Year-Over-Year Revenues and Adjusted Gross Profits Increase 28% and 76%, Respectively
Adjusted Gross Margin Jumps 1,000 Basis Points Sequentially, from 50% to 60%
The Company expects to record revenues for the fourth quarter in excess of
Accordingly, Adjusted EBITDA losses, a non-GAAP financial measure, are expected to decline to (
The Company previously announced that its
The Company expects to file its
Non-GAAP – 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's 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, operating income, and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of the historical operating results of Aspen Group 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 Adjusted Gross Profit, each of which are non-GAAP financial measures. We believe that management benefits 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 comparison. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below. We believe our shareholders are focused on these non-GAAP metrics because they disregard non cash GAAP charges and other GAAP metrics.
Aspen Group defines Adjusted EBITDA as earnings (or loss) from continuing operations before interest expense, amortization of prepaid stock, amortization of debt issue costs, amortization of debt discount, bad debt expense, depreciation and amortization, and amortization of stock-based compensation and other non-recurring expenses. Aspen Group excludes the charges from these items because they are non-cash or non-recurring in nature. 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.
Aspen Group defines Adjusted Gross Profit (or Adjusted Gross Margins) as revenues less cost of revenues (instructional costs and services and marketing and promotional costs), but excluding the amortization of courseware and software. Adjusted Gross Profit excludes non-cash items and permits our management to focus on core operating results.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements including statements regarding our future growth in revenue, positive Adjusted EBITDA, Adjusted EBITDA losses and Adjusted Gross Margins, and increasing our student body. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" 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 competition, ineffective media and/or marketing, the continued acceptance of our monthly payment programs and failure to comply with regulatory requirements including our ability to obtain permanent certification. Further information on our risk factors is contained in our filings with the
CONTACT: Media Contact:
Aspen Group, Inc. Michael Mathews, CEO 914-906-9159