- 130% annual revenue growth in core education technology business since Q4-2016
- 76% improvement in Adjusted EBITDA since FY-2016
- Balance sheet improvement, with $4 million in new capital and $3 million net reduction in liabilities
SANTA MONICA, Calif., Jan. 31, 2017 (GLOBE NEWSWIRE) -- Greenwood Hall, Inc. (QTCQB:ELRN), a Los Angeles based education technology company that helps colleges and universities improve student engagement and outcomes, announced its financial results for the first quarter of fiscal year 2017, which ended November 30, 2016.
For the fourth consecutive quarter, the Company achieved double-digit year-over-year revenue growth in its strategic EdTech business segment. EdTech revenue for Q1-2017 was $2,392,762 compared to $1,037,579 during the same three-month period in FY-2016, an increase of over 130%. Overall revenue for the quarter was $2,541,007, up from $1,290,001 during the same period last year, representing a 97% annual increase. Revenue exceeded the Company’s previously issued guidance that forecasted growth of 100-115% for our EdTech unit.
The Company’s operating profit has improved by over 72% over the past year reflecting its strategic refocus on faster growing and higher margin student recruiting and retention as well as the advances in online education as an innovative source of new students and revenue for higher education. Separately, Greenwood Hall has been able to decrease overhead costs as enrollment has expanded through operational improvements.
“Our first quarter results demonstrate our ability to substantially grow revenues in a sustained fashion while reducing overhead and significantly improving our balance sheet,” said Dr. John Hall, Chief Executive Officer of Greenwood Hall.
First Quarter 2017 Highlights
- Renewed or added 6 new higher education clients, including The University of Alabama, Borough of Manhattan Community College, and Troy University.
- 57% decrease in SG&A expenses - $443,638 in Q1-17 compared to $1,026,477 during the same period last year.
- Closed $4 million financing transaction that reduced balance sheet liabilities by over $3.2 million and current liabilities by over $6.9 million.
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 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 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, 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.