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LGLTF FINRA deleted symbol:
https://otce.finra.org/otce/dailyList?viewType=Deletions
Well, doing research now,is what I'm doing now..
Loyalist Group Ltd. changed to KGIC Inc.:
http://otce.finra.org/DLSymbolNameChanges
Loyalist Group to spin off student housing business
Ticker Symbol: C:LOY
Loyalist Group to spin off student housing business
Loyalist Group Ltd (C:LOY)
Shares Issued 154,732,423
Last Close 2/6/2015 $0.50
Monday February 09 2015 - News Release
Mr. Andrew Ryu reports
LOYALIST TO SPIN-OFF HOUSING BUSINESS
Loyalist Group Ltd.'s board of directors has approved a strategic plan to spin off its student housing business into a separate entity. The Company is confident that transitioning the housing business into a stand-alone entity will better position it to capitalize on market opportunities and enhance shareholder value, while at the same time allowing Loyalist to focus on its fast-growing ESL, Career-College and Agency businesses.
"After a year-long pilot program we've grown our housing business into a small but profitable revenue-generating operation. Of far greater importance, we've learned how best to grow it substantially and rapidly, and to that end we feel it necessary to spin it off and raise capital separately. Our recent acquisitions of two overseas agencies will allow us not only to significantly grow our education business but also our housing subsidiary," said Chief Executive Officer Andrew Ryu.
"After a year of study we have come to realize that the growth opportunities in student housing are significant, from catering not only to Loyalist's large and fast-growing student body but also those of other schools, not limited to the ESL space. We believe that a large presence in the lucrative student housing market will deliver significant returns to our shareholders and I'm very eager to ramp up our efforts."
Completion of the transaction is subject to customary conditions for a transaction of this nature including, but not limited to, the receipt of all required corporate, regulatory and other third-party approvals. Loyalist intends to maintain an interest in the new housing entity post-spinoff.
We seek Safe Harbor.
© 2015 Canjex Publishing Ltd.
Loyalist Group closes acquisition of Kim Okran Int'l
Ticker Symbol: C:LOY
Loyalist Group closes acquisition of Kim Okran Int'l
Loyalist Group Ltd (C:LOY)
Shares Issued 154,732,423
Last Close 1/23/2015 $0.45
Monday January 26 2015 - News Release
Mr. Andrew Ryu reports
LOYALIST CLOSES SECOND SOUTH KOREAN AGENCY ACQUISITION
Loyalist Group Ltd. has closed the acquisition of Kim Okran International Studies Centre, a South Korean student recruiting agency that provides information and registration services to South Korean students looking to study abroad, particularly in Canada.
Pursuant to the terms of the purchase agreement, the total consideration payable by Loyalist for Kim Okran was $4.65-million. Of the amount paid to the vendors on closing, $3.9-million was paid in cash and $750,000 was paid through the issuance of 1,442,307 Loyalist common shares at a per share price of 52 cents, with 75 per cent of such shares to be held in escrow for up to 12 months following closing as security for certain defined post closing adjustments.
Kim Okran had consolidated revenue of $4.7-million and adjusted earnings before interest, taxes, depreciation and amortization of $900,000 for the 12-month period ended December, 2013.
"We are excited to welcome Kim Okran into the Loyalist group," said chief executive officer Andrew Ryu. "The acquisition of another of our important agency partners, along with the recently acquired [Uhak website], further strengthens our vertical integration strategy by positioning Loyalist to reduce our direct costs of attracting students and grow our student population."
About Kim Okran
Kim Okran is one of the 10 largest South Korean education information and counselling centres, with four branch offices in South Korea and eight overseas affiliated study abroad agencies, seven in Canada and one in the Philippines.
We seek Safe Harbor.
Loyalist to Acquire Second Agency in South Korea
TORONTO, ONTARIO--(Marketwired - Jan. 12, 2015) - Loyalist Group Limited ("Loyalist", the "Company") (TSX VENTURE:LOY) is pleased to announce that it has entered into a definitive agreement to acquire Kim Okran International Studies Centre ("Kim Okran"), a South Korean-based student recruiting agency that provides information and registration services to South Korean students looking to study abroad, particularly in Canada.
Kim Okran had consolidated revenue of $4.7 million and adjusted EBITDA of $0.9 million for the 12-month period ended December 2013. Kim Okran's revenue is based upon commissions earned on gross student tuition fees of approximately $20.0 million.
"Building upon our recently completed acquisition of Uhak.com, the largest student recruiting agency in South Korea, the Kim Okran acquisition further enhances Loyalist's vertical integration strategy," said Chief Executive Officer Andrew Ryu. "By acquiring another one of our largest agency partners, we will be in a position to further reduce our direct costs of attracting students. The acquisition will also provide Loyalist with a strong source for growing its student population. We expect an annualized additional net benefit to Loyalist of approximately $2.1 million in the year following closing of the acquisition from increased student numbers and reduced marketing expenses. The Kim Okran team will make a fine addition to the Loyalist family."
Loyalist will pay $4.65 million for Kim Okran, of which $3.9 million will be paid in cash, subject to certain closing adjustments, and $0.75 million will be paid through the issuance of 1,442,307 Loyalist common shares at a price of $0.52 per share, with 75% of such shares being held in escrow for a period up to 12 months following closing as security for certain defined post-closing adjustments. The parties expect to complete the transaction on or around January 27, 2015.
Loyalist Group appoints Kim president of operations
2014-12-19 09:07 ET - News Release
Mr. Andrew Ryu reports
LOYALIST ANNOUNCES NEW MANAGEMENT APPOINTMENTS
Loyalist Group Ltd. has made a number of management appointments. The appointments are in line with Loyalist's continuing process of developing strong management capabilities to continue its growth strategy.
Tony Kim has been appointed president of operations. Mr. Kim has over 15 years of experience in the education services industry and was previously the owner of Study English in Canada (SEC), a licensed English as a second language school operator with campuses in Toronto and Vancouver. Loyalist acquired SEC in February, 2014. In his new position, Mr. Kim is responsible for all of Loyalist's school operations across its 25 campuses in Vancouver, Toronto, Victoria and Halifax.
Sung Lim will assume the role of chief business development officer, and will focus on Loyalist's acquisitions strategy and new business development.
Other management appointments include:
Steve Kang as vice-president of finance;
Alex Kim as vice-president of corporate operations;
Steve Sohn as vice-president of operations.
"We continue to establish a solid foundation on which to build our ambitious growth strategy," said chief executive officer, Andrew Ryu. "The strong management team that we assembled will allow us to deliver solid top and bottom line growth."
In furtherance of Loyalist's brand strategy, Loyalist appointed managing directors for each of its brands. Loyalist operates several school brands, each with its own features and attributes, under the overall Loyalist umbrella. The following are the newly appointed managing directors:
Amanda Cabrera -- PGIC;
Cindy Juarez -- Cornerstone;
Anna Kielar -- SEC;
Dylan Matter -- MTI;
Barbara Godt -- KGIC;
Nayoung Choi -- UIS.
"Our multiple brand structure is unique in Canada and a strong differentiating factor in our service offering," said Mr. Ryu.
We seek Safe Harbor.
© 2014 Canjex Publishing Ltd. All rights reserved.
Loyalist to develop new business with JoonAng
2014-12-11 09:09 ET - News Release
Mr. Andrew Ryu reports
LOYALIST SIGNS BUSINESS DEVELOPMENT AGREEMENT WITH MAJOR SOUTH KOREAN MEDIA COMPANY
Loyalist Group Ltd. has signed a business development agreement with JoonAng Daily Media Plus, a subsidiary of JoonAng Daily Newspaper, one of South Korea's largest media companies and an affiliate of Samsung Corp.
Under the agreement, Loyalist and JoonAng have entered into a strategic partnership to mutually develop business opportunities domestically and internationally.
"We are excited to partner with a major media company in South Korea to develop new businesses and strengthen our brand image, particularly as they relate to government and business relationships," said chief executive officer Andrew Ryu. "We expect that the agreement will enhance our revenue-generating capabilities in both South Korea and Canada."
Right after Loyalist Group completes acquisition of Uhak
2014-12-09 09:07 ET - News Release
Mr. Andrew Ryu reports
LOYALIST CLOSES SOUTH KOREAN AGENCY ACQUISITION
Loyalist Group Ltd. has closed the acquisition of Uhak, the largest South Korean-based student recruiting agency, providing information and registration services to South Korean students looking to study abroad.
