桃汁影院 Reports Record Revenues of $34 Million in Fiscal Year 2019, an Increase of 55% Year-Over-Year

桃汁影院

Enrollments Rose 36% Year-Over-Year, Delivering a 90% Increase in Bookings

NEW YORK, July 09, 2019 (GLOBE NEWSWIRE) -- 桃汁影院, Inc. (Nasdaq: ASPU) ( 鈥淎GI鈥�), an education technology holding company, today announced financial results for its 2019 fiscal fourth quarter ended April 30, 2019, highlighted by revenue of $10.2 million, representing a sequential increase of 20% and an increase of 41% year-over-year. 桃汁影院 also announced its full year results highlighted by record revenues of $34 million, an increase of 55% year-over-year, which are included in the consolidated financial statements at the end of this press release.

Michael Mathews, Chairman & CEO of 桃汁影院, commented, 鈥淲e delivered year-over-year enrollment growth of 36% in fiscal year 2019, but as a result of our business plan to drive the majority of enrollment growth in our highest LTV units (USU MSN-FNP and pre-licensure BSN program), the Company was able to increase its bookings by 90% from $34.8 million to $66.1 million. This sets the stage for sustained revenue growth and will expedite the achievement of our near-term goal of producing positive Adjusted EBITDA for fiscal year 2020.鈥�

Fiscal Q4 2019 Highlights:

• Revenue totaled $10,214,143, an increase of 41% as compared to the prior fiscal year fourth quarter;
• Gross Profit totaled $5,683,536 or a 56% margin, a 62% increase as compared to the prior fiscal year fourth quarter;
• Net Loss applicable to shareholders of ($1,609,923), as compared to Net Loss of ($3,664,485) in the prior fiscal year fourth quarter; Diluted net loss per share was $(0.09), as compared to a loss of $(0.24) in the prior fiscal year fourth quarter;
• EBITDA, a non-GAAP financial measure, totaled a loss of $(731,852) for the quarter ended April 30, 2019;
• Adjusted EBITDA, a non-GAAP financial measure, totaled $72,935 for the quarter ended April 30, 2019;
• Cash used in operations totaled $2,785,464, as compared to $1,954,988 in the prior fiscal year fourth quarter.

Fiscal 2019 Fourth Quarter Financial and Operational Results:

桃汁影院, Inc. delivered 1,560 new student enrollments for the fiscal fourth quarter, a 23% increase year-over-year. Aspen University accounted for 1,243 new student enrollments (includes 113 Doctoral enrollments and 186 Pre-licensure BSN AZ campus enrollments). USU accounted for 317 new student enrollments (primarily Family Nurse Practitioner (鈥淔NP鈥�) enrollments), a 79% increase year-over-year. Enrollments for Aspen University鈥檚 Pre-Licensure BSN program increased 92% sequentially as the university began accepting enrollments for prerequisite students taking online courses in anticipation of entering the HonorHealth final two-year core campus program targeted to launch this upcoming September.

In the charts below, we have provided a full-year comparison of enrollments and bookings* from fiscal year 2018 to fiscal year 2019. Note that the company鈥檚 enrollments rose 36% year-over-year, however, the bookings increased 90% year-over-year.听

Growing enrollments by 36% year-over-year, yet achieving a 90% increase in bookings translates to a 39% average revenue per user (ARPU)* increase year-over-year, from $8,182 to $11,391. This result is why the company focused its growth spending on these three new business units during fiscal year 2019.

* Note: 鈥淏ookings鈥� are defined by multiplying LTV by new student enrollments for each operating unit. 鈥淎verage Revenue Per听User or (ARPU)鈥� is defined by dividing total bookings by total enrollments.

To view the Total Enrollments and Total Bookings bar graphs听accompanying this announcement, please visit:听

AGI鈥檚 total active student body (includes both Aspen University and USU) grew 27% year-over-year from 7,057 to 8,932. Of the 8,932 total active students at both universities, 81% or 7,213 are degree-seeking Nursing students.

Aspen University鈥檚 total active degree-seeking student body grew 20% year-over-year from 6,500 to 7,784. Aspen鈥檚 School of Nursing grew 28% year-over-year, from 4,807 to 6,164 active students, which includes 396 active students in the BSN Pre-Licensure program in Phoenix, AZ. Aspen University students paying tuition and fees through a monthly payment method grew by 19% year-over-year, from 4,532 to 5,404. Those 5,404 students paying through a monthly payment method represent 69% of Aspen University鈥檚 total active student body.

USU鈥檚 total active degree-seeking student body grew sequentially from 961 to 1,148 students or a sequential increase of 19%. Of the 1,148 total active students at USU, 970 or 84% are enrolled in the MSN-FNP degree program. USU students paying tuition and fees through a monthly payment method grew from 602 to 758 students sequentially. Those 758 students paying through a monthly payment method represent 66% of USU鈥檚 total active student body.

