MBA.t
Sector: Education
Cash on hand .63/share
Trading at .51
No debt
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CIBT expects $43-million (U.S.) revenue in fiscal 2009
2008-10-07 16:13 ET - News Release
Mr. Toby Chu reports
CIBT PROVIDES ENROLMENT UPDATE AND FORECASTED REVENUE FOR 2009
CIBT Education Group Inc.'s total student enrolment across all education units has increased by 80 per cent as compared with the same period last year.
As of Sept. 30, 2008, student enrolment in CIBT's 48 colleges in China, Canada, the Philippines and Jordan totalled 6,172 students as compared with 3,420 students one year ago. CIBT's Weifang Wyotech campus, in Shandong province, experienced triple-digit percentage growth with record enrolment figures since its inception in 2006. One of the highest enrolment increases occurred in the auto technician program at CIBT Wyotech Automotive Institute in Weifang, China, which achieved a 161-per-cent rate of growth over last year.
Based on current enrolments, new enrolments and moderate revenue growth projections, the company's projected consolidated revenue for the fiscal year ending Aug. 31, 2009, is estimated at approximately $43-million (U.S.) as compared with fiscal June, 2008, of $26.7-million (U.S.), an increase of 61 per cent, and June 30 fiscal 2007 of $8.2-million (U.S.), an increase of 424 per cent. Contributing risk factors that can adversely affect the company's forward-looking projected revenue figure for fiscal 2009 include but are not limited to student withdrawals, the ability to seek financing for education, a lower level of enrolment than anticipated in the company's programs and government regulations on enrolment limits; accordingly, actual results may vary. The purpose of this projection is to provide investors with guidance as to the anticipated consolidated revenue for the current fiscal year and may not be appropriate for other purposes.
The company's cash on hand as of Sept. 20, 2008, exceeded $10-million (Canadian) with no long-term debt. The company plans to use its strong cash position to seek out acquisition opportunities in Asia during this global economic downturn.
As of Sept. 30, 2008, international enrolments at Sprott-Shaw's Greater Vancouver campus locations in Canada have experienced substantial growth from last year with the majority of students coming from overseas. International students now represent 65 per cent of the total number of students currently enrolled in the company's system of colleges in China and Canada.
"Our company continues to realize on its corporate strategy by designing our programs to consist of part-time studies in the student's home country, and finalizing their studies in North America," commented Toby Chu, vice-chairman and chief executive officer of CIBT Education Group. "A similar structure is at the planning stage for our North American students, which will be designed for them to gain study and work experience in Asia. We believe that this program structure better enables quality delivery and cross-cultural integration. Additionally, students will receive overseas work and study experience, improved language skills, and ultimately better-paying jobs working for multinationals in their home countries. Our tuition rates are typically higher than our domestic competition in Asia, as we believe our program adds substantial value to our students for postgraduate earning potential.
"In addition, our strategy of exporting Sprott-Shaw's century old experience and advanced western curriculum to Asia is progressing quickly and successfully, and provides an excellent feeder system to attract Asian students to initiate their studies at home and eventually complete their studies in North America," continued Mr. Chu. "We are excited to realize our vision of building Sprott-Shaw into a global college with both international and domestic students. Our ultimate objective is to build a world-class organization with an international perspective that encompasses quality curricula and provides our students with an unparalleled learning experience."
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