Greenwood Hall Reports Fourth Quarter and Fiscal Year 2016 Financial Results

86% Increase in EdTech revenues and 95% improvement in Adjusted EBITDA loss in Q4 Year-Over-Year

  • Meets Goals Set Forth in Financial Guidance Issued in July 2016
  • 18 New Contracts helped increase EdTech Revenue by 46% In FY-2016
  • Highest Adjusted EBITDA Margin in Over 11 Quarters

SANTA MONICA, Calif., Dec. 06, 2016 (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 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 EndedTwelve Months Ended
August 31, 2016August 31, 2015August 31, 2016August 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 EndedTwelve Months Ended
August 31, 2016August 31, 2015August 31, 2016August 31, 2015
NET LOSS $ (1,517,213)$ (5,071,530)$ (8,524,428)$ (9,841,911)
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, follow us on Twitter @GreenwoodHall and Facebook at

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. 310-907-8200

Source:Greenwood Hall