Apollo Education Group, Inc. (APOL) swung to a net profit for the quarter ended Nov. 30, 2016. The company has made a net profit of $4.07 million, or $ 0.04 a share in the quarter, against a net loss of $60.76 million, or $0.56 a share in the last year period.
Revenue during the quarter dropped 17.32 percent to $484.50 million from $586.02 million in the previous year period. Operating margin for the quarter period stood at positive 1.73 percent as compared to a negative 7.72 percent for the previous year period.
Operating income for the quarter was $8.40 million, compared with an operating loss of $45.25 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $52.29 million compared with $83.10 million in the prior year period. At the same time, adjusted EBITDA margin contracted 339 basis points in the quarter to 10.79 percent from 14.18 percent in the last year period.
"We continue to make steady progress on our transformational plan at University of Phoenix with improvement in both student persistence and enrollment," said Greg Cappelli, Chief Executive Officer of Apollo Education Group. "This quarter, we also made additional headway in adjusting the organization’s cost base and continued to experience growth at Apollo Global. As we execute on our long-term strategic plan, we are committed to achieving successful student outcomes and ensuring we remain a focused and trusted provider of higher education for working adults."
Operating cash flow turns positive
Apollo Education Group, Inc. has generated cash of $16.45 million from operating activities during the quarter as against cash outgo of $18.87 million in the last year period.
Cash flow from investing activities was $70.86 million for the quarter as against cash outgo of $61.59 million in the last year period.
The company has spent $33.37 million cash to carry out financing activities during the quarter as against cash outgo of $3.04 million in the last year period.
Cash and cash equivalents stood at $517.27 million as on Nov. 30, 2016, up 23.23 percent or $97.51 million from $419.77 million on Nov. 30, 2015.
Working capital declines
Apollo Education Group, Inc. has witnessed a decline in the working capital over the last year. It stood at $400.58 million as at Nov. 30, 2016, down 7.59 percent or $32.92 million from $433.50 million on Nov. 30, 2015. Current ratio was at 1.59 as on Nov. 30, 2016, up from 1.58 on Nov. 30, 2015.
Days sales outstanding went up to 42 days for the quarter compared with 32 days for the same period last year.
Debt increases substantially
Apollo Education Group, Inc. has witnessed an increase in total debt over the last one year. It stood at $56.78 million as on Nov. 30, 2016, up 31.23 percent or $13.51 million from $43.27 million on Nov. 30, 2015. Total debt was 2.90 percent of total assets as on Nov. 30, 2016, compared with 2.11 percent on Nov. 30, 2015. Debt to equity ratio was at 0.05 as on Nov. 30, 2016, up from 0.04 as on Nov. 30, 2015.
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