Nord Anglia Education recently reported performance for the three months ended 30 November 2012. The Baring Private Equity Asia owned operator of premium international schools reported an adjusted EBITDA of $26.1m (2011: $23.1m) on revenues increased by 12.4% to $85.1m (2011: $75.7m).
Increases in revenue were reported to be mainly due to higher receipts from the company's Premium Schools operation, combined with a decrease from Nord Anglia's Learning Services business. Nord Anglia posted an EBIT of $22.9m (2011: $15.8m) and after net financing expenses of $9.0m (2011: $13.0m) it reported a pre-tax profit of $13.9m (2011: $2.8m).
Reported first quarter revenue from Nord Anglia’s Premium Schools increased 19.0% to $77.5m (2011: $65.1m). The increase in revenue at the Company’s core business was primarily as a result of increased tuition fees charged per student (fees rose by 5.2% on average excluding Regent’s school in Thailand which was the business acquired on 1 August 2012) and increased enrolment at the company’s China schools, adding to the impact of the acquisition of the Thailand school ($4.8m).
Revenue from Nord Anglia’s Learning Services business fell 28.3% to $7.6m (2011: $10.6m) due to reduced income on various contracts in the Middle East, Malaysia and the UK. The company reported that it has decided to reduce the scale of its Learning Services operations and is therefore no longer bidding on new contracts, saying it intends to gradually phase out all remaining contracts.
For the 12 months ended 31 August 2012 Nord Anglia delivered an adjusted EBITDA of $74.0m (2011: $59,9m) on increased revenue of 20.7% to $264.6m (2011: $219.3m). Revenue from Nord Anglia’s Premium Schools increased 41.4% to $224.5m (2011: $158.8m), mainly as a result of the acquisition of Nord Anglia’s four schools in Switzerland, increased enrolment at the company’s schools in Beijing and Shanghai and the increase in tuition fees across all of its schools. Between FY11 and FY12 Nord Anglia’s average FTEs increased from 6,482 to 7,397 and the company’s average adjusted revenue per student increased from $28.8k to $30.1k, again mainly as a result of an increase in tuition fees. Revenue from Learning Services decreased 33.7% to $40.1m (2011: $60.5 million) as a result of the completion of various contracts in Abu Dhabi, the UK and Saudi Arabia.
Nord Anglia operates and owns thirteen premium schools in eleven locations in China, Thailand, Switzerland and Central Europe. Additionally, the company operates the British International School Abu Dhabi (“BISAD”) in the Middle East, 49% of which is owned by an affiliate of Nord Anglia’s parent company. In September 2012 Nord Anglia entered into a definitive agreement to acquire the 49% equity interest and completion is scheduled for early 2013. By late January 2013, the number of full time equivalent students in the schools owned by Nord Anglia was 8,736 and total capacity was 10,972, representing a utilisation rate of 80%.
In March 2012, Nord Anglia Education issued $325m 10.25% secured notes, due 2017. Of these proceeds, $182.5m was used for the full repayment of secured bank loans, including break costs. $120m of the proceeds were used to repay outstanding shareholder loan notes and loans held by its parent company (NAE Inc), which is controlled by funds managed by Baring Private Equity Asia. The remaining shareholder loan notes and loans were subsequently capitalised by NAE Inc, in exchange for additional ordinary shares in Nord Anglia Education. In July 2012 Barclays Bank increased its commitment under the Senior Revolving Credit Facility from $20m to $30m, providing Nord Anglia Education with increased flexibility to follow its growth strategy. Furthermore, in December 2012 the company entered into a $11.5m term loan facility with HSBC, which was drawn down in full on 21 December 2012. The final maturity date of the HSBC Facility is 1 August 2016. Interest is charged on the outstanding amounts under the facility at LIBOR plus 5.00%. Baring Private Equity Asia acquired Nord Anglia Education plc in August 2008 for $360m.
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