CIBT Reports Financial Results for Second Quarter of Fiscal 2022
Vancouver, B.C., April 13th, 2022 – 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 second quarter of fiscal 2022 ended February 28, 2022 (collectively, the “Q2 Filing“). The following is selected financial information for the six months ended February 28, 2022 (“Q2 2022“) and comparative results (“Q2 2021”). Please refer to the Q2 Filing in its entirety, which is available under CIBT’s profile at www.sedar.com.
All figures are in thousands of Canadian dollars except share and per share data unless otherwise noted.
The following reconciles the net income (loss) to EBITDA and Adjusted EBITDA (non-IFRS):
(1) Please refer to Non-IFRS Financial Measurements at the end of this new release.
(1) Please refer to Non-IFRS Financial Measurements at the end of this new release.
“Despite the economic impact of the Omicron variant during the first six months of fiscal 2022, our total revenue increased by 19%, from $28.343 million to $33.792 million compared to the same period of fiscal 2021,” commented Toby Chu, Chairman, President, and CEO of CIBT. “Our international educational revenue demonstrated the strongest growth, increasing by 238%, from $1.191 million to $4.029 million, highlighting a strong recovery in the international education sector as a result of international students gradually returning to Canada. Our rental revenue also increased by 90%, from $4.025 million to $7.646 million compared to the same period last year. The Adjusted EBITDA (non-IFRS) for year-to-date fiscal 2022 reached $10.107 million, which is 39% higher than the same period last year.
“Since the beginning of April 2022, many COVID-19 restrictions have been lifted in British Columbia and most of our residential properties are currently operating at near full capacity,” continued Mr. Chu. “As a result, some of our businesses are gaining significant traction and delivering results that are consistent with our pre-COVID financial and operational performance. Most notably, our GEC® Granville hotel business is generating net operating income and the average daily rate is outperforming the pre-COVID months. In addition, the diminishing housing supply and increasing demand, highlighted by Metro Vancouver’s low rental vacancy rate of 1.2% for purpose-built rental properties and 0.8% for condo rental properties (according to a CMHC report dated February 18th, 2022*1) bodes well for the Company’s rental portfolio. We plan to expand our real estate portfolio in the coming months and remain focused on streamlining our operations and executing growth initiatives to scale our company.”
About CIBT Education Group:
CIBT Education Group Inc. is one of Canada’s largest education and student housing investment companies focused on the domestic and the global education market since 1994. CIBT owns business and language colleges, student-centric rental apartments, recruitment centres and corporate offices at 45 locations in Canada and abroad. Its education subsidiaries include Sprott Shaw College (established in 1903), Sprott Shaw Language College, Vancouver International College Career Campus and CIBT School of Business. CIBT offers over 150 educational programs in healthcare, business management, e-commerce, cyber-security, hotel management, and language training through these schools. In 2021, CIBT provided educational and housing services to over 10,000 students through its various subsidiaries.
CIBT owns Global Education City Holdings Inc. (“Global Holdings”), an investment holding and development company focused on education-related real-estate such as student-centric rental apartments, hotel and education super-centres. Under the GEC® brand, Global Holdings provides accommodation services to 90 schools in Metro Vancouver, serving 1,500 students from 71 countries. The total portfolio and development budget under the GEC® brand exceed $1.5 billion.
CIBT also owns Global Education Alliance Inc. (“GEA”) and Irix Design Group Inc. (“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 www.cibt.net.
For more information, contact:
Toby Chu
Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 318 or | Email: info@cibt.net
FORWARD-LOOKING STATEMENTS
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 CIBT plans to expand its real estate portfolio in the coming months. The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the “Risks”) that could cause CIBT’s actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. The Risks include, without limitation, that CIBT is able to identify a property for sale meeting its location criteria and clearing due diligence reviews, negotiate acceptable purchase terms, and obtain financing on acceptable terms. 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.
NON-IFRS FINANCIAL MEASUREMENTS
The Company has included non-IFRS performance measures throughout this press release, including (a) Earnings Before Interest, 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 the gain (loss) on change in fair value of derivative instruments; and (c) Book Value per Share which is calculated as equity attributable to CIBT Education Group Inc. shareholders divided by total common shares outstanding at the end of the reporting period. 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. 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 or any other financial measure of performance prescribed by IFRS. Reconciliation of non-IFRS measures has been provided throughout the Company’s MD&A, as applicable, filed under the Company’s profile on www.SEDAR.COM.