EpicQuest Education Announces First Half Fiscal Year 2024 Financial Results and Operations Update
EpicQuest Education Group International (NASDAQ: EEIQ) reported financial results for the first half of fiscal year 2024 ended March 31, 2024. The company saw a 22% increase in revenue to $4.16 million, primarily due to increased enrollment in international foundational and collaborative programs. However, gross profit decreased by 9.3% to $2.40 million, and gross margin fell to 57.7% from 77.5% in the prior year period.
Operating expenses rose 12.1% to $6.55 million, resulting in an operating loss of $4.14 million. Net loss increased to $3.52 million or $0.26 per share. The company's cash position decreased to $0.59 million as of March 31, 2024. EpicQuest Education is focusing on expanding its international programs and partnerships to drive future growth.
EpicQuest Education Group International (NASDAQ: EEIQ) ha riportato i risultati finanziari per la prima metà dell'anno fiscale 2024, conclusasi il 31 marzo 2024. L'azienda ha registrato un aumento del 22% dei ricavi, arrivando a $4.16 milioni, principalmente a causa dell'aumento delle iscrizioni ai programmi internazionali di base e collaborativi. Tuttavia, il profitto lordo è diminuito del 9,3%, scendendo a $2.40 milioni, e il margine lordo è sceso al 57,7% rispetto al 77,5% nello stesso periodo dell'anno precedente.
Le spese operative sono aumentate del 12,1%, raggiungendo $6.55 milioni, con una perdita operativa di $4.14 milioni. La perdita netta è aumentata a $3.52 milioni, ovvero $0.26 per azione. La liquidità dell'azienda è diminuita a $0.59 milioni al 31 marzo 2024. EpicQuest Education si sta concentrando sull'espansione dei suoi programmi e partnership internazionali per promuovere la crescita futura.
EpicQuest Education Group International (NASDAQ: EEIQ) informó sobre sus resultados financieros para la primera mitad del año fiscal 2024, que finalizó el 31 de marzo de 2024. La compañía vio un aumento del 22% en ingresos, alcanzando $4.16 millones, principalmente debido al incremento de inscripciones en programas internacionales fundamentales y colaborativos. Sin embargo, el beneficio bruto disminuyó un 9.3% a $2.40 millones y el margen bruto cayó al 57.7% desde el 77.5% en el mismo periodo del año anterior.
Los gastos operativos aumentaron un 12.1%, alcanzando $6.55 millones, lo que resultó en una pérdida operativa de $4.14 millones. La pérdida neta aumentó a $3.52 millones o $0.26 por acción. La posición de efectivo de la compañía disminuyó a $0.59 millones al 31 de marzo de 2024. EpicQuest Education se está centrando en expandir sus programas y asociaciones internacionales para impulsar el crecimiento futuro.
EpicQuest Education Group International (NASDAQ: EEIQ)는 2024 회계연도 전반기에 대한 재무 결과를 발표했습니다. 이 회계연도는 2024년 3월 31일로 종료됩니다. 회사는 22%의 매출 증가를 기록하여 416만 달러에 도달했으며, 이는 주로 국제 기초 및 협력 프로그램의 등록 증가에 기인합니다. 그러나 총 이익은 9.3% 감소하여 240만 달러가 되었고, 총 이익률은 전년 동기 대비 77.5%에서 57.7%로 하락했습니다.
운영 비용은 12.1% 증가하여 655만 달러에 달했으며, 이로 인해 운영 손실은 414만 달러에 달했습니다. 순손실은 352만 달러 또는 주당 0.26 달러로 증가했습니다. 2024년 3월 31일 기준으로 회사의 현금 보유량은 59만 달러로 감소했습니다. EpicQuest Education은 미래 성장을 위해 국제 프로그램 및 파트너십을 확장하는 데 주력하고 있습니다.
EpicQuest Education Group International (NASDAQ: EEIQ) a rapporté ses résultats financiers pour la première moitié de l'exercice fiscal 2024, se terminant le 31 mars 2024. L'entreprise a connu une augmentation de 22% des revenus, atteignant 4,16 millions de dollars, principalement en raison de l'augmentation des inscriptions aux programmes fondamentaux et collaboratifs internationaux. Cependant, le bénéfice brut a diminué de 9,3%, passant à 2,40 millions de dollars, et la marge brute est tombée à 57,7% contre 77,5% pendant la même période l'année précédente.
