CIBT Reports Financial Results for Second Quarter of Fiscal 2019

April 15, 2019

Vancouver, B.C., April 15, 2019 – 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, 2019 (collectively, the “Q2 Filing”).  The following is selected financial information for the six months ended February 28, 2019 and comparative period. Please refer to the Q2 Filing in its entirety which is available under CIBT’s profile at

Six Months Ended

February 28,

Percentage Change
In Canadian dollars 2019 2018 (1)
Total revenues $ 32,620,450 $ 31,860,528 2%
Educational revenues – SSCC $ 16,931,353 $ 17,079,307 -1%
Educational revenues – SSLC / VIC $ 5,957,672 $ 4,941,502 21%
Educational revenues – CIBT China $ 1,485,804 $ 1,322,257 12%
Design and advertising revenues – IRIX $ 460,729 $ 550,401 -16%
Commissions and referral fees – GEA $ 424,037 $ 479,905 -12%
Rental revenues – GECH $ 5,589,155 $ 3,844,336 45%
Development fees – GECH and Corporate $ 1,771,700 $ 3,642,820 -51%
Other operating expenses $ 17,489,331 $ 15,909,532 10%
Finance costs and finance fee expenses $ 3,313,824 $ 1,817,338 82%
Gain on change in fair value of investment properties $ 8,100,000 $ 8,634,612 -6%
Income before income taxes $ 5,699,606 $ 8,687,737 -34%
Net income $ 5,393,809 $ 8,687,737 -38%
EBITDA [non-IFRS] $ 9,596,269 $ 10,759,469 -11%


(1) During the three months ended May 31, 2018, the business combination accounting related to the acquisition of certain assets of KGIC Inc. (“KGIC”), formerly Loyalist Group Inc., was completed and certain adjustments to previously disclosed provisional amounts and associated balances have been accounted for as if those adjustments had been completed as of the acquisition date of March 29, 2017. As a result, certain comparative balances have changed from those previously reported.

Selected Balance Sheet Information February 28, 2019 August 31, 2018 Percentage Change
Total Assets $ 338,031,219 $ 340,836,632 -0.8%
Total Liabilities $ 164,826,353 $ 169,184,451 -2.6%

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

Six Months Ended

February 28, 2019

Six Months Ended

February 28, 2018

Net income – continuing operations $ 5,393,809 $ 8,687,737
Deduct: interest income (2) (38,159) (103,231)
Add: interest on borrowings 2,857,348 1,424,214
Add: income tax provision 305,797
Add: depreciation and amortization 1,077,474 750,749
EBITDA [non-IFRS] $ 9,596,269 $10,759,469
Deduct: gain on changes in fair value of investment properties (8,100,000) (8,634,612)
Adjusted EBITDA [non-IFRS] $ 1,496,269 $ 2,124,857


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

(2) Interest income not associated with operations.

Highlights for the six months ended February 28, 2019, compared to the comparative prior year period, are as follows:

  • Total educational revenues combining all of our education subsidiaries increased by 4.4% mostly due to the increase in revenues of the language school segment
  • Development fee revenues decreased from $3.64 million to $1.77 million due to the timing of various project schedules throughout each fiscal year
  • Rental income increased from $3.84 million to $5.59 million, an increase of 45.4% as our real estate division continues to add rental properties to its investment property base for students attending schools in Metro Vancouver
  • General and administrative expenses increased from $15.03 million to $16.25 million, largely due to integration of staff from a language school acquisition and expenses related to real-estate development projects
  • Gain on changes in fair value of investment properties decreased by 6% from $8.63 million to $8.10 million
  • Net income decreased from $8.69 million to $5.39 million, mostly due to the timing of recognition of development fee revenues, which varies dependent on the timing of development of real-estate projects, and the increase in general and administrative expenses above mentioned
  • EBITDA decreased 10.8% from $10.76 million to $9.60 million
  • Total assets decreased marginally by 0.8% from $340.84 million to $338.03 million
  • Total liabilities decreased by 2.6% from $169.18 million to $164.83 million


“We are pleased with the profits being generated by our education subsidiaries, in the amount of $2.13 million in profit for the six months ended February 28, 2019 net of intercompany charges and income tax provisions. Our substantial turnaround of operating losses associated with operations previously held by KGIC, decreased to $0.25 million net of intercompany charges and income tax recovery, as compared to a loss of over $20 million before we acquired the KGIC assets in March 2017 representing a significant improvement,” commented Toby Chu, Chairman, President and CEO of CIBT Education Group Inc. “Our rental revenue increased by 45.4% demonstrating that our business model of supplying students from our education platform to our market rental properties is working as planned.  Our education platform and our market rental platform will continue to be the cornerstones of our business and are generating substantial returns for our investment partners and CIBT shareholders.


“2019 is expected to be a bearish year for the real estate sector in Vancouver, Toronto, and many parts of Asia such as Hong Kong and many cities in China, in part due to uncertainties caused by the trade war between China and the United States, U.K.’s departure from the European Union, and the overall economic outlooks are somewhat clouded,” continued Mr. Chu. “Despite all these uncertainties, our education platform and rental properties continue to grow and be profitable, while our new project development pace will understandably be slower than in fiscal 2018 for reasons of prudence.  Having said this, fair market values gains on our investment properties, resulting from increases in the fair market value of our investment properties, continue to be strong and substantial despite economic growth declining. Our success is attributable to our conservative approach towards acquisitions, consistent value accretion to our properties through increasing their density, and reduction of our operating expenses through attaining economies of scale.  These three value accretive initiatives improved the net income and cash flow for our properties.  Equally important, we exited certain projects at substantially higher values from their original cost. This boosted our operating capital, which will enable us to seek out under-valued assets during the current state of the economy.”

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 12,000 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 estate such as student hotels, serviced apartments and education super centres. Total portfolio and development budget of projects under the 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 kindergarten programs, primary and secondary schools, and 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) the statement that 2019 is expected to be a bearish year for the real estate sector in Vancouver and other parts of the world and that CIBT’s current level of operating capital will enable it to seek out under-valued assets during the current state of the economy. 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 uses: (a) earnings before interest, taxes, depreciation and amortization (“EBITDA”); and (b) adjusted EBITDA which is EBITDA adjusted for the gain (loss) on the change in fair value of the Company’s investment properties which are non-IFRS financial metrics 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 and Adjusted EBITDA as a measure of net income without the impact of gain (loss) on the change in fair value. 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 Q2 Filing under the Company’s profile on

Request Info

Request Info Today!

If you have any general inquiries, please fill out this simple form and someone from our team will get back to you shortly!

Inquire today