CIBT Reports Financial Results for Third Quarter of Fiscal 2021
Vancouver, B.C., July 15th, 2021 – 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 third quarter of fiscal 2021 ended May 31, 2021 (collectively, the “Q3 Filing“). The following is selected financial information for the nine months ended May 31, 2021 (“Q3 2021“) and comparative results (“Q3 2020”). Please refer to the Q3 Filing in its entirety, which is available under CIBT’s profile at www.sedar.com.
All figures are in thousands of Canadian dollars except share and per share data unless otherwise noted. Capitalized terms used but not defined herein have the meanings ascribed to those terms in the management’s discussion and analysis for Q3 2021.
The following reconciles the net income (loss) to EBITDA and Adjusted EBITDA (non-IFRS):
The following presents Book Value per Share (“BVPS”). Please refer to the note at the end of this news release concerning non-IFRS financial measures.
“During the first nine months of fiscal 2021, the market sentiment for the education and real estate sector continued to improve although the province of British Columbia remained under a state of emergency,” commented Toby Chu, Chairman, President and CEO of CIBT. “The Company concentrated its efforts on streamlining its operations, modifying its business models, and maintaining a steady pace of advertising, marketing, business development, and corporate finance activities, which allowed us to overcome the challenges caused by the COVID-19 pandemic. By focusing on our core businesses, we generated year-to-date topline revenue of nearly $45 million.”
Key highlights of the Company’s Q3 2021 financial results:
- Domestic education revenue from Sprott Shaw College grew by 7% from $27.881M to $29.72M
- GECH’s real estate development revenue grew by 224% from 0.939M to $3.038M
- Net Income attributable to CIBT shareholders increased by 21%, from $5.595M to $6.755M
- Income Per Share (basic) for CIBT shareholders increased by 13% from $0.08 to $0.09
- EBITDA increased by 28% from $14.375M to $18.471M
- Gain on changes in fair value of investment properties grew by 6% from $8.261M to $8.779M, reflecting a burgeoning real estate market in Metro Vancouver. The value proposition by the GEC® projects enhances the value of CIBT’s investment holdings
- Total assets grew by 15% from $452.767M to $518.697M
Toby Chu added, “Effective July 1st, 2021, the British Columbia government lifted many traveling and social gathering restrictions and commenced plans to re-start the economy*1. As a result, our international education divisions have experienced a surge of students registering for the upcoming Fall and Winter semesters. Additionally, our rental facilities received a high volume of booking reservations for Fall 2021. As a result, we expect to boost revenues in our education segment as well as GECH’s rental apartment and hotel businesses in fiscal 2022.
“Furthermore, Metro Vancouver’s real estate sector has experienced an upward trend for eight consecutive months, from September 2020 to April 2021, according to the Real Estate Board of Greater Vancouver*2” continued Mr. Chu. “The rise in prices of real estate properties has boosted the market value of our student housing portfolio and, correspondingly, the book value per CIBT share. During the nine months period ended May 31, 2021, the Company purchased 2.7956 million shares from the open market and cancelled 2.1222 million shares, thereby reducing dilution and market float, while increasing earnings per share.”
About CIBT Education Group:
CIBT is one of Canada’s largest education services and academic real estate companies. With a global presence since 1994, CIBT employs nearly 600 staff at 46 business locations and operates a global network of 2,500 recruitment agents. In 2020, the group provided education, student recruitments and accommodation services to over 11,000 students. Its real estate portfolio, including operating assets and development budget, exceeds $1.5 billion.
CIBT’s education subsidiaries include Sprott Shaw College (established in 1903), Sprott Shaw Language College, Vancouver International College Career Campus, CIBT School of Business and Global Education Alliance. These subsidiaries offer over 150 accredited educational programs in healthcare, business, e-commerce, cyber-security, hotel management, language training and recruitment services at 29 locations in Canada and abroad.
CIBT’s real estate subsidiary, Global Education City Holdings Inc. (“Global Holdings“), develops and manages academic assets such as student-centric rental apartments, corporate housing, hotel and education super-centres. Since 2015, Global Holdings provides B2B accommodation service to 90 schools in Metro Vancouver and B2C direct registration of 6,000 students from 71 countries. The GEC® branded portfolio, including operational and under-construction or development, comprises 11 projects, 16 buildings spanning over 1.5 million square feet.
CIBT also owns Irix Design Group Inc. (“Irix Design“). Irix Design is a leading design and advertising company that services over one hundred corporate clients, including CIBT. Visit us online at www.cibt.net.
Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: email@example.com
Some statements in this news release contain forward-looking information (the “forward-looking statements“) about CIBT 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 that CIBT expects to boost revenues in its education segment as well as the rental apartment and hotel businesses in fiscal 2022. 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 that student course enrollments and accommodation bookings don’t continue in the numbers expected due to COVID-19 or for other reasons, and the Risks identified in CIBT’s annual information form for the fiscal year ended August 31, 2020, which is available under CIBT’s profile on SEDAR at www.sedar.com. 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. If CIBT updates any forward-looking statement(s), no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements.
NON-IFRS FINANCIAL MEASUREMENTS
The Company has included non-IFRS performance measures throughout this press release, 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 and the gain (loss) on change in fair value of derivative instruments; and (c) Book Value per Share which is calculated as equity attributable to CIBT shareholders divided by total common shares outstanding at the end of the reporting period. 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 or any other financial measure of performance prescribed by IFRS. Reconciliation of non-IFRS measures has been provided throughout the Company’s MD&A, as applicable, filed under the Company’s profile on www.SEDAR.COM.