Pursuant to the terms of the purchase agreement, the total consideration payable by Loyalist for Uhak was $8.1-million. Of the amount paid to the vendor on closing, $5.3-million was paid in cash, and $2.8-million was paid through the issuance of 5,384,615 Loyalist common shares at a per-share price of 52 cents, with 4,230,769 of such shares to be held in escrow for up to 24 months following closing as security for certain defined postclosing adjustments.
Uhak had consolidated revenue of $10.3-million, representing student tuition fees of approximately $40-million and adjusted net income of $1.0-million (earnings before interest, taxes, depreciation and amortization -- $1.2-million) in the 12-month period ended December, 2013.
"We are pleased to welcome Uhak's former owner as a new Loyalist shareholder and colleague," said chief executive officer Andrew Ryu. "We expect that the acquisition of one of our largest agency partners will enable us to reduce the cost of attracting students and to increase our revenue by growing our student population."
Loyalist Group CEO Ryu buys 100,000 shares of Loyalist
2014-12-02 09:09 ET - News Release
Mr. Andrew Ryu reports
LOYALIST GROUP LIMITED INSIDER PURCHASES SHARES IN OPEN MARKET
Loyalist Group Ltd.'s Andrew Ryu, a director, and president and chief executive officer of the company, has purchased 100,000 common shares in the capital of Loyalist through the facilities of the TSX Venture Exchange at prices between 46 cents and 47 cents per share with a total value of approximately $47,000.
As a result of this acquisition, Mr. Ryu now owns, directly and indirectly, 17,566,102 common shares, which represents approximately 11.8 per cent of the total outstanding common shares.
Mr. Ryu said of the purchases: "I am a strong believer in Loyalist's business model and I am extremely pleased with our recent results. With my increased shareholding, I am even more strongly aligned with Loyalist's long-term growth."
Mr. Ryu acquired the shares for investment purposes and he may in the future take such actions in respect of his holdings as deemed appropriate in light of the circumstances then existing, including the purchase of additional shares or other securities of Loyalist through open-market purchases or privately negotiated transactions, or the sale of all or a portion of his holdings in the open market or in privately negotiated transactions to one or more purchasers.
© 2014 Canjex Publishing Ltd. All rights reserved.
Loyalist agreement to acquire Uhak ACCEPTED by TSX
Loyalist Group Ltd (C:LOY)
Shares Issued 148,814,592
Last Close 12/4/2014 $0.45
Friday December 05 2014 - Acquisition
The TSX Venture Exchange has accepted for filing documentation relating to a share purchase agreement dated Nov. 24, 2014, between an arm's-length party and Loyalist Group Ltd. Pursuant to the agreement, the company shall acquire all the issued and outstanding shares of Uhak.com Co. Ltd., which runs a South Korean-based student recruiting agency and has offices in South Korea, Philippines, Canada, United States, England, Australia and New Zealand.
In consideration the company shall pay a total of $5.3-million plus issue 5,384,615 common shares to the vendor.
For more information, refer to the company's news release dated Nov. 24, 2014.
© 2014 Canjex Publishing Ltd.
Loyalist Group earns $1.88-million in Q3 2014
Ticker Symbol: C:LOY
Loyalist Group earns $1.88-million in Q3 2014
Loyalist Group Ltd (C:LOY)
Shares Issued 148,814,592
Last Close 11/25/2014 $0.58
Wednesday November 26 2014 - News Release
Mr. Andrew Ryu reports
LOYALIST ANNOUNCES RECORD THIRD QUARTER 2014 RESULTS
Loyalist Group Ltd. has released financial results for the three and nine months ended Sept. 30, 2014.
Third quarter revenue for the three months ended September 30, 2014, was a record $19.6 million, an increase of 93% over the same period in 2013. Income from operations was $3.2 million, a 43% increase over the same period in 2013, while net income was $1.9 million, an increase of 14% over the same period in 2013. Adjusted EBITDA was $3.6 million, an increase of 50% over the same period in 2013, and Adjusted EBITDA margin was 18.6%.
Revenues continue to rise as a result of acquisitions closed through September 30, 2014, as well as organic growth of $1,000,000 or 10.0 % on the base business, as enrollments continued to trend higher. Student count on a "same store" basis was up 4% year over year.
"Our third quarter continued to demonstrate the potential of our acquisition and integration strategy with double digit organic growth and record revenues," said CEO Andrew Ryu. "While the third quarter is traditionally our strongest quarter due to industry seasonality, our exceptional results exceeded our expectations. We are very pleased with the performance of our most recent acquisitions in the third quarter."
On the integration front, Mr. Ryu commented that "we continue to devote significant resources to the integration and consolidation of our acquisitions so that we can realize the synergies inherent in our consolidation strategy. At the end of the third quarter we implemented another wave of restructuring measures that should yield significant savings going forward."
The following table summarizes and compares three month results for the periods ended September 30, year over year:
Three months ended September
30, 2014 2013 % Change
Revenue $ 19,626,107 $ 10,180,761 +93%
Gross Profit $ 8,374,269 $ 4,785,282 +75%
Income From Operations $ 3,233,689 $ 2,268,592 +43%
Net Income $ 1,885,246 $ 1,657,480 +14%
Adjusted EBITDA(i) $ 3,643,056 $ 2,430,511 +50%
(i)Adjusted EBITDA, a non-IFRS measure 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.
http://www.marketwired.com/press-release/loyalist-announces-record-third-quarter-2014-results-tsx-venture-loy-1971859.htm
Bias opinion
http://www.pinnacledigest.com/blog/pinnacle-digest/investors-bet-esl-provider-loyalist-group
Loyalist to Acquire Largest Agency in South Korean
Nachrichtenquelle: Marketwired | 24.11.2014, 15:01 | 53 Aufrufe | 0 | druckversion
TORONTO, ONTARIO--(Marketwired - Nov. 24, 2014) - Loyalist Group Limited ("Loyalist", the "Company") (TSX VENTURE:LOY) is pleased to announce that it has entered into a definitive agreement to acquire all the shares of Uhak.com ("Uhak"), a South Korean based student recruiting agency, providing information and registration services to South Korean students looking to study abroad.
Uhak had consolidated revenue of $10.3 million, representing student tuition fees of approximately $40 million, and adjusted net income of $1.0 million (EBITDA $1.2 million) in the 12-month period ended December 2013.
"This acquisition adds a new dimension to Loyalist's vertical integration strategy," said Chief Executive Officer Andrew Ryu. "By acquiring one of our largest agency partners, we will be in a position to reduce our direct costs of attracting students, as well as strengthening ourselves a source for growing our student population, with an expected annualized additional net benefit of approximately $2.0 million within the first year. We look forward to welcoming the Uhak team into the Loyalist family."
Loyalist will pay $8.1 million for Uhak, of which $5.3 million will be paid in cash, subject to certain closing adjustments, and $2.8 million will be paid through the issuance of 5,384,615 Loyalist common shares at a price of $0.52 per share, with $2.2 million of such shares being held in escrow for a period up to 24 months following closing as security for certain defined post-closing adjustments. The parties expect to complete the transaction on or around December 5, 2014.
Mr. Ryu also stated "It should be noted that students do not necessarily have to attend one of our schools for Loyalist to benefit from students going overseas to study, as we will share in the commission fees for students who might choose to attend a school in another country (for example Australia, the USA or England)".
Completion of the transaction is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the Bank of Korea.
Growth without diluting existing shareholders.
Expansion and growth, time to increase the EBITDA and share price. Low interest and NO Dilution with the Bank of Montreal. Both facilities bear interest at the Canadian dollar prime rate plus 1.25 per cent to 1.75 per cent
Loyalist arranges $18.5-million credit facility
Ticker Symbol: C:LOY
Loyalist arranges $18.5-million credit facility
Loyalist Group Ltd (C:LOY)
Shares Issued 148,814,592
Last Close 11/14/2014 $0.455
Monday November 17 2014 - News Release
Mr. Andrew Ryu reports
LOYALIST ANNOUNCES NEW $18.5 MILLION CREDIT FACILITY
Loyalist Group Ltd. has entered into a new $18.5-million credit facility, replacing the company's current credit facility thus adding an additional $18-million of capital to support Loyalist's growth.
"The additional capital provided by the new credit facility will allow us to fund our aggressive growth and acquisition program," said chief executive officer Andrew Ryu. "We believe the ability to obtain a facility of this size signifies a new phase in the maturation of Loyalist."
