CIBT Reports Financial Results for Second Quarter of Fiscal 2018

April 13, 2018

Vancouver, B.C., April 13, 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 interim financial statements and related Management’s Discussion and Analysis for its second quarter ended February 28, 2018 (collectively, the “Q2 Filing”). To review the Q2 Filing, please visit CIBT’s profile at The following is selected financial operating results for the six months ended February 28, 2018 and comparative -prior year period. Please refer to the Q2 Filing in its entirety.

In Canadian dollars Six Months Ended February 28, 2018 Six Months Ended February 28, 2017 Percentage Change
Total revenues $   31,860,528 $    24,472,397 30.19%
Educational revenues – CIBT China $     1,322,257 $          989,608 33.61%
Educational revenues – SSCC $   17,079,307 $    12,570,711 35.87%
Educational revenues – SSLC / VIC $     4,941,502 $      1,253,321 294.27%
Design and advertising revenues – IRIX $        550,401 $         465,010 18.36%
Commissions and referral fees – GEA $        479,905 $         419,875 14.30%
Rental revenues – Global Education Holdings $     3,844,336 $     3,178,633 20.94%
Development fees – Global Education Holdings & Corporate $     3,642,820 $     5,595,239 -34.89%
General and administrative expenses $   15,035,034 $   10,692,510 40.61%
Gain on fair value changes in investment properties $     8,634,612 $     4,255,782 102.89%
Net income $     8,567,737 $     7,540,482 13.62%
EBITDA [non-IFRS] $   10,862,700 $     8,841,711 22.86%


Selected Balance Sheet Information February 28, 2018 August 31, 2017 Percentage Change
Total Assets $  213,888,767 $  166,681,997 28.32%
Total Liabilities $  113,231,473 $    89,868,829 26.00%


The following reconciles net income to EBITDA (1) (non-IFRS):

Six Months Ended February 28, 2018 Six Months Ended February 28, 2017
Income (loss) – continuing operations $    8,567,737 $     7,540,482
Add: interest on borrowings $    1,424,214 $        843,164
Add: depreciation and amortization $       870,749 $        458,065
EBITDA [non-IFRS] $ 10,862,700 $    8,841,711
Deduct: gain on fair value changes in investment properties $   8,634,612 $    4,255,782
Adjusted EBITDA [non-IFRS] – Continuing operations $   2,228,088 $    4,585,929


Six Months Ended February 28, 2018 Six Months Ended February 28, 2017
Net income – CIBT Education Group Inc. shareholders $    3,149,801 $    5,300,063
Add: net income – Non-controlling interests $    5,417,936 $    2,240,419
Net income $    8,567,737 $    7,540,482
Income per share [non-IFRS] – basic and diluted $0.11 $0.11
Income per share – CIBT Education Group Inc. shareholders – basic and diluted $0.04 $0.07 (2)


(1)  Please refer to the note at the end of this news release concerning non-IFRS financial measures.
(2)   Basic income per share of $0.08 per share.

Highlights for the six months ended February 28, 2018, compared to the comparative prior year period, are as follows:

  • Total educational revenues combining CIBT China, SSCC and SSLC/VIC increased from $14.81 million to $23.34 million, an increase of 57% due to the steady growth of SSCC and the addition of SSLC in April 2017
  • Development fees were $3.64 million as compared to $5.60 million. There are three pending transactions which are set to close in Q3 of the fiscal year ending August 31, 2018 (“Fiscal 2018”) and Q4 Fiscal 2018 which, if the pending transactions complete during the current fiscal year, are expected to result in substantial development fee income for Fiscal 2018
  • Rental income increased from $3.18 million to $3.84 million, an increase of 21%
  • General administration expenses increased from $10.69 million to $15.04 million largely due to the integration of former KGIC (“KGIC”), formerly Loyalist Group Inc. TSXV: LRN) employees into the SSLC and SSCC operations, an increase of 41%
  • Gain on fair value changes in investment properties increased from $4.26 million to $8.63 million, an increase of 103%
  • Net income increased from $7.54 million to $8.57 million, an increase of 14%
  • EBITDA increased from $8.84 million to $10.86 million, an increase of 23%
  • Cash and cash equivalents increased from $6.96 million to $14.08 million, an increase of 102%
  • Total assets increased from $166.68 million to $213.89 million, an increase of 28% from August 31, 2017 to February 28, 2018
  • Total liabilities increased from $89.87 million to $113.23 million, an increase of 26% from August 31, 2017 to February 28, 2018

