GECC Reports Fiscal 2025 Q1 Financial Results
Global Education Communities Corp. (GECSF) has released its Q1 2025 financial results for the period ended November 30, 2024. The company reported total revenues of $17,752,000, marking a 20% decrease from Q1 2024. The company posted a net loss of $2,159,000 compared to a profit of $3,553,000 in the previous year.
Key highlights include: domestic education division showing stability with only a 1% decrease, student housing revenue increasing 7% year-over-year (excluding previous hotel operations), and a 27% reduction in finance costs. However, international education revenue declined 37% due to Federal government restrictions on international student enrollment. The company's rental housing division experienced a significant shift, with domestic tenants increasing by 159% compared to Q1 2024.
Adjusted EBITDA decreased to $1,306,000 from $4,992,000 in Q1 2024, while total assets declined 5% to $442,957,000.
Global Education Communities Corp. (GECSF) ha pubblicato i risultati finanziari del primo trimestre del 2025 per il periodo concluso il 30 novembre 2024. L'azienda ha riportato ricavi totali di 17.752.000 dollari, segnando una diminuzione del 20% rispetto al primo trimestre del 2024. L'azienda ha registrato una perdita netta di 2.159.000 dollari rispetto a un profitto di 3.553.000 dollari nell'anno precedente.
I punti salienti includono: la divisione educazione domestica mostra stabilità con una diminuzione del solo 1%, i ricavi dalla housing per studenti aumentano del 7% anno su anno (escludendo le precedenti operazioni alberghiere), e una riduzione del 27% nei costi finanziari. Tuttavia, i ricavi dall'istruzione internazionale sono diminuiti del 37% a causa delle restrizioni del governo federale sull'iscrizione di studenti internazionali. La divisione affitti dell'azienda ha subito un cambiamento significativo, con un aumento del 159% degli inquilini domestici rispetto al primo trimestre del 2024.
EBITDA rettificato è diminuito a 1.306.000 dollari rispetto ai 4.992.000 dollari nel primo trimestre del 2024, mentre il totale delle attività è diminuito del 5% arrivando a 442.957.000 dollari.
Global Education Communities Corp. (GECSF) ha publicado sus resultados financieros del primer trimestre de 2025 para el período terminado el 30 de noviembre de 2024. La compañía reportó ingresos totales de $17,752,000, lo que representa una disminución del 20% en comparación con el primer trimestre de 2024. La empresa registró una pérdida neta de $2,159,000 en comparación con una ganancia de $3,553,000 en el año anterior.
Los aspectos destacados incluyen: la división de educación nacional muestra estabilidad con una disminución del solo 1%, los ingresos de vivienda para estudiantes aumentan un 7% interanual (excluyendo las operaciones hoteleras anteriores), y una reducción del 27% en los costos financieros. Sin embargo, los ingresos por educación internacional disminuyeron un 37% debido a las restricciones del gobierno federal sobre la inscripción de estudiantes internacionales. La división de viviendas en alquiler de la compañía ha experimentado un cambio significativo, con inquilinos nacionales aumentando un 159% en comparación con el primer trimestre de 2024.
El EBITDA ajustado disminuyó a $1,306,000 desde $4,992,000 en el primer trimestre de 2024, mientras que los activos totales disminuyeron un 5% a $442,957,000.
Global Education Communities Corp. (GECSF)는 2024년 11월 30일로 종료된 기간에 대한 2025년 1분기 재무 결과를 발표했습니다. 회사는 총 수익이 17,752,000달러에 달하며, 이는 2024년 1분기와 비교해 20% 감소한 수치입니다. 회사는 지난해 3,553,000달러의 이익에 비해 2,159,000달러의 순손실을 기록했습니다.
주요 사항으로는: 국내 교육 부문이 1% 감소하면서 안정세를 보였고, 학생 주거 수익이 연간 7% 증가했으며(이전 호텔 운영 제외), 금융 비용이 27% 감소했습니다. 그러나 국제 교육 수익은 연방 정부의 국제 학생 등록 제한으로 37% 감소했습니다. 회사의 임대 주택 부문은 국내 세입자가 2024년 1분기 대비 159% 증가하며 상당한 변화를 겪었습니다.
조정된 EBITDA는 2024년 1분기 4,992,000달러에서 1,306,000달러로 감소했으며, 총 자산은 5% 감소해 442,957,000달러에 이르렀습니다.
Global Education Communities Corp. (GECSF) a publié ses résultats financiers du premier trimestre 2025 pour la période se terminant le 30 novembre 2024. La société a déclaré des revenus totaux de 17 752 000 dollars, soit une baisse de 20 % par rapport au premier trimestre 2024. L'entreprise a enregistré une perte nette de 2 159 000 dollars comparée à un bénéfice de 3 553 000 dollars l'année précédente.
