EpicQuest Education Announces Fiscal Year 2024 Financial Results and an Operations Update
EpicQuest Education (NASDAQ: EEIQ) reported its fiscal year 2024 results, showing a 43% revenue increase to $8.15 million, driven by higher international student enrollment in foundational and collaborative programs. Gross profit rose 26.1% to $5.31 million, though gross margin decreased to 65.2% from 73.7% due to increased costs.
The company experienced an operating loss of $7.43 million and a net loss of $6.57 million. Cash position decreased to $1.15 million, with negative working capital of $5.47 million. Davis University's foundational programs saw enrollment growth to 220 students for 2024-2025, up from 102 in the previous year.
Notable developments include Davis University's expansion to downtown Toledo, enhanced recruiting at EduGlobal College through cooperative diploma programs, and a new agreement with The Center of Advanced Studies in Tokyo for international student pathways starting Spring 2025.
EpicQuest Education (NASDAQ: EEIQ) ha riportato i risultati dell'anno fiscale 2024, mostrando un incremento del fatturato del 43% a 8,15 milioni di dollari, sostenuto da un aumento delle iscrizioni degli studenti internazionali ai programmi fondamentali e collaborativi. L'utile lordo è aumentato del 26,1% a 5,31 milioni di dollari, anche se il margine lordo è sceso al 65,2% dal 73,7% a causa dell'aumento dei costi.
L'azienda ha registrato una perdita operativa di 7,43 milioni di dollari e una perdita netta di 6,57 milioni di dollari. La posizione di cassa è diminuita a 1,15 milioni di dollari, con un capitale circolante negativo di 5,47 milioni di dollari. I programmi fondamentali della Davis University hanno visto la crescita delle iscrizioni a 220 studenti per il 2024-2025, rispetto ai 102 dell'anno precedente.
Tra gli sviluppi significativi ci sono l'espansione della Davis University nel centro di Toledo, un miglioramento del reclutamento presso l'EduGlobal College tramite programmi di diploma cooperativi, e un nuovo accordo con il Centro di Studi Avanzati di Tokyo per percorsi per studenti internazionali che inizieranno nella Primavera 2025.
EpicQuest Education (NASDAQ: EEIQ) informó sus resultados del año fiscal 2024, mostrando un aumento del 43% en los ingresos a 8,15 millones de dólares, impulsado por un mayor número de inscripciones de estudiantes internacionales en programas fundamentales y colaborativos. La ganancia bruta aumentó un 26,1% a 5,31 millones de dólares, aunque el margen bruto disminuyó al 65,2% desde el 73,7% debido al aumento de costos.
La compañía experimentó una pérdida operativa de 7,43 millones de dólares y una pérdida neta de 6,57 millones de dólares. La posición de efectivo disminuyó a 1,15 millones de dólares, con un capital de trabajo negativo de 5,47 millones de dólares. Los programas fundamentales de la Universidad Davis vieron un crecimiento en las inscripciones a 220 estudiantes para el 2024-2025, en comparación con 102 del año anterior.
Desarrollos notables incluyen la expansión de la Universidad Davis al centro de Toledo, un mejor reclutamiento en EduGlobal College a través de programas de diploma cooperativos, y un nuevo acuerdo con el Centro de Estudios Avanzados en Tokio para caminos de estudiantes internacionales que comenzarán en la primavera de 2025.
EpicQuest Education (NASDAQ: EEIQ)는 2024 회계 연도 결과를 발표하며 43% 매출 증가로 815만 달러에 달했다고 보고했습니다. 이는 국제 학생 등록의 증가에 힘입은 것으로, 기초 및 협력 프로그램에서 나타났습니다. 총 이익은 261만 달러로 26.1% 증가했으나, 원가 상승으로 인해 총 이익률은 73.7%에서 65.2%로 감소했습니다.
회사는 743만 달러의 운영 손실과 657만 달러의 순손실을 경험했습니다. 현금 위치는 115만 달러로 감소하였고, 부정적인 운전 자본은 547만 달러로 나타났습니다. Davis 대학의 기초 프로그램은 2024-2025년 동안 등록 학생 수가 102명에서 220명으로 증가했습니다.