“Entering the second quarter of Fiscal 2018, we are pleased with the profits being generated by Sprott Shaw College, which represent a robust $1.62 million in net income for the six months net of intercompany charges. While we continue to realize operating losses associated with operations previously held by KGIC, the amount of losses has decreased compared to the same period last year,” commented Toby Chu, Chairman, President and CEO of CIBT Education Group Inc. “Our educational revenues increased by 57% from $14.81 million in the six months ended February 28, 2017, to $23.34 million in the six months ended February 28, 2018, which demonstrated that our growing education platform will continue to be the cornerstone of our business while supplying students to our housing portfolio that will generate substantial returns for our shareholders.

“Our strong revenue growth is supported by our fast-growing student housing portfolio that provided CIBT with 21% rental income growth, year-over-year. We believe that the fair value gain recognized on our investment property portfolio of $8.63 million in the six months ended February 28, 2018, represents only a fraction of the full appreciation value. We are seeing strong performance across all areas of our businesses.”

Mr. Chu continued, “Looking back to our previously announced plans and roadmap, and looking forward into the remainder of Fiscal 2018, we are pleased to report on the following milestones achieved or expected to be achieved subsequent to the quarter ended February 28, 2018 (“Q2 of Fiscal 2018”) which we anticipate will be reflected in our consolidated financial results for Fiscal 2018:

  1. On March 15, 2018, we increased CIBT indirect ownership, from 20% to 47%, in GEC® Granville following the completion of a $12 million equity raise by one of our real estate limited partnerships that took over ownership of the project;
  2. On March 28, 2018, a $30 million equity raise for Global Education City® (Richmond) was completed;
  3. By April 30, 2018, we expect the completion of phase 2 financing raising $15 million in equity for Global Education City® (Richmond);
  4. In April of 2018, we expect the completion of Phase 2 financing raising approximately $7 million in equity for GEC Education Mega Center® and debt financing of $24 million;
  5. We expect to take possession of the GEC® Pearson project in June 2018 which will increase the total amount of available beds for rent in GEC® projects by 310, representing an asset with an appraised value of $86.1 million that will be added to a controlled entity, and generate additional rental income of approximately $4 million per year; and
  6. We will continue the integration of KGIC assets into our portfolio of schools and we believe based on current indications that these operations will reach profitability in the fourth quarter of Fiscal 2018.

“Less than four years ago, CIBT announced an ambitious growth plan to build and construct a one billion dollar student housing portfolio over the following five years. I am pleased to report that CIBT’s student housing portfolio under development and in operations today has reached an estimated market value of $900 million. We will continue to extend our efforts in streamlining our education assets across the system, while actively seeking acquisition opportunities in the education and real estate sector, and to construct the first Education Super Center® and Education Mega Center® in North America.”

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 43 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 accredited educational programs in healthcare, hotel management, language training, and over 150 career, language and vocational programs. CIBT owns 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 an Education Mega Center® and Education Super Center® with an aggregate property value exceeding C$900 million. CIBT also owns Global Education Alliance (“GEA”) and Irix Design Group (“Irix Design”). GEA recruits international students on behalf of many elite kindergarten programs, 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. Forward-looking statements in this news release include (without limitation) statements concerning the amount and expected timing of fundraising by CIBT’s real estate limited partnerships, that the operations of CIBT’s schools into which former KGIC assets have been integrated are expected to be profitable by the fourth quarter of Fiscal 2018, and that CIBT expects to take possession of the GEC® Pearson project in June 2018. 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.

The Company has included certain non-GAAP performance measures throughout this news release including: (a) Earnings before Interest, Income 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 (c) Income (loss) per share [Non-IFRS], which is income (loss) per share as calculated based on net income including that attributable to non-controlling interests. 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 as part of the Q2 Filing under the Company’s profile on


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