Welcome!

News Feed Item

Loyalist Announces Record Revenues, Earnings and Cash Flow

TORONTO, ONTARIO -- (Marketwired) -- 05/28/14 -- Loyalist Group Limited ("Loyalist") (TSX VENTURE:LOY) today announced record financial results for the three months ended March 31, 2014.

First quarter revenue for the three months ended March 31, 2014 was $15.7 million, an increase of 219% over the same period in 2013. Income from operations was $1.7 million, a 68% increase over the same period in 2013, while net income was $1.6 million, an increase of 87% over the same period in 2013. Cash flow from operations was $2.2 million compared to negative $895,883 a year ago.

Revenues continue to rise as a result of the acquisitions closed through March 31, 2014, as well as organic growth of $400,000, arising from higher enrolment and increased tuition fees. Net income and cash flow were adversely impacted by $500,000 of one-time acquisition, integration and restructuring costs ($200,000 in the year-ago period). Excluding these, operating income would have been $2.2 million and cash from operations $2.7 million.

"Of particular importance, the first quarter demonstrated that Loyalist can not only grow its top and bottom line, but also generate strong cash flows from its school operations," said CEO Andrew Ryu. "Ultimately, our long-term goal is to create cash with which to self fund acquisitions and, as the business matures, start to return cash to shareholders."

Speaking to the first quarter, Mr. Ryu added that "our top line benefited from acquiring schools and from better execution in schools we owned or acquired. Our first quarter, 2014 results are in line with our expectations of the seasonal nature of the first quarter with net income at 9% of gross revenues. The integration of our recent six acquisitions continues, and we expect that the next three quarters will show the results in the form of better profit margins."

"Our assets support our current run-rate expectation of $63.0 million for 2014. We continue to focus on integrating schools and improving the company's overall profitability. While our corporate costs more than doubled over the same period last year, we expect them to stay fixed, and perhaps fall, moving forward, while our revenue continues to grow, which will create the leverage needed to see meaningful profit and cash-flow growth."

"We will also aggressively pursue our student housing and franchise businesses. These are low-risk, high-margin pursuits that allow Loyalist to create greater shareholder value from its asset base. Our students collectively spend millions of dollars a year on rent, and we plan to capture a significant share of that spend over time."

Loyalist generated $120,000 of revenue from its student housing pilot program and modest initial franchise fees in the first quarter of 2014. The company expects both lines of business to accelerate.

The following table summarizes and compares three month results for the periods ended March 31, year over year:


----------------------------------------------------------------------------
Three months ended March 31,         2014           2013         % Change   
----------------------------------------------------------------------------
Revenue                          $ 15,714,747   $ 4,932,219        +219     
----------------------------------------------------------------------------
Gross profit                      6,555,981     $ 2,131,524        +208     
----------------------------------------------------------------------------
Income from operations           $ 1,732,107    $ 1,030,155        +68      
----------------------------------------------------------------------------
Net Income                       $ 1,562,658     $ 833,799         +87      
----------------------------------------------------------------------------
Adjusted EBITDA(i)               $ 1,758,028    $ 1,079,480        +65      
----------------------------------------------------------------------------
                                                                            
(i) 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, loss of foreign exchange and stock     
based compensation expense.                                                 

Loyalist has a number of fiscal goals in 2014:


--  To close on accretive acquisitions: Study English in Canada ("SEC") and
    Upper Career College of Business and Technology ("UCCBT") closed with an
    effective date of February 1, 2014; 
--  Close on finance offerings to support the acquisition pipeline - closed
    $10.01 million bought deal private placement in January 2014; and 
--  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. 

With cash balance of $3.1 million as at May 26, 2014 and anticipated profitability, the company has the funds to meet all of its operating obligations and to continue growing by acquisition without raising additional capital.

About Loyalist

Loyalist Group Limited owns and operates private English as a Second Language (ESL) Schools, Career Colleges and Community Colleges in Toronto, Vancouver, Victoria and Halifax.

Forward-Looking Statements

This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only the company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the company's control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as "plans", "hopes", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken, "will continue", "will occur" or "will be achieved". The forward-looking information contained herein includes, but is not limited to, information with respect to prospective financial performance, anticipated capital funding and sources, proposed or potential acquisitions, estimated operating and sales costs, estimated market drivers and demand, business prospects and strategy, new markets for growth and financial position. By identifying such information and statements in this manner, the company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the company to be materially different from those expressed or implied by such information and statements. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results, including but not limited to: risks related to any of the company's announced or proposed acquisitions failing to close or becoming delayed before closing; the company's reliance on its South Korean contract; carrying on business and activities in international jurisdiction where Canadian laws do not apply; any loss of certain key personnel; levels of student enrolment; delays in rolling out the online education programs; competition in the educational services market; and currency fluctuations. Although the company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

Although the company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Accordingly, readers should not place undue reliance on any forward-looking information or statements contained in this press release. The forward-looking information contained in this press release is made as of the date hereof, and the company does not undertake to update any forward-looking information that is contained or referenced herein, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to the company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.