주요 개발 사항으로는 Davis 대학의 시내 Toledo로의 확장, EduGlobal College에서 협력 학위 프로그램을 통한 모집 강화, 그리고 2025년 봄부터 시작될 국제 학생 경로를 위한 도쿄 고등 연구소와의 새로운 협약이 있습니다.
EpicQuest Education (NASDAQ: EEIQ) a annoncé ses résultats pour l'année fiscale 2024, montrant une augmentation de revenu de 43% pour atteindre 8,15 millions de dollars, grâce à une hausse des inscriptions d'étudiants internationaux dans des programmes fondamentaux et collaboratifs. Le bénéfice brut a augmenté de 26,1% pour atteindre 5,31 millions de dollars, bien que la marge brute ait diminué à 65,2% contre 73,7% en raison de l'augmentation des coûts.
L'entreprise a connu une perte d'exploitation de 7,43 millions de dollars et une perte nette de 6,57 millions de dollars. La position de liquidités a diminué à 1,15 million de dollars, avec un fonds de roulement négatif de 5,47 millions de dollars. Les programmes fondamentaux de l'Université Davis ont vu le nombre d'inscriptions passer à 220 étudiants pour 2024-2025, contre 102 l'année précédente.
Les développements notables incluent l'expansion de l'Université Davis dans le centre-ville de Toledo, un recrutement renforcé au EduGlobal College par le biais de programmes de diplôme coopératifs, et un nouvel accord avec le Centre d'Études Avancées à Tokyo pour des parcours étudiants internationaux commençant au printemps 2025.
EpicQuest Education (NASDAQ: EEIQ) berichtete über die Ergebnisse des Geschäftsjahres 2024 und zeigt einen Umsatzanstieg von 43% auf 8,15 Millionen US-Dollar, bedingt durch eine höhere internationale Studierendenanmeldung in grundständigen und kooperativen Programmen. Der Bruttogewinn stieg um 26,1% auf 5,31 Millionen US-Dollar, während die Bruttomarge aufgrund gestiegener Kosten auf 65,2% von 73,7% zurückging.
Das Unternehmen verzeichnete einen operativen Verlust von 7,43 Millionen US-Dollar und einen Nettoverlust von 6,57 Millionen US-Dollar. Der Bargeldbestand verringerte sich auf 1,15 Millionen US-Dollar, mit einem negativen Working Capital von 5,47 Millionen US-Dollar. Die grundständigen Programme der Davis Universität verzeichneten im Jahr 2024-2025 ein Wachstum der Einschreibungen auf 220 Studierende, verglichen mit 102 im Vorjahr.
Wichtige Entwicklungen sind die Expansion der Davis Universität in die Innenstadt von Toledo, verstärkte Rekrutierung am EduGlobal College durch Kooperationsdiplomprogramme und eine neue Vereinbarung mit dem Zentrum für Fortgeschrittene Studien in Tokio für internationale Studierendenwege, die im Frühling 2025 beginnen werden.
- Revenue increased 42.7% YoY to $8.15 million
- Gross profit grew 26.1% to $5.31 million
- Student enrollment in foundational programs more than doubled to 220 students
- Sale of buildings generated $1.7 million (vs. $0.84 million carrying value)
- Net loss per share improved to $0.47 from $0.57
- Operating loss increased to $7.43 million from $7.02 million
- Cash position decreased 76.9% to $1.15 million
- Working capital turned negative at -$5.47 million
- Gross margin declined to 65.2% from 73.7%
- Operating expenses increased 13.4% to $12.7 million
Insights
The fiscal 2024 results present a complex picture of growth coupled with concerning financial fundamentals. While the
The deteriorating liquidity position is particularly worrisome - cash reserves plummeted
Gross margin compression from
The business model shows promise with strong student enrollment growth and expansion of foundational programs (220 students vs 102 prior year), but requires significant operational optimization to achieve sustainability. Without substantial improvement in cost management or additional capital injection, the company may face financial constraints that could impede its growth trajectory.
