|By Marketwired .||
|May 28, 2014 07:00 AM EDT||
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.
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.
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.
eCube Systems has released NXTmonitor, a full featured application orchestration solution. NXTmonitor, which inherited the code base of NXTminder, has been extended to support multi-discipline processes and will act as a DevOps utility in a heterogeneous enterprise environment. Previously, NXTminder was packaged with NXTera middleware to configure and manage Entera and NXTera RPC servers. “Since we are widening the focus of this solution to DevOps, we felt the need to change the name to NXTmon...
Sep. 3, 2015 09:00 AM EDT Reads: 123
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
Sep. 3, 2015 09:00 AM EDT Reads: 1,617
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing thes...
Sep. 3, 2015 09:00 AM EDT
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Sep. 3, 2015 09:00 AM EDT Reads: 842
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device acce...
Sep. 3, 2015 08:30 AM EDT Reads: 311
Containers are not new, but renewed commitments to performance, flexibility, and agility have propelled them to the top of the agenda today. By working without the need for virtualization and its overhead, containers are seen as the perfect way to deploy apps and services across multiple clouds. Containers can handle anything from file types to operating systems and services, including microservices. What are microservices? Unlike what the name implies, microservices are not necessarily small,...
Sep. 3, 2015 08:00 AM EDT
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
Sep. 3, 2015 07:45 AM EDT
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
Sep. 3, 2015 07:30 AM EDT Reads: 414
ElasticBox, the agile application delivery manager, announced freely available public boxes for the DevOps community. ElasticBox works with enterprises to help them deploy any application to any cloud. Public boxes are curated reference boxes that represent some of the most popular applications and tools for orchestrating deployments at scale. Boxes are an adaptive way to represent reusable infrastructure as components of code. Boxes contain scripts, variables, and metadata to automate proces...
Sep. 3, 2015 07:30 AM EDT
Enterprises can achieve rigorous IT security as well as improved DevOps practices and Cloud economics by taking a new, cloud-native approach to application delivery. Because the attack surface for cloud applications is dramatically different than for highly controlled data centers, a disciplined and multi-layered approach that spans all of your processes, staff, vendors and technologies is required. This may sound expensive and time consuming to achieve as you plan how to move selected applicati...
Sep. 3, 2015 07:30 AM EDT Reads: 123
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
Sep. 3, 2015 06:30 AM EDT Reads: 501
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...
Sep. 3, 2015 05:15 AM EDT Reads: 2,019
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
Sep. 3, 2015 05:00 AM EDT Reads: 1,586
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Sep. 3, 2015 05:00 AM EDT Reads: 493
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
Sep. 3, 2015 04:45 AM EDT Reads: 522