DEVRY EDUCATION GROUP (DV) has reported a 23.24 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $39.86 million, or $0.62 a share in the quarter, compared with $51.92 million, or $0.81 a share for the same period last year.
Revenue during the quarter dropped 4.67 percent to $452.09 million from $474.22 million in the previous year period. Gross margin for the quarter expanded 40 basis points over the previous year period to 47.08 percent. Total expenses were 89.54 percent of quarterly revenues, up from 87.17 percent for the same period last year. That has resulted in a contraction of 237 basis points in operating margin to 10.46 percent.
Operating income for the quarter was $47.29 million, compared with $60.85 million in the previous year period.
"We remain focused on laying the groundwork to return to consistent revenue growth, while further improving operating efficiencies across our organization," said Lisa Wardell, president and chief executive officer of DeVry Education Group. "We are committed to filling the global work force skills gaps that are prevalent in our society through our medical and healthcare, professional education and technology and business program offerings. I’m encouraged with the early traction of our new programs and remain confident that we are taking the right steps to strengthen our value proposition and enhance our growth potential."
For the fourth-quarter 2017, DEVRY EDUCATION GROUP projects revenue to grow in the range of 3 percent to 4 percent. The company projects operating income to grow in the range of 4 percent to 5 percent for the fourth-quarter.
Operating cash flow declines
DEVRY EDUCATION GROUP has generated cash of $169.45 million from operating activities during the nine month period, down 22.87 percent or $50.24 million, when compared with the last year period.
The company has spent $363.18 million cash to meet investing activities during the nine month period as against cash outgo of $200 million in the last year period.
Cash flow from financing activities was $95.12 million for the nine month period as against cash outgo of $40.68 million in the last year period.
Cash and cash equivalents stood at $209.88 million as on Mar. 31, 2017, down 36.44 percent or $120.34 million from $330.21 million on Mar. 31, 2016.
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