ITI Education corporation reports revenue growth of 45 percent for the first fiscal quarter

Apr 30, 2001, 01:00 ET from ITI Education Corporation

    HALIFAX, NS, April 30 /PRNewswire/ - ITI Education Corporation (TSE: ITK)
 today announced financial results for the first fiscal quarter ended March 31,
 2001.
     Tuition revenue, for the first quarter of fiscal 2001, increased 45
 percent to $15.6 million, up from $10.8 million for the first quarter of last
 year. The increase in revenue is a result of an increase in enrollments and an
 increase in U.S. revenue, which now accounts for 32 percent of ITI's total
 revenue compared to 14 percent of total revenue in the same period last year.
     The March 31st total student population increased 29 percent over the
 prior year and new student enrollments increased 32 percent over the same
 quarter last year. Tuition revenue from Canadian schools increased 16 percent
 to $10.6 million from $9.2 million, and tuition revenue from the US schools
 increased 220 percent to $5.0 million from $1.6 million for the same period in
 the past year.
     The contribution from schools was $2.2 million for the first fiscal
 quarter compared to $1.4 million for the same period of fiscal 2000. The
 contribution from schools is comprised of the earnings before interest,
 depreciation and amortization for all of ITI's ten schools and is offset by
 curriculum development and corporate overhead expenses. These expenses
 decreased to $3.4 million, or 22 percent of revenue in the first quarter of
 2001 from $3.7 million, or 33 percent of revenue in the same period in 2000.
     The consolidated net loss for the first quarter of fiscal 2001 decreased
 24 percent to $2.3 million from a consolidated net loss of $3.0 million in the
 previous year. Loss per common share for the first quarter of fiscal 2001
 decreased 30 percent to $0.19 compared with a loss per common share $0.27 for
 the first quarter of last year. The weighted average number of common shares
 outstanding was 12,130,995 and 11,204,995 in the first quarters of fiscal 2001
 and 2000 respectively.
     Gary Blandford, president and CEO of ITI, says he is very pleased with
 the strong revenue growth in the Canadian and US schools and the continued
 decrease in the consolidated net loss. "I am especially pleased with the
 increase in the contribution from our schools. This is significant as it
 includes two schools in the U.S. which have been in operation less than a
 year. ITI continues to lower its cost structure, both at the head office and
 schools. We are able to continue in this direction for the rest of 2001 due to
 the implementation of a tighter, smaller management team and better
 technologies."
     ITI Education Corporation, through ITI Information Technology Institute,
 is a North American leader in e-business education. ITI transforms university
 graduates from a wide range of disciplines into expert learners ready to excel
 in the business world. ITI achieves this transformation with a market-driven
 curriculum incorporating business application development, professional
 development, communication and interpersonal skills applied in a
 collaborative, team-based learning environment. ITI is publicly traded on the
 Toronto Stock Exchange (TSE:ITK). For more information, visit www.iti.com.
 
 
 
     Consolidated Interim Statement of Loss and Deficit
     First Quarter Ended March 31, 2001
      (Unaudited)                                      2001              2000
     -------------------------------------------------------------------------
 
     Revenue
       Tuition                               $   15,613,265    $   10,753,123
       Other revenue                                 78,794           573,864
                                              --------------    --------------
 
                                                 15,692,059        11,326,987
                                              --------------    --------------
     Institute operating expenses
       Instructional                              6,536,380         4,286,662
       Selling                                    4,487,134         3,753,411
       General and administration                 2,448,087         1,848,856
                                              --------------    --------------
 
                                                 13,471,601         9,888,929
                                              --------------    --------------
 
     Contribution from institute operations       2,220,458         1,438,058
                                              --------------    --------------
     Other expenses
       Curriculum development                       584,291           880,318
       Corporate overhead                         2,835,457         2,848,157
                                              --------------    --------------
 
                                                  3,419,748         3,728,475
                                              --------------    --------------
 
     Net loss from operations before
      investment income,
      depreciation and amortization              (1,199,290)       (2,290,417)
     Investment income, net                          27,150            88,257
     Depreciation and amortization               (1,112,339)         (816,723)
                                              --------------    --------------
 
     Net loss before income taxes                (2,284,479)       (3,018,883)
     Income taxes                                   (23,474)          (25,310)
                                              --------------    --------------
 
