World News: 12:00 GMT Tuesday 14th January 2020. [CIBT Education Group Inc via Globe Newswire via SPi World News]
VANCOUVER, British Columbia, Jan. 14, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE - 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 and analysis for its first quarter of fiscal 2020 ended November 30, 2019 (collectively, the “Q1 Filing”). The following is selected financial information for the first quarter of fiscal 2020 ended November 30, 2019 (“Q1 2020”) and comparative results. Please refer to the Q1 Filing in its entirety, which is available under CIBT’s profile at . .
The following reconciles the net income to EBITDA (non-IFRS):
Please refer to the note at the end of this news release concerning non-IFRS financial measures.
"In Q1 2020, we were pleased to see that our largest education subsidiary, Sprott Shaw College, saw revenues increase while earnings before inter-segment transactions also increased over the same period in the prior year. On the other hand, rental income continues to be our fastest area of revenue growth,” commented Toby Chu, Chairman, President and CEO of CIBT Education Group Inc. “With our Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization adjusted for the impact of fair value gains or loss on investment properties and derivatives) at $3.344 million for the first three months, we are confident in our Company’s overall outlook for the remainder of this fiscal year for several reasons:
A pending transaction to sell one of our properties for $70 million as reported in our December 3, 2019 news release is expected to close in fiscal 2020, and we expect to realize a gain upon successful exit;
Completion of the acquisition of the land for the GEC Oakridge project is expected to close by the end of January 2020, which is expected to provide a boost to our portfolio;
Construction of GEC King Edward is scheduled to start in the first half of fiscal 2020 which will increase our rental inventory;
The rezoning process for GEC Education Mega Center and GEC CyberCity are both expected to complete in fiscal 2020, followed by phase two equity financings by the Company’s subsidiaries that hold these properties. Financing for these projects would lead to a substantial increase in development fees associated with these transactions; and
The construction of Global Education City (Richmond) is well underway and on-schedule.
“Our education platform and our market rental platform will continue to be the cornerstones of our business,” continued Toby Chu. “Equally importantly, our success is attributable to our conservative approach towards acquisitions and dispositions. We intend to only exit projects at higher values from their original cost. This will boost our operating capital, which will enable us to continue seeking out undervalued assets and expanding our portfolio.”
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. The total annual enrollment for the group exceeds 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. 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. (“Global Education”), an investment holding and development company focused on developing education related real estate such as student hotels, serviced apartments and education centres. The total portfolio and development budget of projects under Global Education’s GEC brand is over C$1 billion. The various GEC properties provide accommodations to over 1,500 students and other tenants. 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 .
Toby ChuChairman, President & CEOCIBT Education Group Inc.
Some statements in this news release contain forward-looking information (the “forward-looking statements”) about CIBT Education Group Inc. and its plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include, without limitation, the statement as to the anticipated timing of the closing of the sale of a property held by one of the Company’s subsidiaries, the statement as to the anticipated timing of the closing of the acquisition of the land for the GEC Oakridge project and the expected value of the land at closing, the statement as to the anticipated timing of the commencement of construction of GEC King Edward, and the statement as to the anticipated timing of the completion of the rezoning process for GEC Education Mega Center and GEC CyberCity and equity financings to be undertaken by the Company’s subsidiaries that hold these projects. 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.
The Company has included non-IFRS performance measures throughout this press release, including (a) Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”); and (b) Adjusted EBITDA which is EBITDA adjusted for the gain (loss) on change in fair value of the Company investment properties and the gain (loss) on change in fair value of derivative instruments. 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 under the Company’s profile on www.SEDAR.COM.
Globe Newswire: 12:00 GMT Tuesday 14th January 2020
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