Loyalist Announces Record Second Quarter 2014 Results
Published: Aug 27, 2014 7:01 a.m. ET
TORONTO, ONTARIO, Aug 27, 2014 (Marketwired via COMTEX) -- Loyalist Group Limited ("Loyalist" or the "Company") (LOY) today announced financial results for the three months ended June 30, 2014.
Second quarter revenue for the three months ended June 30, 2014, was a record $17.2 million, an increase of 262% over the same period in 2013. Income from operations was $2.2 million, a 157% increase over the same period in 2013, while net income was $1.3 million, an increase of 182% over the same period in 2013. Cash flow has improved by $1.0 million, to $0.8 million compared to a year ago.
Revenues continue to rise as a result of acquisitions closed through June 30, 2014, as well as organic growth of $600,000 or 12.1 % on the base business, as enrollments continued to trend higher. Net income and cash flow were adversely impacted by acquisition, integration and restructuring costs of $700,000 ($400,000 in the year ago period).
"Our second quarter demonstrated the potential of our platform with strong organic growth and record revenues," said CEO Andrew Ryu. "In a quarter without any acquisitions, the strength of our core business is evident in the numbers."
Mr. Ryu added that, "The second quarter results exceeded our expectations, and continue to reflect the seasonal nature of our industry. We are pleased with the performance of our recent acquisitions."
On the integration front, Mr. Ryu commented that, "The successful integration of our acquisitions is critical to the overall profitability of Loyalist and we continue to devote significant resources to that end. As well, it is important that we build a strong central infrastructure to control and manage the business. The growth rate of our corporate costs is slowing and we expect to see savings in the future to leverage our investment."
"The student housing pilot continues to show promise with revenues for the quarter in excess of $150,000. We will continue to actively grow this program."
The following table summarizes and compares three month results for the periods ended June 30, year over year:
----------------------------------------------------------------------- ----- Three months ended June 30, 2014 2013 % Change ---------------------------------------------------------------------------- Revenue $ 17,185,078 $ 4,751,159 +262% ---------------------------------------------------------------------------- Gross Profit $ 7,315,695 $ 1,770,766 +313% ---------------------------------------------------------------------------- Income From Operations $ 2,201,133 $ 853,424 +158% ---------------------------------------------------------------------------- Net Income $ 1,338,872 $ 474,021 +182% ---------------------------------------------------------------------------- Adjusted EBITDA(i) $ 2,567,044 $ 932,937 +175% ----------------------------------------------------------------------------
(i) Adjusted EBITDA, a non-IFRS measure is used by management to act as an indicator of its core operating business; is defined as earnings before interest, taxes, depreciation, and amortization, adjusted for integration, restructuring and acquisition costs, and loss on foreign exchange.
The following table summarizes and compares six month results for the periods ended June 30, year over year:
----------------------------------------------------------------------- ----- Six months ended June 30, 2014 2013 % Change ---------------------------------------------------------------------------- Revenue $ 32,899,825 $ 9,683,378 +240% ---------------------------------------------------------------------------- Gross Profit $ 13,871,676 $ 3,902,289 +255% ---------------------------------------------------------------------------- Income From Operations $ 3,933,240 $ 1,883,578 +115% ---------------------------------------------------------------------------- Net Income $ 2,901,530 $ 1,307,819 +122% ---------------------------------------------------------------------------- Adjusted EBITDA(i) $ 4,636,466 $ 2,012,417 +130% ----------------------------------------------------------------------------
(i) Adjusted EBITDA, a non-IFRS measure is used by management to act as an indicator of its core operating business; is defined as earnings before interest, taxes, depreciation, and amortization, adjusted for integration, restructuring and acquisition costs, and loss on foreign exchange.
Loyalist has a number of goals in 2014:
-- To close on accretive acquisitions: -- Study English in Canada and Upper Career College of Business and Technology closed with an effective date of February 1, 2014. -- To close on finance offerings to support the acquisition pipeline: -- Closed $10.01 million bought deal private placement in January 2014. -- To centralize all accounting functions in the corporate office and roll out the Company's custom-built ERP system to provide standardization of the various student databases and billing/collection and human resource functions across all schools.
About Loyalist
Loyalist Group Limited owns and operates private English as a Second Language (ESL) Schools, Career Colleges and Community Colleges in Toronto, Vancouver, Victoria and Halifax.
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.
Forward-Looking Statements
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 Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company'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 information relating to the Company's operating results. By identifying such information and statements in this manner, the Company 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 Company 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 Company's announced or proposed acquisitions failing to close or becoming delayed before closing; the Company'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 Company 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 Company 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 Company 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 Company or persons acting on its behalf is expressly qualified in its entirety by this notice.
Contacts: Loyalist Group Limited David McAdam VP Corporate Development (604) 961-3513 dmcadam@loyalistgroup.com Loyalist Group Limited Douglas Chornoboy Chief Financial Officer (416) 969-9800 dchornoboy@loyalistgroup.com www.loyalistgroup.com
SOURCE: Loyalist Group Limited
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