CIBT Reports Financial Results for Third Quarter of Fiscal 2019

July 15, 2019

Vancouver, B.C, July 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 financial statements and related management’s discussion and analysis for its third quarter ended May 31, 2019 (collectively, the “Q3 Filing”).  The following is selected financial information for the nine months ended May 31, 2019, and comparative period. Please refer to the Q3 Filing in its entirety which is available under CIBT’s profile at

Nine Months Ended May 31, Absolute Change % Change
In Canadian dollars 2019 2018
Total revenues $ 48,758,484 $ 54,695,235 $ (5,936,751) -11%
Educational revenues – SSCC, SSLC/VIC, CIBT China $ 36,813,420 $ 34,960,867 $ 1,852,553 5.3%
Design and advertising revenues – IRIX $ 697,008 $ 839,779 $ (142,771) -17%
Commissions and referral fees – GEA $ 569,610 $ 679,826 $ (110,216) -16%
Rental revenues – GECH $ 8,525,684 $ 6,552,381 $ 1,973,303 30%
Development fee revenues – GECH and Corporate $ 2,152,762 $ 11,662,382 $ (9,509,620) -82%
Other operating expenses $ 25,897,966 $ 24,522,488 $ 1,375,478 6%
Finance costs and finance fee expenses $ 4,929,500 $ 3,687,962 $ 1,241,538 34%
Gain on change in fair value of investment properties $ 8,100,000 $ 8,634,612 $ (534,612) -6%
Income before income taxes $ 4,961,977 $ 16,645,768 $ (11,683,791) -70%
Net income $ 5,689,170 $ 16,645,768 $ (10,956,598) -66%
EBITDA [non-IFRS] $ 10,963,545 $ 20,708,246 $ (9,744,701) -47%


Selected Balance Sheet Information May 31, 2019 August 31, 2018 % Change
Total Assets $ 346,405,003 $ 340,836,632 2%
Total Liabilities $ 170,196,082 $ 169,184,451 0.6%
Total Equity $ 176,208,921 $ 171,652,181 3%

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

  Nine Months Ended May 31,


2019 2018
  ($) ($)
Income – Continuing operations 5,689,170 16,645,768
Deduct: interest income (2) (163,316) (148,341)
Add: interest on borrowings 4,539,618 2,978,485
Add: income tax provision (recovery) (727,193)
Add: depreciation and amortization 1,625,266 1,232,334
EBITDA [non-IFRS] 10,963,545 20,708,246
Deduct: gain on changes in fair value of investment properties (8,100,000) (8,634,612)
Adjusted EBITDA [non-IFRS] 2,863,545 12,073,634
  • Please refer to the note at the end of this news release concerning non‐IFRS financial measures.
  • Interest income not associated with operations. Comparative periods adjusted to reflect this amount.

Highlights for the nine months ended May 31, 2019, compared to the prior comparative period, are as follows:

  • Total educational revenues increased by $1.85 million, or 5.3%
  • Development fee revenues decreased from $11.66 million to $2.15 million. The relatively larger development fee revenues in fiscal 2018 was primarily due to the subscription activity for one of our flagship properties, Global Education City® (Richmond). In fiscal 2019, the focus is on developing mid-size projects, while continuing to execute our sizeable projects
  • Rental revenues increased from $6.55 million to $8.53 million, representing an increase of 30%, as our real estate division continues to expand its property portfolio for generating recurring and steady revenue
  • Other operating expenses increased from $52 million to $25.90 million, mainly due to increased GECH operations and administrative costs
  • Gain on changes in fair value of investment properties decreased by 6% from $8.63 million to $8.10 million
  • Net income decreased from $16.65 million to $5.69 million mainly due to the decrease in development fee revenues
  • EBITDA decreased from $20.71 million to $10.96 million
  • Total assets increased from $340.84 million to $346.41 million, or 2%
  • Total liabilities increased from $169.18 million to $170.2 million, or 0.6%

“We are pleased to report that during the first three quarters of fiscal 2019, we have seen a steady increase in both educational and rental revenues,” commented Toby Chu, Chairman, President, and Chief Executive Officer of CIBT Education Group Inc. “With a current portfolio of 870 beds, and five buildings fully operational, we have maintained a rapid pace of growth to scale our asset base. Our focus on fiscal 2019 is to maintain our growth, and concentrate on project execution.  Two of our existing projects, GEC Education Mega Center® in Surrey and Global Education City® (Richmond), are substantial in size with a development budget and purchase value of nearly $400 million in aggregate. While these two substantial size projects are being built out, we will commence construction of GEC® King Edward II this fall, and complete the rezoning of GEC® Oakridge and GEC® Kingsway. The completion of these projects will expand our portfolio in terms of number of beds and make us a substantial player in the western Canadian student accommodation sector.

“Our emphasis will be placed on project execution and consistent value accretion to our properties by increasing their density while reducing our operating expenses through achieving economies of scale,” continued Toby Chu. “Going forward, if any attractive exit opportunity arises, we may consider exiting certain projects at substantially higher values from their original cost to boost our operating capital and net income, which would enable us to seek out under-valued assets in the prevailing real estate market.”

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 construction of GEC® King Edward will commence this fall, that rezoning of GEC® Oakridge and GEC® Kingsway will be completed, and that CIBT will be able to exit certain projects at substantially higher values from their original cost if an attractive exit opportunity arises. 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 usual construction risks, obtaining all necessary regulatory approvals, and obtaining the requisite approval of the other limited partners to the sale of a project in respect of which an attractive exit opportunity arises. 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 (loss) without the impact of gain (loss) on the change in fair value of the Company’s investment properties. 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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