CIBT Reports Financial Results for Fiscal Year Ended August 31, 2017

December 1, 2017

November 30th, 2017, Vancouver, BC: 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 and related Management’s Discussion & Analysis (“MD&A”) (collectively, the “2017 Financial Report”) for the fiscal year ended August 31, 2017 (“Fiscal 2017”).  To review these filings, please visit CIBT’s profile at

The following table presents selected financial data from the 2017 Financial Report:

12 Months Ended

August 31, 2017

12 Months Ended

August 31, 2016

Percentage Change
Total revenues $53,622,229 $36,114,144 48.48%
Educational revenues – CIBT $1,726,461 $2,208,235 -21.82%
Educational revenues – SSCC $27,984,388 $24,984,123 12.01%
Educational revenues – SSLC / VIC $8,064,414 $436,952 1745.61%
Design and advertising revenues – IRIX $998,824 $775,266 28.84%
Commissions and referral fees – GEA $852,172 $1,036,372 -17.77%
Rental revenues – GEC $8,623,826 $4,959,459 73.89%
Development fees – GEC and Corporate $5,372,144 $1,713,737 213.48%
General and administrative expenses $24,692,742 $19,828,886 24.53%
Gain on fair value changes in investment properties $10,470,322 $9,779,146 7.07%
Net income $8,122,442 $9,215,414 -11.86%
EBITDA [non-IFRS] $13,177,632 $12,323,221 6.93%
Income  per share [non-IFRS] $0.10 $0.13 -23.08%
Net income – CIBT Education Group Inc. shareholders $2,225,504 $3,905,964 -43.02%
Income per share – CIBT Education Group Inc. shareholders $0.03 $0.06 -50.00%
Total assets $166,681,997 $102,346,541 62.86%
Total liabilities $89,868,829 $47,407,194 89.57%


Noteworthy highlights for the fiscal year ended August 31, 2017 are as follows:

  • Total revenue increased from $36.11 million to $53.62 million, an increase of 48.48%
  • Combined education revenues of all schools increased from $27.63 million to $37.78 million, an increase of 36.72%
  • Student housing rental income increased from $4.96 million to $8.62 million, an increase of 73.89%
  • Student housing development fees increased from $1.71 million to $5.37 million, an increase of 213.48%
  • Gain on fair value changes in investment properties increased from $9.78 million to $10.47 million, an increase of 7.07%
  • Total assets increased from $102.35 million to $166.68 million, an increase of 62.86%
  • Total liabilities increased from $47.41 million to $89.87 million, an increase of 89.57%
  • EBITDA (Non-IFRS) – Earnings Before Interest Taxes Depreciation Amortization increased from $12.32 million to $13.18million, an increase of 6.93%

“Fiscal 2017 was a very busy year for us.  Our milestones included the asset acquisition of the defunct KGIC Inc. (“KGIC”) schools (formerly known as Loyalist Group Inc. TSXV: LRN or LOY) from KGIC’s receiver and integrating the purchased assets into our existing organization to provide new and expanded programs, expansion of our GEC® brand student hotel and residential portfolio, and the launch of the GEC Education Super Center® in Richmond, and Education Mega Center in Surrey®” commented Mr. Toby Chu, President, CEO and Chairman of CIBT.

“The Company is well positioned given its substantial growth in its main business lines to have a very successful Fiscal 2018. In fiscal 2017 CIBT achieved 48.5% year-over-year revenue growth, 36.7% increase in education revenue, 73.9% increase in rental revenue, 213.5% growth in real-estate development fees, complemented by $10.47 million gain on fair value changes in investment properties owned by limited partnerships controlled and managed by CIBT,” commented Toby Chu. “While the KGIC transaction resulted in non-recurring business acquisition costs and settlement of pre-existing conditions totaling $1.61 million in Fiscal 2017, we believe the acquisition of former KGIC assets will create long term benefits for our rapidly expanding housing portfolio and the increased demand from students. We continue to capitalize on an underserved market and have numerous projects in development and a robust pipeline of students eager for affordable and high quality student housing.