Revenue Increased by a Robust
"We are pleased to announce a
"During the past year, Davis University expanded its campus to downtown
"We specialize in providing individualized academic journeys to both our domestic and international students that include Bachelor of Science program and planned Master's program that help our students to secure post-graduate employment. We are also in the process of developing an AI-powered tutoring and learning platform for adaptive learning and real-time feedback to improve student engagement and achievement. We believe that our innovative business model will continue to result in strong growth and that it offers a solid return on investment for both our students and our shareholders," concluded CEO Jianbo Zhang.
Fiscal Year 2024 Financial Results Ended September 30, 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 fiscal year ended September 30, 2024 was
Financial Condition
As of September 30, 2024, the Company had
Liquidity and Capital Resources
Net cash used in operating activities for the twelve months ended September 30, 2024 was
Net cash provided from investing activities was
Net cash provided from financing activities was
Operations Update
Our operations provide a diversified revenue stream that includes tuition and student service fees from our owned and operated colleges, Davis University and EduGlobal College, fees from our foundational programs located abroad, and revenue from our recruiting relationships with other prominent universities.
For our domestic programs, we provide 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 also provide a Bachelor of Science in Business program and plan to offer a Masters degree program in the near future. We also provide academic pathways through articulation agreements with universities to provide additional options for our students. We believe we have a positive and effective business model where students can individualize their academic journeys, and which provides students with a solid return on their educational investments. An update as to our international foundational and collaborative programs are as follows:
Davis University's foundational programs have 220 students enrolled for the 2024-2025 academic year as compared to 102 students for the 2023-24 academic year. We believe that Davis' two-year foundational programs will secure sustainable revenue because the retention rate of students from the first to the second year is usually close to
Davis' foundational program students are enrolled in elite universities. The foundational programs are currently placed on the main campuses of Peking University, Shanghai Jiao Tong University, and the Beijing Institute of Technology, preeminent universities in
Davis University's recent agreement could lead to a substantial increase in international student enrollment. Its agreement with The Center of Advanced Studies, based in
EduGlobal College recruiting has been enhanced by its cooperative diploma programs. The co-op programs, which began for the Fall semester in September 2024, entail students alternating between attending academic semesters with working at paid, full-time jobs. We believe that this will enhance our domestic recruiting efforts since the co-op programs provide students with a great hybrid approach which helps students secure job offers upon graduation.
EpicQuest Education's Strategy of Internationalization
Our strategic plan is to achieve sustainable growth through our strategy of internationalization which is a key element of our strategic growth plan. EpicQuest Education's owned and operated colleges, Davis University and EduGlobal College, have become increasingly focused on international recruiting and enrollment as they provide enhanced globalized learning to their students as well as pathways to achieve university degrees. The Company's foundational programs essentially exports our academic programming at an affordable cost for students since they study in their home countries and earn course credits prior to their attendance at our two institutions of higher learning. In addition, a vital component of EpicQuest Education's strategic growth plan is to become increasingly involved with international collaborations in order to leverage our distinct academic programming and unique culture of learning. The Company's mission is to achieve international expansion and establish EpicQuest Education as a renowned international service provider of higher learning.
