CIBT Reports Financial Results for First Quarter Ending November 30, 2016

Vancouver, British Columbia (FSCwire) - CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT” or the “Company”) is pleased to report that it has filed on SEDAR its consolidated financial statements and related Management’s Discussion & Analysis for its first quarter ending November 30, 2016 (“Q1 2017”). Reference should be made to the filing in its entirety which may be obtained under CIBT’s profile at www.sedar.com. 

The following is a summary of the Q1 financial results:

The following reconciles the net income (loss) to EBITDA (non-IFRS):

"I am pleased to report that our operating performance at our education and student housing divisions are both achieving great results with a strong head start for the fiscal year," commented Toby Chu, Chairman, President and CEO of CIBT.  "We are also thrilled to report that that our international enrollment has increased by over 110% in Q1 2017 as compared to same period last year complemented by modest growth from our domestic division. As a result of these strong enrollment trends, our student housing division is also experiencing significant growth of 387% in rental revenue in Q1 2017 as compared to the same period last year. The end result of increased enrollment drove up the demand for our student housing.  Supported by rapid growth in the GEC branded student housing supply, we saw a significant increase in our development revenue of 209% and net income growth of 1,359% in year over year comparison.

“We believe our infrastructure, reputation and 23 years of experience in the global education sector position us well to take advantage of this wave of exponential growth in the education and student housing sectors,” continued Toby Chu. “Our increasing operating profit and increased valuation of the student housing properties generated tangible and measurable financial results while at the same time validating our business model.”

Noteworthy highlights in the year over year comparison of the first quarters of fiscal 2016 and 2017 are as follows:

• Total revenue increased from $9.36 million to $13.98 million, an increase of 49%

• Student housing development fees increased from $1.44 million to $4.46 million, an increase of 209%

• Student housing rental income increased from $0.34 million to $1.66 million, an increase of 387%

• General administration expenses increased from $4.93 million to $5.05 million, a marginal increase of 2.3%

• Gain in fair value on change in investment properties increased from $0 to $2.10 million

• Net income increased from $0.39 million to $5.66 million, an increase of 1,359%

• Net income attribute to CIBT shareholders increased from $0.51 million to $5.21 million, an increase of 916%

• Earnings per share increased from $0.01 to $0.08, an increase of 700%

• Earnings attributable to CIBT shareholders increased from $0.01 to $0.07, an increase of 600%

• EBITDA (Earnings Before Interest Taxes Depreciation Amortization) increased from $0.68 million to $6.20 million, an increase of 809%

• Total assets increased from $84.97 million to $144.70 million, an increase of 70%

• Corresponding total liabilities increased from $48.43 million to $77.88 million, an increase of 60.8%

In conjunction with equity investment partners at the project level, the Company acquired a number of student housing properties without diluting the share structure of CIBT. These properties are either in operation or currently under-development.  To date, the total development budget (including acquisition costs) of these properties is in excess of $600 million.

Subsequent to November 30^th, 2016, approximately $4.75 million in phase 1 equity financing investment capital was received by the applicable limited partnerships for the development of the GEC Education Super Center and GEC Education Mega Center projects.  Total subscription funds of $17.5 million have been received for these two projects.

Going forward, CIBT plans to continue to increase the value of its student housing business by structuring each transaction, managing the development of the project, and filling each property with students from CIBT’s pipeline of international and domestic students, thereby generating an attractive return for our investors. In addition to expanding our student housing investment portfolio, CIBT will continue to seek school acquisition opportunities, both as part of its core business and to continue to fill the pipeline of students feeding our student housing properties.”

About CIBT Education Group:

CIBT Education Group Inc. is one of the largest education and student-housing investment companies in Canada focused on the global education market since 1994.  Listed on the Toronto Stock Exchange and U.S OTCQX International, CIBT owns business & language colleges, student housing properties, recruitment centers and corporate offices at 34 locations in Canada and abroad.  Total annual enrollment for the group exceeds 8,000 students.  Its education providers include Sprott Shaw College (established in 1903), Vancouver International College and CIBT School of Business.  Through these schools, CIBT offers business and management programs in healthcare, hotel management, language training, and over 150 career and vocational programs.  CIBT's property investments are owned by Global Education City Holdings Inc., an investment holding and management company focused on developing education related real estate such as student hotels, serviced apartments and education super centers totalling over $600 million.  CIBT also owns Global Education Alliance (“GEA”) and Irix Design Group ("Irix Design"). GEA recruits international students for many elite kindergarten, primary & secondary schools, colleges and universities in North America.  Irix Design is a leading design and advertising company based in Vancouver, Canada. Visit us online at www.cibt.net, www.studenthotel.ca and watch our corporate video at http://cibt.net/about/.

Toby Chu

Chairman, President & CEO

CIBT Education Group Inc.

Investor Relations Contact: 1-604-871-9909 extension 310 or | Email: info@cibt.net

FORWARD-LOOKING STATEMENTS:

Some statements in this news release contain 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 are subject to various risks, uncertainties and other factors that could cause CIBT’s actual results or achievements to differ materially from those expressed in or implied by forward-looking statements, including but not limited to obtaining all necessary regulatory approvals.  Forward-looking statements are based on the beliefs, opinions and expectations of CIBT’s management at the time they are made, and CIBT does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change, except as may be required by law.

NON-IFRS FINANCIAL MEASUREMENTS

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) are non-IFRS financial metric used in this Management’s Discussion & Analysis.  These non-IFRS financial measurements do not have any standardized meaning as prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other issuers.  Management uses EBITDA metrics to measure the profit trends of the business units and segments in the consolidated group since it eliminates the effects of financing decisions.  Certain investors, analysts and others utilize these non-IFRS financial metrics in assessing the Company’s financial performance.  These non-IFRS financial measurements have not been presented as an alternative to net loss or any other financial measure of performance prescribed by IFRS.  Reconciliation of the non-IFRS measure has been provided throughout the Company’s MD&A filed under the Company’s profile on SEDAR.COM.

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