Mr. Ryu added that: "Previously we have raised equity capital to fund our acquisition plans. The credit facility will now allow us to manage our capital structure in a more efficient manner and to continue to grow without diluting our existing shareholders."
The new credit facility expires on Nov. 17, 2019, and comprises a $3.5-million revolving operating facility and a $15-million term loan acquisition facility. The facilities are being provided by Bank of Montreal. Both facilities bear interest at the Canadian dollar prime rate plus 1.25 per cent to 1.75 per cent, depending on the company's debt to EBITDA (earnings before interest, taxes, depreciation and amortization) ratio. The acquisition facility may be drawn upon in periodic advances as required until Nov. 17, 2016, and can be repaid at any time without penalty.
The new credit facility is secured by a first charge over all of the assets of Loyalist and its subsidiaries, contains positive, negative and financial covenants, and includes other usual and customary terms and conditions.
We seek Safe Harbor.
© 2014 Canjex Publishing Ltd.
Read more at http://www.stockhouse.com/companies/bullboard/v.loy/loyalist-group-limited#rlthJUcRQV2d8YMK.99
Great article
Read more: Loyalist Group Ltd.: Globalism, Language, And Value Investing Presents An Under-Appreciated Education Roll-Up Story
Under Valued, Under-Appreciated Education Roll-Up Story
Value Investing Presents An Under-Appreciated Education Roll-Up Story
Oct. 15, 2014 6:00 AM ET | About: Loyalist Group Ltd (LGLTF) V.LOY Subscribers to SA PRO had an early look at this article. Learn more about PRO »
Summary
Under-appreciated story with little following that’s yet to be fully understood by the market with excellent growth potential.
Large and extremely fragmented market filled with “Mom & Pop” operators with no exit strategy; M&A has historically been accretive; and there is no direct competition.
Meaningful organic growth: strong government support for the industry; market share gains as Loyalist’s relative strength, size and brand recognition increase; and new initiatives, such as student housing and franchising.
Targeting a 16.3% EBITDA margin and FCF of $0.05/share by 2016E with net cash on the balance sheet as Loyalist realizes the full impact of synergies from acquisitions.
Target price of $0.99, or ~133% upside. Understanding the implications of recent M&A, the seasonality of the industry, and upcoming catalysts is critical to timing this compelling trade opportunity.
INTRODUCTION
Different languages are constantly being spoken all around us. Think about it - on any given day, how many different kinds do you hear? The nature of today's globalized world practically demands the study of multiple languages, both on a personal and a professional level. Companies and governments understand the need to invest in language training, and so should you. I believe that this article will sway you with some very compelling reasoning, as to why I like this company, and why now presents an excellent entry point.
Loyalist Group Ltd. (OTC:LGLTF) is an educational organization that owns and operates private English as a Second Language (or "ESL") schools, career and community colleges, and secondary schools for foreign students, with 25 campuses throughout Canada. I believe that it's a very under-appreciated story yet to be fully understood by the market, and with exponential growth potential through the roll-up of a segment of the private education market in Canada.
The overwhelming majority of accredited schools in this highly fragmented industry are run by "Mom & Pop" type operators, and are undercapitalized with no real exit strategy. Loyalist is in the early stages of consolidating the sector and has already made 16 acquisitions over three years, reaching an expected revenue run rate of ~$63 million for 2014. The market size in Canada for ESL alone is ~$788 million (~$500 million is tuition fees), hence there is significant room to consolidate the sector over time, especially given the absence of any direct competition.
In addition to M&A, we have begun to see meaningful and evident organic growth. During 2013, revenues (excluding acquisitions) grew 4.5% Y/Y; up to 8% 1Q14, and 12% 2Q14.
I have derived a target price of $0.99 for Loyalist based on 2015 forecasts using a 10x EV/EBITDA multiple, which represents an upside of ~133% from Friday's close. I believe that Loyalist could exit 2014 with a revenue run rate of ~$66.1M, EBITDA of ~$8.7M, cash of ~$5M and fully diluted shares of ~148M. I believe that Loyalist could exit 2015 with a revenue run rate of ~$115.5M, EBITDA of ~$16.8M, and no need for further dilution. Debt can be used to supplement cash in acquisitions, and organic growth will improve the bottom line as well as EBITDA.
Read more : http://seekingalpha.com/article/2562605-loyalist-group-ltd-globalism-language-and-value-investing-presents-an-under-appreciated-education-roll-up-story
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
(C) 2014 Marketwire L.P. All rights reserved.
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
(C) 2014 Marketwire L.P. All rights reserved.
Loyalist Group Limited Ranked 3rd on the 2014 PROFIT 500
Jun 12, 2014 11:54 AM ET
NEWS RELEASE TRANSMITTED BY Marketwired FOR: Loyalist Group Limited TSX VENTURE SYMBOL: LOY JUNE 12, 2014 Loyalist Group Limited Ranked 3rd on the 2014 PROFIT 500 TORONTO, ONTARIO--(Marketwired - June 12, 2014) - Editors Note: There is an image associated with this press release. Loyalist Group Limited ("Loyalist" or the "Company") (TSX VENTURE:LOY) is pleased to announce that Canadian Business and PROFIT today ranked Loyalist 3rd on the 26th annual PROFIT 500, the definitive ranking of Canada's Fastest-Growing Companies. Published in the July issue of Canadian Business and online at PROFITguide.com, the PROFIT 500 ranks Canadian businesses by their revenue growth over five years. Loyalist made the 2014 PROFIT 500 list with five-year revenue growth of 5,514%. "The members of the PROFIT 500 are the elite of the country's entrepreneurial community," says James Cowan, Editor-in-Chief of Canadian Business and PROFIT. "Their stories are lessons in business strategy, innovation, management excellence and sheer tenacity." "I am very pleased to be on the Profit 500 ranking" Loyalist CEO Andrew Ryu said. "It is a badge of great honour and privilege to officially receive such high appraisal for our endeavours, but such prestige would not have been possible without the hard work and contributions of those behind the curtains. We would not have achieved this honour without our hard working staff, our supportive partners and our passionate executives. Ultimately, this award belongs to them." About PROFIT and PROFITguide.com PROFIT: Your Guide to Business Success is Canada's preeminent media brand dedicated to the management issues and opportunities facing small and mid-sized businesses. For 32 years, Canadian entrepreneurs across a vast array of economic sectors have remained loyal to PROFIT because it's a timely and reliable source of actionable information that helps them achieve business success and get the recognition they deserve for generating positive economic and social change. Visit PROFIT online at PROFITguide.com. About Canadian Business Founded in 1928, Canadian Business is the longest-serving, best-selling and most-trusted business publication in the country. With a readership of more than 800,000, it is the country's premier media brand for executives and senior business leaders. It fuels the success of Canada's business elite with a focus on the things that matter most: leadership, innovation, business strategy and management tactics. We provide concrete examples of business achievement, thought-provoking analysis and compelling storytelling, all in an elegant package with bold graphics and great photography. Canadian Business-what leadership looks like. 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. To view the image associated with this press release, please visit the following link: http://media3.marketwire.com/docs/PROFIT500.jpg. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Loyalist Group Limited Andrew Ryu CEO (416) 969-9800 aryu@loyalistgroup.com or Loyalist Group Limited David McAdam VP Corporate Development (604) 336-3316 dmcadam@loyalistgroup.com INDUSTRY: Education and Training - Schools and Courses, Colleges/Universities SUBJECT: CNT
Loyalist Group earns $1.56-million in Q1
2014-05-28 07:04 ET - News Release
Mr. Andrew Ryu reports
LOYALIST ANNOUNCES RECORD REVENUES, EARNINGS AND CASH FLOW
Loyalist Group Ltd. today released record financial results for the three months ended March 31, 2014.
First-quarter revenue for the three months ended March 31, 2014, was $15.7-million, an increase of 219 per cent over the same period in 2013. Income from operations was $1.7-million, a 68-per-cent increase over the same period in 2013, while net income was $1.6-million, an increase of 87 per cent over the same period in 2013. Cash flow from operations was $2.2-million compared with negative $895,883 a year ago.
Revenues continue to rise as a result of the acquisitions closed through March 31, 2014, as well as organic growth of $400,000, arising from higher enrolment and increased tuition fees. Net income and cash flow were adversely impacted by $500,000 of one-time acquisition, integration and restructuring costs ($200,000 in the year-ago period). Excluding these, operating income would have been $2.2-million and cash from operations $2.7-million.