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
CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2024 and SEPTEMBER 30, 2023 (US$, except share data and per share data, or otherwise noted) | ||||||||
September 30, | September 30, | |||||||
US$ | US$ | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | 1,150,042 | 4,966,839 | ||||||
Restricted cash | 338,712 | 338,712 | ||||||
Accounts receivable, net | 85,279 | 36,503 | ||||||
Other receivable | 473,271 | 107,179 | ||||||
Prepaid expenses | 1,305,935 | 2,326,185 | ||||||
Inventory | 48,470 | 41,185 | ||||||
Income tax receivable | 889,766 | 894,743 | ||||||
Total current assets | 4,291,475 | 8,711,346 | ||||||
Non-current assets | ||||||||
Property and equipment, net | 1,597,823 | 2,041,242 | ||||||
Long-term prepaids | 7,500,023 | - | ||||||
Intangible assets | 4,464,226 | 4,686,228 | ||||||
Right-of-use assets | 2,785,008 | 1,117,554 | ||||||
Goodwill | 2,652,772 | 2,652,766 | ||||||
Total assets | 23,291,327 | 19,209,136 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Liabilities: | ||||||||
Current liabilities | ||||||||
Accounts payable and other liabilities | 3,233,471 | 2,121,051 | ||||||
Loan payable | 409,956 | - | ||||||
Income tax payable | 4,294 | 1,872 | ||||||
Due to related party | 140,000 | 140,000 | ||||||
Lease liabilities – current | 641,254 | 559,375 | ||||||
Deferred revenue | 5,332,194 | 4,057,517 | ||||||
Total current liabilities | 9,761,169 | 6,879,815 | ||||||
Non-current liabilities | ||||||||
Lease liabilities – non current | 2,181,769 | 571,131 | ||||||
Deferred income tax liabilities | 470,468 | 824,480 | ||||||
Total liabilities | 12,413,406 | 8,275,426 | ||||||
Commitments and contingencies | ||||||||
Shareholders' equity | ||||||||
Common shares, 13,113,173 and 11,998,173 shares issued and outstanding as of September 30, 2024 and 2023, respectively | 20,814 | 19,045 | ||||||
Additional paid-in capital | 20,142,071 | 18,129,000 | ||||||
Deficit | (14,958,678) | (8,968,555) | ||||||
Accumulated other comprehensive loss | (35,803) | (36,284) | ||||||
Total shareholders' equity | 5,168,404 | 9,143,206 | ||||||
Non-controlling interests | 5,709,517 | 1,790,504 | ||||||
Total liabilities and shareholders' equity | 23,291,327 | 19,209,136 | ||||||
EPICQUEST EDUCATION GROUP INTERNATIONAL LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE YEARS ENDED SEPTEMBER 30, 2024, 2023 AND 2022 (US$, except share data and per share data, or otherwise noted) | ||||||||||||
September 30, | September 30, | September 30, | ||||||||||
US$ | US$ | US$ | ||||||||||
Revenues | 8,153,546 | 5,712,480 | 6,330,428 | |||||||||
Costs of services | 2,840,112 | 1,502,255 | 2,021,058 | |||||||||
Gross profit | 5,313,434 | 4,210,225 | 4,309,370 | |||||||||
Operating costs and expenses: | ||||||||||||
Selling expenses | 1,537,006 | 1,018,894 | 952,888 | |||||||||
General and administrative | 11,201,445 | 10,210,960 | 10,521,551 | |||||||||
Total operating costs and expenses | 12,738,451 | 11,229,854 | 11,474,439 | |||||||||
Loss from operations | (7,425,017) | (7,019,629) | (7,165,069) | |||||||||
Other (income) expenses: | ||||||||||||
Other income | (495,276) | (186,137) | (819,135) | |||||||||
Interest income | (22,731) | (53,089) | (26,463) | |||||||||
Foreign exchange gain | - | (5) | - | |||||||||
Total other (income) expenses | (518,007) | (239,231) | (845,598) | |||||||||
Loss before provision for income taxes | (6,907,010) | (6,780,398) | (6,319,471) | |||||||||
Current income tax expense | 18,186 | 11,590 | 16,459 | |||||||||
Deferred income tax expense (recovery) | (354,012) | 277,874 | (207,488) | |||||||||
Income taxes expense (recovery) | (335,826) | 289,464 | (191,029) | |||||||||
- | - | - | ||||||||||
Net loss | (6,571,184) | (7,069,862) | (6,128,442) | |||||||||
Net loss attributable to non-controlling interest | (581,061) | (410,421) | (164,887) | |||||||||
Net loss attributable to common stockholders | (5,990,123) | (6,659,441) | (5,963,555) | |||||||||
