GECC Reports Fiscal 2025 Q2 Financial Results
Global Education Communities Corp. (GECSF) has released its Q2 2025 financial results, showing mixed performance across divisions. Total revenues declined 13% to $34.5 million, with a net loss of $1.647 million compared to a profit of $2.571 million in Q2 2024. The company reported an 88% decrease in EBITDA to $2.065 million.
Key performance indicators include:
- Domestic education division showed 1% revenue growth
- Student housing revenue increased 9% (excluding GEC® Granville Hotel sale)
- International education revenue declined 37% due to government restrictions
- 11% reduction in finance costs
- 41% decrease in non-current liabilities to $104.3 million
- Adjusted EBITDA of $4.2 million
The company's student housing occupancy by domestic students increased from 17% to 42%, demonstrating a shift from international to domestic students amid Vancouver's 0.8% vacancy rate.
Global Education Communities Corp. (GECSF) ha pubblicato i risultati finanziari del secondo trimestre 2025, evidenziando performance contrastanti tra le diverse divisioni. I ricavi totali sono diminuiti del 13%, attestandosi a 34,5 milioni di dollari, con una perdita netta di 1,647 milioni rispetto a un utile di 2,571 milioni nel Q2 2024. L'EBITDA è calato dell'88%, raggiungendo 2,065 milioni di dollari.
I principali indicatori di performance includono:
- La divisione istruzione nazionale ha registrato una crescita dei ricavi dell'1%
- I ricavi dall'alloggio per studenti sono aumentati del 9% (esclusa la vendita del GEC® Granville Hotel)
- I ricavi dall'istruzione internazionale sono diminuiti del 37% a causa delle restrizioni governative
- Riduzione dell'11% dei costi finanziari
- Calano del 41% le passività non correnti, a 104,3 milioni di dollari
- EBITDA rettificato pari a 4,2 milioni di dollari
L'occupazione degli alloggi per studenti domestici è aumentata dal 17% al 42%, evidenziando uno spostamento dagli studenti internazionali a quelli nazionali, in un contesto di tasso di sfitto dello 0,8% a Vancouver.
Global Education Communities Corp. (GECSF) ha publicado sus resultados financieros del segundo trimestre de 2025, mostrando un desempeño mixto entre sus divisiones. Los ingresos totales disminuyeron un 13% hasta 34,5 millones de dólares, con una pérdida neta de 1,647 millones en comparación con una ganancia de 2,571 millones en el Q2 de 2024. El EBITDA se redujo un 88%, situándose en 2,065 millones de dólares.
Los indicadores clave de desempeño incluyen:
- La división de educación nacional mostró un crecimiento de ingresos del 1%
- Los ingresos por alojamiento estudiantil aumentaron un 9% (excluyendo la venta del GEC® Granville Hotel)
- Los ingresos por educación internacional disminuyeron un 37% debido a restricciones gubernamentales
- Reducción del 11% en costos financieros
- Disminución del 41% en pasivos no corrientes, hasta 104,3 millones de dólares
- EBITDA ajustado de 4,2 millones de dólares
La ocupación de viviendas estudiantiles por estudiantes nacionales aumentó del 17% al 42%, mostrando un cambio de estudiantes internacionales a nacionales en medio de una tasa de vacantes del 0,8% en Vancouver.
Global Education Communities Corp. (GECSF)는 2025년 2분기 재무 실적을 발표했으며, 부문별로 혼재된 성과를 보였습니다. 총 매출은 13% 감소한 3,450만 달러를 기록했으며, 2024년 2분기 257만 1천 달러의 이익과 비교해 164만 7천 달러의 순손실을 기록했습니다. EBITDA는 88% 감소한 206만 5천 달러였습니다.
주요 성과 지표는 다음과 같습니다:
- 국내 교육 부문 매출 1% 성장
- 학생 주택 매출 9% 증가 (GEC® Granville 호텔 매각 제외)
- 정부 규제로 인해 국제 교육 매출 37% 감소
- 금융 비용 11% 감소
- 비유동 부채 41% 감소하여 1억 430만 달러 기록
- 조정 EBITDA 420만 달러
밴쿠버의 공실률 0.8% 상황에서 국내 학생의 학생 주택 점유율이 17%에서 42%로 증가하며 국제 학생에서 국내 학생으로의 전환을 보여주고 있습니다.
