- EdTech Revenue Increased by 26% in Q216
- 55% Decrease in SG&A Expenses
- 35% Improvement in Adjusted EBITDA
SANTA MONICA, Calif., April 14, 2016 (GLOBE NEWSWIRE) -- Greenwood Hall, Inc. (OTCQB:ELRN), a Los Angeles based education technology company that helps colleges and universities improve student engagement and outcomes, announced its financial results for the Second Quarter of Fiscal Year 2016. While overall revenue for the quarter ending February 29, 2016 was relatively flat at $1,378,168 compared to $1,480,420 for the same quarter in 2015, the Company experienced a 26% increase in revenue for its EdTech related offerings during the second quarter compared to the same period in 2015.
“Our second quarter of Fiscal Year 2016 results demonstrate how far we have come in terms of moving past our restructuring, creating significant sales momentum as it relates to our high growth EdTech offerings, driving efficiencies, and moving towards profitability,” stated Dr. John Hall, Chief Executive Officer of Greenwood Hall. “The expansion of our sales team during the first quarter and the number of contracts we have signed just in the past few months position the Company for robust revenue growth in EdTech – growth we anticipate will become more evident in our financial results in the upcoming quarter and full 2016 fiscal year.”
Second Quarter 2016 Highlights
- Renewal and addition of 12 client contracts this fiscal year to date, including the University of Oklahoma, Concordia University, and Troy University.
- Strategic EdTech revenue of $1.27 million compared to $1.01 million during the same period last year, a 26% increase year-over-year in a critical vertical.
- Overall revenues of $1,378,168, compared to $1,480,420 in Q2-15.
- 55% decrease in SG&A expenses - $640,181 in Q2-16 compared to $1,371,974 during the same period last year.
- 35% improvement in Adjusted EBITDA compared to the same period last year.
Hall added, “The Company’s transition to one that is focused on strategic EdTech opportunities does create a short-term modest decline in revenues. The investments we are making by focusing on EdTech are necessary to maximize shareholder value and for sustainable growth. We continue to be focused on building this business for the long-term, while we continue to demonstrate our ability to generate substantial revenue growth in the highly desirable EdTech industry.”
The Company also announced it will release its financial outlook, including revenue guidance for the remainder of FY2016, on Tuesday, April 19th.
Reconciliation of Adjusted EBITDA* to Net Income (Loss) – Unaudited
| Three Months Ended | Six Months Ended | ||||||||||||||
| February 29, 2016 | February 28, 2015 | February 29, 2016 | February 28, 2015 | ||||||||||||
| Net Loss | $ | (2,222,254 | ) | $ | (2,225,045 | ) | $ | (5,481,012 | ) | $ | (2,793,858 | ) | |||
| Adjustments: | |||||||||||||||
| Equity Expense | 438,242 | 0 | 526,426 | 0 | |||||||||||
| Interest Expense | 636,724 | 202,270 | 2,689,516 | 311,798 | |||||||||||
| Change in Value of Derivatives | (20,486 | ) | 136,870 | (222,735 | ) | 136,870 | |||||||||
| Miscellaneous Income (expense), net | 16,482 | 114,088 | 33,270 | 31,861 | |||||||||||
| Total Adjustments | 1,070,962 | 453,228 | 3,026,477 | 480,529 | |||||||||||
| Adjusted EBITDA (Loss) | $ | (1,151,292 | ) | $ | (1,771,817 | ) | $ | (2,454,535 | ) | $ | (2,313,329 | ) | |||
About Greenwood Hall, Inc.
Greenwood Hall is an education technology company that helps colleges and universities manage the student journey. Every Greenwood Hall solution is designed to increase revenue and improve student engagement as well as learning outcomes. Since 2006, Greenwood Hall has developed customized turnkey solutions that combine strategy, people, proven processes and robust technology to help schools effectively and efficiently improve student outcomes, as well as increase revenues and expand into new marketing channels, such as online learning. Greenwood Hall has served more than 50 education clients and over 75 degree programs.
For more information, visit http://www.greenwoodhall.com, follow us on Twitter @GreenwoodHall and Facebook at http://www.facebook.com/GreenwoodandHall.
Statement Concerning Forward-Looking Information
Any statements made in this press release about Greenwood Hall's future financial condition, results of operations, expectations, plans, or prospects, including the information under the heading "Financial Outlook" constitute forward-looking statements. Forward-looking statements also include those preceded or followed by the words "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "projects," "should," "targets" and/or similar expressions. These forward-looking statements are based on Greenwood Hall's current estimates and assumptions and, as such, involve uncertainty and risk. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from those contemplated by the forward-looking statements because of a number of factors, including the risk factors described in Greenwood Hall’s Annual Report on Form 10-K for the period ended August 31, 2015, that are incorporated herein by reference. Any forward-looking statement in this release speaks only as of the date in which it is made. Except to the extent required under the federal securities laws, Greenwood Hall does not intend to update or revise the forward-looking statements.
*Non-GAAP Financial Information
This press release includes references to Adjusted EBITDA, a non-GAAP financial measures. Adjusted EBITDA is used by management as one measure for judging the Company's operating performance and for estimating the Company's earnings growth prospects. Adjusted EBITDA represents net income adjusted for: provision for (benefit from) income taxes; reorganization items, net; restructuring costs; restructuring-related costs included in SG&A; change in fair value of interest rate swap; loss on early extinguishment of debt; early termination fees; depreciation and amortization expense; amortization of development costs; net interest expense; and stock-based compensation. Adjusted EBITDA does not represent, and should not be considered, an alternative to net income or operating income as determined by GAAP, and our calculation may not be comparable to similarly titled measures reported by other companies. The presentation in this press release is characterized as Non-GAAP.