CALGARY, June 20, 2011 /CNW/ -- CALGARY, June 20, 2011 /CNW/ -
Edleun Group, Inc. ("Edleun" or the "Company") (TSXV: EDU), the
leading consolidator and developer of child care facilities across
Canada, announced today its operational and financial results for
the three month period ended March 31, 2011. All amounts are
presented in Canadian dollars unless otherwise specified.
Highlights for the quarter ended March 31, 2011 include: --
Achieving positive Funds From Operations ("FFO") and Adjusted Funds
From Operations ("AFFO") for the first time in the Company's short
history; -- Solid organic growth in revenue through increases in
occupancy and rates; -- Increasing portfolio-wide occupancy levels
from 78% at the end of the fourth quarter 2010 to 82% in the first
quarter of 2011, and expanded child care centre margin from 32% to
34% across the portfolio in the same period; -- Closing a $25
million credit facility that represents a non-dilutive source of
capital to acquire and develop child care centres; -- Acquiring a
land site from Melcor Developments Ltd. to develop the Chestermere
Learning Centre, Edleun's first standard setting, newly-developed
247-space child care centre in the Calgary metropolitan area; and
-- Definitive agreements to acquire ten child care centres
representing 901 licensed spaces. "We have now substantially
validated our business model and confirmed that we can successfully
drive organic growth in our child care centre portfolio," said
Leslie Wulf Chief Executive Officer of Edleun. "By prudently
deploying capital, delivering superior programming and executing
our operational strategy we have been able to improve profitability
beyond the level the centres generated prior to their acquisition
by the Company. With greater capital and financial liquidity
in place, we intend to increase the Company's pace of acquisitions
while also advancing our new child care centre development program,
as well as a complementary co-location strategy whereby Edleun will
enter into agreements with prominent owners and managers of
well-located properties across Canada to open and operate new child
care centres." Highlights for the period subsequent to quarter end
include: -- Strengthening the balance sheet through a $25 million
private placement financing of common shares; -- Commencing
construction of the Chestermere Learning Centre; -- Concluding a
long term ground lease agreement with First Capital Realty Inc. and
application for a development permit to construct Edleun's second
new child care centre in the McKenzie Towne area of Calgary,
representing 247 spaces; -- Beginning its national expansion with
the announcement of its initial entry into the province of British
Columbia; and -- The purchase of two child care centres (under
definitive agreement in the first quarter), one in each of Stony
Plain AB and Maple Ridge BC, representing 198 spaces; and a
definitive agreement for a centre in the greater Vancouver area
representing 114 spaces. "Looking at our current financial
position, we have the proceeds of a $25 million equity offering
completed in May, $25 million of availability under our credit
facility and we operated at a positive cash flow level in the first
quarter," commented Dale Kearns, Chief Financial Officer of
Edleun. "With more than $50 million of growth capital to
support investment in our three pronged strategy of child care
centre acquisition, development and co-location, we are very well
positioned for growth." Selected Financial Highlights In $'000
except loss per Q1 2011 Q4 2010 Q3 2010 Q2 2010 share, # of centres
(47-day period) and licensed spaces Revenue $ 3,502 $ 3,124 $ 2,270
$ 867 Centre margin 1,194 1,005 616 273 Net loss((1)) (249) (678)
(896) (1,724) Loss per share (0.003) (0.007) (0.009) (0.033) FFO 71
(193) (564) (1,445) AFFO 136 (60) (432) (206) Cash 7,035 8,662
12,856 22,769 # of centres 20 20 17 11 Licensed spaces 1,833 1,815
1,527 1,061 (1) Adjusted to reflect IFRS At March 31,
2011, the Company operated 20 child care centres representing 1,833
licensed child care spaces. Since March 31, 2011, centres
acquired, centres under contract to acquire, or under construction
give effect to 3,095 spaces in 32 centres. First quarter revenues
were 12% higher than revenues for the three months ended December
31, 2010 ("fourth quarter") on a sequential quarter basis due
primarily to organic growth within the centre portfolio and a full
quarter of revenue recognition from three centres acquired in the
fourth quarter. Portfolio centre margin as a percentage of revenue
for the first quarter was 34% compared with 32% in the fourth
quarter. The net increase in portfolio centre margin in the
first quarter was influenced by higher occupancy levels and rates.
