Grand Canyon Education, Inc. (LOPE) has reported a 25.88 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $47.98 million, or $1.01 a share in the quarter, compared with $38.11 million, or $0.81 a share for the same period last year.
Revenue during the quarter grew 13.29 percent to $244.66 million from $215.95 million in the previous year period. Gross margin for the quarter expanded 149 basis points over the previous year period to 45.10 percent. Total expenses were 68.65 percent of quarterly revenues, down from 70.76 percent for the same period last year. This has led to an improvement of 211 basis points in operating margin to 31.35 percent.
Operating income for the quarter was $76.70 million, compared with $63.14 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $93.12 million compared with $77.88 million in the prior year period. At the same time, adjusted EBITDA margin improved 200 basis points in the quarter to 38.06 percent from 36.07 percent in the last year period.
For fiscal year 2017, Grand Canyon Education, Inc. forecasts revenue to be $950 million. The company expects operating income to grow at 27.50 percent. It expects diluted earnings per share to be $3.45.
For the first-quarter, Grand Canyon Education, Inc. forecasts revenue to be $244.50 million. The company expects operating income to grow at 29.90 percent. It expects diluted earnings per share to be $1.01.
Operating cash flow improves significantly
Grand Canyon Education, Inc. has generated cash of $218.29 million from operating activities during the year, up 25.52 percent or $44.39 million, when compared with the last year.
The company has spent $216 million cash to meet investing activities during the year as against cash outgo of $200.88 million in the last year.
Cash flow from financing activities was $20.66 million for the year as against cash outgo of $15.22 million in the last year period.
Cash and cash equivalents stood at $45.98 million as on Dec. 31, 2016, up 99.58 percent or $22.94 million from $23.04 million on Dec. 31, 2015.
Working capital drops significantly
Grand Canyon Education, Inc. has witnessed a decline in the working capital over the last year. It stood at $3.27 million as at Dec. 31, 2016, down 90.02 percent or $29.54 million from $32.81 million on Dec. 31, 2015. Current ratio was at 1.01 as on Dec. 31, 2016, down from 1.17 on Dec. 31, 2015.
Days sales outstanding were almost stable at 3 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 9 days for the quarter from 13 for the same period last year.
Debt moves up
Grand Canyon Education, Inc. has witnessed an increase in total debt over the last one year. It stood at $98.25 million as on Dec. 31, 2016, up 20.76 percent or $16.89 million from $81.36 million on Dec. 31, 2015. Total debt was 8.99 percent of total assets as on Dec. 31, 2016, compared with 9.06 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.13 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio improved to 154.32 for the quarter from 152.50 for the same period last year.
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