CIBT Reports Financial Results for Third Quarter of Fiscal 2022
Vancouver, B.C., July 14th, 2022 – 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 2022 ended May 31, 2022 (collectively, the “Q3 Filing“). The following is selected financial information for the nine months ended May 31, 2022 (“Q3 2022“) and comparative results (“Q3 2021”). 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.
(1) As defined below under “About CIBT Education Group Inc.”
(2) Please refer to Non-IFRS Financial Measurements at the end of this news release.
The following reconciles the net income to EBITDA and Adjusted EBITDA (non-IFRS) (2):
(1) Please refer to Non-IFRS Financial Measurements at the end of this news release.
“Our businesses continue to recover rapidly throughout fiscal 2022 as highlighted by our total year-to-date revenue increasing by 18% to $52.67 million as compared to $44.80 million in the same period of the last fiscal year,” commented Toby Chu, Chairman, President, and CEO of CIBT. “Our international educational and rental housing revenues experienced significant growth of 225% and 84%, respectively. In addition, we captured the strongest growth in our international school segment as it grew from $1.998 million to $6.496 million, highlighting a strong recovery in the international education sector, with more international students returning to Canada to complete their studies. Corresponding to the surge of international students arriving in Canada, our housing rental revenue increased by 84%, from $6.678 million to $12.257 million. Our Adjusted EBITDA (non-IFRS) increased 39% from $10.747 million to $14.964 million. Total assets increased from $519.039 million to $532.817 million, an increase of $13.778 million or 3% with minimal changes to our total liabilities.
“Since the beginning of April 2022, most of our rental properties are operating at near full capacity with rental rates higher than pre-COVID levels,” continued Mr. Chu. “Most notably, our GEC® Granville hotel business has had a high occupancy rate since the beginning of March. Based on current bookings, the hotel has almost no vacancy throughout the remainder of the summer. Overall, the Average Daily Rate reached historically high levels.”
According to a Globe and Mail newspaper report(*a) published on July 5,2022, “CIBC economists Benjamin Tal and Katherine Judge said Canada is undercounting housing demand by close to 500,000 households, including students, immigrants as well as other non-permanent residents”. The report also quoted “average asking rate for properties available on Rentals.ca, a national rental listing site, reached $1,888 a month in May – a 3.7-per-cent jump from April and a 10.5-per-cent increase over the same month last year.”
Toby Chu added, “The significant shortage of rental housing supply, highlighted by Metro Vancouver’s low rental vacancy rate of 1.2% for purpose-built rental properties and 0.8% for condo rental properties(*b), coupled with increasing demand and double-digit price increases, continued to create strong demand for the Company’s rental portfolio during Q3 2022.”
About CIBT Education Group:
CIBT Education Group Inc. is one of Canada’s largest education and student housing investment companies, focused on the domestic and global education market since 1994. CIBT owns business and language colleges, student-centric rental apartments, recruitment centres and corporate offices at 45 locations in Canada and abroad. Its education subsidiaries include Sprott Shaw College Corp. (“SSCC”) (established in 1903), Sprott Shaw Language College (“SSLC”), Vancouver International College Career Campus (“VIC”) and CIBT School of Business & Technology Corp. (“CIBT China”). CIBT offers over 150 educational programs in healthcare, business management, e-commerce, cyber-security, hotel management, and language training through these schools. In 2021, CIBT serviced over 10,000 domestic and international students through its educational and rental housing subsidiaries.
CIBT owns Global Education City Holdings Inc. (“GECH”), an investment holding and development company focused on education-related real-estate such as student-centric rental apartments, hotel and education super-centres. Under the GEC® brand, GECH provides accommodation services to 90 schools in Metro Vancouver, serving 1,500 students from 71 countries. The total portfolio and development budget under the GEC® brand exceed $1.5 billion.
CIBT also owns Global Education Alliance Inc. (“GEA”) and Irix Design Group Inc. (“IRIX”). GEA recruits international students for 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:
Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: email@example.com
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 (“BVPS”) which is calculated as equity attributable to CIBT Education Group Inc. shareholders divided by total common shares outstanding at the end of the reporting period. Gross profit for the Company is the difference between revenue and direct costs of sales. 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.