Loyalist Announces Record Second Quarter 2014 Results

TORONTO, ONTARIO--(Marketwired - Aug. 27, 2014) - Loyalist Group Limited ("Loyalist" or the "Company") (TSX VENTURE:LOY) today announced financial results for the three months ended June 30, 2014.

Second quarter revenue for the three months ended June 30, 2014, was a record $17.2 million, an increase of 262% over the same period in 2013. Income from operations was $2.2 million, a 157% increase over the same period in 2013, while net income was $1.3 million, an increase of 182% over the same period in 2013. Cash flow has improved by $1.0 million, to $0.8 million compared to a year ago.

Revenues continue to rise as a result of acquisitions closed through June 30, 2014, as well as organic growth of $600,000 or 12.1 % on the base business, as enrollments continued to trend higher. Net income and cash flow were adversely impacted by acquisition, integration and restructuring costs of $700,000 ($400,000 in the year ago period).

"Our second quarter demonstrated the potential of our platform with strong organic growth and record revenues," said CEO Andrew Ryu. "In a quarter without any acquisitions, the strength of our core business is evident in the numbers."

Mr. Ryu added that, "The second quarter results exceeded our expectations, and continue to reflect the seasonal nature of our industry. We are pleased with the performance of our recent acquisitions."

On the integration front, Mr. Ryu commented that, "The successful integration of our acquisitions is critical to the overall profitability of Loyalist and we continue to devote significant resources to that end. As well, it is important that we build a strong central infrastructure to control and manage the business. The growth rate of our corporate costs is slowing and we expect to see savings in the future to leverage our investment."

"The student housing pilot continues to show promise with revenues for the quarter in excess of $150,000. We will continue to actively grow this program."

The following table summarizes and compares three month results for the periods ended June 30, year over year:

Three months ended June 30,	2014		2013		% Change
Revenue	$	17,185,078	$	4,751,159	+262%
Gross Profit	$	7,315,695	$	1,770,766	+313%
Income From Operations	$	2,201,133	$	853,424	+158%
Net Income	$	1,338,872	$	474,021	+182%
Adjusted EBITDA*	$	2,567,044	$	932,937	+175%

* Adjusted EBITDA, a non-IFRS measure is used by management to act as an indicator of its core operating business; is defined as earnings before interest, taxes, depreciation, and amortization, adjusted for integration, restructuring and acquisition costs, and loss on foreign exchange.