"Of particular importance, the first quarter demonstrated that Loyalist can not only grow its top- and bottom line, but also generate strong cash flows from its school operations," said chief executive officer Andrew Ryu. "Ultimately, our long-term goal is to create cash with which to self fund acquisitions and, as the business matures, start to return cash to shareholders."
Speaking to the first quarter, Mr. Ryu added: "Our topline benefited from acquiring schools and from better execution in schools we owned or acquired. Our first-quarter 2014 results are in line with our expectations of the seasonal nature of the first quarter with net income at 9 per cent of gross revenues. The integration of our recent six acquisitions continues, and we expect that the next three quarters will show the results in the form of better profit margins.
"Our assets support our current run-rate expectation of $63.0-million for 2014. We continue to focus on integrating schools and improving the company's overall profitability. While our corporate costs more than doubled over the same period last year, we expect them to stay fixed, and perhaps fall, moving forward, while our revenue continues to grow, which will create the leverage needed to see meaningful profit and cash-flow growth.
"We will also aggressively pursue our student housing and franchise businesses. These are low-risk, high-margin pursuits that allow Loyalist to create greater shareholder value from its asset base. Our students collectively spend millions of dollars a year on rent, and we plan to capture a significant share of that spend over time."
Loyalist generated $120,000 of revenue from its student housing pilot program and modest initial franchise fees in the first quarter of 2014. The company expects both lines of business to accelerate.
The table summarizes and compares three-month results for the periods ended March 31, year over year.
Three months ended March 31,
2014 2013
Revenue $ 15,714,747 $ 4,932,219
Gross profit $ 6,555,981 $ 2,131,524
Income from operations $ 1,732,107 $ 1,030,155
Net income $ 1,562,658 $ 833,799
Adjusted EBITDA $ 1,758,028 $ 1,079,480
Loyalist has a number of fiscal 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 Feb. 1, 2014;
Close on finance offerings to support the acquisition pipeline -- closed $10.01-million bought-deal private placement in January, 2014;
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, billing/collection and human resource functions across all schools.
With a cash balance of $3.1-million as at May 26, 2014, and anticipated profitability, the company has the funds to meet all of its operating obligations and to continue growing by acquisition without raising additional capital.
We seek Safe Harbor.
© 2014 Canjex Publishing Ltd. All rights reserved.
Loyalist Announces Record Revenues and Record Income from Operations
V.LOY | April 30, 2014
TORONTO, ONTARIO--(Marketwired - April 30, 2014) - Loyalist Group Limited ("Loyalist") (TSX VENTURE:LOY) today announced record financial results for the year ended December 31, 2013.
Revenue for 2013 was $31 million, an increase of 126% over 2012. Net income was $1.8 million, while income for operations was $3,120,034, a 17% increase over 2012.
Revenues continue to rise as a result of six acquisitions made during 2012 and 2013, as well as organic growth arising from higher enrolment and increased tuition fees. Net income was adversely impacted by $2.1 million in one-time acquisition, integration and restructuring costs.
"2013 was a year of aggressive growth," said CEO Andrew Ryu. "Our top line benefited from buying new schools and from better execution in schools we owned or acquired. Our gross profit - revenue less the school-level costs of teacher salaries, rents and so on - almost doubled, but was lower on a percentage basis because we acquired a big school, KGIC, late in the year. The fourth quarter is always the slowest in our industry because of the Christmas holiday, so revenue falls but salaries and rents must still be paid. This lowers our gross profit. We expect gross margin percentage to bounce back for 2014, when we'll report school results for the whole year."
"Our assets support our current run-rate expectation of $63 million for 2014. We expect to focus on integrating schools this year, improving the company's overall profitability. While our overhead or corporate costs, more than doubled last year, we expect them to stay fixed, and perhaps fall, moving forward, which should create the leverage needed to see meaningful profit growth. We therefore expect to see margins improve this year."
"We will also aggressively pursue our student housing and franchise businesses. These are low-risk, high-margin pursuits that allow Loyalist to create greater shareholder value from its asset base. Our students collectively spend millions of dollars a year on rent, and we expect to capture a significant share of that spend over time."
Our long-term objectives are intact: top-line growth of 20% per year and normalized profit margins of 15%.
The following table summarizes and compares full year results, year over year:
2013 2012 % Change
Revenue $ 30,682,269 $ 13,657,914 +126
Gross profit $ 11,028,527 $ 5,803,672 +92
Income from operations $ 3,120,034 $ 2,782,493 +17
Net Income $ 1,845,444 $ 2,232,156 -17%
Adjusted EBITDA* $ 3,702,947 $ 2,925,305 +29
The company notes that had it owned all its schools as of January 1, 2013, revenues would have been over $54 million for the full year.
As previously reported Loyalist attained a number of its fiscal goals in 2013:
Closed six acquisitions: Urban International School (Toronto), Pan Pacific College ("PPC" Vancouver), MTi Community College ("MTi" Vancouver) and KGIC/KGIBC (Halifax, Toronto, Vancouver and Victoria);
Closed on $13,190,237 in gross proceeds through two private placement finance offerings;
Closed on a $5.2 million 5-year convertible debenture;
Established the corporate office in downtown Toronto and Vancouver;
Centralized all accounting functions in the corporate office and started the roll out of the Company's custom built ERP to provide standardization of the various Student Data bases and billing/collection and human resource functions across all schools.
With cash balance of $6.0 million as at April 29, 2014 and anticipated profitability, the company has the funds to meet all of its operating and promissory note obligations and to continue growing by acquisition without raising capital.
About Loyalist
Loyalist Group Limited (the "Company") 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 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 or proposed 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.
Loyalist Group Limited
David McAdam
VP Corporate Development
(604) 961-3513
dmcadam@loyalistgroup.com
Loyalist Group Limited
Andrew Ryu
CEO
(416) 969-9800 x222
aryu@loyalistgroup.com
Back to School Re: Loyalist & Consolidation
The basic business model of Loyalist. It's a consolidation story, a roll-up play. AR and team will continue to go out and acquire, and consolidate schools, and when required, re-brand.
Loyalist acquired WTC & PPC for very reasonable prices - 0.2x and 0.6x respectively, revenue multiples. They did not just give "some small time owner of a small school a bunch of cash and company stock." For the money, Loyalist acquired students, human resources (teachers, admin staff, etc.), educational literature (course materials), classroom and office space, and overseas agents. In this case, from a financial perspective it just didn't make sense to keep the schools intact, so they got re-branded during the consolidation process. Some schools, like KGIC and SEC are well-organized and well-recognized enough to stand on their own during consolidation and don't get re-branded.
At the end of the day Loyalist needs to establish a name for itself in the industry. It just doesn't make sense from a business perspective to keep every school intact. In fact, in the case of WTC in particular the company saved almost $1 million by literally closing its doors and moving the students to other Loyalist campuses. Decisions like that are just apart of the consolidation process.
Unprecedented Development
Great find frankz! I find this extremely interesting because Loyalist hasn't filled an NI 44-101 for any prior finanancings. I don't think that this is actually regarding a PP coming. While the Company will continue to need to complete a number of PPs going forward (that is part of the accretive business model of Loyalist and necessary to complete further M&A). Rather, perhaps management is looking at offering a new share. Maybe a preferred share with a dividend? I've seen this before. For a Company with good revenue generating positive cash-flow, why not? This is a very interesting, and unprecedented development.
In terms of share price weakness as of late, I believe that is just the market placing their bets on the financing, and even the lack of continuous newsflow from the company (others may be "getting bored"). Loyalist isn't the flashiest play, they aren't going to wow the market with a new discovery tomorrow. But over time, and especially given the complete lack of competition, they will monopolize the ESL market in Canada (atleast that's the goal).
To re-iterate what I would like to see from the company - $12.5 million in revenue, and a EBITDA of about $3.6 million. My EBITDA target might not breakdown quite that simply (we might see some one-time acquisition-related costs for KGIC/KGIBC), but the Company should still be generating good profit.
The EQA Designation is Only a Good Program for Loyalist
The EQA designation is ONLY A GOOD initiative for Loyalist. The implications are as follows:
-First and foremost, if anyone is concerned about Loyalist schools getting EQA certifications, there is a stand procedure in place to qualify. Some Loyalist schools are already EQA designated. The others will follow. The program itself was only introduced in 2009, and has been optional since its inception. Schools must be compliant by December 2015. Loyalist has more than enough capital and resources to accomplish this. The risk is nil.
