Greenwood Hall Announces Second Quarter 2017 Results

Over 90% Revenue Growth Compared to Q2-2016


SANTA MONICA, Calif., April 24, 2017 (GLOBE NEWSWIRE) -- Greenwood Hall, Inc. (QTCQB:ELRN), a Los Angeles based education technology company that partners with colleges and universities to improve student engagement and outcomes, announced its financial results for the second quarter of fiscal year 2017, which ended February 29, 2017.

For the fourth consecutive quarter, the Company achieved double-digit year-over-year revenue growth in its core education business. Overall revenue for the second quarter was $2,647,773, up from $ 1,378,168 during the same period last year, representing an increase of over 90%.

“We are encouraged by the continued operating momentum experienced during the first half of our fiscal year. Maintaining such high growth rates will not be easy and cannot be assured. However, we believe the demand for the services and solutions the Company  provides to the higher education industry, affords us a unique opportunity to maximize the value of our enterprise, long-term for all our stakeholders – investors, education partners, and the students we serve,” said Dr. John Hall, Chief Executive Officer of Greenwood Hall.

Second Quarter 2017 Highlights

  • Renewed or added 5 new higher education clients, including Lamar University and Borough of Manhattan Community College.
  • 53% Gross Margin and over $ 1.1 Million Improvement in Adjusted EBITDA
  • Held the line on SG&A with only a 4% increase in overhead, despite our significant top line growth.

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 our client’s revenue while improving student engagement and 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 60 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, but not limited to information related to clients, new clients, client retention, profitability, or performance trends. 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, 2016, and the Quarterly Report on Form 10-Q for the period ending November 30, 2016, 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.

 


            

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