CIBT EDUCATION GROUP INC. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS NOVEMBER 30, 2016 UNAUDITED

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME (LOSS)

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS) CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS In accordance with National Instrument 51-102, the Company discloses that its external auditors have not reviewed the accompanying condensed consolidated interim financial statements, notes to the condensed consolidated interim financial statements and the related Management's Discussion and Analysis. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited)

November 30, 2016

August 31, 2016

ASSETS

CURRENT

Cash and cash equivalents

$

7,074,212

$

4,341,970

Restricted cash

147,639

148,001

Accounts receivable

9,047,077

6,795,474

Prepaid expenses

727,589

695,716

Inventory

453,283

363,293

TOTAL CURRENT ASSETS

17,449,800

12,344,454

DUE FROM RELATED PARTIES

2,075,870

2,329,947

DEPOSIT RESERVE

1,762,674

897,613

PROPERTY AND EQUIPMENT

2,953,375

2,103,147

INVESTMENT PROPERTIES

88,423,176

49,900,000

DEFERRED COSTS

1,545,024

1,522,116

REFUNDABLE DEPOSITS

12,900,000

15,800,000

INVESTMENT IN ASSOCIATES

1,344,422

1,453,445

INTANGIBLE ASSETS

8,436,116

8,182,067

GOODWILL

5,721,907

5,721,907

DEFERRED INCOME TAX ASSETS

2,091,845

2,091,845

TOTAL ASSETS

$

144,704,209

$

102,346,541

LIABILITIES

CURRENT

Accounts payable and accrued liabilities

$

5,016,309

$

3,000,520

Income taxes payable

114,582

114,836

Deferred educational revenue

14,133,571

11,548,744

Current portion of finance lease obligations

129,433

164,795

Current portion of borrowings

13,638

493,638

Due to related parties and investment partners

3,083,693

1,016,825

TOTAL CURRENT LIABILITIES

22,491,226

16,339,358

FINANCE LEASE OBLIGATIONS

406,393

324,009

BORROWINGS

52,582,585

28,344,426

DEFERRED INCOME TAX LIABILITIES

2,399,401

2,399,401

TOTAL LIABILITIES

77,879,605

47,407,194

EQUITY

SHARE CAPITAL

49,092,366

49,024,991

RESERVES

5,314,405

5,669,832

DEFICIT

(25,658,283)

(30,868,897)

ACCUMULATED OTHER COMPREHENSIVE INCOME

287,318

237,890

EQUITY ATTRIBUTABLE TO CIBT EDUCATION GROUP INC. SHAREHOLDERS

29,035,806

24,063,816

NON-CONTROLLING INTERESTS

37,788,798

30,875,531

TOTAL EQUITY

66,824,604

54,939,347

TOTAL LIABILITIES AND EQUITY

$

144,704,209

$

102,346,541

Approved on behalf of the Board:

"Toby Chu"

"Troy Rice"

Toby Chu, Chief Executive Officer & Director

Troy Rice, Director

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME (LOSS) (Unaudited)

Three Months Ended

Three Months Ended

November 30, 2016

November 30, 2015

REVENUES

Educational

$

7,358,969

$

7,059,127

Design and advertising

215,882

224,823

Commissions and referral fees

276,124

295,607

Development fees

4,464,286

1,443,076

Rental

1,664,615

341,787

13,979,876

9,364,420

DIRECT COSTS

Educational

3,184,446

3,082,428

Design and advertising

29,894

56,836

Commissions and referral fees

156,097

239,585

Rental

1,233,338

202,538

4,603,775

3,581,387

OTHER EXPENSES

General and administrative

5,046,008

4,932,206

Amortization of property, equipment and intangible assets (excluding agency fees)

215,542

244,799

Share-based payment expense

6,252

250

5,267,802

5,177,255

OPERATING INCOME (LOSS)

4,108,299

605,778

INTEREST AND OTHER INCOME

260,284

810

FOREIGN EXCHANGE GAIN (LOSS)

(41,592)

15,486

FINANCE COSTS

(321,835)

(48,506)

FINANCE FEES

(146,399)

(174,477)

INCOME (LOSS) FROM INVESTMENT IN ASSOCIATES

(301,901)

(2,328)

GAIN (LOSS) ON FAIR VALUE CHANGES IN INVESTMENT PROPERTIES

2,098,729

-

GAIN (LOSS) ON DISPOSAL OF ASSETS

5,398

(8,863)

INCOME (LOSS) BEFORE INCOME TAXES

5,660,983

387,900

INCOME TAXES

Current income tax expense (recovery)

-

-

Deferred income tax expense (recovery)

-

-

-

-

INCOME (LOSS) FROM CONTINUING OPERATIONS

5,660,983

387,900

INCOME (LOSS) FROM DISCONTINUED OPERATIONS

-

-

NET INCOME (LOSS)

$

5,660,983

$

387,900

ATTRIBUTABLE TO:

CIBT Education Group Inc. shareholders

$

5,210,614

$

512,390

Non-controlling interests

450,369

(124,490)

NET INCOME (LOSS)

$

5,660,983

$

387,900

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE - CONTINUING OPERATIONS

$

0.08

$

0.01

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE - DISCONTINUED OPERATIONS

0.00

0.00

BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE - CONTINUING AND DISCONTINUED OPERATIONS

$

0.08

$

0.01

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

Basic

67,911,831

68,762,753

Diluted

70,252,459

69,190,424

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

Three Months Ended

Three Months Ended

November 30, 2016

November 30, 2015

NET INCOME (LOSS)

$

5,660,983

$

387,900

OTHER COMPREHENSIVE INCOME (LOSS):

Exchange differences on translating foreign operations

49,326

29,834

$

5,710,309

$

417,734

ATTRIBUTABLE TO:

CIBT Education Group Inc. shareholders

$

5,260,042

$

336,494

Non-controlling interests

450,267

81,240

$

5,710,309

$

417,734

CIBT Education Group Inc. published this content on 16 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 January 2017 02:30:04 UTC.

Original documenthttp://www.cibt.net/investors/regulatory_filings/f2017 q1 november 30 2016 - unaudited interim financial statements.pdf

Public permalinkhttp://www.publicnow.com/view/6E9F4E7F14CEC358315A7FF55E8B62B9CFAD3881