- The schools that cannot meet the requirements will close and lose their students. Loyalist will be able to absorb these students. Since British Columbia is one of two provinces where the majority of ESL students study, this is very good for Loyalist
- The schools that cannot afford to get certified, Loyalist can buy on the cheap in a fire sale because they're going to be closing their doors anyway. The end of 2015 might be a very exciting time for Loyalist
- The British Columbia government has committed to increasing the number of international students by 50% by 2016. There is going to be a massive influx of students to British Columbia over the next couple of years, which Loyalist should benefit from, especially through re-branding and consolidation to strengthen the LOYALIST BRAND
I found this post on another forum from Fabrice Taylor
2013-12-10 TOP PICK Fabrice Taylor
They own, operate and consolidate ESL schools, but not the ones where locals go, it is only for foreign students who come to Canada, who are less price sensitive, so pay more. 3rd quarter earnings were spectacular. Net earnings margin has been 20%. What really gets him excited is that they are now entering the student housing business. Have 4500 students who come to Loyalist schools today and they need to live somewhere. Have a pilot project starting in January with a small number of students and margins are fantastic. If they can grow this out over the next few years to what he thinks they can, that alone is worth potentially $100 million and the market cap today is only $80 million. $1.30 in 12 months is reasonable.
Source:
http://www.stockchase.com/company/view/4328/0/Loyalist-Group-Limited/LOY-X
This industry is really starting to heat up! At least on the Canadian side of the border. Let me introduce you to Loyalist Group Limited (US: LGLTF, CAN: LOY).
Loyalist owns and operates private English as a Second Language (ESL) schools across Canada, with a focus on Vancouver and Toronto. They offer ESL for international students, training programs for teaching ESL (TESL), career training courses, and corporate English for professionals. The business plan is to become the premiere consolidator of independent, privately owned and operated schools, in what is considered to be a large and extremely fragmented market. Substantial revenue and cost synergies can be realized quickly, thus making acquisitions highly accretive to earnings. Loyalist is well financed, having successfully completed 2 financings, raising over $15 million the past few months, and has good institutional and high-net worth investor support (billionaire entrepreneur, Seymour Schulich, holds 13,000,000 shares). Loyalist is in a very good position to continue executing its growth strategy given its experienced management team, economies of scale gained over time, and the lack of any other competition in the marketplace.
Loyalist could exit 2013 with a revenue run rate of ~$32.4M, EBITDA of ~$6.6M, cash of ~5M and fully diluted shares of ~132M.
Loyalist could exit 2014 with a revenue run rate of ~$80M, EBITDA of ~$15M, and no need for further dilution.
THREE-MONTH PRICE TARGET: $1.00+/share
Upcoming Catalysts:
• Q4 2013 financials due out at the end of April
• Q1 2014 financials typically out the end of May
• Corporate update
o How the consolidation of new acquisitions is going
o An update on the new, high-margin student housing division
o Update on how the new franchising program is rolling out
• Introduction of the new Loyalty Program
Due Diligence:
Paradigm Analyst Report
http://loyalistgroup.com/images/PDF/Morning%20Comments%20-%202014%2001%2031.pdf
MGI Securities Analyst Report
http://loyalistgroup.com/images/PDF/Initiating-Coverage-LOY-08-15-2013.pdf
Jacob Securities Analyst Report
http://loyalistgroup.com/images/PDF/LOY-Loyalist-Group-Limited-MTI-Acquisition-July-9-2013-JSI.pdf
Cormark Securities Coverage (VIDEO)
Stockwatch News
To Stockwatch News
Today at 9:10 AM
Loyalist Group appoints Lim COO, adds 40 beds
Ticker Symbol: C:LOY
Loyalist Group appoints Lim COO, adds 40 beds
Loyalist Group Ltd (C:LOY)
Shares Issued 148,814,592
Last Close 4/8/2014 $0.61
Wednesday April 09 2014 - News Release
Mr. Andrew Ryu reports
LOYALIST APPOINTS SUNG LIM AS CHIEF OPERATING OFFICER
Loyalist Group Ltd. has appointed Sung Lim as chief operating officer of the company. Mr. Lim was the founder of King George International College (KGIC), an accredited and licensed English-as-a-second-language (ESL) school and King George International Business College (KGIBC), a registered career college in Toronto, Vancouver and Victoria, both of which were previously acquired by Loyalist.
"Mr. Lim joined Loyalist when KGIC and KGIBC were acquired from CIBT in September, 2013, and has proven to be an active and astute operational business partner for Loyalist," stated Loyalist chief executive officer Andrew Ryu. "We are most fortunate to have someone of Mr. Lim's skill set, with a long history of successful operations in the ESL sector, within the Loyalist family. This appointment is consistent with our consolidation strategy as it allows us to centralize responsibility for numerous operations under a single individual within our organizational structure."
Loyalist is also pleased to announce that it has added an additional 40 beds to its existing housing portfolio for occupancy starting in May, 2014, bringing the total number of beds to 164.
We seek Safe Harbor.
© 2014 Canjex Publishing Ltd.
What matters will be numbers come Q4E, numbers that keep telling us our quarterly revenue is the previous year's annual revenue. (14Q4: $13M (est.) 2012: $13M)
This has been true for the past two years. We will reach $100M by 2016 and we are on good standing with Languages Canada. PAFSO's strike ended at the end of 13Q3. If anything, I welcome the news that will come in late April.
English - The Language of Global Business?
Korean - ESL / EFL Job Services
English speaking is big business, Korea can be a culture shock for anyone coming over for the first time. Most can’t read or understand the language, and the people – though very helpful for the most part –often stare at foreigners like an unfamiliar curiosity. Coming from a country like Canada, the United States, or Britain where there are so many people of different races with different faces, rarely is a second glance given to someone due to their skin color being different. This is one of the first things you come to understand coming from another country, Korea is for the most part a mono-culture, inhabited by a single race with close ties to the surrounding countries, such as China and Japan. In larger cities such as Seoul and Busan, where there is a much larger foreign population, most Koreans are used to seeing foreigners. In smaller communities, however, foreigners are more of an oddity – though this is changing gradually. Some call this "the celebrity effect".
European countries speak great English, Asian countries are in the middle, and everyone else lags English will maintain and grow its dominance, moving from “a marker of the elite” in years past to “a basic skill needed for the entire workforce, in the same way that literacy has been transformed in the last two centuries from an elite privilege into a basic requirement for informed citizenship.”
English language turns into big business asset as the international language of business, the teaching of English has turned into an industry worth 1.5 billion a year.
Loyalist Settles All Payments For King George Schools
Moving Forward And Upward
Loyalist settles all payments for King George schools
Loyalist Group Ltd (C:LOY)
Shares Issued 148,814,592
Last Close 3/19/2014 $0.68
Friday March 21 2014 - News Release
Mr. Andrew Ryu reports
LOYALIST SATISFIES OUTSTANDING AMOUNTS OWING IN RESPECT OF KGIC ACQUISITION
Loyalist Group Ltd. has satisfied all undisputed amounts owing under the promissory note given by it in connection with the acquisition of King George International College (KGIC), an accredited and licensed English-as-a-second-language (ESL) school, and King George International Business College (KGIBC), a registered career college in Toronto, Vancouver and Victoria, which was previously announced on Sept. 18, 2013. KGIC and KGIBC have a total of eight campuses in Halifax, Toronto, Vancouver and Victoria.
"The company continues to work through the final stages of the integration of KGIC and KGIBC with the other brands under the Loyalist label, and we are very pleased with the co-operative manner in which this integration is being accomplished," stated Andrew Ryu, chief executive officer of Loyalist.
We seek Safe Harbor.
© 2014 Canjex Publishing Ltd.
Dr. Sarah Eaton, an educational leader, researcher, author, and professional speaker, wrote an article about the differences between public and private ESL institutions, taking specific focus on Loyalist to highlight some inherent differences.
