Greenwood Hall Announces First Quarter 2017 Results
January 31 2017 - 7:00AM
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.
Media Contact
John Hall
Chief Executive Officer Greenwood Hall, Inc. jhall@greenwoodhall.com
310-907-8200