The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from TheNewswire.ca

LOYALIST GROUP REPORTS 198% INCREASE IN REVENUES IN Q2 FROM ACQUISITIONS AND INCREASED ENROLMENT

Tuesday, August 30, 2011

LOYALIST GROUP REPORTS 198% INCREASE IN REVENUES IN Q2 FROM ACQUISITIONS AND INCREASED ENROLMENT09:03 EDT Tuesday, August 30, 2011(via Thenewswire.ca) Toronto, Ontario - August 30th 2011 - Loyalist Group Limited ("Loyalist" or the "Corporation") (TSX Venture Exchange: "LOY"), today reported its results for the second quarter of fiscal 2011 ended June 30th 2011, which is the Corporation's second quarter since obtaining its public listing on the TSX Venture Exchange on January 5th 2011. Comparative figures refer to financial results of the McKinsey Education Group ("McKinsey") that was the core operating entity owned by Loyalist last year. The second quarter fiscal 2010 results from McKinsey's have been restated to reflect the Corporation's adoption of IFRS reporting guidelines. For its second quarter as a public company, Loyalist Group grew Tuition Revenues by 150% when compared to McKinsey's results for the same period the previous year. Tuition revenues for the six months ended June 30, 2011, were $720,013. Three and six months ended June 30th 2011, compared to three and six months ended June 30th 2010: --------------------------------------------------------------------- |  | |Q2 | |Q2 | |6  Months | |6 Months  2010 | | | |2011 | |2010 | |2011 | | | |-------------------------------------------------------------------| |Revenues |$|401,942 |$|150,253|$| 777,913 |$| 348,161 | |-------------------------------------------------------------------| |Operating |$|669,881 |$|9,924 |$|1,419,363 |$|329,455 | |Expenses? | | | | | | | | | |-------------------------------------------------------------------| |Gross Profit |$|(268,712) |$|9,924 |$|(646,242) |$|18,706 | |-------------------------------------------------------------------| |Investment & |$|30,455 |$|1,547 |$|57,900 |$|1,917 | |Other | | | | | | | | | |Income | | | | | | | | | |-------------------------------------------------------------------| |Net Income |$|(268,712) |$|9,924 |$|(646,242) |$| 18,706 | |(Loss) | | | | | | | | | |-------------------------------------------------------------------| |Net Income |$|          |$|0.001 |$|          |$|          | |(Loss) per |$|   (0.006)|$|0.001 |$|          |$|          | |Share | |(0.006) | | | |  | |          | |Basic | | | | | |          | |       0.004 | |Fully Diluted| | | | | |   (0.015)| |0.004 | | | | | | | |(0.015) | | | |-------------------------------------------------------------------| |? ? Comprises |  | |stock-based | | |compensation, | | |office and | | |general, finance | | |costs, | | |professional | | |fees, travel, | | |consulting fees, | | |amortization of | | |intangible | | |assets, and | | |depreciation of | | |property, plant | | |and equipment. | | --------------------------------------------------------------------- Andrew Ryu, CEO of Loyalist, commented, "Our focus during the first half of fiscal 2011, our first as a reporting issuer, has been to add to our existing ESL schools and teachers' colleges through accretive, strategic acquisitions in order to increase the number of enrolled students. As at January 1, 2011 there were 110 students enrolled at our schools, compared to 243 as at August 1, 2011. Naturally, during this process, one-time expenses related to these acquisitions have adversely impacted our bottom line. We expect that the synergies achieved from the integration of these acquisitions over the coming months will result in improved financial results over future quarters. -The Corporation completed its acquisition of all the issued and outstanding securities of Universal College of Language Inc. in Vancouver, Canada on June 1, 2011. -The Corporation completed a private placement by issuing 2,064,000 common shares at a purchase price of $0.125. -The Corporation entered into an agreement to acquire PGIC Vancouver Studies Inc., PGIC Career College Inc. and PGIC Holdings Ltd., leading English as a Second Language schools in Vancouver, Canada. -The Corporation entered into an agreement to acquire a privately held education company operating in South Korea. Highlights Subsequent to the End of Q2 -On July 1, 2011, the Corporation completed its acquisition of all the issued and outstanding securities of a privately held education company operating in South Korea for $80,000 cash and 625,000 common shares of the Corporation. -On August 1, 2011, the Corporation completed its acquisition of all the issued and outstanding securities of PGIC Vancouver Studies Inc., PGIC Career College Inc. and PGIC Holdings Ltd., leading English as a Second Language schools in Vancouver, Canada. -On August 5, 2011, the Corporation entered into an agreement to acquire Western Town College (WTC), an English as a Second Language school, in Vancouver, Canada. To view the Corporation's financial statements and management's discussion and analysis for the period, please visit www.sedar.com. About Loyalist Group Limited Listed on the TSX Venture since January 4th 2011, Loyalist Group Limited (TSXV: LOY) owns and operates private education schools both in Toronto and Vancouver 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. To receive corporate news updates send your email to lauren@chfir.com and mention ?Loyalist News' on the subject line. For further information, please contact: ---------------------------------------------------------------------- |Andrew Ryu |Jeanny So |Lauren Clarke | |Loyalist Group |CHF Investor Relations|CHF Investor Relations| |Limited |Director of Operations|IR Associate | |CEO |T: (416) 868-1079 x225|T: (416) 868-1079 x241| |T: (416) 977-9800 |E: jeanny@chfir.com   |E: lauren@chfir.com | |E: | | | |aryu@loyalistgroup.com| | | ---------------------------------------------------------------------- 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, in accordance with the Safe Harbour provisions of the Private Securities Litigation Reform Act of 1995, the Corporation notes that some statements in this news release look forward in time based on assumptions, uncertainties and management's best estimates of future events, and involve risks and uncertainties that may affect the Corporation`s actual results of operations. The following important factors, among others that are discussed in Corporation filings, could cause actual results to differ materially from those set forth in the forward-looking statements such as, but not limited to risks related to any of the Corporation`s announced acquisitions failing to close or becoming delayed before closing; reliance on the South Korean contract since it provides the majority of existing revenues; dealings in international jurisdiction where Canadian laws do not apply; any loss of certain key personnel; levels of students enrolment; delays in rolling out the online education programs may cause loss of market share; factors affecting ability to successfully compete amongst range of education options available in market; and currency fluctuations versus the Canadian dollar (i.e. South Korean won); and any detrimental effects upon the "McKinsey" brand. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in Loyalist Group Limited's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. Loyalist Group Limited has no intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Copyright (c) 2011 Thenewswire.ca - All rights reserved.