CIBT Reports Third Quarter Fiscal 2022 Financial Results

VANCOUVER, BC /ACCESSWIRE/July 14, 2022/ CIBT Education Group Inc. (TSX: MBA) (OTCQX: MBAIF) (“ ITTC “or the” Company “) is pleased to announce that it has filed on SEDAR its consolidated financial statements and related MD&A for its third quarter of fiscal 2022 ended May 31, 2022 (collectively, the “ Q3 deposit “). The following financial information is selected for the nine months ended May 31, 2022 (“ Q3 2022 “) and comparative results (“ Q3 2021 Please refer to the entire T3 filing, which is available under CIBT’s profile at www.sedar.com.

All figures are in thousands of Canadian dollars, except for share and per share data, unless otherwise indicated..

Q3 2022 year-to-date

Q3 2021 year-to-date

% change

Total revenue

$

52,671

$

44,800

18

Education Revenue – SSCC (1)

$

30,007

$

29,720

1

Education income – SSLC/VIC (1)

$

6,496

$

1,998

225

Education Income – CIBT China (1)

$

2,194

$

2,328

(6)

Rental income – GECH (1)

$

12,257

$

6,678

84

Development fees – GECH and Corporate

$

588

$

3,038

(81)

Design and advertising revenue – IRIX (1)

$

399

$

622

(36)

Commissions and Referral Fees – GEA (1)

$

730

$

416

75

Gross profit (2)

$

30,228

$

26,285

15

Other operating expenses

$

(24,805)

$

(24,769)

0

Financial expenses

(8,991)

(10,140)

(11)

Change in fair value (loss) gain on investment properties

(1,493)

8,779

(117)

Other income (expenses), net

5,284

6,950

(24)

income before taxes

$

223

$

7,105

(97)

income tax expense)

(95

)

(816)

(88)

Net revenue

$

128

$

6,289

(98)

Net income attributable to CIBT shareholders

$

237

$

6,755

(96)

Earnings per share – CIBT Shareholders

Basic

$

0.00

$

0.09

(100)

Diluted

$

0.00

$

0.02

(100)

EBITDA [Non-IFRS] (2)

$

13,942

$

18,471

(25)

(1) As defined below under “About CIBT Education Group Inc.”

(2) Please refer to Non-IFRS Financial Measures at the end of this press release.

The following table reconciles net income to EBITDA and Adjusted EBITDA (non-IFRS) (2) :

Q3 2022 year-to-date

Q3 2021 year-to-date

Net revenue

128

6,289

Deduct: interest income

(648)

(2,739)

Add: interest charges

9,472

9,105

Add: income tax expense

95

816

Add: depreciation and amortization

4,895

5,000

EBITDA [non-IFRS]

13,942

18,471

Add loss / deduct (gain) on changes in fair value of investment properties

1,493

(8,779)

Add loss/deduct (gain) on derivatives, net

(471)

1,055

Adjusted EBITDA [non-IFRS]

14,964

10,747

May 31, 2022

August 31, 2021

% To change

Total assets

$

532 817

$

519,039

3

Total responsibilities

$

314,279

$

315 456

0

May 31, 2022

August 31, 2021

May 31, 2021

Equity attributable to CIBT shareholders (book value)

$

43,678

$

50,797

$

55,903

Total common shares outstanding at the end of the period

68 460 740

69,978,240

72,426,340

BVPS (1)

$

0.64

$

0.73

$

0.77

(1) Please refer to Non-IFRS Financial Measures at the end of this press release.

“Our business continues to recover rapidly throughout fiscal 2022, as evidenced by our 18% year-to-date increase in total revenue to $52.67 million from $44.80 million. million over the same period last year,” commented Toby Chu, Chairman, President and CEO of CIBT. “Our international educational and rental housing revenues have seen significant growth of 225% and 84%, respectively. education sector, with more international students returning to Canada to complete their studies. Matching the influx 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 by 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 have been operating near capacity with rental rates above pre-COVID levels,” Chu continued. “Our GEC® Granville hotel business has notably experienced high occupancy since early March. Based on current bookings, the hotel has virtually no vacancies for the remainder of the summer. Overall, the Rate Average daily has reached historically high levels.”

