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Global Education Communities Corp. (GECSF) reported financial results for fiscal year 2024. Total revenues decreased 2% to $77,041,000 from $78,603,000 in FY2023. Educational revenues from SSCC increased 6% to $41,806,000, while SSLC/VIC revenues declined 10% to $12,545,000. Rental revenues decreased 18% to $17,250,000, primarily due to the sale of GEC Granville Hotel. After adjusting for the hotel sale, rental income grew 12.6% year-over-year. The company reported net income attributable to shareholders of $1,094,000 or $0.02 per share, compared to a loss of $3,909,000 in FY2023.
Global Education Communities Corp. (GECSF) ha riportato i risultati finanziari per l’anno fiscale 2024. I ricavi totali sono diminuiti del 2% a $77.041.000 rispetto ai $78.603.000 del FY2023. I ricavi educativi da SSCC sono aumentati del 6% a $41.806.000, mentre i ricavi da SSLC/VIC sono calati del 10% a $12.545.000. I ricavi da affitto sono diminuiti del 18% a $17.250.000, principalmente a causa della vendita del GEC Granville Hotel. Dopo aver aggiustato per la vendita dell’hotel, il reddito da affitti è cresciuto del 12,6% rispetto all’anno precedente. La società ha riportato un reddito netto attribuibile agli azionisti di $1.094.000, ovvero $0,02 per azione, rispetto a una perdita di $3.909.000 nel FY2023.
Global Education Communities Corp. (GECSF) informó los resultados financieros para el año fiscal 2024. Los ingresos totales disminuyeron un 2% a $77,041,000 desde $78,603,000 en el FY2023. Los ingresos educativos de SSCC aumentaron un 6% a $41,806,000, mientras que los ingresos de SSLC/VIC disminuyeron un 10% a $12,545,000. Los ingresos por alquiler disminuyeron un 18% a $17,250,000, principalmente debido a la venta del GEC Granville Hotel. Después de ajustes por la venta del hotel, los ingresos por alquiler crecieron un 12.6% año tras año. La empresa reportó un ingreso neto atribuible a los accionistas de $1,094,000 o $0.02 por acción, en comparación con una pérdida de $3,909,000 en el FY2023.
Global Education Communities Corp. (GECSF)는 2024 회계연도 재무 결과를 보고했습니다. 총 수익은 2023 회계연도의 $78,603,000에서 $77,041,000으로 2% 감소했습니다. SSCC의 교육 수익은 6% 증가하여 $41,806,000에 달했으며, SSLC/VIC의 수익은 10% 감소하여 $12,545,000에 이르렀습니다. 임대 수익은 GEC Granville 호텔 매각에 주로 기인하여 18% 감소한 $17,250,000이었습니다. 호텔 매각을 조정한 후, 임대 소득은 전년 대비 12.6% 증가했습니다. 회사는 주주에게 귀속되는 순이익이 $1,094,000, 주당 $0.02라고 보고했으며, 이는 2023 회계연도의 $3,909,000 손실과 비교됩니다.
Global Education Communities Corp. (GECSF) a annoncé les résultats financiers pour l’exercice fiscal 2024. Les revenus totaux ont diminué de 2 % pour atteindre 77 041 000 $ contre 78 603 000 $ en FY2023. Les revenus éducatifs de SSCC ont augmenté de 6 % pour atteindre 41 806 000 $, tandis que les revenus de SSLC/VIC ont chuté de 10 % pour atteindre 12 545 000 $. Les revenus locatifs ont diminué de 18 % pour atteindre 17 250 000 $, principalement en raison de la vente de l’Hôtel GEC Granville. Après ajustement pour la vente de l’hôtel, le revenu locatif a augmenté de 12,6 % par rapport à l’année précédente. La société a annoncé un revenu net attribuable aux actionnaires de 1 094 000 $, soit 0,02 $ par action, par rapport à une perte de 3 909 000 $ en FY2023.
Global Education Communities Corp. (GECSF) hat die finanziellen Ergebnisse für das Geschäftsjahr 2024 veröffentlicht. Die Gesamteinnahmen sind um 2 % auf $77.041.000 gesunken, verglichen mit $78.603.000 im Geschäftsjahr 2023. Die Bildungseinnahmen von SSCC stiegen um 6 % auf $41.806.000, während die Einnahmen von SSLC/VIC um 10 % auf $12.545.000 sanken. Die Mieteinnahmen fielen um 18 % auf $17.250.000, hauptsächlich aufgrund des Verkaufs des GEC Granville Hotels. Nach Anpassung an den Hotelverkauf stieg das Mietdepot im Jahresvergleich um 12,6 %. Das Unternehmen berichtete von einem Nettogewinn von $1.094.000, was $0,02 pro Aktie entspricht, im Vergleich zu einem Verlust von $3.909.000 im Geschäftsjahr 2023.
