software, created by accountants for accountants to close faster and more accurately. On average, accounting teams who rely on FloQast close three days faster. Seamlessly integrated with ERPs and leveraging existing checklists and Excel, FloQast provides a single place to manage the month-end close and gives everyone visibility. The cloud-based software is trusted by more than 750 accounting departments, including those at Lyft, Twilio, Zoom and The Golden State Warriors. To learn more, visit www.floqast.com and join the conversation on Twitter at @floqast.

*inactive

Rebecca Mettler
BOCA Communications for FloQast
floqast@bocacommunications.com
914-215-0113

 

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