Les dépenses d'exploitation ont augmenté de 12,1% pour atteindre 6,55 millions de dollars, entraînant une perte opérationnelle de 4,14 millions de dollars. La perte nette a augmenté à 3,52 millions de dollars, soit 0,26 dollar par action. La position de trésorerie de l'entreprise a diminué à 0,59 million de dollars au 31 mars 2024. EpicQuest Education se concentre sur l'expansion de ses programmes et partenariats internationaux pour stimuler la croissance future.
EpicQuest Education Group International (NASDAQ: EEIQ) berichtete über die finanziellen Ergebnisse für die erste Hälfte des Geschäftsjahres 2024, das am 31. März 2024 endete. Das Unternehmen verzeichnete einen Umsatzanstieg von 22% auf 4,16 Millionen Dollar, hauptsächlich bedingt durch eine gestiegene Einschreibung in internationale Grund- und Kooperationsprogramme. Der Bruttogewinn hingegen sank um 9,3% auf 2,40 Millionen Dollar, und die Bruttomarge fiel von 77,5% im Vorjahreszeitraum auf 57,7%.
Die Betriebskosten stiegen um 12,1% auf 6,55 Millionen Dollar, was zu einem operativen Verlust von 4,14 Millionen Dollar führte. Der Nettoverlust erhöhte sich auf 3,52 Millionen Dollar oder 0,26 Dollar pro Aktie. Die liquidität des Unternehmens verringerte sich am 31. März 2024 auf 590.000 Dollar. EpicQuest Education fokussiert sich auf die Erweiterung internationaler Programme und Partnerschaften, um zukünftiges Wachstum voranzutreiben.
- Revenue increased by 22% to $4.16 million compared to the year-ago period
- Increased enrollment in international foundational and collaborative programs
- Expansion of partnerships with prestigious universities like Peking University and Shanghai Jiao Tong University
- Development of new collaborative programs with potential for increased student enrollment
- Gross profit decreased by 9.3% to $2.40 million
- Gross margin fell to 57.7% from 77.5% in the prior year period
- Operating loss increased to $4.14 million from $3.19 million
- Net loss widened to $3.52 million from $3.00 million
- Cash and cash equivalents decreased by 88.2% to $0.59 million
Insights
The financial results for EpicQuest Education Group International (EEIQ) show mixed performance. Revenue increased by
Operating expenses increased by
While revenue growth is positive, the declining profitability and cash position are concerning. The company is seeking additional financing for new projects, which may be necessary given the current cash burn rate. The success of international programs and potential AI-powered learning platforms could be key to future growth, but financial stability remains a challenge in the near term.
EpicQuest Education's strategy of internationalization and focus on practical, career-oriented programs is well-aligned with current trends in higher education. The company's foundational and collaborative programs, particularly in China with prestigious institutions like Peking University and Shanghai Jiao Tong University, represent a significant opportunity for growth and a pipeline for future international students.
The introduction of co-op programs at EduGlobal College is a smart move, as it enhances the value proposition for students by combining academic learning with practical work experience. This could improve domestic recruitment efforts and student outcomes.
The development of an AI-powered tutoring and learning platform shows forward-thinking, potentially improving student engagement and learning outcomes. However, the effectiveness and implementation of such technology will be crucial.
While the company's diverse program offerings and international partnerships are promising, the financial challenges and increased operating costs suggest that scaling efficiently remains a significant hurdle. The success of these initiatives will depend on effective execution and financial management in the coming years.
Company Revenue Increases
"We are pleased to announce a
"Although our gross margin decreased due to establishing relationships with new recruitment agencies and higher administrative costs, we believe that we will achieve synergies in future periods that could lower our operating costs. We are confident that we are meeting the current challenges of the education sector by offering practical academic programming in an array of technical fields that lead to good and stable careers."
"We specialize in providing individualized academic journeys to our students which include co-op programs that can rationalize tuition costs while helping to secure employment. We are also in the process of developing an AI-powered tutoring and learning platform for adaptive learning and real-time feedback which has the potential to improve student engagement and achievement. We believe that our innovative business model offers a solid return on investment for both our students and our shareholders," concluded CEO Jianbo Zhang.
