Reference should be made to the Company’s annual consolidated financial statements and management’s discussion and analysis which can be viewed under the Company’s profile on SEDAR at http://www.sedar.com.
“Fiscal 2012 was a year of significant turnaround for CIBT Group. The result placed us on a strong and positive trajectory with steady and solid growth. We transformed our various subsidiaries into leaner organizations with the ability to adapt to the declining economic environment,” commented Toby Chu, President, CEO, and Vice Chairman of CIBT Education Group Inc. “While we are pleased with our 5 year revenue growth from US$8.2 million in F2007 to CAD$58.0 million in F2012, both organically and through our acquisitions, we continue to be vigilant on our operating cost structure. Our Adjusted Net Income of $1.20 million speaks volumes about management’s relentless efforts to perform better with less resources. This yielded a steady revenue base but significant reduction of operating expenses from $32.9 million in F2011 to $29.6 million in F2012, a saving of $3.3 million or 10%. Our cash or cash equivalent position as at August 31, 2012 increased to $8.0 million from $6.5 million as at August 31, 2011, an increase of 23%. Our long term debt was $1.6 million as of August 31, 2012, a decline of $0.6 million (27%) from the same day last year and we expect this trend will continue on a yearly basis. This strong cash position and minimal debt ratio will allow us to act swiftly on appealing acquisition opportunities as they are identified.
It is also important to note that while the Company enjoyed a significant turn-around of its financial performance, the Company also maintained its vision of growth through global expansion. The reason revenue was relatively flat in Fiscal 2012, instead of suffering a decline as commonly seen with other industry participants as a result of the economic climate, is attributable to the growth in the number of international students at KGIC and Sprott-Shaw, which was achieved through CIBT Group’s effort to expand its recruitment networks and organize joint marketing efforts with all of its subsidiary schools, particularly in China, Korea and the Middle East. As such, the KGIC business, which has an exclusively international student base, grew by 10% (or $2.1 million) and the Sprott-Shaw international student business grew by 52% (or $2.6 million). CIBT Group is further investing in the global education sector by deploying our effective and practical Global Learning Network (”GLN”). GLN is a professional grade, fully interactive video conference delivery platform of educational content with broadcasting studios and receiving classrooms located around the world.