Positive
- Net income improved to $1.094M ($0.02/share) from a loss of $3.909M in FY2023
- Domestic educational revenue increased 6% to $41.806M
- Adjusted rental income grew 12.6% year-over-year
- Student recruitment division (GEA) revenue grew 13%
- Most operating properties increased in value due to strong cash flow
Negative
- Total revenue declined 2% to $77.041M
- International college revenue decreased 10% ($1.389M)
- Property valuations for GEC EMC and ESC decreased due to market conditions
- Total assets decreased 5% to $475.211M
- Non-current financial liabilities increased 24% to $198.042M
VANCOUVER, BC / ACCESSWIRE / November 29, 2024 / Global Education Communities Corp. (” GECC ” or the ” Company “) (TSX:GEC)(OTCQX International:GECSF) reports that it has filed on SEDAR+ its audited annual consolidated financial statements (the ” Annual Financial Statements “) and related Management’s Discussion & Analysis (the ” MD&A “) (collectively, the ” 2024 Financial Report “) for the fiscal year ended August 31, 2024 (” Fiscal 2024 “). This news release should be read in conjunction with the 2024 Financial Report in its entirety. To review the 2024 Financial Report, please visit GECC’s profile at www.sedarplus.ca.
The following table presents selected financial data from the 2024 Financial Report with comparisons to the fiscal year ended August 31, 2023 (” Fiscal 2023 “). All figures are in thousands of Canadian dollars, except share and per share data, unless otherwise noted.
|
Fiscal 2024 |
Fiscal 2023 |
% Change 2024 (2) |
||||||||||
|
Total revenues |
$ |
77,041 |
$ |
78,603 |
(2 |
) |
||||||
|
Educational revenues – SSCC |
$ |
41,806 |
$ |
39,270 |
6 |
|||||||
|
Educational revenues – SSLC / VIC |
$ |
12,545 |
$ |
13,934 |
(10 |
) |
||||||
|
Educational revenues – CIBT |
$ |
2,089 |
$ |
2,217 |
(6 |
) |
||||||
|
Rental revenues – GECH |
$ |
17,250 |
$ |
21,130 |
(18 |
) |
||||||
|
Development fees – GECH and Corporate |
$ |
1,467 |
$ |
479 |
206 |
|||||||
|
Design and advertising revenues – IRIX |
$ |
579 |
$ |
420 |
38 |
|||||||
|
Commissions and referral fees – GEA |
$ |
1,305 |
$ |
1,153 |
13 |
|||||||
|
Gross profit (1) |
$ |
44,386 |
$ |
43,547 |
2 |
|||||||
|
Other expenses |
$ |
(38,299 |
) |
$ |
(36,276 |
) |
6 |
|||||
|
Finance costs |
(13,850 |
) |
(16,316 |
) |
(15 |
) |
||||||
|
Net gain (loss) on investment property fair value changes |
(25,844 |
) |
7,835 |
(430 |
) |
|||||||
|
Gain on sale of hotel property |
10,378 |
– |
n/m |
|||||||||
|
Other income (loss), net |
(219 |
) |
54 |
n/m |
||||||||
|
Loss before income taxes |
$ |
(23,448 |
) |
$ |
(1,156 |
) |
n/m |
|||||
|
Income tax recovery |
2,175 |
520 |
318 |
|||||||||
|
Net loss |
$ |
(21,273 |
) |
$ |
(636 |
) |
n/m |
|||||
|
Net income (loss) attributable to GECC shareholders |
$ |
1,094 |
$ |
(3,909 |
) |
(128 |
) |
|||||
|
Income (loss) per share – GECC shareholders |
||||||||||||
|
Basic and Diluted |
$ |
0.02 |
$ |
(0.06 |
) |
(133 |
) |
|||||
|
– |
||||||||||||
|
EBITDA [Non-IFRS] (1) |
$ |
(5,256 |
) |
$ |
19,976 |
(126 |
) |
|||||
|
Adjusted EBITDA [Non-IFRS] (1) |
$ |
10,706 |
$ |
12,145 |
(12 |
) |
||||||
|
– |
||||||||||||
|
Total assets |
$ |
475,211 |
$ |
497,682 |
(5 |
) |
||||||
|
– |
||||||||||||
|
Total non-current financial liabilities |
$ |
198,042 |
$ |
159,452 |
24 |
|||||||
-
See section titled “Non-IFRS Financial Measures” for more information on each non-IFRS specified financial measure. Gross margins reflected in the table above and referenced below as “Margins”.