     Net loss                                $   (2,307,953)   $   (3,044,193)
                                              --------------    --------------
                                              --------------    --------------
 
     Loss per share                          $        (0.19)   $        (0.27)
                                              --------------    --------------
                                              --------------    --------------
     -------------------------------------------------------------------------
 
     Deficit, beginning of period            $  (25,134,399)   $  (13,384,463)
 
     Net loss                                    (2,307,953)       (3,044,193)
                                              --------------    --------------
 
     Deficit, end of period                  $  (27,442,352)   $  (16,428,656)
                                              --------------    --------------
                                              --------------    --------------
     -------------------------------------------------------------------------
 
 
     -------------------------------------------------------------------------
     ITI Education Corporation
     Consolidated Interim Balance Sheet
     (Unaudited)                               Mar 31, 2001      Dec 31, 2000
     -------------------------------------------------------------------------
 
     Assets
     Current
       Cash and cash equivalents             $    2,966,275    $    1,140,267
       Receivables                                1,301,041         2,101,252
       Student loan - notes receivable               65,163            81,270
       Prepaids                                   7,524,261         7,823,624
                                              --------------    --------------
                                                 11,856,740        11,146,413
 
     Restricted cash                                582,291         1,709,022
     Future income tax assets                     8,240,000         8,240,000
     Student loan-notes receivable                  260,652           332,802
     Leaseholds and equipment                    23,016,472        22,659,629
                                              --------------    --------------
 
                                             $   43,956,155    $   44,087,866
                                              --------------    --------------
                                              --------------    --------------
 
     -------------------------------------------------------------------------
     Liabilities
     Current
       Payables and accruals                 $    7,477,995    $    7,539,555
       Loan from shareholder                      5,046,575                 -
       Current portion of long term debt            608,638           772,583
                                              --------------    --------------
                                                 13,133,208         8,312,138
       Deferred revenue                          20,645,617        23,277,901
                                              --------------    --------------
                                                 33,778,825        31,590,039
 
     Long term debt                               1,825,915         1,826,551
     Deferred lease inducements                   4,384,044         4,435,597
                                              --------------    --------------
 
                                                 39,988,784        37,852,187
                                              --------------    --------------
 
     Shareholders' Equity
     Capital stock                               31,409,723        31,370,078
     Deficit                                    (27,442,352)      (25,134,399)
                                              --------------    --------------
 
                                                  3,967,371         6,235,679
                                              --------------    --------------
 
                                             $   43,956,155     $  44,087,866
                                              --------------    --------------
                                              --------------    --------------
 
     -------------------------------------------------------------------------
 
 
     -------------------------------------------------------------------------
     ITI Education Corporation
     Consolidated Interim Statement of Cash Flow
     First Quarter Ended March 31 (Unaudited)          2001             2000
     -------------------------------------------------------------------------
 
     Operating
       Net loss                              $   (2,307,953)   $   (3,044,193)
       Depreciation and amortization              1,112,339           816,723
       Change in non-cash operating working
        capital                                  (1,594,270)       (3,092,495)
                                              --------------    --------------
 
       Cash flows from operating activities      (2,789,884)       (5,319,965)
                                              --------------    --------------
 
     Financing
       Loan from shareholder                      5,046,575                 -
       Issue of share capital, net                   39,645            (1,034)
       Net repayment of long term debt             (164,580)         (174,664)
       Net change to lease inducements              (51,554)           70,718
                                              --------------    --------------
 
       Cash flows from financing activities       4,870,086          (104,980)
                                              --------------    --------------
 
     Investing
       Student loan - notes receivable               88,257        10,326,844
       Purchase of leaseholds and equipment      (1,469,182)       (2,211,012)
       (Increase) decrease in restricted cash     1,126,731        (1,459,792)
                                              --------------    --------------
 
     Cash flows from investing activities          (254,194)        6,656,040
                                              --------------    --------------
 
     Net increase in cash and cash equivalents    1,826,008         1,231,095
 
     Cash and cash equivalents
       Beginning of period                        1,140,267         2,460,982
                                              --------------    --------------
 
         End of period                       $    2,966,275    $    3,692,077
                                              --------------    --------------
                                              --------------    --------------
     -------------------------------------------------------------------------
 