“We will continue building our education and housing platform in the upcoming year and are pleased to report that our flagship projects are well underway,” continued Mr. Chu. “Development of both the GEC Education Mega Center® and GEC Education Super Center® was launched in Fiscal 2017. The rezoning application for the GEC Education Super Center® was submitted to the City of Richmond in November 2017, while GEC Education Mega Center® has received four out of five required rezoning approvals from the City of Surrey as of November 6, 2017.  Construction of both projects is expected to start in 2018.

“In addition to current projects under development, we continue to assess and expand our student housing portfolio in strategic locations. We believe that the current market remains underserved. According to BC’s Ministry of Education, enrollment into B.C’s education system by international students has grown by over 50% since 2014.  The actual results to date have far exceeded our initial planning estimates from the time when we undertook this endeavor. The statistic confirms our belief that the student housing sector will continue to be strong for the foreseeable future and validates our market strategy, while our education platform is growing at double digit rates to fill those beds we have created.”

In conjunction with equity investment partners at the project level, a number of student housing properties have been acquired without diluting the share structure of CIBT for this purpose since 2014.  These properties are either in operation or currently under-development.  A summary of property acquisitions is as follows:

From fiscal 2014 to fiscal 2016:

  • Acquired GEC® Viva and converted the building to a 210 bed rental apartment from an office/hotel building
  • Acquired the property for GEC® Pearson which is slated for possession in early 2018
  • Acquired the property for GEC® King Edward which is at the final rezoning stage with the City of Vancouver
  • Structured the acquisition of GEC® Granville and grew its revenue from $4.2 to $6.4 million within 16 months

During Fiscal 2017:

  • Acquired and developed GEC® Burnaby which is fully operational
  • Acquired land for GEC Education Super Center®
  • Signed purchase and development contract for GEC Education Mega Center® and cleared most rezoning approvals
  • Total development budget (including acquisition costs and development cost) has exceeded $600 million since 2014

“By utilizing the Company’s 23 years’ experience in the international education sector, and its subsidiary Sprott Shaw College’s 114-year history in the domestic education market, we have a well-established education platform in Canada and abroad to provide a steady pipeline of students staying at the GEC® properties.  We are also supported by students of over 100 other public and private educational institutions.  With our extensive experience in the corporate finance sector, the Company can expand its real-estate investment portfolio rapidly.

“The Company, as an investor in various limited partnerships which own the properties, control and manage the real estate projects.  Given the rising property prices and ongoing shortage of rental housing in Vancouver, with less than 0.7% vacancy rate according to CMHC, management believes the increase in value from these properties will generate solid returns for our shareholders.  As of today, the estimated increase in value of the seven properties under management or development by the Company has exceeded $120 million from the original aggregate purchase cost.

“Subsequent to August 31, 2017, approximately $18.5 million in phase 2 equity financing has been committed or partially received for the development of GEC Education Mega Center® and for reposition of a GEC property. In addition, we assumed the GEC King Edward property from the former developer and will develop this property internally.

“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 our partner schools and from our own international and domestic student pipelines, thereby generating an attractive return for our investors. In addition to expanding our student housing portfolio, CIBT will continue to seek school acquisition opportunities, both as part of its core business and to continue to fill our student housing properties.”

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 centers and corporate offices at 44 locations in Canada and abroad.  Total annual enrollment for the group exceeds 15,000 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’s property investments are held by Global Education City Holdings Inc., an investment holding and management company focused on developing education related real estate such as student hotels, serviced apartments and education super centers totalling over $600 million.  CIBT also owns Global Education Alliance (“GEA”) and Irix Design Group (“Irix Design”). GEA recruits international students for many elite kindergarten, 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

For more information contact:
Toby Chu
Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 310 or | Email:


The Company has included certain non-IFRS performance measures throughout this press release, including Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Income per share as calculated based on net income including that attributable to non-controlling interests (“Income (loss) per share [Non-IFRS]”). 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. Management uses Income (loss) per share [Non-IFRS] as Management believes it is a more accurate reflection of value of the Company.  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.

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 the GEC Education Mega Center® and GEC Education Super Center® projects and 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.  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 ability 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, and the ability to continue to attract students to reside in GEC branded accommodations. 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.

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