Cormark Securities Updates Buy Recommendation on Loyalist Group - Video Research Alert on

Vancouver, British Columbia--(Newsfile Corp. - December 18, 2013) - Cormark Securities has updated coverage on Loyalist Group (TSXV: LOY). Following the announcement that the company has commenced a pilot program to offer housing to its students, analyst David McFadgen reiterated his buy recommendation, and $1.30 target price, a premium of 103% to the $0.64 price the day the report was issued. has produced a "video research alert" about Loyalist Group based on this report. If this link is not enabled, please visit and enter "Loyalist" in the search box.

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Loyalist Group is an educational organization that is in the business of providing in-class private education services, with an emphasis on teaching:

  • English as a second language

  • Professional development courses

  • College transfer preparation programs

The company has commenced a strategic initiative to become the premiere consolidator of independent, privately owned and operated schools, in what is considered to be a large and extremely fragmented market.

The company has made a number of acquisitions, and operates under a number of names such as PGIC (Vancouver, Victoria and Toronto), Cornerstone Academic College (Vancouver and Toronto), VIA Training Centre (Victoria), Pan Pacific College (Vancouver and Toronto), Urban International School (Toronto), and MTI Community College in a number of cities. The King George International College and Business College acquisition in September was by far the company's largest to date.

The company has leased properties in Toronto, Vancouver, Victoria and Halifax, capable of housing 104 students, and plans to add approximately 100 beds per quarter. The initial properties are 100% presold for the first 6 months of 2014, with an average term of one year. Loyalist will be charging its students a monthly rent of $480, with the gross margin estimated at approximately 50%. The company has approximately 4,500 students and believes that approximately 75% of its students are candidates for housing.

Loyalist CEO, Andrew Ryu, commented "We are listening to our students, many of whom worry about accommodation prior to arrival in Canada. We would rather our students concentrate on their studies so we are offering safe and secure housing that meets Loyalist's best-in-class. If the pilot project is successful, which we fully expect, Loyalist will continue adding properties to ensure the needs of its students are met."

The company announced record financial results for the nine months ending September 30, 2013, with revenue at $19.9 million and income from operations at $4.15 million.

Analyst David McFadgen stated, "We recommend Loyalist given we believe it is well positioned to continue to acquire ESL schools and colleges at attractive multiples."

The company currently trades at $0.64, well below the $1.30 target price, and with 131.1 million shares outstanding, the company is capitalized at $83.9 million.

For more information, please visit the company's website, or contact David McAdam, VP Corporate Development at 604-961-3513 or email

For more information about Cormark Securities or to obtain a copy of their research report, please visit their website at

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