Probility Media Corp (OTCMKTS: PBYA), an education company, announced the results for the year ended 2021 and 2020. Starting in 2019, the company went through various restructuring activities and eliminated non-core operations to focus on the core business.
Back to Profit: After the successful restructuring of the business activities, the company retired $8.1 million of debt, thereby reducing its debt by over 56%. For the year 2020, the company reported a sharp improvement in operating performance and reported an operating profit of $0.321 million compared to the loss in the previous year. The shift from physical assets to virtual classrooms also supported performance improvement. In addition, the virtual training helped the company expand its programs to over fifteen states in the U.S.
Pandemic impacted 2021 performance: In 2021, the company revenue declined 16.5% compared to the corresponding period last year to $6.383 million, primarily on account of shutdown due to COVID-19, affecting the company’s physical training program. Pandemic also impacted the revenue of its subsidiaries. As a result, adjusted EBITDA also declined to $0.119 million.
2022 expected to be a better year: The last year’s operation of the company, including its subsidiary, was impacted due to COVID-19 related restrictions. However, the management has started seeing good traction in its standalone operations and its subsidiary in the last couple of months. Its subsidiaries, NACB, and Disco operations have returned to pre-COVID levels in terms of revenue. Its subsidiary, NACB, has become one of the few safety training providers for corporates in the United States. Post the pandemic, the demand for its safety programs has increased sharply. As a result, the company has appointed new trainers to increase its presence in the corporate training.
The industry believes that NACB is well place to grow over the next couple of years. In addition, the higher contribution from Disco also augurs well for the company. Strong contribution from its core operations and subsidiary is expected to drive the earnings for the company. Given the sharp reduction in the debt on account of restructuring, improvement in operating performance, and reduction in interest outgo is expected to support the company’s overall profitability.