Here is an excerpt:
"But there’s a new form of “public” education on the block and it is not to be ignored. Educational companies that are publicly traded on the stock market are drastically different from private companies. Public companies are obliged to share financial information with shareholders and investors. The accountability to the people who choose to put their dollars into the company is significant. Shareholders can ask questions — and demand answers. If their students are not happy or successful, they’ll leave. Sales will drop and they’ll close their doors. Their very existence depends on their students’ success... But public companies put it all out there for anyone to look at, scrutinize and ultimately judge. That’s a good thing. When it comes to ESL, it’s more transparent than what we see in public institutions. The very nature of accountability and reporting in education in Canada is changing… It’s strange, but true that when it comes to ESL, publicly traded companies like Loyalist Group Ltd may turn out to be more transparent, more accountable and more responsive to questioning from outsiders than some “public” institutions."
Here is a link to the full article:
http://drsaraheaton.wordpress.com/2014/02/18/a-new-kind-of-loyalist-public-esl-education-takes-on-a-whole-new-twist-in-canada/
Canada-Korea Free Trade Agreement (CKFTA)
This agreement is nothing to scoff at and has very positive implications for Loyalist!
"This landmark agreement constitutes Canada’s first free trade agreement in the Asia-Pacific region and will provide new access for Canadian businesses and workers to the world’s 15th-largest economy and the fourth-largest in Asia. In fact, the Canada-Korea Free Trade Agreement is projected to create thousands of jobs for hardworking Canadians by boosting Canada’s economy by $1.7 billion and increase Canadian exports to South Korea by 32 percent. South Korea is not only a major economic player in its own right and a key market for Canada; it also serves as a gateway for Canadian businesses and workers into the dynamic Asia-Pacific region as a whole." (FATD GoC Link)
South Korea already sends more students to Canada than any other country in the world, with this new agreement in place expect that number to increase substantially. South Koreans have a lot of incentive to now choose Canada as their place of education. Since Loyalist Group schools are the premiere choice for ESL students that come to study in Canada I expect the company to see increased enrollment across the board at its schools from South Korea.
Not only from new South Korean students who can now afford to study in Canada due to the decreased cost-of-living expenses associated with the CKFTA, but also from South Koreans who are studying elsewhere abroad and now have significantly more incentive to come to Canada.
Also, and this point should not be over-looked, Andrew is Korean and has very strong ties within the country and the community. Hopefully Andrew can leverage his connections to accelerate the rollout of the franchise program.
Loyalist has already signed five franchise agreements, and expects to add several more franchise agreements per quarter over the coming years.
"Franchising is the logical next step in our evolution towards becoming a truly global brand in the ESL market," said chief executive officer Andrew Ryu. "We are easily the No. 1 choice of foreign students who want to come to Canada. But there are millions of other students who will choose to study in their home countries rather than coming to Canada. These students still want a first-rate curriculum and the ability to earn a recognized diploma, and Loyalist can offer both of those things. We expect this to be highly accretive to our income as the cost of setting up and running this business is small relative to the potential revenues."
The CKFTA also allows Loyalist to more easily strike partnerships with South Korean schools and institutions, as well as negociate more favourable referall rates (and/or open more offices in South Korea for student referals in-house).
No matter how you break it down it's very good for the company going forward.
SO IT STARTS To Move Up From Here ......
Oh we are headed HIGHER .Much interest, with 40 post in last 3 days with a nice pop of. 20 Year end figures on the way shortly, no doubt they will be good. Those in The know accumulating as we speak?
News From KGIC
Straight from their Facebook page, which I 'liked' since the acquisition a while ago.
KGIC Feb 27th, 2014 wrote: Getting acceptance into a Masters of Business Administration (MBA) can be easy if you go through KGIC's Pathway program! If you complete our EPE course, you can study an MBA at Lakehead University. No IELTS, TOEFL, or GMAT score required!
Interested? Contact Chris at christopherw@kgic.ca for more information!
Did you know that Trinity Western University, one of KGIC's Pathway Partners in British Columbia, is ranked #1 in Canada for student satisfaction?
KGIC Feb. 28th, 2014 wrote: KGIC Vancouver will go on their final whistler ski trip in March. Everyone in Vancouver should sign up!
Our KGIC End-of-Winter Whistler Trip is filling up fast! Don't wait too long to make your reservation!
Loyalist Again Named to the TSX Venture 50
Marketwire via CMTX - Wed Feb 12, 8:20AM CST
Loyalist Group Limited ("Loyalist" or the "Company") (TSX VENTURE: LOY) is pleased to announce that it has once again been named to the TSX Venture 50, an exclusive group of companies that rank highest on the TSX Venture Exchange by share price, trading volume, market capitalization and analyst coverage.
Companies that have been named to the TSX Venture 50 have seen impressive growth over the past year, offered strong return to their shareholders and are actively traded in the market. This is the second straight year that the award has been bestowed upon Loyalist.
"I am very pleased that we have been named to the TSX Venture 50 for the second year running," said CEO Andrew Ryu. "It is a badge of honour not only for me but also for my partners in this company, from our teachers to our support staff to our executives. Although this is a public markets award, it is only because of the quality of our service and personnel that we won again. I wish to thank them all. This award belongs to them."
Cormark Securities Updates Buy Recommendation on Loyalist Group (TSXV: LOY)
LOY- LGLTF the Hedge
We call it a Consumer Defensive stock, but what exactly is the correlation between LOY- LGLTF and the market?
Here is my analysis paired with the analysis by Thomson Reuters:
On days when the market is up, LOY- LGLTF shares typically decrease. On days when the market is down, the shares tend to decline less than the S&P/TSX COMPOSITE index.
In the short term, LOY-LGLTF has shown low correlation with the S&P/TSX COMPOSITE index. The stock has, however, shown an inverse correlation with the market in the long term.
LOY has historically posted 10.7%, 0.3%, and 27.4% in February, March, and April. The industry average posted 1%, 0.6%, and 10%, respectively.
In the past year, the TSX venture decreased in value by 14.2% while LOY went up 25.5%.
This month, the venture gained 3% while LOY decreased by 4.2%.
I see LOY_ LGLTF as a good investment and a good hedge against the market because many economists see an imminent market correction as early as April and LOY will inevitably gain in value in April. It will not only exceed the dollar fundamentally (new acquisitions), but a bullish continuation diamond formed on Feb. 18th, which predicts $1.03-1.11 as a technical bullish price target range.
If there is a market correction in April, May, whenever, LOY-LGLTF is an opportunity and an alternative to gold, silver, and the money market.
My opinion is based on work performed by Thomson Reuters.
From Britishcim
Let's see if we start the week off with a bang here! Beacon and Paradigm (among a few other smaller firms) have been accumulating lots of Loyalist paper the past few months. When the company releases Q4 2013 financials, I definitely think that we'll get a bump from them, but I don't think that we'll see the improved EBITDA margins until Q2 2014. It really depends on management's able to execute. They've done nothing in the past that says that they can't consolidate at a rapid pace, I'll just believe it when I see it. They've made a lot of very significant deals over the past year and now they need to execute!
Interesting metrics BC! With LOY becoming Canada's foremost ESL operator they are certainly sitting quite comfortably within their sector. And in the blood bath that has been the TSX Venture over the past 12 months, a company like LOY isn't a dime a doze - it's a gem. I'm also looking forward to those May numbers (hopefully even sooner!).
Paradigm Capital Inc, target $1.00 plus
Conclusion
Overall, we remain excited about the Loyalist story given the numerous growth levers.
FIrst, we believe the M&A opportunity remains a key catalyst given the fragmented nature of the Canadian ESL market, along with Loyalist's position as the sole acquirer of these assets. Second, we believe the regulatory environment remains extremely conducive to
growth. We note that earlier this month the Canadian government unveiled plans to
nearly double the number of international students in Canada by 2022 to 450,000 (from
265,000 in 2012). Last, aside from tuition fees, we believe Loyalist is on the cusp of
capitalizing on new growth opportunities, such as student housing
and franchising. While still in the early stages, we believe these services could ultimately represent extremely high-margin sources of revenue, which could help the company move above its near-term 20% EBITDA margin goal. Recall the company has already announced that it has pre-sold student housing for 104 students for H1/CY14,and that it has also already signed six franchise agreements. We maintain our Speculative Buy rating and $1.00 target price,which is based on 12x 2014e EV / EBITDA.
Note the EBITDA will be up next quarter imho and so will the target increase then.
Watch this stockThe Loyalist story just keeps getting better
Sellers loss is our gain the current share price and under will be just mere memory of the past, I just keep adding.
