Key Highlights

  • In Q3-FY2019 (quarter ended May 31, 2019), CIBT’s revenues decreased 29% YOY to $16 million because of lower development fees as CIBT is currently more focused on executing the developments acquired in 2018.
  • Core operations remain healthy as the company reported a 7% YoY increase in educational revenues, and an 8% YoY increase in rental revenues.
  • Since our previous update report in May 2019, the budget and scope of GEC® Mega Center (Surrey) was revised from $324 million to $275 million. Closing of the acquisition of land for GEC® Oakridge is expected in January 2020. In June 2019, the company entered into a 21-year head lease agreement with a real estate developer on a residential rental property (GEC® Kingsway) to be constructed in Metro Vancouver. This is the first deal wherein CIBT will manage a third party owned property.
  • At the end of Q3-FY2019, the company had $24 million in cash. The debt to capital was at 40% versus a comparables’ average of 61%.
  • As we lowered our forecasts for development fees, we are adjusting our FY2019 net profit estimate from $10 million / EPS: $0.13 to $4 million / EPS: $0.05. Note that these figures are net of non-controlling interest.

Visit Global Education Communities Corp. page for more research, discussion boards and to like, and share.

Are you enjoying the highlights?

Discover the company's fair value estimate from our certified analysts, identify potential risks, and explore exciting upcoming catalysts in our detailed report.

Already a member? Sign In