CIBT Reports Financial Results for First Quarter of Fiscal 2021

VANCOUVER, BC / ACCESSWIRE / January 14, 2021 / CIBT Education Group Inc. (TSX:MBA)(OTCQX: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 first quarter of fiscal 2021 ended November 30, 2020 (collectively, the “Q1 Filing“). The following is selected financial information for the three months ended November 30, 2020 (“Q1 2021“) and comparative results. Please refer to the Q1 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.

NM indicates not meaningful

The following reconciles the net income to EBITDA and Adjusted EBITDA (non-IFRS):

1. For the three months ended November 30, 2019, previously reported EBITDA and Adjusted EBITDA were $2,943 and $3,344, respectively. Previous presentation of interest expense did not include accretion of deferred finance fees. Previous presentations of depreciation and amortization did not include the amortization of agency fee intangibles.

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

“During Q1 2021, we experienced significant growth in several areas, and we are pleased to report a total revenue of approximately $14 million despite the COVID-19 pandemic having a huge impact on the global economy,” commented Toby Chu, Chairman, President and CEO of CIBT. “SSCC net income before inter-segment transactions increased by 18% from $1.1 million to $1.3 million. In addition, development fees revenues increased by 395% from $0.4 million to $1.98 million. Most importantly, our consolidated net income for Q1 increased by 288% from $0.283 million to $1.099 million, while EBITDA increased by 24% from $4.084 million to $5.054 million. We are also pleased to report a gain in fair value of investment properties, which increased by 327% from a loss of $0.298 million in Q1 2020 to a gain of $0.677 million in Q1 2021. On top of that, our total asset value surpassed $0.5 billion, and our book value per share grew from $0.69 to $0.71 as of November 30, 2020, compared to August 31, 2020.

“Overall, our business continues to show signs of a steady recovery from the various impacts of the global pandemic, and we are now back on track to accelerate the growth of our student housing portfolio,” continued Toby Chu. “Since the Canadian government reopened its borders for international students in October 2020, we have seen a steady increase in international student enrollments trailing from December 2020 and expect this to continue into the summer of 2021.

“Our real-estate subsidiary, Global Education City Holdings, recorded a high volume of rental apartment bookings for the spring and summer intake of 2021. Furthermore, we saw double-digit growth in domestic enrollment for Sprott Shaw College, month after month from September 2020 to January 2021. As a result, we anticipate a gradual increase in international students’ arrival that could extend to the fall of 2021. We also anticipate an increase in rental revenue as the international education and business travel sectors continue to recover from the impact of border closures. At the same time, we are hopeful that the distribution of vaccines in the near future will curb the spread of COVID-19, leading to the recovery of the global economy that will enable us to expand our student housing portfolio and improve our education income throughout fiscal 2021 and 2022.”

The following market reports reflect positive signs that the real estate market is recovering rapidly, which benefits CIBT:

• According to the Greater Vancouver Real Estate Board, real estate transaction volume and price increases in Metro Vancouver continue to set new records from September to December 2020. Refer to: https://www.rebgv.org/market-watch/monthly-market-report/december-2020.html & https://bc.ctvnews.ca/vancouver-real-estate-home-sales-surge-53-4-setting-new-record-1.5254004
• According to the BC Assessment Authority, total assessments for the Lower Mainland have increased by about $50 billion in value year over year, to $1.46 trillion in 2021 from $1.41 trillion in 2020. Refer to: https://biv.com/article/2021/01/lower-mainland-property-assessments-50-billion
• Vancouver, Canada, remains one of the most favourable cities in the world for international education. Refer to: https://www.educations.com/top-10-lists/top-10-places-to-study-abroad-global-18096.

During Q1 2021, CIBT’s real estate services division, Global Education City Holdings, added two new buildings to the real estate portfolio at the cost of $48.5 million. At the time of the acquisition, the buildings were fully operational and had an 85% occupancy rate. Within two months after completing the acquisition, the rental buildings’ occupancy has reached near-full capacity.

Toby Chu added, “As a complement to our post-COVID-19 recovery strategy, Global Education City Holdings expanded its business scope to include corporate housing by adding working professionals in the technology and healthcare sectors to its existing clientele. After conducting a trial in these new sectors, we are pleased to report positive results. This goes to show that Vancouver, nicknamed “Silicon Valley North”, has attracted many technology companies worldwide looking to set up new offices in Metro Vancouver.”

About CIBT Education Group:

CIBT Education Group Inc. is one of the largest education and student housing investment companies in Canada, 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 46 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, hotel management, and language training through these schools. In 2020, CIBT serviced over 11,000 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 service to 72 schools in Metro Vancouver, serving 1,500 students from 77 countries. The total portfolio and development budget under the GEC® brand exceed $1.5 billion.

CIBT also owns Global Education Alliance (“GEA“) and Irix Design Group (“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.

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, statements as to: (i) the expectation that the local real estate market will continue to recover; (ii) the statement that the Company expects to accelerate the growth of its student housing portfolio; (iii) the statement that a steady increase in international student enrollments is expected to continue into the summer of 2021 and possibly into the fall of 2021; and (iv) the statement that the Company is hopeful that the distribution of vaccines will curb the spread of COVID-19, leading to the recovery of the global economy that will enable CIBT to expand its student housing portfolio and improve its education income throughout fiscal 2021 and 2022. 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: (a) the number of students continuing their education despite the COVID-19 pandemic and the number of new enrolments continuing to increase; (b) that the distribution of vaccines will curb the spread of COVID-19, leading soon thereafter to a global economic recovery; (c) that there won’t be substantial delays in obtaining all necessary regulatory approvals; and (d) the ability of the applicable project limited partnerships to raise funds for new real estate projects 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 common 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.

SOURCE: CIBT Education Group Inc.

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