86% Increase in EdTech revenues and 95%
improvement in Adjusted EBITDA loss in Q4 Year-Over-Year
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 Fourth Quarter and full Fiscal Year 2016, ended August 31,
2016. During Q4 of FY-2016, the Company generated $2,603,737 in
revenue from EdTech, a side of our business which includes all of
our technology-enabled solutions offerings to higher education,
representing an increase of $ 1,203,251, or 86%, compared to Q4 of
FY-2015. In the full FY-2016, the Company generated $ 6,141,229 in
EdTech revenue, an increase of $ 1,930,052, or 46%, compared to
FY-2015.
The Company also announced that it continues to
experience progress in its path to profitability. EBITDA, on an
adjusted basis, was ($ 44,183) in Q4 of FY-2016 compared with ($
875,125) in Q4 of FY-2015, equal to a 95% improvement in Adjusted
EBITDA. Adjusted EBITDA for Q4 of FY-2016 also saw significant
improvement from prior quarters. The Company previously reported
Adjusted EBITDA of ($ 174,237) for Q3 of FY-2016 and ($ 1,151,292)
for Q2 of FY-2016.
Fiscal Year 2016 Highlights
- 18 new client contracts signed, including the University of
Oklahoma, University of Arizona, Troy University, and College of
Southern Nevada.
- Renewal of key existing client relationships.
- Nearly 30% Increase in Gross Profit from FY-2015.
- Nearly 20% reduction in Sales, General & Administrative
overhead expenses from FY-2015 while expanding sales capacity
through a 200% increase in sales personnel since October 2015.
Greenwood Hall Chairman and CEO Dr. John Hall said,
“Our results demonstrate our ability to achieve double-digit
revenue growth in our education business while improving Adjusted
EBITDA. Coupled with our recent $ 4 million financing, the balance
sheet improvements that resulted, new strategic additions to our
Board of Directors, and the resolution of costly legacy litigation,
the Company is well-positioned for growth and to deliver
shareholder value over the long-term.”
Hall added, “Our plan is to continue to focus on
strategic revenue growth in higher education, continue to improve
our margins, and create liquidity in our stock. We feel that as
more people learn about our student success vision, what we do for
students, and the investment opportunity, they will want to be a
part of this growth story.”
Strategic EdTech versus Legacy Business
Revenue*
|
Three Months Ended |
Twelve Months Ended |
|
|
August 31, 2016 |
August 31, 2015 |
August 31, 2016 |
August 31, 2015 |
|
Legacy |
$ |
127,448 |
|
$ |
440,539 |
|
$ |
1,413,207 |
|
$ |
3,853,088 |
|
|
EdTech |
$ |
2,603,737 |
|
$ |
1,400,486 |
|
$ |
6,141,229 |
|
$ |
4,211,177 |
|
|
Total
Revenue |
|
2,731,185 |
|
|
1,841,025 |
|
|
7,554,436 |
|
|
8,064,265 |
|
|
Reconciliation of Adjusted EBITDA to Net
Income*
|
|
Three Months Ended |
Twelve Months Ended |
|
|
|
August 31, 2016 |
August 31, 2015 |
August 31, 2016 |
August 31, 2015 |
|
|
|
|
|
|
|
|
|
NET LOSS |
$ |
(1,517,213 |
) |
$ |
(5,071,530 |
) |
$ |
(8,524,428 |
) |
$ |
(9,841,911 |
) |
|
|
Adjustments: |
|
|
|
|
|
|
Equity Expense |
|
78,577 |
|
|
92,426 |
|
|
827,569 |
|
|
1,658,149 |
|
|
|
Interest Expense |
|
559,574 |
|
|
4,170,047 |
|
|
3,799,891 |
|
|
4,687,542 |
|
|
|
Other Expense |
|
- |
|
|
|
- |
|
|
- |
|
|
|
Transaction Related Expenses |
|
45,642 |
|
|
- |
|
|
455,642 |
|
|
- |
|
|
|
Change in Value of Derivatives |
|
772,755 |
|
|
(82,091 |
) |
|
962,135 |
|
|
112,735 |
|
|
|
Miscellaneous Income (expense), net |
|
16,482 |
|
|
16,023 |
|
|
66,234 |
|
|
63,888 |
|
|
|
Total Adjustments |
|
1,473,030 |
|
|
4,196,405 |
|
|
6,111,471 |
|
|
6,522,314 |
|
|
|
ADJUSTED EBITDA (LOSS) |
$ |
(44,183 |
) |
$ |
(875,125 |
) |
$ |
(2,412,957 |
) |
$ |
(3,319,597 |
) |
|
*Three month periods ending August 31, 2016 and August 31, 2015
are unaudited.
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 70 education clients and over 80 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 Measures
This press release includes references to Adjusted
EBITDA, a non-GAAP financial measure. The Company’s EBITDA for Q4
of FY-2016 and for the full FY-2016, when calculated in accordance
with GAAP, were ($ 106,604) and ($ 3,696,801), respectively.
Adjusted EBITDA represents our earnings before interest expense,
other income (expense), income taxes, depreciation and
amortization, transactional-related expenses, stock-based
compensation, and changes in the fair value of our derivative
financial instruments. Adjusted EBITDA is a key measure used by
Management and the Board of Directors to understand and evaluate
our core operating performance and trends, to prepare and approve
our annual budget and to develop short and long-term operational
plans. In particular, the exclusion of certain expenses in
calculating Adjusted EBITDA can provide a useful measure for
period-to-period comparisons of our core business. Accordingly, we
believe that Adjusted EBITDA provides useful information to
investors and others in understanding and evaluating our operating
results in the same manner as our Management and Board of
Directors. Adjusted EBITDA should not be considered as an
alternative to any measure of financial performance calculated and
presented in accordance with U.S. GAAP. In addition, Adjusted
EBITDA may not be comparable to similarly titled measures of other
companies because other companies may not calculate Adjusted EBITDA
in the same manner as we do.
Media Contact
John Hall
Chief Executive Officer
Greenwood Hall, Inc.
jhall@greenwoodhall.com
310-907-8200