Les temps forts incluent : la division de l'éducation nationale montre une stabilité avec seulement une baisse de 1 %, les revenus de l'hébergement étudiant augmentant de 7 % d'une année sur l'autre (hors opérations hôtelières précédentes), et une réduction de 27 % des coûts financiers. Cependant, les revenus de l'éducation internationale ont diminué de 37 % en raison des restrictions du gouvernement fédéral sur l'inscription des étudiants internationaux. La division des locations de l'entreprise a connu un changement significatif, avec une augmentation de 159 % des locataires nationaux par rapport au premier trimestre 2024.
L'EBITDA ajusté a baissé à 1 306 000 dollars contre 4 992 000 dollars au premier trimestre 2024, tandis que le total des actifs a diminué de 5 % pour atteindre 442 957 000 dollars.
Global Education Communities Corp. (GECSF) hat die finanziellen Ergebnisse für das erste Quartal 2025 für den Zeitraum bis zum 30. November 2024 veröffentlicht. Das Unternehmen berichtete von Gesamteinnahmen in Höhe von 17.752.000 US-Dollar, was einem Rückgang von 20 % im Vergleich zum ersten Quartal 2024 entspricht. Das Unternehmen verzeichnete einen Nettoverlust von 2.159.000 US-Dollar im Vergleich zu einem Gewinn von 3.553.000 US-Dollar im Vorjahr.
Wichtige Highlights umfassen: die nationale Bildungsabteilung zeigt Stabilität mit nur einem Rückgang von 1 %, die Einnahmen aus Studentenwohnungen steigen um 7 % im Jahresvergleich (ohne frühere Hotelbetriebe), und eine Reduzierung der Finanzkosten um 27 %. Die internationalen Bildungseinnahmen sanken jedoch um 37 % aufgrund von Einschränkungen der Bundesregierung bezüglich der Einschreibung internationaler Studenten. Die Mietwohnungsabteilung des Unternehmens erlebte einen signifikanten Wandel, mit einer Zunahme der inländischen Mieter um 159 % im Vergleich zum ersten Quartal 2024.
Das bereinigte EBITDA fiel auf 1.306.000 US-Dollar von 4.992.000 US-Dollar im ersten Quartal 2024, während sich die Gesamtaktiva um 5 % auf 442.957.000 US-Dollar verringerten.
- 27% reduction in finance costs due to interest rates decline
- 7% increase in student housing revenue (excluding hotel operations)
- 159% increase in domestic tenant occupancy
- Stable domestic education division with only 1% decrease
- 20% decrease in total revenue to $17,752,000
- Net loss of $2,159,000 compared to $3,553,000 profit in Q1 2024
- 37% decline in international education revenue
- 74% decrease in Adjusted EBITDA to $1,306,000
- $2.646 million decrease in investment properties fair value
VANCOUVER, BC / ACCESSWIRE / January 14, 2025 / Global Education Communities Corp. (" GECC " or the " Company ") (TSX:GEC)(OTCQB:GECSF) reports that it has filed on SEDAR+ its fiscal 2025 first quarter financial statements (the " Q1 2025Financial Statements ") and related Management's Discussion & Analysis (the " MD&A ") (collectively, the " 2025 Q1 Financial Report ") for the first quarter ended November 30, 2024 (" Q12025 "). This news release should be read in conjunction with the 2025 Q1 Financial Report in its entirety. To review the 2025 Q1 Financial Report, please visit GECC's profile at www.sedarplus.ca.
The following table presents selected financial data from the 2025 Q1 Financial Report with comparisons to the quarter ended November 30, 2023 (" Q12024 "). All figures are in thousands of Canadian dollars, except share and per share data, unless otherwise noted.
| Q1 2025 |
|
|
| Q1 2024 |
| % Change 2025 (2) |
| |||
Total revenues |
| $ | 17,752 |
|
| $ | 22,132 |
|
| (20 | ) |
Net income (loss) attributable to GECC shareholders |
| $ | (2,159 | ) |
| $ | 3,553 |
|
| (161 | ) |
Income (loss) per share - GECC shareholders |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
| $ | (0.03 | ) |
| $ | 0.05 |
|
| (157 | ) |
|
|
|
|
|
|
|
|
|
|
| |
EBITDA [Non-IFRS] (1) |
| $ | (1,291 | ) |
| $ | 15,025 |
|
| (109 | ) |
Adjusted EBITDA [Non-IFRS] (1) |
| $ | 1,306 |
|
| $ | 4,992 |
|
| (74 | ) |
|
|
|
|
|
|
|
|
|
|
| |
Total assets |
| $ | 442,957 |
|
| $ | 467,732 |
|
| (5 | ) |
|
|
|
|
|
|
|
|
|
|
| |
Total non-current financial liabilities |
| $ | 110,964 |
|
| $ | 114,149 |
|
| (3 | ) |
See the 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 in the MD&A below as "Margins".
Percentage change amounts reflect the relative change in the individual balance with the impact (negative or positive) on net income.