Global Education Communities Corp. (GECSF) a publié ses résultats financiers du deuxième trimestre 2025, montrant une performance mitigée selon les divisions. Le chiffre d'affaires total a diminué de 13 % pour atteindre 34,5 millions de dollars, avec une perte nette de 1,647 million comparé à un bénéfice de 2,571 millions au T2 2024. L'EBITDA a chuté de 88 % à 2,065 millions de dollars.
Les indicateurs clés de performance incluent :
- La division éducation nationale a enregistré une croissance des revenus de 1 %
- Les revenus des logements étudiants ont augmenté de 9 % (hors vente de l'hôtel GEC® Granville)
- Les revenus de l'éducation internationale ont diminué de 37 % en raison des restrictions gouvernementales
- Réduction de 11 % des coûts financiers
- Baisse de 41 % des passifs non courants à 104,3 millions de dollars
- EBITDA ajusté de 4,2 millions de dollars
Le taux d’occupation des logements étudiants par des étudiants nationaux est passé de 17 % à 42 %, montrant un déplacement des étudiants internationaux vers les étudiants nationaux dans un contexte de taux de vacance de 0,8 % à Vancouver.
Global Education Communities Corp. (GECSF) hat die Finanzergebnisse für das zweite Quartal 2025 veröffentlicht und zeigt dabei eine gemischte Performance in den einzelnen Geschäftsbereichen. Die Gesamterlöse sanken um 13 % auf 34,5 Millionen US-Dollar, mit einem Nettoverlust von 1,647 Millionen US-Dollar im Vergleich zu einem Gewinn von 2,571 Millionen US-Dollar im Q2 2024. Das EBITDA sank um 88 % auf 2,065 Millionen US-Dollar.
Wichtige Leistungskennzahlen umfassen:
- Die inländische Bildungsdivision verzeichnete ein Umsatzwachstum von 1 %
- Die Einnahmen aus Studentenwohnheimen stiegen um 9 % (ohne Verkauf des GEC® Granville Hotels)
- Die Einnahmen aus internationaler Bildung sanken aufgrund staatlicher Beschränkungen um 37 %
- 11 % Reduzierung der Finanzierungskosten
- 41 % Rückgang der langfristigen Verbindlichkeiten auf 104,3 Millionen US-Dollar
- Bereinigtes EBITDA von 4,2 Millionen US-Dollar
Die Belegung der Studentenwohnheime durch heimische Studierende stieg von 17 % auf 42 %, was einen Wechsel von internationalen zu inländischen Studierenden bei einer Leerstandsquote von 0,8 % in Vancouver zeigt.
- 11% year-over-year decrease in finance costs
- 41% reduction in non-current liabilities ($73.3 million decrease)
- 9% growth in student housing revenue (excluding asset sale)
- Domestic education division revenue grew 1%
- Domestic student occupancy increased from 17% to 42%
- 13% decline in total revenues to $34.5 million
- Net loss of $1.647 million vs $2.571 million profit in Q2 2024
- 88% decrease in EBITDA to $2.065 million
- 37% decline in international education revenue
- $2.2 million decrease in investment properties fair value
VANCOUVER, BC / ACCESS Newswire / April 15, 2025 / Global Education Communities Corp. ("GECC" or the "Company") (TSX:GEC)(OTCQB:GECSF) reports that it has filed on SEDAR+ its fiscal 2025 second quarter financial statements (the "Q2 2025Financial Statements") and related Management's Discussion & Analysis (the "MD&A" and together with the Q2 2025 Financial Statements, the "2025 Q2 Financial Report") for the period ended February 28, 2025 ("Q22025"). This news release should be read in conjunction with the 2025 Q2 Financial Report in its entirety. To review the 2025 Q2 Financial Report, please visit GECC's profile at www.sedarplus.ca.
