TORONTO, ONTARIO--(Marketwired - Apr 30, 2013) - Loyalist Group Limited ("Loyalist") (TSX VENTURE:LOY) is pleased to announce record financial results for the three and twelve months ending December 31, 2012.
In the fourth quarter, traditionally Loyalist's slowest fiscal period given the holidays, revenues rose 50% year over year to $3.5 million. Net income rose to $615,171 from a loss of $260,143 for the fourth quarter of 2011.
In 2012, Loyalist earned revenue of $13.6 million, an increase of 195%, and net income of $2.2 million compared to a loss of $1.3 million the previous year.
Loyalist's adjusted EBITDA for the year ended December 31, 2012 was $2.93 million, or 4 cents per share. Without including restructuring costs, the company's net income was $2.7 million, or 3.7 cents per share.
"Our results are a testament to our acquisition strategy," said Loyalist CEO Andrew Ryu. "Our gross profit - revenue less school-level expenses like teachers' salaries and rent - almost tripled. Meanwhile, our corporate overhead rose less than 50%, allowing us to earn net profit margins of almost 20% excluding one-time acquisition and restructuring costs. This is how we will continue to build value for shareholders by acquiring additional schools."
The following table summarizes Loyalist's results and year-over-year change for both the full year and fourth quarter:
| | 2012 full year | | 2012 fourth quarter | |
| | Revenue | $13,657,914 | 195 | % | $3,511,870 | 50 | % |
| | Gross profit | $5,803,672 | 326 | % | $911,563 | 140 | % |
| | Net income | $2,232,156 | 275 | % | $615,171 | 336 | % |
| | Adjusted EBITDA | $2,925,305 | 561 | % | $989,869 | 278 | % |
Loyalist notes that its results do not reflect the full revenue generating capacity of its schools given that three schools were acquired during the fourth quarter of 2012. Had the company owned all its schools as of Jan. 1, 2012, revenues would have been over $20 million for the year.
"While we grow rapidly by acquisition, we also benefit from organic growth," Mr. Ryu continued. "Before we acquired them, our schools collectively earned revenues of approximately $16 million per year. They now produce revenue of about $20 million on an annualized basis. That extra revenue comes from both a higher student count and a higher tuition per student we are able to charge thanks to our marketing efforts. This year is off to an excellent start, and we are in the process of leasing more space to accommodate organic growth and, with the recently closed equity financing, poised to acquire schools with substantial revenues, accelerating our growth trajectory."