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 |
|
| Q1 2025 |
|
|
| Q1 2024 |
|
Net income (loss) |
|
| (4,940 | ) |
|
| 8,489 |
|
Add: interest expense |
|
| 3,588 |
|
|
| 4,972 |
|
Add: income tax (recovery) provision |
|
| (716 | ) |
|
| 642 |
|
Add: depreciation and amortization (1) |
|
| 777 |
|
|
| 922 |
|
EBITDA [non-IFRS] |
|
| (1,291 | ) |
|
| 15,025 |
|
Add: net loss on fair value changes in investment properties |
|
| 2,646 |
|
|
| 390 |
|
Deduct: gain on sale of property and equipment (2) |
|
| - |
|
|
| (10,378 | ) |
Deduct: gain on fair value changes in embedded derivatives, net (3) |
|
| (49 | ) |
|
| (45 | ) |
Adjusted EBITDA [non-IFRS] |
|
| 1,306 |
|
|
| 4,992 |
|
Includes amortization of agency fees which is a component of educational direct costs.
Gain from sale of GEC® Granville.
Included in finance costs within Note 5(b) to the Q1 2025 Financial Statements.
"GECC's Q1 2025 financial results reveal positive performance in domestic education and student housing, coupled with strategic cost reductions, while the international education sector faces challenges," commented Toby Chu, President, CEO, and Chairman of GECC. Q1 2025 included the following highlights:
The domestic education division demonstrated stability, registering a marginal decrease of
1% as compared to Q1 2024.Q1 2024 rental revenue included
$2.33 million derived from hotel operations. Following the divestiture of this asset in Q1 2024, this revenue stream is no longer reflected in the Q1 2025 report. Adjusting for this non-recurring revenue, GECH's student housing revenue exhibited a7% increase in Q1 2025 as compared to Q1 2024.The decline in interest rates commencing in mid-2024, in conjunction with the Company's debt reduction initiatives, resulted in a
27% year-over-year reduction in finance costs.International education subsidiaries experienced a
37% contraction in revenue in Q1 2025 as compared to Q1 2024. This is attributable to Federal government policies implemented in January 2024, which restricts international student enrollment in Canada for a two-year period. The Company anticipates a return to normalized operations within the international education sector in 2026 and is implementing appropriate adjustments to the scale of its international college operations.GECC's rental housing division saw a significant shift in its tenant base, with domestic tenants increasing by
159% in
Q1 2025 as compared to Q1 2024 and replacing international tenants as the primary demographic.
Loss on fair value changes in investment properties relates to the fair value of the investment properties held by the Company, which decreased by
$2.64 6 million. This non-cash amount is reflected in Adjusted EBITDA of$1.30 6 million.
Mr. Chu further commented,"The financial market anticipates continued downward pressure on interest rates in subsequent quarters, which will further mitigate finance costs. Demand for student housing is projected to remain robust, driven by Metro Vancouver's persistent housing shortage and a
*1 https://vancouver.ca/files/cov/statement-of-building-permits-issued-december-2022.pdf *2 https://vancouver.ca/files/cov/statement-of-building-permits-issued-december-2024.pdf
"GECC remains committed to optimizing operational efficiency, minimizing interest expense, and expanding its student housing portfolio to address current and prospective market demand."
About GECC, a Leader in Education and Student Housing:
Since 1994, GECC has established itself as a leading player in the Canadian education and student housing sector, serving both domestic and international markets. GECC offers a comprehensive range of services, encompassing business and language colleges, student-centric rental apartments, recruitment services for educational opportunities, and a network of campuses and offices across 40 locations.
Through its subsidiaries, GECC provides a holistic educational experience for over 12,500 students annually. These subsidiaries include established institutions like Sprott Shaw College (founded in 1903), Sprott Shaw Language College, Vancouver International College, and CIBT. These subsidiaries offer programs covering healthcare, business, and technology.
GECC also addresses student housing needs through its subsidiary, Global Education City Holdings Inc. (" GECH "). GECH focuses on developing and managing student-centric rental apartments and education super-centers in Metro Vancouver, boasting a portfolio exceeding
GECC also owns Global Education Alliance Inc. (" GEA "), a subsidiary that specializes in placing students in elite North American schools and universities and Irix Design, a leading design and media communication company based in Vancouver, Canada.
Visit GECC online at www.GEChq.com to explore our services and watch our corporate video.
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 expected continued downward pressure on interest rates. 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, an increase in inflation rates and the risk factors identified in the MD&A forming part of the 2025 Q1 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 (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 IFRS. 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
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FAQ
What caused GECSF's revenue decline in Q1 2025?
How much did GECSF's student housing revenue grow in Q1 2025?
What was GECSF's Adjusted EBITDA for Q1 2025?
When does GECSF expect international education operations to normalize?
How much did GECSF reduce its finance costs in Q1 2025?
