TSX Venture Exchange
TORONTO, April 30, 2012 /CNW/ - Loyalist Group Limited (TSX-V: LOY) ("Loyalist Group" or the "Corporation"), an emerging consolidator of private ESL schools, is pleased to announce its financial results for the year ended December 31, 2011. All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.
"2011 was an eventful year for Loyalist Group. We successfully completed several acquisitions and positioned ourselves to become the leading consolidator in the private ESL school sector. Loyalist Group has taken further steps to gain market share domestically and expand internationally toward our vision of becoming the leading Canadian private education provider," said Andrew Ryu, CEO of Loyalist Group.
|As at||December 31, 2011|| (Restated under IFRS)
December 31, 2010
|For the year ended||December 31, 2011||December 31, 2010|
|Integration, restructuring and acquisition costs||(528,722)||(1,817,126)|
|Foreign exchange loss||(2,795)||(2,999)|
|Unrealized gain (loss) on investments||(2,025)||3,057|
|Net earnings (Loss)||(1,277,012)||(1,800,812)|
|Net earnings (Loss) per share||(0.03)||(0.11)|
As a result of several acquisitions completed during 2011, both revenues and expenses increased compared to the 2010 figures. The Corporation generated a net loss of $1,277,012 for the year ended December 31, 2011 compared to a net loss of $1,800,812 (net income of $16,256 under GAAP) for the year ended December 31, 2010. Details are described below:
- The Corporation's revenues for the year ended December 31, 2011 were $4,622,429 compared to $874,765 for the year ended December 31, 2010, an increase of 428.4%, resulting from acquisitions of Western Town College Ltd. ("WTC"), PGIC Vancouver Studies Inc. ("PGIC"), Pacific Gateway Career College Inc. ("PGCC") and Universal College of Language Inc. ("UCL") in 2011. These acquisitions contributed $524,060, $1,695,864, and $967,508 of revenue, respectively, for the year ended December 31, 2011.
- The Corporation's expenses for the year were $5,365,899, an increase of 525% compared to $858,509 for 2010. The increase in operating expenses is in line with the increase in revenue and on-going acquisitions.
- In 2011, the Canadian Dollar was very strong against foreign currencies such as the US Dollar and Korean Won. As a result, the Corporation had a foreign exchange loss of $2,795 for the year ended December 31, 2011.
- The audited financial statements for the year ended December 31, 2011 and accompanying Management's Discussion & Analysis will be available at www.sedar.com.
- Successfully completed the acquisition of WTC, PGIC, PGCC and UCL.
- Established its wholly-owned operating subsidiary in South Korea
- Initiated the process of optimizing its operations through reorganization by reducing the number of employees, merging campus locations, and amalgamating its administration and accounting departments.
Subsequent Business Highlights
- Secured a loan for $500,000 with Windsor Private Capital Limited Partnership ("Windsor"), bearing interest at Royal Bank of Canada's prime rate plus 10% per annum for a one-year term.
- Entered into a follow-on loan agreement with Windsor for an additional $500,000 loan, bearing the same interest as the above loan with a 14-month term.
About Loyalist Group (TSXV: LOY)
Loyalist Group owns and operates private ESL schools both in Toronto and Vancouver. Run by experienced professionals in the private education sector, Loyalist Group provides educational services with an emphasis on teaching: (i) English as a Second Language courses for international students, (ii) training programs for teachers, commonly known as TESOL, (iii) professional development courses, and (iv) corporate English for professionals.
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only the Corporation's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Corporation's control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken, "will continue", "will occur" or "will be achieved". The forward-looking information contained herein includes, but is not limited to, information with respect to prospective financial performance, anticipated capital funding and sources, proposed or potential acquisitions, estimated operating and sales costs, estimated market drivers and demand, business prospects and strategy, new markets for growth and financial position. By identifying such information and statements in this manner, the Corporation is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such information and statements. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results, including but not limited to: risks related to any of the Corporation's announced acquisitions failing to close or becoming delayed before closing; the Corporation's reliance on its South Korean contract; carrying on business and activities in international jurisdiction where Canadian laws do not apply; any loss of certain key personnel; levels of student enrolment; delays in rolling out the online education programs; competition in the educational services market; and currency fluctuations. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Although the Corporation believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Accordingly, readers should not place undue reliance on any forward-looking information or statements contained in this press release. The forward-looking information contained in this press release is made as of the date hereof, and the Corporation does not undertake to update any forward-looking information that is contained or referenced herein, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to the Corporation or persons acting on its behalf is expressly qualified in its entirety by this notice.
For further information:
Loyalist Group Limited
T: (416) 977-9800 x225
E: [email protected]
Loyalist Group Limited
T: (416) 221-2009
E: [email protected]