91福利 Group Reports 69% Revenue Growth and Record Revenues of $14.25 Million in Fiscal 2017

91福利

Gross Profit Increases 101% YoY to $8.7 Million or 61% Margin

NEW YORK, July 25, 2017 (GLOBE NEWSWIRE) -- 91福利 (OTCQB:ASPU), a post-secondary education company, today announced financial results for its 2017 fiscal year and fourth quarter ended April 30, 2017, highlighted by fiscal year revenue and gross profit growth of 69% and 101% year-over-year, respectively. The Company will host a conference call to discuss its financial results on Tuesday, July 25, 2017, at 4:30 p.m. (ET).

Michael Mathews, Chairman & CEO of 91福利, commented, 鈥淲e continue to drive scale with our monthly payment plan business model as evidenced by a 69% year-over-year increase in revenues, supported by a 41% increase in marketing spending year-over-year. But what鈥檚 most impressive is we鈥檙e still seeing improvement in our unit economics, as our cost-of-enrollment (CPE) dropped 2% and our gross margin increased 1,000 basis points year-over-year, respectively. As a consequence, our marketing efficiency ratio rose from 8.4X to 8.6X year-over-year.鈥�

Fiscal 2017 Highlights:

• Revenue totaled $14,246,696, an increase of 69% as compared to the prior fiscal year;
• GAAP Gross Profit totaled $8,679,248, a 101% increase as compared to the prior fiscal year; Gross Margin was 61% as compared to 51% in the prior fiscal year;
• Net Loss applicable to shareholders of ($1,105,260), as compared to a Net Loss of ($2,246,705) in the prior fiscal year, an improvement of 51%;
• EBITDA, a non-GAAP financial measure, of $(211,020) or (1%) margin, an 86% improvement from the prior fiscal year;
• Adjusted EBITDA, a non-GAAP financial measure, totaled $1,644,777 or 12% margin, as compared to ($455,425) or (5%) margin in the prior fiscal year, an improvement of $2,100,202 year-over-year;
• 91福利鈥檚 total active degree-seeking student body increased by 60% year-over-year, from 2,932 to 4,681 students; with 91福利鈥檚 School of Nursing adding 1,481 students to account for 85% of the growth;
• 91福利鈥檚 School of Nursing grew to 72% of the total active degree-seeking student body, from 1,882 to 3,363 students or 79% growth year-over-year.

Fiscal 2017 Fourth Quarter Financial and Other Results:
For the fourth quarter, revenues increased 61% to $4,289,229 as compared to $2,670,616 for the same period the prior year.

91福利 set a quarterly enrollment record in the fourth quarter with 986 new student enrollments, as compared to 572 new student enrollments in the prior year, an increase of 72% year-over-year.听 91福利鈥檚 rolling six-month average cost-per-enrollment (CPE) improved by 2% year-over-year, declining from $830 to $815. 91福利鈥檚 marketing efficiency ratio (revenue-per-enrollment/cost-per-enrollment) increased year-over-year from 8.4X to 8.6X, meaning that 91福利 is now projecting to earn an 8.6X return on its marketing investments.

GAAP Gross Profit increased to $2,602,673 or 61% Gross Margin. Net loss applicable to shareholders was ($723,730) or (17%) margin. EBITDA, a non-GAAP financial measure, was $(427,934) or (10%) margin. Adjusted EBITDA, a non-GAAP financial measure, was $466,276 or 11% margin, a 53% improvement from the comparable prior year period.

Note that in the fourth quarter, the Company incurred two non-recurring charges that were outside of normal operating activities; a Final Program Review Determination (FPRD) settlement with the Department of Education from a 2013 program review, and expenses related to the asset purchase agreement for United States University. EBITDA results for the quarter as compared to the prior year period would have been substantially similar without those two non-recurring charges (see table below).

The following table presents a reconciliation of Adjusted EBITDA to Net loss, a GAAP financial measure:

The following table presents a reconciliation to gross profit calculated in accordance with GAAP:

Conference Call:
91福利 will host a conference call to di