CIBT Reports Financial Results for First Quarter of Fiscal 2018

January 15, 2018

Vancouver, B.C., January 15, 2018 – 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 ended November 30, 2017 (collectively, the “Q1 Filing”).  To review the Q1 Filing, please visit CIBT’s profile at The following is selected financial information for the first quarter of fiscal 2018 ended November 30, 2017 (“Q1 2018”) and comparative results.  Please refer to the Q1 Filing in its entirety.

Quarter Ended November 30, Percentage Change
2017 2016
Total revenues $14,203,870 $13,979,876 1.60%
Educational revenues – CIBT School of Business & Technology Corp. (“CIBT China”) $637,523 $480,288 32.74%
Educational revenues – Sprott Shaw College Corp. (“SSCC”) $8,454,150 $6,166,094 37.11%
Educational revenues – Sprott Shaw Language College (“SSLC”)/ Vancouver International College (“VIC”) $2,408,670 $712,587 238.02%
Design and advertising revenues – IRIX Design Group Inc. $377,054 $215,882 74.66%
Commissions and referral fees – Global Education Alliance Inc. $305,156 $276,124 10.51%
Rental revenues – Global Education City Holdings Inc. (“Global Education Holdings”) $2,021,317 $1,664,615 21.43%
Development fees –Global Education Holdings and Corporate $0 $4,464,286 -100.0%
General and administrative expenses $7,425,862 $5,046,008 47.16%
Gain on fair value changes in investment properties $8,634,612 $2,098,729 311.42%
Net income $6,803,875 $5,660,983 20.19%
EBITDA [non-IFRS] $7,831,053 $6,198,360 26.34%


Selected Balance Sheet Information November 30, 2017 August 31, 2017 % Change
Total Assets $194,778,486 $166,681,997 16.85%
Total Liabilities $111,168,643 $89,868,829 19.16%


The following reconciles the net income to EBITDA (non-IFRS):

 EBITDA Quarter Ended November 30,
2017 2016
Net Income $6,803,875 $5,660,983
Add: interest on borrowings $596,311 $321,835
Add: depreciation and amortization $430,867 $215,542
EBITDA [non-IFRS] $7,831,053 $6,198,360

Please refer to the note at the end of this news release concerning non-IFRS financial measures.

First Quarter Highlights

Highlights for the three months ended November 30, 2017, compared to the same period last year (“Q1 2017”), are as follows:

  • Total educational revenue combining CIBT, SSCC, and SSLC/VIC increased from $7.36 million to $11.5 million due to the steady growth of SSCC and the addition of SSLC, an increase of 56%
  • Student housing development fees was nil as compared to $4.46 million in Q1 2017 due to volume delays in the construction industry which deferred three pending transactions to Q2 2018 and Q3 2018 which are expected to result in development fee income
  • Rental income increased from $1.66 million to $2.02 million, an increase of 21.4%
  • General administration expenses increased from $5.05 million to $7.42 million largely due to the amalgamation of former KGIC staffs into the SSLC system, an increase of 47.2%
  • Gain on fair value changes in investment properties increased from $2.1 million to $8.63 million, an increase of 311.4%
  • Net income increased from $5.66 million to $6.8 million, an increase of 20.2%
  • EBITDA (Earnings Before Interest Taxes Depreciation Amortization) increased from $6.20 million to $7.83 million, an increase of 26.3%
  • Total assets increased from $166.68 million to $194.78 million, an increase of 16.9%
  • Total liabilities increased from $89.87 million to $111.17 million, an increase of 19.2%
  • Cash and cash equivalents increased from $6.88 to $10.10 million, an increase of 46.9%

“As we entered into the first quarter of fiscal 2018 our emphasis was placed on the restructuring and amalgamation of certain KGIC Inc. (“KGIC” formerly Loyalist Group Inc. TSXV: LRN) assets into our portfolio of schools.  Revenue generated by our education assets has increased 56% from $7.36 million to $11.5 million.  While Sprott Shaw College generated a healthy profit during Q1 2018, losses relating to the restructuring of former KGIC assets continues to be work-in-progress while improving steadily,” commented Toby Chu, Chairman, President and CEO of CIBT Education Group Inc. “Our strong top-line growth was supported by our fast-growing student housing portfolio which provided CIBT with rental income growth of 21.4% year-over-year.    Our real estate gain of $8.63 million reflects only a fraction of our potential real estate appreciation value.  We are expecting to complete three pending transactions in the coming quarters and expect to earn development fees associated with those projects in fiscal 2018.”

Mr. Chu continued, “Looking towards the rest of fiscal 2018, we are pleased to report that several transactions are expected to complete in the coming quarters.  These transactions are:

  1. Completion of the GEC Pearson project will increase total available beds for rent in GEC® projects by 310 units, increase our assets by approximately $84 million, and generate additional rental income of approximately $4.5 million per year.
  2. Completion of a $12 million equity raise by one of the real estate limited partnerships in which CIBT is an investor and is expected to generate approximately $2.4 million in development fees in the second quarter of fiscal 2018.
  3. Planned exit of a current investment which will result in monetizing its appreciation in value and re-entry of the investment through a newly formed limited partnership. Such repositioning is expected to allow CIBT to gain control of the property and increase ownership.
  4. Completion of Phase 2 financing for GEC Education Mega Center Limited Partnership raising approximately $38 million in equity and The Company will earn development fees following completion of the equity raise.
  5. Plans to complete $60 million equity raise for GEC Education Super Center Limited Partnership. The Company will earn development fees following completion of this transaction.
  6. Commence $30 million equity raise for GEC Education Mega Center Limited Partnership Phase 3 financing before May 2018.

In summary, CIBT has plans for its real estate limited partnerships to complete approximately $100 million equity financing in fiscal 2018 and expand our property development portfolio before our fiscal year ending August 31, 2018. At the same time management will continue to extend its efforts to streamline its education assets across the system.  We look forward to a strong top and bottom line growth year for 2018.”

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 centres 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. Global Education City Holdings Inc. is an investment holding, and management company focused on developing education related real estate such as student hotels, serviced apartments and Education Super Centres totalling over $600 million.  CIBT also owns Global Education Alliance (“GEA”) and Irix Design Group (“Irix Design”). 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

Toby Chu
Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 318 or | Email:


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. 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.


Earnings before interest, taxes, depreciation and amortization (“EBITDA”) are non-IFRS financial metrics used in this news release. Non-IFRS financial measurements do not have any standardized meaning as prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers.  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 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 as part of the Q1 Filing under the Company’s profile on

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