TORONTO, ONTARIO--(Marketwired - Nov. 26, 2014) - Loyalist Group Limited ("Loyalist" or the "Company") (TSX VENTURE:LOY) today announced financial results for the three and nine months ended September 30, 2014.
Third quarter revenue for the three months ended September 30, 2014, was a record $19.6 million, an increase of 93% over the same period in 2013. Income from operations was $3.2 million, a 43% increase over the same period in 2013, while net income was $1.9 million, an increase of 14% over the same period in 2013. Adjusted EBITDA was $3.6 million, an increase of 50% over the same period in 2013, and Adjusted EBITDA margin was 18.6%.
Revenues continue to rise as a result of acquisitions closed through September 30, 2014, as well as organic growth of $1,000,000 or 10.0 % on the base business, as enrollments continued to trend higher. Student count on a "same store" basis was up 4% year over year.
"Our third quarter continued to demonstrate the potential of our acquisition and integration strategy with double digit organic growth and record revenues," said CEO Andrew Ryu. "While the third quarter is traditionally our strongest quarter due to industry seasonality, our exceptional results exceeded our expectations. We are very pleased with the performance of our most recent acquisitions in the third quarter."
On the integration front, Mr. Ryu commented that "we continue to devote significant resources to the integration and consolidation of our acquisitions so that we can realize the synergies inherent in our consolidation strategy. At the end of the third quarter we implemented another wave of restructuring measures that should yield significant savings going forward."
The following table summarizes and compares three month results for the periods ended September 30, year over year:
| Three months ended September 30, |
2014 |
2013 |
% Change |
|
| Revenue |
$ |
19,626,107 |
$ |
10,180,761 |
+93 |
% |
| Gross Profit |
$ |
8,374,269 |
$ |
4,785,282 |
+75 |
% |
| Income From Operations |
$ |
3,233,689 |
$ |
2,268,592 |
+43 |
% |
| Net Income |
$ |
1,885,246 |
$ |
1,657,480 |
+14 |
% |
| Adjusted EBITDA* |
$ |
3,643,056 |
$ |
2,430,511 |
+50 |
% |
| *Adjusted EBITDA, a non-IFRS measure used by management to act as an indicator of its core operating business; is defined as earnings before interest, taxes, depreciation, and amortization, adjusted for integration, restructuring and acquisition costs, and loss on foreign exchange. |
The following table summarizes and compares nine month results for the periods ended September 30, year over year:
| Six months ended September 30, |
2014 |
2013 |
% Change |
|
| Revenue |
$ |
52,525,932 |
$ |
19,864,139 |
+164 |
% |
| Gross Profit |
$ |
22,245,945 |
$ |
8,687,571 |
+156 |
% |
| Income From Operations |
$ |
7,166,929 |
$ |
4,152,170 |
+73 |
% |
| Net Income |
$ |
4,786,776 |
$ |
2,965,299 |
+61 |
% |
| Adjusted EBITDA* |
$ |
8,279,522 |
$ |
4,442,927 |
+86 |
% |
| *Adjusted EBITDA, a non-IFRS measure is used by management to act as an indicator of its core operating business; is defined as earnings before interest, taxes, depreciation, and amortization, adjusted for integration, restructuring and acquisition costs, and loss on foreign exchange . |
To date, Loyalist has achieved a number of its corporate goals for 2014:
- Closed on accretive acquisitions:
- Study English in Canada and Upper Career College of Business and Technology completed in February 2014.
- Announced an accretive acquisition:
- Uhak.com, a South Korean based student recruiting agency. The expected close date is on or around December 5, 2014.
- Closed on finance offerings to support the Company's acquisition pipeline:
- Closed $10.0 million bought deal private placement in January 2014.
- Closed $18.5 million credit facility with Bank of Montreal, including a $15.0 million term loan acquisition facility in November 2014.
- Continued to centralize all accounting functions in the Company's corporate office and roll out the Company's custom-built ERP system to provide standardization of the Company's student database, billing/collection and human resource functions across all schools.