CIBT Reports Financial Results for Third Quarter of Fiscal 2018

July 16, 2018

Vancouver, B.C., July 16, 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 third quarter ended May 31, 2018 (collectively, the “Q3 Filing”).  To review the Q3 Filing, please visit CIBT’s profile at The following is selected financial operating results for the nine months ended May 31, 2018 and the comparative prior year period.  Please refer to the Q3 Filing in its entirety.

Nine Months Ended May 31, 2018 Nine Months Ended May 31, 2017 % Change
Total revenues $54,695,235 $36,832,975 48.50%
Educational revenues – SSCC $25,964,358 $21,334,523 21.70%
Educational revenues – SSLC / VIC $7,204,942 $1,949,790 269.52%
Educational revenues – CIBT China $1,791,567 $1,428,081 25.45%
Design and advertising revenues – IRIX $839,779 $724,986 15.83%
Commissions and referral fees – GEA $679,826 $541,788 25.48%
Rental revenues – Global Education Holdings $6,552,381 $5,258,568 24.60%
Development fees – Global Education Holdings & Corporate $11,662,382 $5,595,239 108.43%
General and administrative expenses $23,089,223 $17,360,308 33.00%
Gain on fair value changes in investment properties $8,634,612 $5,741,344 50.39%
Net income $16,645,768 $6,127,178 171.67%
EBITDA [non-IFRS] $20,856,587 $8,212,312 153.97%


Selected Balance Sheet Information May 31, 2018 August 31, 2017 (1) % Change
Total Assets $295,024,223 $166,918,288 76.75%
Total Liabilities $154,081,693 $89,943,528 71.31%


(1)   During the three months ended May 31, 2018 the KGIC Inc. (“KGIC”) business combination accounting relating to the acquisition of certain assets of KGIC was completed and adjustments to the previously disclosed provisional amounts and associated balances have been accounted for as if those adjustments had been completed as of the asset acquisition date of March 29, 2017, which results in certain comparative balances changing from previously reported.

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

Nine Months Ended May 31, 2018 Nine Months Ended May 31, 2017 % Change
Income – continuing operations $16,645,768 $6,127,178 171.67%
Add: interest on borrowings $2,978,485 $1,334,902 123.12%
Add: depreciation and amortization $1,232,334 $750,232 64.26%
EBITDA [non-IFRS] $20,856,587 $8,212,312 153.97%
Deduct: gain on fair value changes in investment properties $8,634,612 $5,741,344 50.39%
Adjusted EBITDA [non-IFRS] – Continuing operations (2) $12,221,975 $2,470,968 394.62%


Nine Months Ended May 31, 2018 Nine Months Ended May 31, 2017 % Change
Net income – CIBT Education Group Inc. shareholders $11,769,371 $3,030,330 288.39%
Add: net income – Non-controlling interests $4,876,397 $3,096,848 57.46%
Net income $16,645,768 $6,127,178 171.67%
Income per share [non-IFRS] – basic and diluted (2) $0.21 $0.08 162.50%
Income per share – CIBT shareholders – basic and diluted $0.15 $0.04 275%

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

Highlights for the nine months ended May 31, 2018, compared to the comparative prior year period, are as follows:

  • Total revenues increased from $36.8 million to $54.70 million, an increase of 48.5% due to the steady growth of domestic students and the large growth of international students attending our schools, and substantial growth from our student housing subsidiaries
  • Development fees increased from $5.60 million to $11.66 million, a triple digit growth of 108.43%
  • Rental income increased from $5.26 million to $6.55 million, an increase of 24.6%
  • General administrative expenses increased from $17.36 million to $23.09 million, an increase of 33% largely due to the integration of former KGIC employees into the SSLC and SSCC operations, addition of GEC® properties to the portfolio, and additional fees and expenses relating to our rapidly growing real estate investment portfolio
  • Gain on fair value changes in investment properties increased from $5.74 million to $8.63 million, an increase of 50.39%
  • Net income increased from $6.13 million to $16.65 million, another triple digit growth of 171.67%
  • EBITDA increased from $8.21 million to $20.86 million, an increase of 153.97%
  • Earnings per share attributable to CIBT shareholders increased from $0.04 to $0.15, an increase of 275%
  • Cash and cash equivalents increased from $6.88 million to $10.57 million, an increase of 54%
  • Total assets increased from $166.92 million to $295.02 million, an increase of 76.7% from August 31, 2017 to May 31, 2018
  • Total liabilities increased from $89.94 million to $154.08 million, an increase of 71.3% from August 31, 2017 to May 31, 2018

“Entering the third quarter of fiscal 2018, we are pleased with the profits being generated by our wholly owned subsidiary, Global Education City Holdings Inc., and its various subsidiaries. Our development fee income has increased by 108% in the nine months ended May 31, 2018 as we facilitated several real estate transactions to support our education business. These transactions not only generated significant returns to our shareholders, but also contributed to the Company’s solid reputation as the leading student housing provider in Western Canada,” commented Toby Chu, Chairman, President and CEO of CIBT Education Group Inc. “Our educational revenues also increased by 41.5% from $24.71 million to $34.96 million in the nine months ended May 31, 2018 compared to  the prior year period, reflecting our leading position in Canada’s private education sector.  We believe that our education platform will continue to create synergistic value with our housing portfolio that is expected to generate substantial returns for our shareholders.”

“Our fast-growing student housing portfolio provided CIBT with 24.6% rental income growth, year-over-year. We believe that the fair value gain recognized on our investment property portfolio of $8.63 million during the nine months ended May 31, 2018, represents only a fraction of the full appreciation value. We are seeing substantial appreciation of real estate value across our limited partnership investment portfolio when compared to values as at the acquisition dates, and we anticipate recognizing some portion of this appreciation over the next year. We anticipate that the fourth quarter of fiscal 2018 we be another strong quarter considering anticipated transactions including one of the investment limited partnerships taking possession of another property in July 2018. This property has increased in value by approximately $38 million since we entered into an agreement in May 2014 to purchase it on completion. The value being generated for shareholders is expected to continue to grow as CIBT continues to aggressively gain market share and capitalize on future opportunities.”

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 business and management 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 development company focused on developing education related real estates such as student hotels, serviced apartments and education super centres.  Total portfolio and development budget of projects under Global Education’s GEC® brand is more than C$1 billion.  CIBT also owns Global Education Alliance (“GEA”) and Irix Design Group (“Irix Design”). GEA recruits international students on behalf of 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. 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, that CIBT expects to take possession of the GEC® Pearson project in July 2018 and the amount of expected increase in value since May 2014, that the housing portfolio is expected to generate substantial results for shareholders, and that only a fraction of the fair value of the investment property portfolio has been realized. 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 Q3 Filing under the Company’s profile on


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