Loyalist Group earns $1.33-million in Q2 2014
Ticker Symbol: C:LOY
Loyalist Group earns $1.33-million in Q2 2014
Loyalist Group Ltd (C:LOY)
Shares Issued 148,814,592
Last Close 8/26/2014 $0.50
Wednesday August 27 2014 - News Release
Mr. Douglas Chornoboy reports
LOYALIST ANNOUNCES RECORD SECOND QUARTER 2014 RESULTS
Loyalist Group Ltd. has released 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."
Three months ended June 30, Six months ended June 30, 2014 2013 2014 2013 Revenue $ 17,185,078 $ 4,751,159 $ 32,899,825 $ 9,683,378 Gross Profit $ 7,315,695 $ 1,770,766 $ 13,871,676 $ 3,902,289 Income From Operations $ 2,201,133 $ 853,424 $ 3,933,240 $ 1,883,578 Net Income $ 1,338,872 $ 474,021 $ 2,901,530 $ 1,307,819 Adjusted EBITDA(i) $ 2,567,044 $ 932,937 $ 4,636,466 $ 2,012,417
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
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