TORONTO, ONTARIO -- (Marketwired) -- 04/30/13 -- Loyalist Group Limited ("Loyalist") (TSX VENTURE: LOY) is pleased to announce record financial results for the three and twelve months ending December 31, 2012.
In the fourth quarter, traditionally Loyalist's slowest fiscal period given the holidays, revenues rose 50% year over year to $3.5 million. Net income rose to $615,171 from a loss of $260,143 for the fourth quarter of 2011.
In 2012, Loyalist earned revenue of $13.6 million, an increase of 195%, and net income of $2.2 million compared to a loss of $1.3 million the previous year.
Loyalist's adjusted EBITDA for the year ended December 31, 2012 was $2.93 million, or 4 cents per share. Without including restructuring costs, the company's net income was $2.7 million, or 3.7 cents per share.
"Our results are a testament to our acquisition strategy," said Loyalist CEO Andrew Ryu. "Our gross profit - revenue less school-level expenses like teachers' salaries and rent - almost tripled. Meanwhile, our corporate overhead rose less than 50%, allowing us to earn net profit margins of almost 20% excluding one-time acquisition and restructuring costs. This is how we will continue to build value for shareholders by acquiring additional schools."
The following table summarizes Loyalist's results and year-over-year change for both the full year and fourth quarter:
2012 full year 2012 fourth quarter Revenue $13,657,914 195% $3,511,870 50% Gross profit $5,803,672 326% $911,563 140% Net income $2,232,156 275% $615,171 336% Adjusted EBITDA $2,925,305 561% $989,869 278%
Loyalist notes that its results do not reflect the full revenue generating capacity of its schools given that three schools were acquired during the fourth quarter of 2012. Had the company owned all its schools as of Jan. 1, 2012, revenues would have been over $20 million for the year.
"While we grow rapidly by acquisition, we also benefit from organic growth," Mr. Ryu continued. "Before we acquired them, our schools collectively earned revenues of approximately $16 million per year. They now produce revenue of about $20 million on an annualized basis. That extra revenue comes from both a higher student count and a higher tuition per student we are able to charge thanks to our marketing efforts. This year is off to an excellent start, and we are in the process of leasing more space to accommodate organic growth and, with the recently closed equity financing, poised to acquire schools with substantial revenues, accelerating our growth trajectory."
Loyalist owns and operates private education schools in Toronto, Vancouver, and Victoria offering (i) English as a Second Language Courses for international students; (ii) Training programs for teachers, commonly known as TESL; (iii) Professional Development Courses; and (iv) Corporate English for Professionals.
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.
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Loyalist Group Limited
Loyalist Group Limited