The following table presents selected financial data from the 2025 Q2 Financial Report with comparisons to the fiscal quarter ended February 29, 2024 ("Q22024"). All figures are in thousands of Canadian dollars, except share and per share data, unless otherwise noted.
| 2025 YTD |
|
| 2024 YTD |
|
| % Change(2) |
| |||
Total revenues |
| $ | 34,518 |
|
| $ | 39,675 |
|
| (13 | %) |
Net income (loss) attributable to GECC shareholders |
| $ | (1,647 | ) |
| $ | 2,571 |
|
| (164 | %) |
Net income (loss) per share - GECC shareholders |
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
| $ | (0.02 | ) |
| $ | 0.04 |
|
| (164 | %) |
EBITDA [Non-IFRS] (1) |
| $ | 2,065 |
|
| $ | 16,651 |
|
| (88 | %) |
Adjusted EBITDA [Non-IFRS] (1) |
| $ | 4,231 |
|
| $ | 7,134 |
|
| (41 | %) |
Total assets |
| $ | 444,060 |
|
| $ | 481,555 |
|
| (8 | %) |
Total non-current financial liabilities |
| $ | 104,346 |
|
| $ | 177,685 |
|
| (41 | %) |
(1) See the section titled "Non-IFRS Financial Measures" for more information on each non-IFRS specified financial measure.
(2) Percentage change amounts reflect the relative change in the individual balance with the impact (negative or positive) on net income.
The following table reconciles the Q2 2025 non-IFRS measures to the most directly comparable IFRS measure disclosed in the Q2 2025 Financial Statements, which is net income (loss).
| 2025 YTD |
|
| 2024 YTD |
| |||
Net income (loss) |
|
| (6,217 | ) |
|
| 6,021 |
|
Add: interest expense. |
|
| 7,371 |
|
|
| 8,533 |
|
Add: income tax (recovery) provision. |
|
| (650 | ) |
|
| 356 |
|
Add: depreciation and amortization (1) |
|
| 1,561 |
|
|
| 1,741 |
|
EBITDA [non-IFRS] |
|
| 2,065 |
|
|
| 16,651 |
|
Add loss /deduct (gain) on net changes in fair value of investment properties. (2) |
|
| 2,248 |
|
|
| 757 |
|
Deduct gain from the sale of property and equipment. |
|
| - |
|
|
| (10,378 | ) |
Add loss /deduct (gain) on embedded derivatives, net (3) |
|
| (82 | ) |
|
| 104 |
|
Adjusted EBITDA [non-IFRS] |
|
| 4,231 |
|
|
| 7,134 |
|
(1) Includes amortization of agency fees which is a component of educational direct costs.
(2) Gain from sale of GEC® Granville.
(3) Included in finance costs within Note 11 to the Q2 2025 Financial Statements.
"The Company's Q2 2025 financial results demonstrate positive growth in its domestic education and student housing sectors, alongside strategic cost reductions," stated Mr. Toby Chu, President, CEO, and Chairman of GECC. "We expect gradual recovery of the international education sector and the continued decline of interest rates in the coming quarters ," continued Mr. Chu.
Key highlights include:
The domestic education division showed stability with a marginal revenue increase of
1% in Q2 2025 as compared to Q2 2024.Global Education City Holdings Inc's student housing revenue increased by
9% in Q2 2025 as compared to Q2 2024 after adjusting for the$2.3 million sold revenue from the GEC® Granville Hotel sale in Q1 2024.Declining interest rates since mid-2024, combined with the Company's debt reduction efforts, resulted in an
11% year-over-year decrease in finance costs.International education subsidiaries experienced a
37% revenue decline in Q2 2025 as compared to Q2 2024 due to Canadian federal government policies implemented in January 2024, which restrict international student enrollment for two years. The Company has adjusted the scale of its international college operations in response.The fair value of the Company's investment properties decreased by
$2.2 million in Q2 2025 as compared to Q2 2024, a non-cash item.Total non-current liabilities decreased by
$73.3 million or41% year over year.Adjusted EBITDA reached
$4.2 million .
"Interest rates are expected to decline slowly in the coming quarters, further reducing finance costs," said Mr. Chu. "Demand for student housing remains strong, driven by Metro Vancouver's
Mr. Chu concluded, "GECC remains focused on optimizing operational efficiency, reducing interest expenses, concentrating on the domestic education market, and expanding its student housing portfolio."
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 School of Business & Technology. 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-centres 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 or www.GECliving.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, that interest rates are expected to decline slowly in the coming quarters and that this is expected to lead to further reduced finance costs, and the expected expansion of the Company's student housing portfolio. 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, economic factors and monetary policy and the risk factors identified in the MD&A forming part of the 2025 Q2Financial 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
View the original press release on ACCESS Newswire
FAQ
What caused GECSF's revenue decline in Q2 2025?
How much did GECSF's student housing revenue grow in Q2 2025?
What is GECSF's current financial position in Q2 2025?
How has GECSF's domestic student occupancy changed in Q2 2025?