First Half 2024 Financial Results Ended March 31, 2024
Revenues were
Gross profit was
Operating Expenses were
Operating loss was
Income tax recovery was
Net loss was
Net Loss Per Basic and Diluted Share for the first half of fiscal 2024 was
Financial Condition
As of March 31, 2024, the Company had
Liquidity and Capital Resources
Net cash used in operating activities for the six months ended March 31, 2024 was
Net cash provided by investing activities was
Net cash provided by financing activities was
Operations Update
Our current operations provide a diversified revenue stream that balances both our owned and operated colleges and our extensive recruiting relationships. We believe that our educational niche provides practical educational programming that meaningfully connects to students who may not ordinarily pursue higher education but who see our programs as an effective way to reach their career goals. We believe that this positive and effective business model is a successful one for providing a solid return on investment for our students.
North America Recruiting Update
We recruit domestically and internationally for our owned and operated schools. Our domestic recruitment for Davis University ("Davis"), located in
We also recruit for the English Language Center of
International Foundational and Collaborative Programs
We have established several programs internationally that provide a current revenue stream for the company while developing an internationally based recruitment pool for our owned and operated Davis University and EduGlobal College. Foundational programs are a course of study for international students to acquire the skills needed to ensure their success at colleges and universities. We believe that Davis' two-year foundational programs are able to secure sustainable revenue because the retention rate of students from the first to the second year is usually close to
Peking University. We expect to have up to 80 students registered for enrollment in our foundational program in 2024 at Peking University, a preeminent university in
Shanghai Jiao Tong University. An agreement was entered into to establish a foundational program on one of its main campuses, effective May 8, 2024 to December 31, 2026. It is expected that 50 students will enroll in this first year of the program in 2024. Starting in the 2025 academic year, the program is expected to consist of at least 100 students. The two-year program enables students to apply for admission to Davis University and attend two years at its
Davis University Collaborative Programs Update
Chongqing Institute of Technology and Business. Davis has an ongoing collaboration program with Chongqing Institute of Technology and Business for graphic design which provides Davis students the opportunity to take coursework at
Guangdong Communications Polytechnic. A recently announced agreement between Davis and Guangdong Communications Polytechnic outlines a proposed collaboration for the two schools to jointly run the Modern Logistics Management specialty education program at Davis. This program has been formally approved by the Guangdong Provincial Department of Education which enables Davis to recruit up to 100 students starting in September 2025 through September 2027; up to 300 students in total may be enrolled into this program.
Peking University School of Education. Davis entered into an agreement with Peking University School of Education in August 2023 for a two-year continuing education and training program. During the first two years of the program, Davis College students take course work on the main campus of Peking University; the remainder of the course work is to be taken at the Davis campus in
Our strategic plan is to achieve sustainable growth through our strategy of internationalization. This refers to Davis and EduGlobal, our owned and operated colleges, as well as our recruiting relationship with
About EpicQuest Education Group International Limited
EpicQuest Education Group International Limited ("EpicQuest Education" or the "Company") provides comprehensive education solutions for domestic and international students seeking university and college degrees in the US,
Safe Harbor Statement
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, without limitation, the ability of the Company to achieve the enrollment goals outlined and the ability of the Company to achieve meaningful future revenue increases. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our most recent Form 20-F and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