Stockwatch News
To Stockwatch News
Today at 7:15 PM
Loyalist Group acquisition of Study English
Ticker Symbol: C:LOY
Loyalist Group acquisition of Study English
Loyalist Group Ltd (C:LOY)
Shares Issued 131,908,835
Last Close 2/5/2014 $0.69
Wednesday February 05 2014 - Acquisition
The TSX Venture Exchange has accepted for filing documentation relating to a share purchase agreement dated Jan. 29, 2014, between the shareholders of Study English In Canada Inc., Study English In Canada (Vancouver) Inc., Upper Career College of Business & Technology Inc. and Upper Career College of Business & Technology (Vancouver) Inc., and Loyalist Group Ltd. Pursuant to the agreement, the company shall acquire all the issued and outstanding shares in the capital of the vendors, which are accredited English-as-a-second-language schools and private career colleges located in Toronto and Vancouver.
In consideration, the company will pay $1,016,284, issue 1,666,666 shares at a deemed price of 66 cents to the vendors and extinguish $2,465,208.63 of trade payables owing to the company by the vendors.
For more information, refer to the company's news release dated Jan. 30, 2014.
© 2014 Canjex Publishing Ltd.
LGLTF trading at a discount to LOY on the Canadian side.
LOY is currently trading @ $0.72
That's $0.6452 USD
LGLTF is currently $0.6121
Makes sense to buy US if you like the company.
Loyalist Group to acquire Study English
2014-01-30 08:39 ET - News Release
Mr. Andrew Ryu reports
LOYALIST TO ACQUIRE STUDY ENGLISH IN CANADA
Loyalist Group Ltd. has entered into a definitive agreement for the acquisition of Study English in Canada, a licensed English-as-a-second-language school operator with campuses in Toronto and Vancouver. The proposed acquisition would also include the Upper Career College of Business & Technology campuses in Toronto and Vancouver.
SEC had consolidated revenues of $9.5-million and net income of $1.16-million in the most recent 12-month period. Loyalist will pay $5.5-million for SEC, of which approximately $3.46-million will be paid in cash or cash equivalents, and, subject to certain closing adjustments, $2.04-million will be paid through the issuance of Loyalist common shares, with $600,000 worth of such shares being held in escrow for a period of 10 months following closing as security for certain defined postclosing adjustments. The parties expect to complete the transaction on or around Feb. 5, 2014.
"This acquisition adds a well-respected and highly profitable operation to the Loyalist family," said chief executive officer Andrew Ryu. "It also increases our presence in the Toronto market and, more importantly, bolsters our presence in Europe, from which SEC attracts many of its students. I look forward to working with the SEC team as colleagues and fellow shareholders as we continue to build Loyalist."
Completion of the transaction is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
About SEC
Study English in Canada is a prestigious English preparation school. SEC offers highly tailored, results-driven programs at both its Toronto and Vancouver campuses. Its curriculum structure allows students to design personal, specialized schedules in order to reach their goals.
We seek Safe Harbor.
Update: Loyalist Group Limited Is Diversifying Its Revenue Base 0 comments
Jan 27, 2014 8:01 AM | about stocks: LGLTF
TSX-V LOY, US-OTCBB: LGLTF
INTRODUCTION
A lot has been going on at the offices of Loyalist Group Ltd. ('Loyalist' or the 'Company') since we first covered them at the end of November. The management team has been very busy continuing the Company's accretive pace towards becoming the premiere English-as-a-second-language (ESL) educator:
Commenced a fully operational pilot program offering housing to its students
Launched a franchise program to license its ESL curriculum in overseas schools
Arranged a $10.01-million bought deal
TRADING UPDATE
If you purchased LOY when we first mentioned it on November 28th at $0.49, the company hit an intraday high of $0.79 (also its 52-week high), and closed this past Friday at $0.68. That's about a 39% gain if you sell this morning at open.
Despite the slightly erratic trading on Friday, the technical analysis on LOY is bullish. In fact, early this week looks like a good time to add to your LOY holding. The 50-day MA just crossed the 200-day MA, setting up a 'golden cross' on the chart, a bullish technical indicator, and the Relative Strength Index (RSI) has levelled off nicely, currently 49.77, indicating that the stock in neither overbought nor oversold. support currently at $0.58 and resistance at $0.72. We would feel comfortable buying in the mid-to-high $0.60s, setting a stop-loss at $0.60, and then waiting to see if the share price can break through the resistance at $0.72. If so, we think we test the 52-week high.
(click to enlarge)
STUDENT HOUSING OPPORTUNITY
On December 6th, the Company announced a fully operational pilot program offering housing to its students. The company leased properties in Toronto, Vancouver, Victoria and Halifax capable of housing 104 students. The properties are 100% pre-sold through June 2014.
While we don't know specifically how the numbers break down, the financial returns to Loyalist are supposed to be "extremely compelling". Besides the positive financial implications and new revenue stream that this new opportunity brings, there are qualitative aspects that it adds to the company that can't specifically be accounted for. Loyalist can now offer its students a full complement of services when they come here to study abroad. In our opinion, the decision to enter the student housing market now solidifies Loyalist's reputation as Canada's premiere ESL educator.
Loyalist chief executive officer, Andrew Ryu, commented: "We are listening to our students, many of whom worry about accommodation prior to arrival in Canada. We would rather our students concentrate on their studies so we are offering safe and secure housing that meets Loyalist's best in class. Our shareholders will also be rewarded by this initiative, which has been contemplated for some time. Mr. Ryu continued, "If the pilot project is successful, which we fully expect, Loyalist will continue adding properties to ensure the needs of its students are met."
Pilot Project Metrics -
The rates advertised on the company website range from $480 - $1,000
104 beds @ $700/student per month (assumed average) x 12 months = $72,800 x 12 = $873,600 per annum
Considering that Loyalist now has a few thousand students, when you add in more beds the revenue becomes quite significant. My questions are, is the Company renting and/or are they planning on purchasing real estate? As well, what exactly are the margins, I presume different based on the geographic marketplace? I expect in due time that we'll find these answers out, nonetheless, the figures are attractive for investors.
FRANCHISING OPPORTUNITY
On January 8th, the Company announced that it launched a franchising program to license its ESL curriculum for overseas schools and also grant its own diplomas to franchisees and their students. Loyalist expects that franchising will create "substantial high-margin revenues" by allowing the Company to earn income from overseas students who choose to study domestically rather than abroad.
"Franchising is the logical next step in our evolution towards becoming a truly global brand in the ESL market," said chief executive officer Andrew Ryu. "We are easily the No. 1 choice of foreign students who want to come to Canada. But there are millions of other students who will choose to study in their home countries rather than coming to Canada. These students still want a first-rate curriculum and the ability to earn a recognized diploma, and Loyalist can offer both of those things. We expect this to be highly accretive to our income as the cost of setting up and running this business is small relative to the potential revenues."
Loyalist is targeting four countries for the launch of the program: Mexico, China, Turkey and South Korea. The Company has also already signed five franchise agreements, and expects to add several more franchise agreements per quarter over the coming years.
In terms of a revenue model, set-up fees payable by the franchisee to Loyalist range from $0 to $100,000, and there will also be royalty payments rates ranging from 5% to 20% of gross revenues (or $50/student per month). The Company also expects to facilitate its services to a monthly average of ~1,000 students by the end of 2014.
Franchising Metrics -
1,000 students @ $50/month x 12 months = $600,000 annual royalty run rate
It's expected that the ~$600,000 annual royalty run rate has very high EBITDA margins, and also doesn't include the initial set-up fees payable by the franchisee. Overall, this is a low-risk, low-cost strategy for the Company to expand its brand awareness outside of Canada. As the business continues to scale, this opportunity could translate into a very high-margin recurring revenue stream. We still think that another interesting possibility would be to offer online correspondence, integrating live chat via an application like Skype to offer personalized tutoring, or classroom-like services to students.
$10.01 MILLION BOUGHT-DEAL FINANCING
On January 9th, Loyalist entered into an agreement letter with Beacon Securities Ltd., on its own behalf and on behalf of a syndicate of underwriters, including Cormark Securities Inc. and Paradigm Capital Inc., to purchase for resale to eligible substituted purchasers, on a bought deal basis, an aggregate of 14.3 million common shares of the company at a price per common share of 70 cents for aggregate gross proceeds to the company of $10.01-million. Loyalist will grant to the underwriters an option to purchase up to an additional 2,145,000 common shares, exercisable in whole or in part, at any time until the closing of the offering. If the overallotment option is exercised in full, the aggregate gross proceeds to the company will be $11,511,500.
