VANCOUVER, Jan. 19 /CNW/ - CIBT Education Group Inc. (the "Company")
(NYSE Alternext & TSXV symbol: MBA) is pleased to report its fiscal 2009 first
quarter operating results (unaudited) as of November 30th 2008.
On June 26th, 2008, the Company changed its fiscal year end from June
30th to August 31st to coincide with the fiscal year end of the Company's
major operational subsidiary, Sprott Shaw Degree College Corp. ("SSDC"), which
was acquired in December 2007, and to coincide with the fiscal year end date
most commonly used in the education industry. Also, as a result of the
acquisition of SSDC, effective September 1st, 2008, the Company changed its
reporting currency from US dollars to Canadian dollars, which is the
functional currency used by SSDC, due primarily to SSDC's financial
contribution to the operations of the Company.
For the first quarter ending November 30, 2008, the Company's gross
revenues totalled $10.521 million dollars as compared to revenues of $3.117
million for the quarter ending December 31, 2007, an increase of 238%. The
Company generated an EBITDA (Earnings Before Interest Taxes Depreciation &
Amortization) of $767,820. Adjusting the EBITDA for Stock-Based Compensation,
a non-cash expense item that has no impact on the Company's operating cash
flow, would result in an adjusted EBITDA of $984,775 for the first quarter of
fiscal 2009. Total Net Income, inclusive of all non-cash expenses, for the
first quarter ending November 30, 2008 was $149,669. Using an EBITDA analysis
allows management to isolate financial statement items that contribute to the
changes in income (loss) figures. As of November 30, 2008, the Company's cash
position increased to $13.082 million as compared to the Company's August 31,
2008 fiscal year end cash position of US$10.932 million.
As of November 30, 2008, CIBT's total student enrollment was 3,064
compared to 3,458 for the period ending December 31, 2007. Revenue per student
averaged Chinese RMB 5,476 for the three months ending November 30, 2008
compared to an average of Chinese RMB 4,518 per student for the three months
ending December 31, 2007, representing an increase of 21%. The decrease in
student enrollment and increase in the average revenue per student was a
result of CIBT's change in business strategy from offering courses generating
lower revenues with higher student headcount to courses generating higher
revenues with lower student headcount.
As of November 30, 2008, SSDC's total student enrollment was 1,876
compared to 1,728 for the period ending December 31, 2007, representing an
increase of 9%. Revenue per student averaged $3,837 for the three months
ending November 30, 2008 compared to an average of $3,970 per student for the
three months ending December 31, 2007, representing a marginal decrease of 3%.
The student population increase was due to organic growth and the acquisition
of Concordia Career College and Modus International Language Institute.
Revenue per student in Canada is consistent with prior periods with a marginal
decrease due to new student enrollment integration as a result of the
acquisitions. SSDC's business strategy is to increase its international
student population by focusing on language schools, which typically provide
lower revenue per student, with the expectation that these international
students will ultimately transfer their course studies to the diploma and
degree programs that provide higher revenue per student upon completion of
their language studies in Canada. By broadening the language student body,
SSDC's strategy is to increase its revenue source from international students
instead of generating the majority of its revenue from the domestic market.
The objective is to create a feeder system that will supply international
language students to SSDC's premium (diploma and degree granting) courses.
Gross revenues for IRIX for the three months ending November 30, 2008
were $518,810 compared to $547,042 for the three months ending December 31,
2007, representing a decrease of 5%. IRIX's operating margin was 51% for the
three months ending November 30, 2008 compared to 33% for the three month
period ending December 31, 2007. Operating margin as a percentage increased
considerably by 55% despite the 5% decline in revenue. Due to higher margin
and lower general and administrative expenses, IRIX's EBITDA was $82,564 for
the three month period ending November 30, 2008 compared to $13,481 for the
three month period ending December 31, 2007. IRIX generated a net income of
$75,280 before inter-corporate fees of $4,025 for the first quarter as
compared to a net income of $5,546 for the three month period ending December
31, 2007, representing an increase of 1,770%.
To view the Company's financial statements and management's discussion
and analysis, please visit www.sedar.com.
About CIBT Education Group Inc.
CIBT is an education management and investment company with a special
focus on the global education market. Its subsidiaries, CIBT School of
Business & Technology Corp., Tourism Training Institute, Concordia Career
College, Modus International Language College and Sprott-Shaw Degree College
Corp., which is comprised of Sprott-Shaw Degree College, Sprott-Shaw Community
College (established in 1903), Sprott-Shaw International Language College,
possess a combined operating history of over 118 years in China and Canada's
education sectors. CIBT owns and operates a network of business, technical and
language colleges with presence at over 40 campuses and teaching centers
including Canada, China, Vietnam, Jordan and the Philippines. CIBT delivers
North American and Chinese accredited business and management degree programs,
automotive, and diesel maintenance programs, IT programs, travel and tourism
programs and career/vocational programs through its network of campuses across
China and Canada. In 2006, CIBT initiated plans to aggressively expand its
business presence across China and to establish schools in other parts of Asia
including South Korea, Thailand, Taiwan, Hong Kong, Malaysia and India. CIBT
also owns Irix Design Group, a leading full service design and advertising
company based in Vancouver, Canada. In 2008, Irix Design was ranked 15th in
the list of Biggest Ad Agencies in Greater Vancouver by the Business in
CIBT Education Group Inc.
Vice-Chairman, President & CEO
Legal Notice Regarding Forward-Looking Statements: "Forward-looking
Statements" as defined in the Private Securities Litigation Reform Act of 1995
may be included in this news release. These statements relate to future events
or CIBT's future financial performance. These statements are only predictions
and may differ materially from actual future results or events. CIBT disclaims
any intention or obligation to revise any forward-looking statements whether
as a result of new information, future developments or otherwise. There are
important risk factors that could cause actual results to differ from those
contained in forward-looking statements, including, but not limited to risks
associated with changes in general economic and business conditions, actions
of CIBT's competitors, the extent to which CIBT is able to develop new
services and markets for their services, the time and expense involved in such
development activities, the level of demand and market acceptance of their
services and changes in our business strategies.
The TSX Venture Exchange and the NYSE Alternext US have not reviewed and
do not accept responsibility for the adequacy or accuracy of this news
release. This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction.
For further information:
For further information: Investor Relations Contact: Ed Cheung, N.
America Toll Free: 1-800-574-0901 extension 318*, Email: email@example.com