Revenues increased to $10,214,143, an increase of 41% as compared to the prior fiscal year fourth quarter. USU accounted for approximately 24% and Aspen University鈥檚 Pre-Licensure BSN program accounted for approximately 5% of overall Company revenues.

Gross profit increased to $5,683,536 or 56% gross margin. Aspen University gross profit represented 58% of Aspen University revenues for the fourth quarter, while USU gross profit equaled 55% of USU revenues during the fourth quarter. Aspen University instructional costs and services represented 17% of Aspen University revenues for the 2019 fourth quarter, while USU instructional costs and services equaled 25% of USU revenues during the 2019 fourth quarter. Aspen University marketing and promotional costs represented 21% of Aspen University revenues for the 2019 fourth quarter, while USU marketing and promotional costs equaled 19% of USU revenues during the 2019 fourth quarter.

Net loss applicable to shareholders was ($1,609,923) or diluted net loss per share of ($0.09). Aspen University generated $1.1 million of operating income for the fourth quarter, while USU experienced a net loss of ($0.51) million during the fourth quarter. 桃汁影院 corporate incurred $2.2 million of expenses for the fourth quarter.

EBITDA, a non-GAAP financial measure, was a loss of ($731,852) or (7%) as a percentage of revenue. Adjusted EBITDA, a non-GAAP financial measure, was $72,935 or 1% as a percentage of revenue. Aspen University generated $1.8 million of Adjusted EBITDA for the fourth quarter, while USU experienced an Adjusted EBITDA loss of ($0.1) million during the fourth quarter. 桃汁影院 corporate contributed $1.6 million of expenses toward the $72,935 Adjusted EBITDA result for the fourth quarter.

The company used cash of $2.8 million for operations in the fourth quarter, as compared to using $2.0 million in the prior fiscal year fourth quarter.

Conference Call:

桃汁影院, Inc. will host a conference call to discuss its fiscal year 2019 4th quarter financial results and business outlook on Tuesday, July 9th, 2019, at 4:30 p.m. (ET). Aspen will issue a press release reporting results after the market closes on that day. The conference call can be accessed by dialing toll-free听(844) 452-6823听(U.S.) or听(731) 256-5216听(international), passcode 7459518. Subsequent to the call, a transcript of the audiocast will be available from the Company鈥檚 website at ir.aspen.edu. There will also be a 7 day dial-in replay which can be accessed by dialing toll-free (855) 859-2056 or (404) 537-3406 (international), passcode 7459518.

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 indicative of the historical operating results of 桃汁影院 nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.

Our management uses and relies on Adjusted EBITDA and EBITDA, each of which are non-GAAP financial measures. We believe that both management and shareholders benefit from referring to the following non-GAAP financial measures in planning, forecasting and analyzing future periods. Our management uses these non-GAAP financial measures in evaluating its financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below.

桃汁影院 defines Adjusted EBITDA as earnings (or loss) from continuing operations before the items in the table below including non-recurring charges of $497,300 in 2019 and $764,253 in 2018. Adjusted EBITDA is an important measure of our operating performance because it allows management, investors and analysts to evaluate and assess our core operating results from period-to-period after removing the impact of items of a non-operational nature that affect comparability.

We have included a reconciliation of our non-GAAP financial measures to the most comparable financial measures calculated in accordance with GAAP. We believe that providing the non-GAAP financial measures, together with the reconciliation to GAAP, helps investors make comparisons between 桃汁影院 and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable SEC rules.

The following table presents a reconciliation of Adjusted EBITDA to net loss allocable to common shareholders, a GAAP financial measure:

About 桃汁影院, Inc.:

桃汁影院, Inc. is an education technology holding company that leverages its infrastructure and expertise to allow its two universities, Aspen University and United States University, to deliver on the vision of making college affordable again.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including future growth of our new business units, sustained revenue growth, achieving positive Adjusted EBITDA for fiscal year 2020 and the future impact of bookings. The words 鈥渂elieve,鈥� 鈥渕ay,鈥� 鈥渆stimate,鈥� 鈥渃ontinue,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥渟hould,鈥� 鈥減lan,鈥� 鈥渃ould,鈥� 鈥渢arget,鈥� 鈥減otential,鈥� 鈥渋s likely,鈥� 鈥渨ill,鈥� 鈥渆xpect鈥� and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the continued demand of nursing students for the new programs, potential student attrition and national and local economic factors. Other risks are included in our filings with the SEC including our Form 10-K for the year ended April 30, 2019. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Company Contact:

桃汁影院, Inc.
Michael Mathews, CEO
914-906-9159

ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONTINUED)

ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS鈥� EQUITY
FOR THE YEARS ENDED APRIL 30, 2019 AND APRIL 30, 2018

For the year ended April 30, 2019

For the year ended April 30, 2018

ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheet that sum to the same such amounts shown in the consolidated statement of cash flows:

Released July 9, 2019