Unrealized foreign currency translation adjustment | 481 | (7,345) | (28,939) | |||||||||
Comprehensive loss | (6,570,703) | (7,077,207) | (6,157,381) | |||||||||
Basic & diluted net loss per share | (0.47) | (0.57) | (0.54) | |||||||||
Weighted average number of ordinary shares-basic and diluted | 12,637,968 | 11,655,642 | 11,010,240 | |||||||||
EPICQUEST EDUCATION GROUP INTERNATIONAL LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED SEPTEMBER 30, 2024, 2023 AND 2022 (US$, except share data and per share data, or otherwise noted) | ||||||||||||
September 30, | September 30, | September 30, | ||||||||||
2024 | 2023 | 2022 | ||||||||||
US$ | US$ | US$ | ||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net loss | (6,571,184) | (7,069,862) | (6,128,442) | |||||||||
Adjustments for items not affecting cash: | ||||||||||||
Depreciation and amortization | 425,763 | 407,013 | 252,097 | |||||||||
Share-based compensation | 1,977,187 | 2,061,810 | 4,813,049 | |||||||||
Net gain from disposal of fixed assets | (477,115) | - | (813,064) | |||||||||
Impairment of goodwill | - | 14,038 | - | |||||||||
Non-cash lease expenses | - | - | (25,643) | |||||||||
Deferred income tax expense | (354,012) | 277,874 | (207,488) | |||||||||
Changes in operating assets and liabilities | ||||||||||||
Accounts receivable and other receivable | (414,866) | 217,407 | 118,608 | |||||||||
Prepaid expenses | (6,479,773) | (1,323,593) | 614,548 | |||||||||
Operating lease – lease liabilities and right of use assets | 25,064 | (45,022) | - | |||||||||
Inventory | (7,285) | (21,170) | - | |||||||||
Accounts payable & accrued liabilities | 1,112,423 | (212,817) | (1,320,563) | |||||||||
Deferred revenue | 1,274,677 | 233,493 | (1,283,314) | |||||||||
Income tax receivable | 7,399 | 254,342 | 2,293 | |||||||||
Student deposits | - | (46,040) | (635,778) | |||||||||
Net cash used in operating activities | (9,481,722) | (5,252,527) | (4,613,697) | |||||||||
Cash Flows from Investing Activities: | ||||||||||||
Purchase of property and equipment | (40,343) | (14,231) | (51,410) | |||||||||
Collection (addition) of notes receivable | - | - | (305,000) | |||||||||
Repayment to related parties | - | - | (270,000) | |||||||||
Share buyback | - | (1,250,007) | - | |||||||||
Acquisition of additional interest in subsidiary | - | (187,505) | - | |||||||||
Net cash acquired from (used for) business acquisitions | - | 574,108 | (1,945,931) | |||||||||
Proceeds from sale of fixed assets | 757,115 | - | 1,920,861 | |||||||||
Net cash provided from (used in) investing activities | 716,772 | (877,635) | (651,480) | |||||||||
Cash Flows from Financing Activities: | ||||||||||||
Long term investment received for Gilmore | 3,737,727 | - | - | |||||||||
Share issuances, net of issuance costs | 800,000 | - | 200,000 | |||||||||
Proceeds borrowed from third party | 409,956 | - | - | |||||||||
Net cash provided from financing activities | 4,947,683 | - | 200,000 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 470 | (7,346) | (28,938) | |||||||||
Net increase/(decrease) in cash, cash equivalents | (3,816,797) | (6,137,508) | (5,094,115) | |||||||||
Cash and cash equivalents and restricted cash, beginning of year | 5,305,551 | 11,443,059 | 16,537,174 | |||||||||
Cash and cash equivalents and restricted cash, end of year | 1,488,754 | 5,305,551 | 11,443,059 | |||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||||||||||||
Interest paid | ||||||||||||
Income taxes paid | 10,787 | 10,575 | 14,166 | |||||||||
Non-cash investing activities – acquisition of operating lease right-of-used assets | 2,267,597 | 561,247 | 574,483 | |||||||||
Non-cash investing activities – assumption of operating lease obligation | 2,238,099 | 572,564 | 574,483 | |||||||||
The accompanying notes in the Company's 20-F for fiscal 2024 as filed with the SEC form an integral part of these consolidated financial statements.
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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FAQ
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