DALLAS, TX / ACCESSWIRE / October 21, 2020 / CIBT Education Group Inc. (TSX:MBA):
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CIBT Education Group, Inc. (CIBT) is one of the largest education and student housing investment companies in Canada. Through its schools, CIBT offers business and management programs in healthcare, hotel management, language training, and 150+ career, language, and vocational programs. Furthermore, through its holding company, GECH, it invests in, develops, and manages education related real estate projects, such as student hotels, serviced apartments, and education supercenters in Canada. CIBT has 45 locations in Canada and Asia, with a total annual enrollment of over 12,000 students. CIBT was founded in 1994 and is headquartered in Vancouver, Canada.
- CIBT has steadily grown and delivered results- Historically, CIBT has shown solid growth in its two business segments, education, and real estate, for decades. Both the Company's EBITDA, as well as net profit have grown by a CAGR of ~22% over the past three fiscal years.
- Operating in Vancouver provides advantages- The Company's operations are focused in the Vancouver area, which has benefited CIBT in many ways. Notably, in 2017 US News named Canada the best country in the world for education, even ahead of the United States. Additionally, with a current vacancy rate at less than 1% in Vancouver, there is a direct need for expanded student housing options for those studying abroad.
- Solid footprint of educational facilities- Since 1994, CIBT has developed a growing network of business, technical, and language colleges in both North America and Asia; annual student enrollment, as most recently reported, was ~13,000 students for FY19. The Company will continue driving the top line on the education side of the business through increased student enrollment via concentrated marketing efforts and continued management of the current global health and economic conditions.
Unique real estate operations- The Company launched an accommodations business in 2014 that is focused on providing housing and other services to its international students as well as its professionals in the Metro Vancouver area of British Columbia. CIBT's market value of its real estate portfolio was recently appraised at C$580M by third-party valuation; the portfolio value, including development budgets, was estimated at over $1.4B. And out of several projects in the current pipeline, management notes that the education supercenters under development are the most anticipated.
Potential spin-off of real-estate assets in the works- CIBT announced in August 2020 that it is evaluatin options for its real estate subsidiary with a potential spin-off and subsequent listing on a recognized North American stock exchange. Management believes that this move would allow them to tap into a much larger investor base for capital to advance its real estate development projects.
Valuation- We are using a sum of the parts analysis. Our analysis provides an aggregate valuation range of C$0.70 to C$1.41, with a mid-point of C$1.06. See more details on pages 8 and 9.
About Stonegate Capital Partners
Stonegate Capital Partners is a Dallas-based corporate advisory firm dedicated to serving the specialized needs of small-cap public companies. Since our inception, our mission has been to find innovative, undervalued public companies for our network of leading institutional investors who seek high-quality investment opportunities.
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SOURCE: Stonegate Capital Partners
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