Zovio Advances Turnaround Plan and Strengthens Financial Position
Zovio (NASDAQ: ZVO) announced progress in its turnaround strategy aimed at enhancing shareholder value as of May 26, 2022. New CEO Randy Hendricks has implemented changes to improve operational performance, including restructuring the management team and focusing on enrollment growth at the University of Arizona Global Campus. The company has divested TutorMe, achieved cost reductions, and is exploring further strategic alternatives for shareholder value. Zovio is now debt-free after securing and repaying bridge financing, indicating improved financial flexibility.
- Divested TutorMe, enhancing financial flexibility.
- Achieved debt-free status after repaying bridge financing.
- Implemented management restructuring to improve performance.
- Focusing on enrollment growth at University of Arizona Global Campus.
- Cost reductions aligned with revenue objectives.
- None.
Executing on its plans to seek strategic alternatives to maximize shareholder value
CHANDLER, Ariz., May 26, 2022 /PRNewswire/ -- Zovio (NASDAQ: ZVO), an education technology services company that partners with higher education and employers, announced progress on its plans to reset and turnaround the company. Since taking the helm of Zovio in December, Hendricks has executed a series of decisive actions to set the company on a path to improve operational performance and strengthen its financial position.
Specific actions taken by the company include:
- Enhanced the management team and organizational structure to drive better performance and agility to meet client's needs.
- Making progress with its strategic initiatives to stabilize and grow enrollment at the University of Arizona Global Campus.
- Continuing to reduce costs to be more in-line with its revenues.
- Positioning Fullstack Academy for strong and sustainable growth and expansion.
- Completed the divestiture of TutorMe.
- Obtaining and subsequently repaying bridge financing, leaving the company debt free.
- Continuing to review strategic alternatives that will create the greatest value for shareholders, including additional divestitures of the businesses it operates.
"The actions we've taken over the last few months including the recent TutorMe divestiture represent meaningful steps in enhancing our financial flexibility to execute on our turnaround plan," Zovio CEO Randy Hendricks said. "While I'm pleased with our progress our work is not complete and we will continue to focus on how best to serve our clients, and their students, and to create value for our shareholders," Hendricks continued.
Related Communications
This press release refers to information contained in the Company's 8-K filing.
About Zovio
Zovio (Nasdaq: ZVO) is an education technology services company that partners with higher education institutions and employers to deliver innovative, personalized solutions to help learners and leaders achieve their aspirations. The Zovio network, including Fullstack Academy, leverages its core strengths to solve priority market needs through education technology services. Using proprietary advanced data analytics, Zovio identifies the most meaningful ways to enhance the learner experience and deliver strong outcomes for higher education institutions, employers, and learners. Zovio's purpose is to help everyone be in a class of their own. For more information, visit www.zovio.com.
Contact: Vickie Schray
vickie.schray@zovio.com
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SOURCE Zovio
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