 
 
 

SOURCE ITI Education Corporation
    HALIFAX, NS, April 30 /PRNewswire/ - ITI Education Corporation (TSE: ITK)
 today announced financial results for the first fiscal quarter ended March 31,
 2001.
     Tuition revenue, for the first quarter of fiscal 2001, increased 45
 percent to $15.6 million, up from $10.8 million for the first quarter of last
 year. The increase in revenue is a result of an increase in enrollments and an
 increase in U.S. revenue, which now accounts for 32 percent of ITI's total
 revenue compared to 14 percent of total revenue in the same period last year.
     The March 31st total student population increased 29 percent over the
 prior year and new student enrollments increased 32 percent over the same
 quarter last year. Tuition revenue from Canadian schools increased 16 percent
 to $10.6 million from $9.2 million, and tuition revenue from the US schools
 increased 220 percent to $5.0 million from $1.6 million for the same period in
 the past year.
     The contribution from schools was $2.2 million for the first fiscal
 quarter compared to $1.4 million for the same period of fiscal 2000. The
 contribution from schools is comprised of the earnings before interest,
 depreciation and amortization for all of ITI's ten schools and is offset by
 curriculum development and corporate overhead expenses. These expenses
 decreased to $3.4 million, or 22 percent of revenue in the first quarter of
 2001 from $3.7 million, or 33 percent of revenue in the same period in 2000.
     The consolidated net loss for the first quarter of fiscal 2001 decreased
 24 percent to $2.3 million from a consolidated net loss of $3.0 million in the
 previous year. Loss per common share for the first quarter of fiscal 2001
 decreased 30 percent to $0.19 compared with a loss per common share $0.27 for
 the first quarter of last year. The weighted average number of common shares
 outstanding was 12,130,995 and 11,204,995 in the first quarters of fiscal 2001
 and 2000 respectively.
     Gary Blandford, president and CEO of ITI, says he is very pleased with
 the strong revenue growth in the Canadian and US schools and the continued
 decrease in the consolidated net loss. "I am especially pleased with the
 increase in the contribution from our schools. This is significant as it
 includes two schools in the U.S. which have been in operation less than a
 year. ITI continues to lower its cost structure, both at the head office and
 schools. We are able to continue in this direction for the rest of 2001 due to
 the implementation of a tighter, smaller management team and better
 technologies."
     ITI Education Corporation, through ITI Information Technology Institute,
 is a North American leader in e-business education. ITI transforms university
 graduates from a wide range of disciplines into expert learners ready to excel
 in the business world. ITI achieves this transformation with a market-driven
 curriculum incorporating business application development, professional
 development, communication and interpersonal skills applied in a
 collaborative, team-based learning environment. ITI is publicly traded on the
 Toronto Stock Exchange (TSE:ITK). For more information, visit www.iti.com.
 
 
 
     Consolidated Interim Statement of Loss and Deficit
     First Quarter Ended March 31, 2001
      (Unaudited)                                      2001              2000
     -------------------------------------------------------------------------
 
     Revenue
       Tuition                               $   15,613,265    $   10,753,123
       Other revenue                                 78,794           573,864
                                              --------------    --------------
 
                                                 15,692,059        11,326,987
                                              --------------    --------------
     Institute operating expenses
       Instructional                              6,536,380         4,286,662
       Selling                                    4,487,134         3,753,411
       General and administration                 2,448,087         1,848,856
                                              --------------    --------------
 
                                                 13,471,601         9,888,929
                                              --------------    --------------
 
     Contribution from institute operations       2,220,458         1,438,058
                                              --------------    --------------
     Other expenses
       Curriculum development                       584,291           880,318
       Corporate overhead                         2,835,457         2,848,157
                                              --------------    --------------
 
                                                  3,419,748         3,728,475
                                              --------------    --------------
 
     Net loss from operations before
      investment income,
      depreciation and amortization              (1,199,290)       (2,290,417)
     Investment income, net                          27,150            88,257
     Depreciation and amortization               (1,112,339)         (816,723)
                                              --------------    --------------
 
     Net loss before income taxes                (2,284,479)       (3,018,883)
     Income taxes                                   (23,474)          (25,310)
                                              --------------    --------------
 
