Educational Entrepreneurship is a booming business across the country. However, we have not talked about how educational companies can make a profit.
Nobel Learning Communities is a management company that is making a profit from being an educational management company. While Edison Schools has twice the number of students as Nobel (37,500 vs. 17,050) and twice the revenue of Nobel, Nobel has a higher annual revenue per student than Edison ($7,765 vs. $6,560.)
Nobel is a educational management company based in West Chester, PA. Nobel Learning Communities provides private pay education and services. It offers education and educational services for the pre-elementary through 12th grade market. It offers programs through a network of private pay general education pre-elementary, elementary, and middle schools; and programs for learning challenged students and special purpose high schools.
The company also offers athletic activities and supplemental programs, which include day field trips coordinated with curriculum to zoos, libraries, museums, and theaters, as well as overnight trips. Nobel Learning Communities operates its schools under various trade names, including Chesterbrook Academy, Merryhill School, Evergreen Academy, Paladin Academy, and Houston Learning Academy.
In addition, the company provides management services for charter schools. It operates schools in California, Florida, Illinois, Maryland, Nevada, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Texas, Virginia, and Washington. As of February 20, 2007, the company operated approximately 150 schools in 13 states.
Recently, this same company reported significant growth in financial results for the third quarter and first nine months of fiscal2007, which ended March 31, 2007.
Net income for the third quarter of fiscal 2007 was $2.5 million, up42% compared to net income of $1.8 million in the third quarter of fiscal2006. Earnings for the quarter on a fully diluted basis rose 28% to $0.23per share and are calculated on a 7% higher share count than in the comparable year ago quarter.
Third quarter performance benefited from our double digit increase in revenues, an expansion in gross margins, and lower interest expense,partially offset by higher general and administrative expenses, primarily a significant increase in target-based incentive compensation expense compared to a year ago.
Revenues for the third quarter of fiscal 2007 were up 17% to $49.2million from $42.2 million in the comparable year ago period. Revenue growth in the third quarter reflects an increase in the number of schools operated, annual tuition increases of approximately 3.5% to 4.0%, increases in comparable school enrollment, and the effect of acquisitions.
Gross profit for the first nine months of fiscal 2007 increased to$18.9 million, or 14.1% of revenues, compared to $15.9 million, or 13.4% of revenues, in the prior year.
The President and CEO of Nobel Learning Communities, George Bernstein, said this recently:
"Nobel Learning has achieved significant earnings growth each quarter for the past two years. Now, having achieved double digit top line growth, and excellent flow through to bottom line performance in sequential quarters, our financial performance is beginning to show the results of the solid foundation we have been building over the past several years. By focusing on a strong curriculum and curriculum delivery model, we have increased enrollment throughout our network, obtained reasonable tuition increases, and expanded our presence through both organic growth and acquisitions. In our gross profit and income from continuing operations, where the performance of our ongoing core school portfolio is reflected, effective operations initiatives have expanded gross margins leading to improved overall profitability in the quarter. We continue to be encouraged that our strategy is on target and that our customers are responding positively to the changes we have implemented in our marketing, curriculum, and curriculum delivery. We will invest in our schools and infrastructure in a manner intended to continue to improve the value of our educational programs and increase long term shareholder value."
Mr. Bernstein also added:
"With a $50 million low-cost borrowing facility and our own strong cash flows continually adding to our liquidity, we are seeing a dramatic increase in our capacity to respond to the various growth opportunities that periodically arise. Additionally during the quarter, we eliminated the remaining convertible preferred shares that had previously been a drag on our cash flow and had a priority position to our common stockholders."
I highlighted the sentience in the red because the most successful charter or private schools have a 21st century approach to curriculum. Good curriculums equals productive students which equals to profits for the company.
African Americans can do the same. All we have to do is get out of the liberal/Marxist/socialist mentality. A liberal mentality in educational leadership is bound to fail. The teacher unions have people scared talking about how charter schools are in the business for profit. Tell them so what. What company is NOT in the business for profit. Even a NON-PROFIT company needs MONEY to operate. You see how dumb this sounds? This is a mental mind trick called tricknology to keep you in the dark on real educational reforms that can help rebuild urban communities.
I am here to guide you on real educational reform.
If African Americans generate $678 billion a year then where is our return investment? Our investment should be our children's future. We need educational choices and educational entrepreneurship. Any elected official who is against this should be voted out of office.