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 or 41% 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 0.8% vacancy rate. As of February 28, 2025, Global Education City Holding's domestic student occupancy increased from 17% to 42%, indicating a paradigm shift from international to domestic students."
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 $1.3 billion, including operational properties and projects under development.
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
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