AFFO for the first quarter was positive $136,000 compared to
negative $60,000 in the fourth quarter. AFFO has steadily
improved each quarter since commencement of the Company's
operations as a result of: (i) growth in the portfolio of centres;
(ii) higher occupancies and modestly higher rates; and, (iii)
operating efficiencies, offset, in part, by the cost to expand and
enhance Edleun's program delivery. (See non-IFRS Performance
Measures below for FFO and AFFO definitions). FFO and AFFO per
share for the first quarter were each $0.001. Basic and
diluted loss per share for the first quarter was $(0.003) based on
92,438,815 weighted average number of shares outstanding. FFO and
AFFO Three months Three months ended March 31, ended December 31,
2011 2010 2010((1)) Net loss for the period $ (249,302) $ (50,500)
$ (677,849) Depreciation 205,175 - 178,295 Property acquisition
costs 114,735 - 307,003 FFO $ 70,608 $ (50,500) $ (192,551) Stock
Based Compensation - Option 95,721 - 132,190 Grants Maintenance
capital expenditures (30,443) - - AFFO $ 135,886 $ (50,500) $
(60,361) At March 31, 2011, the Company had working capital of $7.4
million (December 31, 2010 - $8.3 million) which included cash and
cash equivalents of $7.0 million (December 31, 2010 - $8.7
million). The Company has secured a five year $25 million
credit facility agreement with a Canadian bank, under which there
are no borrowings, and subsequent to the first quarter completed a
private placement of common shares for gross proceeds of $25
million. Non IFRS Performance Measures The Company's business,
which is oriented toward the acquisition and development of child
care centres and includes the ownership of a significant portfolio
of real estate, reports net income that includes deduction for
property acquisition costs and non-cash charges such as
depreciation and stock based compensation expense. Reflecting these
factors and consistent with the practice of the Canadian real
estate industry, the Company focuses on Funds From Operations
("FFO") and Adjusted Funds From Operations ("AFFO") as key
financial metrics to measure and compare operating performance. FFO
and AFFO are non-IFRS supplemental financial measures. The Company
uses "centre margin" as a performance indicator of child care
centre operating results. Centre margin does not have a
standardized meaning prescribed by IFRS and therefore may not be
comparable with the calculation of similar measures by other
entities. Centre margin is determined by deducting centre
expenses from revenue. Results are impacted by, among other items,
accounting guidelines that require property acquisition and
transaction costs to be expensed as incurred. As the Company
executes its consolidation and development strategy in the Canadian
child care market, it will routinely incur such expenses which will
negatively impact the Company's reported net income / loss, but do
not affect FFO and AFFO. Conference Call Edleun Group Inc. will
hold a conference call on Tuesday, June 21 at 4:15p.m. Eastern
Time, to discuss the results of the first quarter of fiscal 2011.
The Company's full Financial Statements and Management's Discussion
and Analysis will be available on SEDAR at www.sedar.com. To access
the conference call by telephone, dial (647) 427-7450 or
1-888-231-8191. Please connect approximately 10 minutes prior to
the beginning of the call. The conference call will be archived for
replay until June 28, 2011 at midnight. To access the archived
conference call, dial (416) 849-0833 or 1-800-642-1687 and enter
the reservation number: 77307951 followed by the number sign. A
live audio webcast of the conference call will be available at:
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3579400
Please connect at least 10 minutes prior to the conference call to
ensure adequate time for any software download that may be required
to join the webcast. The webcast will be archived at the above
website for 90 days. About Edleun Group Inc. Edleun is the leading
provider of high-quality, educational child care in Canada.
The Company is committed to providing children, families and
employers with access to, and choice of, quality early childhood
education programs, helping Canadians balance their work and family
lives. The Company's objectives include the acquisition and
improvement of existing child care centres and development of new
child care centres across Canada. Edleun is also pursuing the
development of new "state of the art" child care centres in a
number of Calgary and Edmonton residential communities which are
currently underserved. Forward-Looking Statements Certain
statements in this Release which are not historical facts may
constitute forward-looking statements or forward-looking
information within the meaning of applicable securities laws
("forward-looking statements"). Any statements related to Edleun's
projected revenues, earnings, growth rates, revenue mix, staffing
and resources, and product plans are forward looking statements as
are any statements relating to future events, conditions or
circumstances. The use of terms such as "believes", "anticipated",
"expected", "projected", "targeting", "estimate", "intend" and
similar terms are intended to assist in identification of these
forward-looking statements. Readers are cautioned not to place
undue reliance upon any such forward-looking statements. Such
forward-looking statements are not promises or guarantees of future
performance and involve both known and unknown risks and
uncertainties that may cause the actual results, performance,
achievements or developments of Edleun to differ materially from
the results, performance, achievements or developments expressed or
implied by such forward-looking statements. Forward-looking
statements are based on management's current plans, estimates,
projections, beliefs and opinions. Except as required by law,
Edleun does not undertake any obligation to update forward-looking
statements should assumptions related to these plans, estimates,
projections, beliefs and opinions change. The Company undertakes no
obligation, except as required by law, to update publicly or
otherwise any forward-looking information, whether as a result of
new information, future events or otherwise, or the above list of
factors affecting this information. Many factors could cause the
actual results of Edleun to differ materially from the results,
performance, achievements or developments expressed or implied by
such forward-looking statements. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. Edleun Group, Inc.
