- Deferred education revenue, representing committed future revenue, increased by $6.33 million in Q1 of this fiscal year as compared to an increase of $3.40 million for same period last year;
- Profitability increased by over $468,000 in EBITDA and over $222,000 in net income as compared to the same period last year, demonstrating our continued commitment to streamlining and reorganizing operations;
- Cash flow generated from operating activities was $2.08 million for the three months ended November 30, 2011, representing a cash increase of $1.63 million after investing and financing activities for the three months ended November 30, 2011 and a cash and cash equivalents balance of $8.33 million as at November 30, 2011;
- Sprott-Shaw has returned to a high margin business after a year of re-organization with an EBITDA of over $908,000 representing an EBITDA margin of 13.2% compared to an EBITDA of roughly $855,000 and an EBITDA margin of 11.8% from same period last year;
- The KGIC business has demonstrated a higher value than we had originally forecast upon its acquisition, having consistent growth and profitability since it was acquired compared to negative profitability prior to its acquisition;
- The CIBT China business has nearly broken even due to its strategic transformation and new cost efficient business model and is expected to continue to expand margins and grow responsibly via its Global Learning Network.
Note: EBITDA is a non-IFRS measure which allows management to isolate financial statement items that contribute to the operating performance and cash flow activities of CIBT Group. The following reconciles the net income (loss) to EBITDA (non-IFRS):
|Three Months Ended November 30, 2011||Three Months Ended November 30, 2010|
|Net income (loss)||$ 35,683||$ (186,766)|
|Add: interest on long-term debt||35,660||40,657|
|Add: income tax (recovery) provision||(29,573)||(368,207)|
|Add: depreciation and amortization||307,917||395,208|
|EBITDA (non-IFRS)||$ 349,687||$ (119,108)|
ON BEHALF OF THE BOARD OF DIRECTORS“Toby Chu” Toby ChuVice-Chairman, President & CEO FORWARD-LOOKING STATEMENTS: This news release contains statements of forward-looking information (the “forward-looking statements”) about CIBT Education Group Inc. and its future plans. Forward-looking statements are statements that are not historical facts. The forward-looking statements in this news release are subject to various risks, uncertainties and other factors that could cause the company's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. With respect to the statement in this news release as to the future revenues, profitability, and strategies of CIBT Group, these risks, uncertainties and other factors include, without limitation, uncertainty as to the company's ability to achieve the goals and satisfy the assumptions of management; uncertainties as to the demand for the programs offered; and general economic factors and other factors that may be beyond the control of the company. Forward-looking statements are based on the beliefs, opinions and expectations of the company's management at the time they are made, and CIBT Group does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change. Neither the NYSE Amex nor the Toronto Stock Exchange accepts responsibility for the adequacy or accuracy of this news release.