-
Percentage change amounts reflect the relative change in the current period amount in comparison with the prior period amount, where the numerator is the amount increased (decreased) and the denominator is the prior period amount.
The following table reconciles these non-IFRS measures to the most directly comparable IFRS measure disclosed in the Annual Financial Statements, which is net income (loss).
|
Presented in thousands of Canadian dollars |
Fiscal 2024 |
Fiscal 2023 |
||||||
|
Net income (loss) |
(21,273 |
) |
(636 |
) |
||||
|
Deduct: interest income (1) |
(19 |
) |
(59 |
) |
||||
|
Add: interest expense |
14,780 |
16,543 |
||||||
|
Add: income tax provision (recovery) |
(2,175 |
) |
(520 |
) |
||||
|
Add: depreciation and amortization (2) |
3,431 |
4,648 |
||||||
|
EBITDA [non-IFRS] |
(5,256 |
) |
19,976 |
|||||
|
Add loss (deduct gain) on fair value changes in investment properties |
25,844 |
(7,835 |
) |
|||||
|
Deduct gain on sale of property and equipment (3) |
(10,378 |
) |
– |
|||||
|
Add loss from impairment of intangible assets |
461 |
– |
||||||
|
Add loss (deduct gain) on embedded derivatives, net (4) |
35 |
4 |
||||||
|
Adjusted EBITDA [non-IFRS] |
10,706 |
12,145 |
||||||
-
Interest income not associated with operations which is a component of interest and other income, net included in Note 20 to the Annual Financial Statements.
-
Includes amortization of agency fees which is a component of educational direct costs and included in Note 9 to the Annual Financial Statements.
-
Associated with gain on sale of GEC® Granville.
-
Included in finance costs within Note 19 to the Annual Financial Statements.
“We are pleased to report that GECC continued to demonstrate steady growth in Fiscal 2024 despite total gross revenue appearing to be 2% lower than in the previous year,” commented Toby Chu, Chairman, President and CEO of GECC. “It is important to note when comparing the Fiscal 2024 and Fiscal 2023 revenues that GEC Granville Hotel was sold in November 2023, with only two months of hotel revenue being included in 2024 Financial Report as compared to a full year of hotel revenue being included in the 2023 Financial Report, resulting in $6.562 million of rental revenue differences. After adjusting for the hotel revenue, rental income increased by $2.683 million in Fiscal 2024 compared to Fiscal 2023, a robust 12.6% growth year over year. The rental revenue growth was primarily due to the commencement of operations of GEC ® King Edward in the fourth quarter of Fiscal 2023 and higher rental rates across all rental properties, which was partly offset by reduced occupancy at GEC ® VIVA which began significant renovations from the 8 th to 17 th floors for nine months in Fiscal 2024. Net income attributable to GECC shareholders was $1.095 million or $0.02 per share.
“In 2024, the federal government implemented measures to control the number of international students entering Canada. As a result, our international colleges experienced a 10% (or $1.389 million) decline in revenue in Fiscal 2024 as compared to Fiscal 2023. At the same time, our domestic enrollment experienced a 6% (or $2.536 million) increase in revenue in Fiscal 2024 as compared to Fiscal 2023. Despite the international student slowdown, our domestic tenant base at GEC ® grew from 17% to 44%. All GEC ® operating properties were at near-full capacity.”
Toby added, “Due to Metro Vancouver’s low vacancy rate, all levels of government are taking action to increase rental housing supply. In June 2023, the federal government of Canada announced legislation to remove the Goods and Services Tax on the construction of new rental apartments, which, if implemented, will provide substantial cost savings in connection with our current projects. The provincial government also implemented the Transit Oriented Area policy (Bill 47), allowing higher density and reduced parking for developments within 800 meters of major transit hubs and subway stations. Canada Mortgage and Housing Corporation also implemented low-interest financing programs to incentivize market rental and student housing developments. These incentives significantly reduced the construction cost of our new developments.”
Key Operational Highlights in Fiscal 2024:
-
Domestic enrollment increases offset the decrease in international enrollment.
-
Our student recruitment division, GEA, achieved a robust growth of 13%.
-
Strong growth in rental revenue factored in the sale of GEC® Granville hotel, which was sold in the first quarter of Fiscal 2024.
-
The tenant demographic shifted to substantially domestic students from international students.
-
GEC® King Edward’s first full fiscal year of operations, and the start of operations at GEC® Kingsway, in Fiscal 2024, gradually replacing the GEC® Granville hotel revenue.