Condensed Consolidated Statements of Financial Position (unaudited)
March 31, December 31, January 1, 2011 2010 2010 Assets Non-current
assets Property and $ 19,622,800 $ 18,716,969 $ - equipment
Goodwill 9,182,598 9,182,598 - 28,805,398 27,899,567 - Current
assets Cash and cash 7,035,129 8,662,254 - equivalents Accounts
587,820 603,058 110 receivable Prepaid expenses 241,013 242,593 -
Deferred 258,786 - - financing costs Short term 203,976 203,976 -
investments 8,326,724 9,711,881 110 Total Assets $ 37,132,122 $
37,611,448 $ 110 Liabilities Non-current liabilities Deferred tax $
34,053 $ 34,053 $ - liability 34,053 34,053 - Current liabilities
Accounts payable 799,727 1,368,521 75,000 and accrued liabilities
Deferred revenue 108,451 80,432 - 908,178 1,448,953 75,000 Total
942,231 1,483,006 75,000 Liabilities Shareholders' Equity Share
capital 38,714,049 38,463,083 110 Contributed 1,148,531 1,088,746 -
surplus Accumulated (3,672,689) (3,423,387) (75,000) deficit Total
Shareholders' Equity 36,189,891 36,128,442 (74,890) Total
Liabilities and $ 37,132,122 $ 37,611,448 $ 110 Shareholders'
Equity Edleun Group, Inc. Condensed Consolidated Statements of
Operations, Comprehensive Loss and Deficit Three months ended March
31, 2011 and 2010 (unaudited) March 31, March 31, 2011 2010 Revenue
$ 3,501,973 $ - Centre expenses Salaries, wages and benefits
1,708,830 - Other operating expenses 599,604 - 1,193,539 - Lease
expense 130,444 - General and administrative 933,556 50,500
Property acquisition costs 114,735 - Stock-based compensation
95,721 - Depreciation 205,175 - 1,479,631 50,500 Loss before the
undernoted items (286,092) (50,500) Other income 36,790 - Net Loss
and Comprehensive Loss $ (249,302) $ (50,500) Net loss per share
Basic and diluted $ (0.003) $ - Weighted average number of common
shares Basic and diluted 92,438,815 - Edleun Group, Inc. Condensed
Consolidated Statements of Changes in Shareholders' Equity Three
months ended March 31, 2011 and 2010 (unaudited) Contributed
Accumulated Shareholders' Share Capital Surplus Deficit Equity
Balance, $ 110 $ - $ (75,000) $ (74,890) January 1, 2010 Net loss
and - - (50,500) (50,500) comprehensive loss Balance, March $ 110 $
- $ (125,500) $ (125,390) 31, 2010 Balance, $ 38,463,083 $
1,088,746 $ (3,423,387) $ 36,128,442 January 1, 2011 Stock-based -
95,721 - 95,721 compensation Warrants 231,886 (35,936) - 195,950
exercised Stock options 19,080 - - 19,080 exercised Net loss and -
- (249,302) (249,302) comprehensive loss Balance, March $
38,714,049 $ 1,148,531 $ (3,672,689) $ 36,189,891 31, 2011 Edleun
Group, Inc. Condensed Consolidated Statements of Cash Flow Three
months ended March 31, 2011 and 2010 (unaudited) March 31, March
31, 2011 2010 Cash provided by (used in): Operating Activities: Net
loss $ (249,302) $ (50,500) Items not affecting cash: Depreciation
205,175 - Amortization of deferred financing costs 13,620 -
Stock-based compensation 95,721 - Change in non-cash working
capital (796,363) 50,500 (731,149) - Investing Activities Property
and equipment (1,111,006) - (1,111,006) - Financing Activities
Exercise of warrants 195,950 - Exercise of options 19,080 - 215,030
- Change in Cash and Cash Equivalents (1,627,125) - Cash and cash
equivalents, beginning of period 8,662,254 - Cash and cash
equivalents, end of period $ 7,035,129 $ - Cash and cash
equivalents comprised of: Cash $ 6,432,783 $ - Cash equivalents
602,346 - $ 7,035,129 $ -
To view this news release in HTML formatting, please use the
following URL:
http://www.newswire.ca/en/releases/archive/June2011/21/c7852.html p
align="justify" please contact either Leslie Wulf, Chief Executive
Officer, or Dale Kearns, Chief Financial Officer of Edleun Group,
Inc. at (403) 705-0362, or Nick Hurst of the Equicom Group, Inc. at
(403) 218-2835 /p
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