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Grand Canyon Education, Inc. Reports First Quarter 2009 Results.

Article Excerpt
Grand Canyon Education's First Quarter Net Revenue up 65 Percent; Enrollment up 62 Percent; Operating Income up 103 Percent; Net Income up 109 Percent

PHOENIX, April 27 /PRNewswire-FirstCall/ -- Grand Canyon Education, Inc. , a regionally accredited provider of online and campus-based post-secondary education services, today announced financial results for the three months ended March 31, 2009.

"Year-over-year, the top and bottom line improvement in our results were quite strong," said Brian Mueller, Chief Executive Officer of Grand Canyon Education, Inc. "These results demonstrate the long-term soundness and focus of our business strategies, the differentiated nature of our business model, and our ability to execute. Our continued investment in technology, expansion of our traditional campus facilities, broadening of marketing initiatives and enhancement of our educational programs will remain key strategic drivers for the University."

Grand Canyon Education, Inc. Reports First Quarter 2009 Results For the three months ended March 31, 2009: -- Net revenues increased 65.1% to $59.0 million for the first quarter of 2009, compared to $35.7 million for the first quarter of 2008. -- At March 31, 2009 our enrollment was approximately 28,400, an increase of 62.4% from our enrollment of approximately 17,500 at March 31, 2008. -- Operating income for the first quarter of 2009 was $12.1 million, an increase of 102.9% as compared to $5.9 million for the same period in 2008. The operating margin for the first quarter 2009 was 20.4%, compared to 16.6% for the same period in 2008. -- Adjusted EBITDA increased 77.9% to $14.5 million for the first quarter of 2009, compared to $8.2 million for the same period in 2008. -- The tax rate in the first quarter of 2009 was 40.0% compared to 38.6% in the first quarter of 2008. -- Net income increased 109.0% to $6.9 million for the first quarter of 2009, compared to $3.3 million for the same period in 2008. -- Diluted net income per share was $0.15 for the first quarter of 2009, compared to $0.09 for the same period in 2008.

"In addition to meeting our revenue and EPS objectives for the first quarter, we continued to generate strong operating margins through revenue growth, the leveraging of our infrastructure, and our continued focus on improvements on our traditional campus," said Daniel Bachus, the Company's Chief Financial Officer. "These strong operating results also had a significant positive impact on our cash flow, strengthened our balance sheet and will enhance our business going forward, as we continue to improve our returns for shareholders."

Balance Sheet and Cash Flow

As of March 31, 2009, the Company had cash and cash equivalents of $68.3 million compared to $35.2 million as of December 31, 2008 and restricted cash, cash equivalents and investments at March 31, 2009 and December 31, 2008...

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