Loyalist Announces Record Third Quarter Earnings
28 Novembro 2013 - 1:40PM
Marketwired Canada
Loyalist Group Limited ("Loyalist") (TSX VENTURE:LOY) is pleased to announce
record financial results for the nine months ending September 30, 2013.
Revenue for the third quarter was $10.2 million with net income of $1.65
million. Adjusted for the legal costs of acquisitions and other one-time
acquisition related expenses, income from operations was $2.3 million.
For the nine months ending September 30, 2013, revenue was $19.9 million, with
income from operation of $4.15 million.
Operating income margin for the quarter was 22.3% compared to 20.7 % in the same
quarter in 2012. For the nine-month period, it was 20.9% compared to 18.0% in
the same nine months period in 2012. "This reflects management's continued focus
on rationalizing operating expenses along with integrating additional
acquisitions" said CEO Andrew Ryu.
The following tables provide highlights of the quarter and nine-month period,
year over year:
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Q3 2013 Q3 2012 % Change
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Revenue $ 10,180,761 $3,786,339 +169
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Gross profit $ 4,785,282 $ 1,494,700 +220
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Net income $ 1,657,480 $ 693,369 +139
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Costs relating to acquisitions $ 640,266 $ 105,132 +509
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Income from operations $ 2,268,592 $ 785,863 +189
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9 months 2013 9 months 2012 % Change
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Revenue $ 19,864,139 $ 10,146,044 +96
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Gross profit $ 8,687,571 $ 3,925,118 +121
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Net income $ 2,965,299 $ 1,616,985 +83
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Costs relating to acquisitions $ 1,260,438 $ 220,268 +472
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Income from operations $ 4,152,170 $ 1,833,941 +126
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During the third quarter, Loyalist closed its two largest acquisitions to date,
MTi and KGIC. Each contributed only partial-quarter revenues and earnings as
they were acquired mid-quarter.
"This quarter highlights two things," said CEO Andrew Ryu. "Firstly, we are
becoming increasingly well known in our target overseas markets as the top
provider of English as a second language, and are therefore seeing very strong
demand for our programs. This is evident in our expanding gross margins, which
reflect our pricing power. Secondly, we are building a platform with significant
economies of scale, as demonstrated in our Income from Operations in aggregate
and as a percentage of Revenue while covering our acquisition and integration
costs which include addition of personnel and a comprehensive ERP systems gear
up for growth. Our administrative systems are now adequate to add significantly
more revenue with minimal increase in operating costs."
"I'm very excited about the near-term future" Mr. Ryu continued. "We've worked
hard to build what we have and I believe we are about to reap the rewards of
this effort."
"The company has the funds and profitability to meet all of its obligations,
while having access to sufficient funds to make an accretive acquisition without
raising additional capital, and this should reflect positively on earnings per
share going forward."
About Loyalist
Loyalist Group Limited (the "Company") owns and operates private English as a
Second Language (ESL) Schools, Career Colleges and Community Colleges in
Toronto, Vancouver, Victoria and Halifax.
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.
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 Corporation's beliefs regarding future events, plans
or objectives, many of which, by their nature, are inherently uncertain and
outside of the Corporation's control. Generally, such forward-looking
information or statements can be identified by the use of forward-looking
terminology such as "plans", "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 Corporation
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 Corporation 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 Corporation's
announced or proposed acquisitions failing to close or becoming delayed before
closing; the Corporation'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 Corporation 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
Corporation 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 Corporation 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 Corporation or persons acting on
its behalf is expressly qualified in its entirety by this notice.
FOR FURTHER INFORMATION PLEASE CONTACT:
Loyalist Group Limited
David McAdam
VP Corporate Development
(604)961-3513
dmcadam@loyalistgroup.com
Loyalist Group Limited
Andrew Ryu
CEO
(416)969-9800 x222
aryu@loyalistgroup.com
Loyalist Group Limited (TSXV:LOY)
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