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CIBT Reports Financial Results for Fiscal Year Ended August 31, 2021

VANCOUVER, BC / ACCESSWIRE / November 29, 2021 / CIBT Education Group Inc. ("CIBT" or the "Company") (TSX:MBA)(OTCQX:MBAIF) reports that it has filed on SEDAR its annual audited consolidated financial statements (the "Annual Financial Statements") and related Management's Discussion & Analysis (the "MD&A") (collectively, the "2021 Financial Report") for the fiscal year ended August 31st, 2021 ("Fiscal 2021"). This news release should be read in conjunction with the 2021 Financial Report in its entirety. To review the 2021 Financial Report, please visit CIBT's profile at

The following table presents selected financial data from the 2021 Financial Report with comparisons. All figures are in thousands of Canadian dollars, except share and per share data, unless otherwise noted.

Fiscal 2021 Fiscal 2020 % Change
Total revenues
$60,869 $62,548 (3%)
Educational revenues - Sprott Shaw College
$40,282 $37,036 9%
Educational revenues - Sprott Shaw Language College & VIC Vancouver International College
$3,280 $7,173 (54%)
Educational revenues - CIBT School of Business
$2,671 $2,666 -
Rental revenues - Global Education City Holdings Inc. ("GECH")
$9,878 $10,016 (1%)
Development fees - GECH and Corporate
$3,134 $4,540 (31%)
Design and advertising revenues - IRIX Design Group Inc.
$996 $716 39%
Commissions and referral fees - Global Education Alliance Inc.
$628 $401 57%
Other operating expenses
$(33,956) $(32,769) 4%
Finance costs
$(12,513) $(8,168) 53%
Change in fair value gain (loss)
$8,802 $(5,730) 254%
Other income (expense), net
$8,175 $5,317 54%
Income (loss) before income taxes
$5,708 $(4,441) 229%
Income tax (expense)
$(531) $(310) (71%)
Net income (loss)
$5,177 $(4,751) 209%
Net income attributable to CIBT shareholders
$4,703 $1,229 283%
Income (loss) per share - CIBT shareholders
$0.07 $0.02 250%
$(0.01) $(0.01) -
Book value per share (1)
$0.73 $0.69 6%
$21,409 $9,119 135%
Total assets
$519,039 $452,767 15%
Total non-current financial liabilities
$99,639 $99,794 -

The following reconciles net income (loss) to EBITDA and adjusted EBITDA (non IFRS):

Presented in thousands of Canadian dollars
Fiscal 2021 Fiscal 2020
Net income (loss)
5,177 (4,751)
Deduct: interest income(2)
(3,463) (2,863)
Add: interest expense
12,365 8,496
Add: income tax provision (recovery)
531 310
Add: depreciation and amortization
6,799 7,927
21,409 9,119
Add loss/deduct (gain) on changes in fair value of investment properties
(8,802) 5,730
Add loss/deduct (gain) on derivatives, net
168 (381)
Adjusted EBITDA [non-IFRS]
12,775 14,468
  1. Non-IFRS financial measure. See section "Non-GAAP Financial Performance Measures" for reconciliation in MD&A. See the "Non-IFRS Financial Measurements" cautionary note at the end of this news release.
  2. Interest income not associated with operations.

"CIBT management is pleased to report that gross revenue was substantially preserved in Fiscal 2021, despite a full year of COVID-19 restrictions, in which we generated total revenue of $60.87 million," commented Toby Chu, Chairman, President and Chief Executive Officer of CIBT. "For all of Fiscal 2021, we were operating under strict provincial and federal lockdown measures. However, we were able to fulfill our mandates of controlling our expenses, preserving our revenue and cash flow, advancing key real estate development projects, providing consistent and quality services to our students, and being progressive in seeking under-valued real estate opportunities."

Toby added, "In Fiscal 2021, we allocated funds to the rezoning and development of various properties, converted some of our education platforms from a traditional in-class model to online classes, added new educational programs, and completed one property acquisition. Our corporate finance activities included our real estate limited partnerships raising over $8.4 million in equity and completing $171 million in mortgage financing, re-financings and construction loans. As a result, we are proud to have achieved these milestones despite the economic challenges caused by the ongoing pandemic."

The notable highlights in Fiscal 2021 are as follows:

  • Non-cash adjustments totalled $0.41 million associated with the goodwill impacted by the international enrolment of our schools
  • Net income for the group increased by 209% to $5.18 million
  • Net income attributable to CIBT shareholders increased by 283% to $4.7 million
  • The income per share (basic) increased by 250% to $0.07 per share
  • EBITDA increased by 135% to $21.41 million
  • Total asset value grew 15% to $519.04 million compared to the same period of last year
  • Book value per share increased by 6% to $0.73 per share

The following milestones were achieved during Fiscal 2021:

  • Increased the diversity of the GEC® rental tenant base to include both students and working professionals. For a detailed update of our real estate portfolio, please refer to the September 9th, 2021, news release. (*1)
  • Provided consistent and quality service to CIBT students studying on-campus and online throughout the pandemic period, resulting in solid growth for the domestic education business at Sprott Shaw College. Please refer to the October 25th, 2021 news release (*2) for updates on our education business.
  • Raised $8.4 million through CIBT's subsidiary limited partnerships.
  • Completed $171 million in mortgage financing, re-financing, and construction loans and capitalized on low-interest rates where applicable.
  • Completed the acquisition of GEC® Marine Gateway for $48.5 million on October 27th, 2020, and increased its density and income by applying GEC® designs and recruitment platforms. The occupancy rate of this property has increased to nearly 99.5%. The appraised value increased from $48.5 million to $59 million as of August 31st, 2021.
  • Obtained rezoning approvals for GEC Education Mega Center®, and GEC® Oakridge. Their development and building permit approvals are still pending. Due to the higher density rezoning approval which will derive a higher rental income, the appraised value for these two properties increased significantly.
  • The appraised value of GEC Education Mega Center®, purchased in 2018 for $22.6 million, reached $57.0 million.
  • The appraised value of GEC® Oakridge, purchased in February 2020 for $30.3 million, reached $49.9 million.
  • Continued to buy-back and cancel its issued shares, with 11.5769 million shares purchased through normal course issuer bids ("NCIBs") from January 2015 to November 15, 2021, reducing stock dilution and increasing earnings per share. During Fiscal 2021, the Company purchased 3,325,600 common shares and cancelled 4,570,300 leaving 207,000 common shares in treasury. At November 26, 2021, an additional 542,000 common shares had been repurchased and an additional 646,500 treasury shares cancelled. The Company is eligible to repurchase a total of 1,590,000 common shares under the current NCIB.

Material events occurring after August 31, 2021 include:

  • A GEC® subsidiary signed a listing agreement to list thirty strata-titled GEC® branded condominiums totalling approximately $19.5 million in sale proceeds with management contracts currently in place to continue after the sale.
  • Occupancy rates for the Company's hotel and rental apartments at near full capacity since September 2021.

The following market news in Vancouver and Canada highlight positive trends in regards to the education and real estate sectors:

  • Canada was ranked consecutively for two years as the #1 best country in the world for study abroad by's Country Rankings 2021 *3 and was ranked as the #4 best country for education out of 73 in the world by U.S. News' ranking.*4
  • A June 2021 RBC Economics report indicated that international students started to return to Canada in the first quarter of calendar 2021. New study permits issued increased 21,000 (44%) year-over-year, and new post-graduate work visas increased by 24,000 (160%).*5
  • This growing student population contributes more than $21.6 billion annually to the Canadian economy and supports over 170,000 Canadian jobs. Canada's international student population has almost tripled over the past decade. According to the Canadian federal government publication "International Education Strategy 2019-2024"*6, the government has budgeted $149.7 million to be allocated over five years to growing and sustaining Canada's international education sector followed by $8 million per year of ongoing funding to ensure that Canada will remain among the world's top destinations for learning.
  • Canada re-opened its borders to international students from most countries attending eligible schools. As a result, international student enrollments in CIBT's education subsidiaries have resumed.
  • The B.C. Real Estate Association predicted that the lack of supply coupled with high demand will increase the average B.C. composite home price by 16.6% this year and an additional 2.9% in 2022(*7).
  • According to a Globe and Mail news article, "The rental housing market is heating up again"(*8).
  • According to a Business in Vancouver news article, the "Housing Shortage rattles Vancouver market"(*9)


"Our robust business model, complemented by favourable market trends, is creating a solid foundation for the Company's education and student-centric rental businesses," stated Toby Chu. "We are grateful for receiving tremendous support from the investment community, and we are thankful to our staff for their contributions and efforts in taking on the challenges that occurred in Fiscal 2021. We are optimistic that we will see a steady and gradual recovery in fiscal 2022."

About CIBT Education Group:

CIBT is one of Canada's largest education services and academic real estate companies. With a global presence since 1994, CIBT employs over 660 staff at 45 business locations and operates a global network of 2,500 recruitment agents. In 2020, the group provided education, student recruitments and accommodation services to nearly 10,000 students. Its real estate portfolio, including operating assets and development budget, exceeds $1.5 billion.

CIBT's education subsidiaries include Sprott Shaw College (established in 1903), Sprott Shaw Language College, Vancouver International College Career Campus, CIBT School of Business and Global Education Alliance. These subsidiaries offer over 150 accredited educational programs in healthcare, business, e-commerce, cyber-security, hotel management, language training and recruitment services at 29 locations in Canada and abroad.

CIBT's real estate subsidiary, Global Education City Holdings Inc. ("Global Holdings"), develops and manages academic assets such as student-centric rental apartments, corporate housing, hotel and education super-centres. Since 2015, Global Holdings has provided B2B accommodation service to 90 schools in Metro Vancouver and B2C direct registration of 6,000 students from 71 countries. The GEC® branded portfolio comprises 10 projects, 15 buildings spanning nearly 1.5 million square feet, including operational, under-construction and development properties.

CIBT also owns Irix Design Group Inc. ("Irix Design"). Irix Design is a leading design and advertising company that services over one hundred corporate clients, including CIBT. Visit us online at

For more information contact:

Toby Chu
Chairman, President & CEO
CIBT Education Group Inc.

Investor Relations Contact: 1-604-871-9909 extension 319 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 the Company expects to see a steady and gradual recovery in fiscal 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, that the pandemic continues and delays the expected recovery. 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 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; (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; and (d) Gross Margin which is the difference between revenue and direct costs of sales, divided by revenue, expressed as a percentage. 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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