FINANCIAL TABLES FOLLOW
EPICQUEST EDUCATION GROUP INTERNATIONAL LTD | ||||||||
March 31, | September 30, | |||||||
US$ | US$ | |||||||
Assets | (Unaudited) | (Audited) | ||||||
Current Assets | ||||||||
Cash and cash equivalents | 587,031 | 4,966,839 | ||||||
Restricted cash | 338,712 | 338,712 | ||||||
Receivables, net | 168,222 | 36,503 | ||||||
Other receivable | 115,078 | 107,179 | ||||||
Prepaid expenses | 8,626,693 | 2,326,185 | ||||||
Inventory | 45,030 | 41,185 | ||||||
Income tax receivable | 897,861 | 894,743 | ||||||
Total current assets | 10,778,627 | 8,711,346 | ||||||
Non-current assets | ||||||||
Property and equipment, net | 1,653,409 | 2,041,242 | ||||||
Right-of-use assets | 832,775 | 1,117,554 | ||||||
Intangible assets | 4,575,135 | 4,686,228 | ||||||
Goodwill | 2,652,772 | 2,652,766 | ||||||
Total assets | 20,492,718 | 19,209,136 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Liabilities: | ||||||||
Current liabilities | ||||||||
Accounts payable and other liabilities | 2,710,991 | 2,121,051 | ||||||
Loan payable | 409,956 | - | ||||||
Income tax payable | - | 1,872 | ||||||
Due to related party | 140,000 | 140,000 | ||||||
Lease liabilities – current | 424,704 | 559,375 | ||||||
Deferred revenue | 2,627,427 | 4,057,517 | ||||||
Total current liabilities | 6,313,078 | 6,879,815 | ||||||
Non-current liabilities | ||||||||
Lease liabilities – non current | 406,289 | 571,131 | ||||||
Deferred income tax liabilities | 706,214 | 824,480 | ||||||
Total liabilities | 7,425,581 | 8,275,426 | ||||||
Commitments and contingencies | ||||||||
Shareholders' equity | ||||||||
Common shares, | 20,347 | 19,045 | ||||||
Additional paid-in capital | 19,388,914 | 18,232,263 | ||||||
Deficit | (12,279,190) | (9,071,818) | ||||||
Accumulated other comprehensive loss | (43,970) | (36,284) | ||||||
Total shareholders' equity | 7,086,101 | 9,143,206 | ||||||
Noncontrolling interests | 5,981,036 | 1,790,504 | ||||||
Total liabilities and shareholders' equity | 20,492,718 | 19,209,136 |
EPICQUEST EDUCATION GROUP INTERNATIONAL LTD CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||
For The | For The | |||||||
March 31, | March 31, | |||||||
US$ | US$ | |||||||
(Unaudited) | (Unaudited) | |||||||
Revenues | 4,162,650 | 3,420,669 | ||||||
Costs of services | 1,759,229 | 769,619 | ||||||
Gross profit | 2,403,421 | 2,651,050 | ||||||
Operating costs and expenses: | ||||||||
Selling expenses | 696,052 | 474,169 | ||||||
General and administrative | 5,850,927 | 5,367,085 | ||||||
Total operating costs and expenses | 6,546,979 | 5,841,254 | ||||||
Income from operations | (4,143,558) | (3,190,204) | ||||||
Other (income) expenses: | ||||||||
Other income | (493,554) | (1,655) | ||||||
Interest income | (19,948) | (20,833) | ||||||
Foreign exchange gain | - | (5) | ||||||
Total other (income) expenses | (513,502) | (22,493) | ||||||
Loss before provision for income taxes | (3,630,056) | (3,167,711) | ||||||
Current income tax expense | 5,124 | 8,553 | ||||||
Deferred income tax expense (recovery) | (118,266) | (172,975) | ||||||
Income taxes expense (recovery) | (113,142) | (164,422) | ||||||
Net loss | (3,516,914) | (3,003,289) | ||||||
Net loss attributable to noncontrolling interest | (309,542) | (305,928) | ||||||
Net loss attributable to common stockholders | (3,207,372) | (2,697,361) | ||||||
Foreign currency translation adjustment | (7,686) | (4,154) | ||||||
Total Comprehensive loss | (3,524,600) | (3,007,443) | ||||||
Basic & diluted net loss per share | $ | (0.26) | $ | (0.24) | ||||
Weighted average number of ordinary shares-basic and diluted | 12,370,905 | 11,469,800 |
EPICQUEST EDUCATION GROUP INTERNATIONAL LTD CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED MARCH 31, 2024 AND 2023 (US$, except share data and per share data, or otherwise noted) | ||||||||
For The | For The | |||||||
2024 | 2023 | |||||||
US$ | US$ | |||||||
Cash Flows from Operating Activities: | (Unaudited) | (Unaudited) | ||||||
Net loss | (3,516,914) | (3,003,289) | ||||||
Adjustments for items not affecting cash: | ||||||||
Depreciation and amortization | 227,319 | 163,863 | ||||||
Stock-based compensation expenses | 1,120,299 | 900,877 | ||||||
Accretion of finance lease | - | 3,546 | ||||||
