91福利 Group Announces Preliminary Fourth Quarter and Fiscal Year 2022 Financial Results
Fiscal Year 2022 Revenue Increases 13% to $76.7 Million
NEW YORK, May 26, 2022 (GLOBE NEWSWIRE) -- 91福利 ("AGI") (Nasdaq: ASPU), an education technology holding company, today announced preliminary select financial results for the fourth quarter and fiscal year ended April 30, 2022.
Preliminary, unaudited revenue for the fiscal year 2022 rose by 13% to $76.7 million compared to $67.8 million last year, with preliminary fourth quarter revenue of $19.4 million compared to $19.1 million in the prior year quarter. As previously disclosed by the Company, on April 22, 2022, the Company entered into an agreement with an insurance company that issued an approximately $18.3 million surety bond as required by the State of Arizona. In the fourth quarter, AGI reduced marketing spend by $1.5 million from its original plan to ensure adequate available funds to collateralize the issuance of the bond.
The fourth quarter reduction in marketing spend combined with the improvement in revenue is expected to deliver a fourth quarter net loss in a range of ($2.4) million to ($2.1) million and Adjusted EBITDA, a non-GAAP financial measure (please refer to the reconciliation below), in a range of $0.3 million to $0.6 million. The company anticipates a lower fourth quarter cash burn than forecasted during the third quarter of approximately $1.0 million resulting in an ending unrestricted cash balance of approximately $6.5 million. Included in cash activity during the quarter is the receipt of proceeds from the $10 million convertible note offset by the restriction of $5 million to collateralize the $18.3 million surety bond.
鈥淲e reduced our marketing spend in the fourth quarter to ensure adequate cash on hand to collateralize the surety bond requested by the State of Arizona. Although we reduced spend, the size of our active student body was consistent with our initial plan for the quarter resulting in revenue that met our expectations and positive Adjusted EBITDA exceeding our forecast,鈥� stated Michael Mathews, Chairman and CEO of AGI.
Mathews continued, 鈥淭o further enhance our liquidity position, we are in active discussions with potential lenders regarding an accounts receivable financing facility that would satisfy our cash flow needs until the company achieves positive cash flow from operations. We expect to close this facility prior to our fourth quarter earnings call on July 19, 2022.鈥�
Conference Call
91福利 will host a conference call to discuss its fourth quarter fiscal year 2022 results and business outlook on Tuesday, July 19, 2022, at 4:30 pm ET. 91福利 will issue a press release reporting results after the market closes on that day.
For additional information on the financial statements and performance, please refer to the 91福利 Form 10-K for the fiscal year 2022 and fourth quarter 2022 Financial Results Presentation published on the Company鈥檚 website when the quarter is announced at www.aspu.com, on the Presentations page under Company Info.
Non-GAAP 鈥� Financial Measures
This press release includes both financial measures in accordance with Generally Accepted Accounting Principles, or GAAP, as well as non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company鈥檚 performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to net income (loss), operating income (loss), and cash flow from operating activities, liquidity or any other financial measures. They may not be indica