According to a report by the Globe and Mail newspaper (*a) published on July 5, 2022, “ CIBC economists Benjamin Tal and Katherine Judge said Canada is underestimating housing demand from nearly 500,000 households, including students, immigrants and other non-permanent residents. “. The report also quoted “ The average asking rate for properties available on Rentals.ca, a national rental listing site, reached $1,888 per month in May – a 3.7% jump from April and a 10.5% increase % compared to the same month last year.

Toby Chu added, “The significant shortage of rental housing supply, evidenced by Metro Vancouver’s low rental vacancy rate of 1.2% for purpose-built rental properties and 0.8% for condominium rental properties (*b) coupled with growing demand and double-digit price increases, continued to create strong demand for the company’s rental portfolio during the third quarter of 2022.”

(*a) https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-student-housing-rental-shortages/

(*b) https://www.cmhc-schl.gc.ca/en/professionals/housing-markets-data-and-research/market-reports/rental-market-reports-major-centres

About CIBT Education Group:

CIBT Education Group Inc. is one of Canada’s largest education and student housing investment companies, focusing on the domestic and global education market since 1994. CIBT owns colleges of commerce and language , student-centric rental apartments, recruiting centers and corporate offices at 45 locations across Canada and internationally. Its education subsidiaries include Sprott Shaw College Corp. (“ SSCC “) (established 1903), Sprott Shaw Language College (“ SSLC “), Vancouver International College Career Campus (“ CIV “) and CIBT School of Business & Technology Corp. (“ ITTC China CIBT offers more than 150 educational programs in health, business management, e-commerce, cybersecurity, hotel management, and language training through these schools. In 2021 , CIBT has served over 10,000 domestic and international students through its educational housing and rental subsidiaries.

CIBT is the owner of Global Education City Holdings Inc. (“ GECH “), an investment and development holding company focused on education-related real estate, such as student-centric rental apartments, hotels 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 exceeds $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, elementary and secondary schools, colleges and universities across North America. Irix Design is a leading design and advertising firm based in Vancouver, Canada Visit us online and watch our corporate video at www.cibt.net.

Toby Chu
Chairman, President and CEO
CIBT Education Group Inc.

Investor Relations Contact: 1-604-871-9909 ext. 319 or | E-mail: [email protected]

NON-IFRS FINANCIAL MEASURES

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 the EBITDA adjusted for the gain (loss) on the change in the fair value of the Company’s investment properties and the gain (loss) on the change in the fair value of derivative instruments; and (c) carrying amount per Share (“ BVPS “) which is calculated as equity attributable to shareholders of CIBT Education Group Inc. divided by the total number of common shares outstanding at the end of the reporting period. The Company’s gross profit is unlike revenue and direct costs of sales. These non-IFRS financial results measures do not have standardized meanings as prescribed by International Financial Reporting Standards (“ IFRS “) and therefore are 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 performance measures. prepared in accordance with IFRS uses measures of EBITDA to measure profit trends for business units and segments of the consolidated group, as this eliminates the effects of financing decisions.Some investors, analysts and others use these non-conforming financial measures IFRS to assess the Company’s financial performance. IFRS financial measures have not been presented as an alternative to net income or any other financial performance measure prescribed by IFRS. A reconciliation of non-IFRS measures IFRS has been provided in the Company’s MD&A, as applicable, filed under the pro company wire on www.SEDAR.COM.

THE SOURCE: CIBT Education Group Inc.

See the source version on accesswire.com:
https://www.accesswire.com/708685/CIBT-Reports-Financial-Results-for-Third-Quarter-of-Fiscal-2022

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