GREY:LGLTF - Post by User
Comment by
jumpth3sharkon May 02, 2014 4:54pm
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Post# 22519727
RE:Whats next..???
RE:Whats next..???Hawkeye your statement regarding the last quarter being the "big one" for ESL schools is factually incorrect. It's not only a MAJOR holiday season here in North America, but it's also very cold during the winter months in Canada. Enrollment is always highest Q1, Q2, and Q3.
Regarding your comments on MTI, the management team is consolidating as quickly as possible IMHO and as an outsider you might not notice a difference. But internally the staff are being turned over, the ciricumlums adjusted, and new more qualified personnel are being hired.
KGIC does comprise a large portion of LOY but is no means its whole. Clearly this is a fundamental aspect of the revenue and business model that you do not grasp. Loyalist's goal to to acquire the mom-and-pop schools for reasonable and favourable prices. Ideally 0.6x revenue or less. And Andrew and the management team have been very successful doing that so far. The whole idea is to buy these schools and consolidate as neccessary under the Loyalist umbrella to grow Loyalist into the largest ESL operator in Canada. You say that they struggle to find schools like KGIC to sell to them, but there are less than one handful of ESL schools this size in Canada. It's difficult to secure these deals, but over time the idea is that Loyalist will force them to sell because of the scale and reputation of the company. Hopefully Loyalist will become "too big" to compete with.
As for Sung Lim and Andrew, there relationship appears very healthy. KGIC and KGIBC retained the core competancies of their staff and Sung must very happy with his new position.