On July 31, 2024, Perdoceo Education Corp (PRDO, Financial) released its 8-K filing reporting its financial results for the second quarter and year-to-date 2024. Perdoceo Education Corp is an American for-profit education company that focuses on quality postsecondary education online to a diverse student population, along with campus-based and blended learning programs. The company's important segments include the American InterContinental University and Colorado Technical University, with the majority of the company's revenue coming from the Colorado Technical University segment.
Quarterly Financial Performance
For the quarter ended June 30, 2024, Perdoceo Education Corp reported:
- Revenue of $166.7 million, a decrease of 10.6% compared to $186.6 million in the prior year quarter.
- Operating income of $46.0 million, a decrease of 4.3% from $48.1 million in the prior year quarter.
- Adjusted operating income of $50.9 million, a decrease of 7.8% from $55.2 million in the prior year quarter.
- Earnings per diluted share of $0.57, compared to $0.80 in the prior year quarter.
- Adjusted earnings per diluted share of $0.60, compared to $0.61 in the prior year quarter.
Year-to-Date Financial Performance
For the year-to-date period ended June 30, 2024, the company reported:
- Revenue of $335.0 million, a decrease of 12.3% from $382.2 million in the prior year-to-date period.
- Operating income of $92.3 million, an increase of 0.9% from $91.4 million in the prior year-to-date period.
- Adjusted operating income of $100.4 million, a decrease of 7.3% from $108.3 million in the prior year-to-date period.
- Earnings per diluted share of $1.16, compared to $1.30 in the prior year-to-date period.
- Adjusted earnings per diluted share of $1.21, compared to $1.19 in the prior year-to-date period.
Key Metrics and Financial Achievements
Perdoceo Education Corp ended the quarter with $675.2 million in cash, cash equivalents, restricted cash, and available-for-sale short-term investments. The company also announced an 18.2% increase in its quarterly dividend to $0.13 per share, reflecting confidence in its financial stability and commitment to returning value to shareholders.
Student enrollments showed mixed results, with total student enrollments increasing by 4.2% as of June 30, 2024. This was driven by a 14.7% increase at Colorado Technical University (CTU), partially offset by an 18.2% decrease at American InterContinental University System (AIUS).
Operational Insights and Challenges
The decrease in revenue was attributed to operational changes at AIUS in the prior year, which had a lagging impact. Despite this, the company managed to maintain a strong operating income and adjusted earnings per share, showcasing effective cost management and operational efficiency.
Our second quarter results exceeded expectations, as both of our academic institutions continued to experience high levels of student retention and engagement," said Todd Nelson, President and Chief Executive Officer. "Our year-to-date results and enrollment trends have been supported by various operating process changes and technology upgrades within our onboarding, academic, and student support processes."
Income Statement and Balance Sheet Highlights
| For the Quarter Ended June 30, | 2024 | 2023 | % Change |
|---|---|---|---|
| Revenue ($ in thousands) | $166,740 | $186,564 | -10.6% |
| Operating Income ($ in thousands) | $46,006 | $48,094 | -4.3% |
| Net Income ($ in thousands) | $38,400 | $54,700 | -29.8% |
| Earnings per Diluted Share | $0.57 | $0.80 | -28.8% |
Cash Flow and Dividend Increase
For the quarter ended June 30, 2024, net cash provided by operating activities was $38.5 million, compared to $61.6 million in the prior year quarter. For the year-to-date period, net cash provided by operating activities was $93.0 million, compared to $66.2 million in the prior year-to-date period.
On July 31, 2024, the board of directors approved an 18.2% increase in the quarterly dividend to $0.13 per share, payable on September 13, 2024, to holders of record as of September 1, 2024.
Strategic Acquisition
Perdoceo Education Corp announced a definitive agreement to acquire the University of St. Augustine for Health Sciences (USAHS) for approximately $142 million to $144 million in cash. This acquisition is expected to support further growth and diversification of its academic program offerings, particularly in health sciences.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Perdoceo Education Corp for further details.