Net (gain)/loss from disposal of fixed assets | (477,115) | - | ||||||
Deferred income tax expense | (118,266) | (172,975) | ||||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | (139,617) | 235,640 | ||||||
Operating leases | (14,734) | (51,592) | ||||||
Inventory | (3,845) | (16,350) | ||||||
Prepaid expenses | (6,300,508) | (176,420) | ||||||
Accounts payable & accrued liabilities | 589,942 | (225,407) | ||||||
Deferred revenue | (1,430,090) | (2,364,570) | ||||||
Income tax(payable)/ receivable | (4,990) | 360,126 | ||||||
Student deposits | - | 6,000 | ||||||
Net cash used in operating activities | (10,068,519) | (4,340,551) | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchase of property and equipment | (8,398) | (7,641) | ||||||
Long term investment received for SouthGilmore | 3,737,728 | |||||||
Net cash acquired from business acquisitions | - | 562,791 | ||||||
Proceeds from sale of property and equipment | 757,115 | - | ||||||
Net cash provided by investing activities | 4,486,445 | 555,150 | ||||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from financing offering | 800,000 | - | ||||||
Proceeds borrowed from related parties | 409,956 | - | ||||||
Repayment of lease liabilities | - | (15,001) | ||||||
Share buyback | - | (1,250,007) | ||||||
Acquisition of additional interest in subsidiary | - | (187,505) | ||||||
Net cash provided by (used in) financing activities | 1,209,956 | (1,452,513) | ||||||
Effect of exchange rate change on cash | (7,690) | (3,973) | ||||||
Net decrease in cash, cash equivalents and restricted cash | (4,379,808) | (5,241,887) | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 5,305,551 | 11,443,059 | ||||||
Cash, cash equivalents and restricted cash, end of period | 925,743 | 6,201,172 |
EPICQUEST EDUCATION GROUP INTERNATIONAL LTD CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||
Common | Common | Additional | Accumulated | NCI | Deficit | Total | |||||||||||||||||||||||
Balance as of | 11,350,704 | 18,017 | 17,526,546 | (28,939) | 2,180,108 | (2,416,788) | 17,278,944 | ||||||||||||||||||||||
Net loss | - | - | - | - | (305,928) | (2,697,361) | (3,003,289) | ||||||||||||||||||||||
Share buyback | (201,614) | (320) | (1,249,687) | - | - | - | (1,250,007) | ||||||||||||||||||||||
Share-based compensation | 559,083 | 888 | 1,028,592 | - | - | - | 1,029,480 | ||||||||||||||||||||||
Stock option compensation | - | - | 123,397 | - | - | - | 123,397 | ||||||||||||||||||||||
Acquisition of business | - | - | - | - | 453,635 | (453,635) | - | ||||||||||||||||||||||
Acquisition of | - | - | (208,321) | - | 20,817 | - | (187,504) | ||||||||||||||||||||||
Translation adjustment | - | - | - | (4,154) | - | - | (4,154) | ||||||||||||||||||||||
Balance as of March | 11,708,173 | 18,585 | 17,220,527 | (33,093) | 2,348,632 | (5,567,784) | 13,986,867 | ||||||||||||||||||||||
Common | Common | Additional | Accumulated |
NCI | Retained | Total | ||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | 11,998,173 | 19,045 | 18,232,263 | (36,284) | 1,790,504 | (9,071,818) | 10,933,710 | |||||||||||||||||||||||||||||
Net loss | - | - | - | - | (309,542) | (3,207,372) | (3,516,914) | |||||||||||||||||||||||||||||
Share issued for acquisition | 400,000 | 635 | 799,365 | - | - | - | 800,000 | |||||||||||||||||||||||||||||
Share-based compensation | 420,000 | 667 | 524,533 | - | - | - | 525,200 | |||||||||||||||||||||||||||||
Stock option compensation | - | - | 595,099 | - | - | - | 595,099 | |||||||||||||||||||||||||||||
Long term investment received for | - | - | (762,346) | - | - | - | (762,346) | |||||||||||||||||||||||||||||
Acquisition of | - | - | - | - | 4,500,074 | - | 4,500,074 | |||||||||||||||||||||||||||||
Translation adjustment | - | - | - | (7,686) | - | (7,686) | ||||||||||||||||||||||||||||||
Balance as of March 31, 2024 (unaudited) | 12,818,173 | 20,347 | 19,388,914 | (43,970) | 5,981,036 | (12,279,190) | 13,067,137 | |||||||||||||||||||||||||||||
Contacts:
EpicQuest Education Group International Limited
+1 513-649-8350
info@epicquesteducation.com
Investor Relations:
Precept Investor Relations LLC
David Rudnick
+1 646-694-8538
david.rudnick@preceptir.com
Source: EpicQuest Education Group International Limited
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SOURCE EpicQuest Education Group International Limited
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