The Company has stated that it intends to use the proceeds from the offering to support general working capital purposes and to provide the base for potential accretive acquisition opportunities. The offering is expected to close on or about Jan. 27, 2014.
Including the funds from the November financing, the Company is very well financed and should now have ~$15 million (not including the overallotment option which may be exercised). While we didn't think that it was necessary for further dilution, we can only presume that management has a plan in place that they intend to use this new capital for. Since Loyalist generates positive cash flow, one might presume that time was of the essence to get this deal done now. Another acquisition like KGIC & KGIBC would really act as a catalyst for the Company going forward and rapidly accelerate its 5-year $200M+ revenue plan.
FINANCIAL ANALYSIS
Our financial estimates have not factored in the new opportunities discussed in this update. Too much is unknown at this time to extrapolate quantitatively. We accept that both of these opportunities are high-margin ventures, with low-risk, that will continue to bring more and more recurring revenue as the company scales.
That being said, we feel the need to re-iterate previous price target of ~$1.54 per fully diluted share. We believe that the Company could exit 2014 with a revenue run rate of ~$60M, EBITDA of ~$15M, and no need for further dilution. Debt can be used to supplement cash in acquisitions, and organic growth will improve the bottom line as well as the EBITDA margins. While we haven't adjusted our price target, we certainly feel much more comfortable about reaching it given the recent news.
CONCLUSION
The Company's strategic initiative to date has been to acquire schools, consolidate operations, and build its brand in the market. Management furthered that initiative by adding student housing and franchising into the Loyalist portfolio. We believe that these initiatives will accelerate the Company's top-line growth and also its profitability over time. It's encouraging that the Company is diversifying its revenue base beyond just tuition fees. As the Company continues to scale its operations, standardization of practices, and enhanced brand value, these will all lead to a higher influx of students into its programs, and ultimately drive revenue.
Key investment highlights include:
The market for short-term language training in Canada is large and extremely fragmented
The ESL market is recession-proof by nature, during hard economic times people go back to school to re-train
Loyalist has the experience and capital required to consolidate this industry (large insider holding and institutional support)
There are considerable synergies to consolidation (many options to decrease opex and capex while increasing revenues)
Long-term upside potential exists through expansion into the student housing market (pilot projects are currently in operation) and through franchising opportunities
Disclaimer: This report is prepared for informational purposes only and is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. This report does not constitute or contain investment advice. We are not soliciting any action based upon this material. It does not take into account the particular investment objective, financial situation or needs of individuals. Before any action, an individual should seek professional advice. All expressions or opinions are subject to change without notice. The author has no position in any of the mentioned or related securities including derivatives in such securities. Any photocopying or retransmission of this report without permission is prohibited and subject to liability. The author does not guarantee any returns nor guarantee the outcome of what has been portrayed in this report.
Loyalist Group to acquire Study English
2014-01-30 08:39 ET - News Release
Mr. Andrew Ryu reports
LOYALIST TO ACQUIRE STUDY ENGLISH IN CANADA
Loyalist Group Ltd. has entered into a definitive agreement for the acquisition of Study English in Canada, a licensed English-as-a-second-language school operator with campuses in Toronto and Vancouver. The proposed acquisition would also include the Upper Career College of Business & Technology campuses in Toronto and Vancouver.
SEC had consolidated revenues of $9.5-million and net income of $1.16-million in the most recent 12-month period. Loyalist will pay $5.5-million for SEC, of which approximately $3.46-million will be paid in cash or cash equivalents, and, subject to certain closing adjustments, $2.04-million will be paid through the issuance of Loyalist common shares, with $600,000 worth of such shares being held in escrow for a period of 10 months following closing as security for certain defined postclosing adjustments. The parties expect to complete the transaction on or around Feb. 5, 2014.
"This acquisition adds a well-respected and highly profitable operation to the Loyalist family," said chief executive officer Andrew Ryu. "It also increases our presence in the Toronto market and, more importantly, bolsters our presence in Europe, from which SEC attracts many of its students. I look forward to working with the SEC team as colleagues and fellow shareholders as we continue to build Loyalist."
Completion of the transaction is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
About SEC
Study English in Canada is a prestigious English preparation school. SEC offers highly tailored, results-driven programs at both its Toronto and Vancouver campuses. Its curriculum structure allows students to design personal, specialized schedules in order to reach their goals.
BUY: Jacob Securities $1.25 Target Price
http://www.loyalistgroup.com/images/PDF/LOY-Loyalist-Group-Limited-Reports-Q3-14-November-29-2013-JSI.pdf
Jacob Securities Inc. (“Jacob Securities”) does and seeks to do business with companies covered in its research reports. As
a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in
making their investment decision.
For analyst
certification and other important disclosures, refer to the Disclosure Section.
EQUITY RESEARCH
Sameet Kanade, MBA, Analyst
skanade@jacobsecurities.com
LGLTF is the stock to watch, LGLTF is a buy-out Target Now
http://www.loyalistgroup.com/index.html
Welcome
Loyalist Group is an educational organization that is in the business of providing a multitude of educational services with an emphasis on teaching English as a Second Language, Professional Development, and College Transfer Programs.
Loyalist owns schools in Toronto, Vancouver and Halifax, provide academic instruction-in-class, online, and through correspondence - primarily to students for whom English is not a first language. Programs are offered in a series of steps from basic to advanced which include internship(co-op) opportunities and private counselling for greater and more focused improvement.
PGIC : Vancouver, Toronto, Victoria
At PGIC, we have high standards. From our highly trained and professional teachers, to our exceptional curriculum, we will exceed your expectations of our school. Since 1994, thousands of students have achieved their language learning goals at PGIC
More about programs and services
CORNERSTONE ACADEMIC COLLEGE : Toronto, Vancouver
Cornerston
Cornerstone programs and services cater to a wide range of students – who desire to improve their communicative ability; who need Academic English for transfer into University; who are looking for career programs such as TESOL, Business English, and TEYC, or who want seasonal camps, or extensive community and activities programs to complement their study. Students enjoy the mix of nationalities, the balance between study and culture, and the options Cornerstone offers for career development. G.
More about programs and services
VIA TRAINING CENTRE : Victoria
VIA
VIA opened in 2002 with clear goals: to provide a positive learning environment with small classes taught by TESL Canada-certified and experienced teachers. Since 2002, we have worked steadily to improve the quality of our programs. We constantly check how we are doing by asking for student feedback, regular testing, and by the number of students that were referred to us by our graduates. All of this feedback supports our claim that VIA is succeeding in meeting our goals and raising the bar for private English education in Victoria.
More about programs and services
PAN PACIFIC COLLEGE : Vancouver, Toronto
PPC
Established in 1988, Pan Pacific College is one of the oldest and most respected language and career development schools in Vancouver. We offer the most effective programs, delivered by the best quality instructors. We have taken great pride in assisting thousands of students achieve their educational and professional goals. With two campuses in downtown Vancouver, PPC offers both General ESL and University Pathway Programs. This variety ensures that PPC can meet the needs of a broad range of international students.
More about programs and services
URBAN INTERNATIONAL SCHOOL : Toronto
UIS
Urban International School is an alternative school that employs a smaller classroom environment to provide differentiated instruction and aid every student’s individual learning needs. By using a personalized learning approach, UIS has successfully assisted hundreds of high school, international, and mature students become admitted to top Canadian and American universities
More about programs and services
MTI : Vancouver, Burnaby, Surrey, North Road, Chilliwack, Abbotsford
MTI
Established in 1988, MTI is one of BC's premier west coast accredited private training career college. With 6 campuses located throughout the Fraser Valley & lower mainland of beautiful British Columbia Canada! In 2003, we changed our name to MTI Community College to reflect our growth, commitment, and increased diversity in providing career training & programs for Governments, businesses & individuals.
More about programs and services
KGIC : Vancouver, Surrey, Toronto, Halifax, Victoria
KGIC
Education can be a confusing maze of choices and destinations. At KGIC, we know how difficult and overwhelming it can be to make the right educational choices for your future. Having been in business since 1996, KGIC has helped more than 45,000 students to do just that, guiding them to discover the path that is right for them.
More about programs and services
http://seekingalpha.com/instablog/19040961-e-vestorsgroup/2447311-loyalist-group-limited-an-undervalued-profitable-small-cap-canadian-education-play
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