     Net loss                                $   (2,307,953)   $   (3,044,193)
                                              --------------    --------------
                                              --------------    --------------
 
     Loss per share                          $        (0.19)   $        (0.27)
                                              --------------    --------------
                                              --------------    --------------
     -------------------------------------------------------------------------
 
     Deficit, beginning of period            $  (25,134,399)   $  (13,384,463)
 
     Net loss                                    (2,307,953)       (3,044,193)
                                              --------------    --------------
 
     Deficit, end of period                  $  (27,442,352)   $  (16,428,656)
                                              --------------    --------------
                                              --------------    --------------
     -------------------------------------------------------------------------
 
 
     -------------------------------------------------------------------------
     ITI Education Corporation
     Consolidated Interim Balance Sheet
     (Unaudited)                               Mar 31, 2001      Dec 31, 2000
     -------------------------------------------------------------------------
 
     Assets
     Current
       Cash and cash equivalents             $    2,966,275    $    1,140,267
       Receivables                                1,301,041         2,101,252
       Student loan - notes receivable               65,163            81,270
       Prepaids                                   7,524,261         7,823,624
                                              --------------    --------------
                                                 11,856,740        11,146,413
 
     Restricted cash                                582,291         1,709,022
     Future income tax assets                     8,240,000         8,240,000
     Student loan-notes receivable                  260,652           332,802
     Leaseholds and equipment                    23,016,472        22,659,629
                                              --------------    --------------
 
                                             $   43,956,155    $   44,087,866
                                              --------------    --------------
                                              --------------    --------------
 
     -------------------------------------------------------------------------
     Liabilities
     Current
       Payables and accruals                 $    7,477,995    $    7,539,555
       Loan from shareholder                      5,046,575                 -
       Current portion of long term debt            608,638           772,583
                                              --------------    --------------
                                                 13,133,208         8,312,138
       Deferred revenue                          20,645,617        23,277,901
                                              --------------    --------------
                                                 33,778,825        31,590,039
 
     Long term debt                               1,825,915         1,826,551
     Deferred lease inducements                   4,384,044         4,435,597
                                              --------------    --------------
 
                                                 39,988,784        37,852,187
                                              --------------    --------------
 
     Shareholders' Equity
     Capital stock                               31,409,723        31,370,078
     Deficit                                    (27,442,352)      (25,134,399)
                                              --------------    --------------
 
                                                  3,967,371         6,235,679
                                              --------------    --------------
 
                                             $   43,956,155     $  44,087,866
                                              --------------    --------------
                                              --------------    --------------
 
     -------------------------------------------------------------------------
 
 
     -------------------------------------------------------------------------
     ITI Education Corporation
     Consolidated Interim Statement of Cash Flow
     First Quarter Ended March 31 (Unaudited)          2001             2000
     -------------------------------------------------------------------------
 
     Operating
       Net loss                              $   (2,307,953)   $   (3,044,193)
       Depreciation and amortization              1,112,339           816,723
       Change in non-cash operating working
        capital                                  (1,594,270)       (3,092,495)
                                              --------------    --------------
 
       Cash flows from operating activities      (2,789,884)       (5,319,965)
                                              --------------    --------------
 
     Financing
       Loan from shareholder                      5,046,575                 -
       Issue of share capital, net                   39,645            (1,034)
       Net repayment of long term debt             (164,580)         (174,664)
       Net change to lease inducements              (51,554)           70,718
                                              --------------    --------------
 
       Cash flows from financing activities       4,870,086          (104,980)
                                              --------------    --------------
 
     Investing
       Student loan - notes receivable               88,257        10,326,844
       Purchase of leaseholds and equipment      (1,469,182)       (2,211,012)
       (Increase) decrease in restricted cash     1,126,731        (1,459,792)
                                              --------------    --------------
 
     Cash flows from investing activities          (254,194)        6,656,040
                                              --------------    --------------
 
     Net increase in cash and cash equivalents    1,826,008         1,231,095
 
     Cash and cash equivalents
       Beginning of period                        1,140,267         2,460,982
                                              --------------    --------------
 
         End of period                       $    2,966,275    $    3,692,077
                                              --------------    --------------
                                              --------------    --------------
     -------------------------------------------------------------------------
 
 
 
 SOURCE ITI Education Corporation