Grand Canyon Education (LOPE) has reported 28.05 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $55.91 million, or $1.16 a share in the quarter, compared with $43.66 million, or $0.93 a share for the same period last year. Revenue during the quarter grew 9.36 percent to $248.21 million from $226.96 million in the previous year period. Gross margin for the quarter expanded 52 basis points over the previous year period to 45.79 percent. Total expenses were 69.13 percent of quarterly revenues, down from 69.73 percent for the same period last year. This has led to an improvement of 61 basis points in operating margin to 30.87 percent.
Operating income for the quarter was $76.63 million, compared with $68.69 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $92.95 million compared with $83.28 million in the prior year period. At the same time, adjusted EBITDA margin improved 75 basis points in the quarter to 37.45 percent from 36.69 percent in the last year period.
For the second-quarter, Grand Canyon Education forecasts revenue to be $212.70 million. Grand Canyon Education forecasts revenue to be $955.80 million for fiscal year 2017. The company expects operating income to grow at 22.40 percent for the second-quarter. For fiscal year 2017, the company expects operating income to grow at 27.70 percent. The company expects diluted earnings per share to be $0.68 for the second-quarter. For fiscal year 2017, the company expects diluted earnings per share to be $3.64.
Operating cash flow improves significantlyGrand Canyon Education has generated cash of $109.66 million from operating activities during the quarter, up 26.17 percent or $22.75 million, when compared with the last year period. The company has spent $48.59 million cash to meet investing activities during the quarter as against cash outgo of $56.01 million in the last year period.
The company has spent $33.09 million cash to carry out financing activities during the quarter as against cash outgo of $18.04 million in the last year period.
Cash and cash equivalents stood at $158.88 million as on Mar. 31, 2017, up 42.79 percent or $47.61 million from $111.27 million on Mar. 31, 2016.
Working capital increases sharply
Grand Canyon Education has recorded an increase in the working capital over the last year. It stood at $42.78 million as at Mar. 31, 2017, up 1,156.67 percent or $39.37 million from $3.40 million on Mar. 31, 2016. Current ratio was at 1.18 as on Mar. 31, 2017, up from 1.02 on Mar. 31, 2016.
Days sales outstanding were almost stable at 5 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 19 days for the quarter from 26 for the same period last year.
Debt comes down
Grand Canyon Education has recorded a decline in total debt over the last one year. It stood at $71.59 million as on Mar. 31, 2017, down 9.10 percent or $7.17 million from $78.76 million on Mar. 31, 2016. Total debt was 6.20 percent of total assets as on Mar. 31, 2017, compared with 8.20 percent on Mar. 31, 2016. Debt to equity ratio was at 0.09 as on Mar. 31, 2017, down from 0.12 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 132.12 for the quarter from 208.79 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
