Zovio Inc (NASDAQ:ZVO) today announced the results for its fourth quarter and full year ended December 31, 2021.
Financial Results for the Three Months Ended December 31, 2021
Revenue and other revenue for the three months ended December 31, 2021 was $54.8 million, compared with revenue of $93.1 million for the three months ended December 31, 2020.
Operating loss for the three months ended December 31, 2021 was $23.7 million, compared with an operating loss of $57.3 million for the three months ended December 31, 2020.
The Company recognized an income tax benefit of approximately $47,000 for the three months ended December 31, 2021, compared with an income tax benefit of $0.2 million for the three months ended December 31, 2020.
Net loss for the three months ended December 31, 2021 was $23.6 million, compared with net loss of $57.2 million for the three months ended December 31, 2020.
Diluted loss per share for the three months ended December 31, 2021 was $0.71, compared with diluted loss per share of $1.75 for the three months ended December 31, 2020.
Non-GAAP Financial Results for the Three Months Ended December 31, 2021
Non-GAAP operating loss for the three months ended December 31, 2021 was $7.8 million, compared with non-GAAP operating income of $0.9 million for the three months ended December 31, 2020. Non-GAAP operating loss for the three months ended December 31, 2021 excludes legal expense of $14.3 million, acquisition costs of $0.5 million, stock compensation of $0.2 million and other non-GAAP costs of $0.9 million. Non-GAAP operating income for the three months ended December 31, 2020 excludes restructuring and impairment charges of $1.4 million, separation transaction costs of $1.2 million, acquisition costs of $0.9 million, and loss on transaction of $54.8 million.
Non-GAAP net loss for the three months ended December 31, 2021 was $7.7 million, compared with non-GAAP net income of $0.9 million for the three months ended December 31, 2020. Non-GAAP net loss for the three months ended December 31, 2021 excludes legal expense of $14.3 million, acquisition costs of $0.5 million, stock compensation of $0.2 million, other non-GAAP costs of $0.9 million and the related tax effects. Non-GAAP net income for the three months ended December 31, 2020 excludes restructuring and impairment charges of $1.4 million, separation transaction costs of $1.2 million, acquisition costs of $0.9 million, loss on transaction of $54.8 million and the related tax effects.
Non-GAAP diluted loss per share for the three months ended December 31, 2021 was $0.23, compared with non-GAAP diluted income per share of $0.03 for the three months ended December 31, 2020.
Financial Results for the Year Ended December 31, 2021
Revenue and other revenue for the year ended December 31, 2021 was $263.0 million, compared with revenue of $397.1 million for the year ended December 31, 2020.
Operating loss for the year ended December 31, 2021 was $42.6 million, compared with operating loss of $61.9 million for the year ended December 31, 2020.
The Company recognized an income tax benefit of $0.1 million for the year ended December 31, 2021, compared with income tax benefit of $13.1 million for the year ended December 31, 2020.
Net loss for the year ended December 31, 2021 was $42.3 million, compared with net loss of $49.0 million for the year ended December 31, 2020.
Diluted loss per share for the year ended December 31, 2021 was $1.27, compared with diluted loss per share of $1.53 for the year ended December 31, 2020.
Non-GAAP Financial Results for the Year Ended December 31, 2021
Non-GAAP operating loss for the year ended December 31, 2021 was $15.7 million, compared with non-GAAP operating income of $8.8 million for the year ended December 31, 2020. Non-GAAP operating loss for the year ended December 31, 2021 excludes legal expense of $14.3 million, restructuring and impairment charges of $2.6 million, separation transaction costs of $1.1 million, acquisition costs of $2.4 million, stock compensation of $1.6 million, other non-GAAP costs of $1.4 million and severance costs of $3.5 million. Non-GAAP operating income for the year ended December 31, 2020 excludes restructuring and impairment charges of $4.8 million, separation transaction costs of $6.7 million, acquisition costs of $4.3 million and loss on transaction of $54.8 million.
Non-GAAP net loss for the year ended December 31, 2021 was $15.8 million, compared with non-GAAP net income of $8.6 million for the year ended December 31, 2020. Non-GAAP net loss for the year ended December 31, 2021 excludes legal expense of $14.3 million, restructuring and impairment charges of $2.6 million, separation transaction costs of $1.1 million, acquisition costs of $2.4 million, stock compensation of $1.6 million other non-GAAP costs of $1.4 million, severance costs of $3.5 million and the related tax effects. Non-GAAP net income for the year ended December 31, 2020 excludes restructuring and impairment charges of of $4.8 million, separation transaction costs of $6.7 million, acquisition costs of $4.3 million, loss on transaction of $54.8 million and the related tax effects.
Non-GAAP diluted loss per share for the year ended December 31, 2021 was $0.47, compared with non-GAAP diluted income per share of $0.27 for the year ended December 31, 2020.
Balance Sheet and Cash Flow
As of December 31, 2021, the Company had cash and cash equivalents of $28.3 million as compared to $35.5 million as of December 31, 2020.
The Company used $15.4 million of cash in operating activities during the year ended December 31, 2021, compared with $25.3 million of cash provided by operating activities during the year ended December 31, 2020.
On April 14, 2022, the Company entered into a credit facility as the borrower, with each of its wholly-owned subsidiaries as guarantors. The credit facility provides for, among other things, a term loan in the aggregate principal amount of $31.5 million. Subject to the terms of credit facility, the term loan bears interest at a rate per annum equal to LIBOR plus 9%.