TORONTO, ONTARIO--(Marketwire - Nov. 29, 2012) - Loyalist Group Limited (the "Company") (TSX VENTURE:LOY) is pleased to report record earnings and revenue for the third quarter of 2012.
Revenues in the three months ending Sept. 30, 2012, were $3.8 million, a 153% increase over the comparable period a year earlier. Adjusted net income was $963,162 compared to a loss in the year-ago period.
For the nine months ending Sept. 30, 2012, revenues were 344% higher at $10.1 million, whereas adjusted net income was $2,268,955, compared to a loss a year earlier.
Adjusted net income excludes certain one-time restructuring, legal and finance fees. Including these costs, net income was $693,369 for the quarter, or 0.8 cents/share, and $1,615,985 for the nine-month period, or 2.5 cents/share.
"These results show that our business model works," said Andrew Ryu, CEO. "Our revenues are growing briskly and our bottom line is growing even faster thanks to healthy gross margins and operating leverage. I'm particularly pleased to report that while top-line growth was helped by the addition of new schools, we also generated impressive organic growth. We were able to increase tuition rates by as much as 20% by rebranding schools, for example. And our attention to costs and restructuring, which includes one-time expenses, is also bearing fruit as evidenced by our expanding operating margins of 22% for the quarter and 18% for the nine-month period."
The Company expects its growth trajectory to continue in the near term as these results do not include the impact of investing the $5 million proceeds from its August financing.
"Since the quarter ended, we've acquired two excellent new schools, Cornerstone Academic College, which is already delivering positive surprises, and Victoria International Academy, which is of particular interest for its e-learning platform. We believe we can successfully deploy this tool over our much larger and growing student base and expect to earn high-margin revenues as a result."
The Company's financial statements and management discussion and analysis are available on SEDAR.
About Loyalist Group (TSX VENTURE:LOY)
Loyalist Group Limited owns and operates private ESL(English as a Second Language) schools in Toronto, Vancouver, and Victoria. Run by experienced professionals in the private education sector, Loyalist Group provides educational services with an emphasis on teaching: (i) English as a Second Language courses for international students, (ii) training programs for teachers, commonly known as TESL(Teaching English as a Second Language), (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 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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