-
GEC® EMC and ESC property valuations were lower than last year due to recent adverse market conditions involving under-development lands.
-
Most of the GEC® operating properties increased in value due to strong cash flow and occupancy rates.
About GECC:
GECC is one of Canada’s largest education and student housing investment companies focused on the domestic and global education market since 1994. GECC operates business and language colleges, student-centric rental apartments, recruitment centres and corporate offices at 40 locations in Canada and abroad. Its education subsidiaries include Sprott Shaw College Corp. (established in 1903), Sprott Shaw Language College, Vancouver International College, and CIBT School of Business & Technology Corp. GECC offers over 150 educational programs in healthcare, business management, e-commerce, cyber-security, hotel management, emergency paramedic, and language training through these schools.
GECC owns Global Education City Holdings Inc. (” GECH “), an investment holding and development company focused on education-related real estate, such as student-centric rental apartments and education super-centres. In fiscal 2024, GECH held nine projects comprising 14 buildings in operations and different stages of development under the GEC® brand in Metro Vancouver. GECH provided accommodation services to 95 partner schools serving students arriving from across Canada and 79 countries. The total portfolio and development budget under the GEC® brand exceeds $1.3 billion.
GECC also owns Global Education Alliance Inc. (” GEA “) and Irix Design Group Inc. (” IRIX “). GEA recruits international students for elite kindergartens, primary and secondary schools, colleges and universities in North America. Irix is a leading design and advertising company based in Vancouver, Canada. Visit us online and watch our corporate video at www. GEChq.com.
In fiscal 2024, GECC serviced over 12,500 domestic and international students through its educational, rental housing and recruitment subsidiaries.
For more information, contact:
Toby Chu
Chairman, President & CEO
Global Education Communities Corp.
Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: info@GEChq.com
FORWARD-LOOKING STATEMENTS
Some statements in this news release contain forward-looking information (the ” forward-looking statements “) about the Company and its plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include, without limitation, the federal government’s plan to remove the Goods and Services Tax on the construction of new rental apartments which, if implemented, will enable the Company to achieve substantial cost savings. The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the ” Risks “) that could cause GECC’s actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. The Risks include, without limitation, customary risks of the construction industry, unexpected delays or requirements of the applicable municipalities, a failure of the federal government to implement to remove the Goods and Services Tax on the construction of new rental apartments and the risk factors identified in the MD&A forming part of the 2024 Financial Report. Forward-looking statements are based on the beliefs, opinions and expectations of GECC’s management at the time they are made, and the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change, except as may be required by law.
NON-IFRS FINANCIAL MEASURES
The Company has included certain non-IFRS financial measures throughout this document including: (a) Earnings before Interest, Taxes, Depreciation and Amortization (” EBITDA “); (b) Adjusted EBITDA which is EBITDA adjusted for the gain (loss) on change in fair value of the Company’s investment properties, the gain (loss) on change in fair value of derivative instruments, one-off gains from sale of property and equipment, and loss from impairment of intangible assets; and (c) Gross Profit (” Gross Profit “) which is the difference between revenue and direct costs of sales. These non-IFRS financial measurements do not have any standardized meaning as prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Accordingly, these performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with the IFRS Accounting Standards. Management uses EBITDA and Adjusted EBITDA metrics to measure the profit trends of the business units and segments in the consolidated group since it eliminates the effects of financing decisions. Management uses Gross Profit to assess how efficiently the Company generates profit from the sale of goods or services. Certain investors, analysts and others utilize these non-IFRS financial metrics in assessing the Company’s financial performance. These non-IFRS financial measurements have not been presented as an alternative to net income (loss) or any other financial measure of performance prescribed by IFRS. Reconciliation of the non-IFRS measures have been provided throughout the Company’s MD&A, as applicable, filed under the Company’s profile on www.sedarplus.ca .
SOURCE: Global Education Communities Corp
View the original press release on accesswire.com
FAQ
What was GECSF’s revenue for fiscal year 2024?
GECSF reported total revenue of $77,041,000 for fiscal year 2024, representing a 2% decrease from $78,603,000 in fiscal year 2023.
How did GECSF’s rental revenue perform in 2024?
While reported rental revenue decreased 18% to $17,250,000, after adjusting for the GEC Granville Hotel sale, rental income actually grew 12.6% year-over-year.
What was GECSF’s earnings per share in fiscal 2024?
GECSF reported earnings of $0.02 per share for fiscal year 2024, compared to a loss of $0.06 per share in fiscal year 2023.
How did international student enrollment affect GECSF in 2024?
International college revenue decreased by 10% ($1.389M) in fiscal 2024 due to federal government measures controlling international student numbers.
