/C O R R E C T I O N -- Grand Canyon Education, Inc./
Grand Canyon Education (LOPE) released its second quarter 2024 results with a correction to the previously issued press release. The company reported service revenue of $210.6 million, a 3.8% increase from the same period in 2023. Operating income rose by 6.4% to $51.0 million. Net income grew 8.3% to $41.3 million, with diluted earnings per share increasing 13.4% to $1.35.
LOPE's partner institutions saw total enrollment growth of 5.2% to 112,049 students as of June 30, 2024. The company maintained a strong financial position with unrestricted cash and investments of $304.4 million. LOPE also repurchased 316,093 shares of common stock in Q2 2024. The company provided updated guidance for the full year 2024, projecting service revenue between $945.0 million and $955.0 million.
Grand Canyon Education (LOPE) ha pubblicato i suoi risultati del secondo trimestre 2024, con una correzione al comunicato stampa precedentemente emesso. L'azienda ha registrato entrate per servizi di 210,6 milioni di dollari, con un aumento del 3,8% rispetto allo stesso periodo del 2023. L'utile operativo è aumentato del 6,4% a 51,0 milioni di dollari. L'utile netto è cresciuto dell'8,3% a 41,3 milioni di dollari, con un utile per azione diluito in aumento del 13,4% a 1,35 dollari.
Le istituzioni partner di LOPE hanno registrato un crescita totale delle iscrizioni del 5,2% a 112.049 studenti al 30 giugno 2024. L'azienda ha mantenuto una solida posizione finanziaria con liquidità non vincolata e investimenti di 304,4 milioni di dollari. LOPE ha inoltre riacquistato 316.093 azioni ordinarie nel secondo trimestre 2024. L'azienda ha fornito indicazioni aggiornate per l'intero anno 2024, prevedendo entrate da servizi tra 945,0 milioni di dollari e 955,0 milioni di dollari.
Grand Canyon Education (LOPE) publicó su resultado del segundo trimestre de 2024, con una corrección al comunicado de prensa emitido previamente. La compañía reportó ingresos por servicios de 210.6 millones de dólares, un aumento del 3.8% en comparación con el mismo periodo de 2023. El ingreso operativo aumentó un 6.4% a 51.0 millones de dólares. El ingreso neto creció un 8.3% a 41.3 millones de dólares, con ganancias por acción diluidas que aumentaron un 13.4% a 1.35 dólares.
Las instituciones asociadas a LOPE vieron un crecimiento total de inscripciones del 5.2% alcanzando 112,049 estudiantes a fecha del 30 de junio de 2024. La compañía mantuvo una sólida posición financiera con efectivo e inversiones no restringidas de 304.4 millones de dólares. LOPE también recompró 316,093 acciones ordinarias en el segundo trimestre de 2024. La empresa proporcionó una guía actualizada para todo el año 2024, proyectando ingresos por servicios entre 945.0 millones y 955.0 millones de dólares.
그랜드 캐니언 교육(LOPE)은 앞서 발표된 보도 자료를 수정하여 2024년 2분기 실적을 발표했습니다. 이 회사는 서비스 수익 2억 1,060만 달러를 보고하였으며, 이는 2023년 같은 기간 대비 3.8% 증가한 수치입니다. 운영 수익은 6.4% 증가하여 5,100만 달러에 달했습니다. 순이익은 8.3% 증가하여 4,130만 달러에 올랐으며, 희석 주당 순이익도 13.4% 증가하여 1.35달러에 달했습니다.
LOPE의 파트너 기관들은 2024년 6월 30일 기준으로 총 등록 학생 수가 5.2% 증가하여 112,049명이 되었습니다. 이 회사는 제한 없는 현금 및 투자로 3억 4,440만 달러의 강력한 재정적 위치를 유지하고 있습니다. LOPE는 또한 2024년 2분기에 316,093주의 보통주를 재매입했습니다. 이 회사는 2024년 전체에 대한 업데이트된 가이드를 제공하며, 서비스 수익이 9억 4,500만 달러와 9억 5,500만 달러 사이가 될 것으로 예측했습니다.
Grand Canyon Education (LOPE) a publié ses résultats du deuxième trimestre 2024 avec une correction par rapport à son communiqué de presse précédemment émis. La société a déclaré des revenus de services de 210,6 millions de dollars, soit une augmentation de 3,8 % par rapport à la même période en 2023. Le résultat opérationnel a augmenté de 6,4 % pour atteindre 51,0 millions de dollars. Le bénéfice net a progressé de 8,3 % pour atteindre 41,3 millions de dollars, avec un bénéfice par action dilué en hausse de 13,4 % pour atteindre 1,35 dollar.
Les institutions partenaires de LOPE ont enregistré une croissance totale des inscriptions de 5,2% pour atteindre 112 049 étudiants au 30 juin 2024. L'entreprise a maintenu une solide position financière avec des liquidités et des investissements non restreints de 304,4 millions de dollars. LOPE a également racheté 316 093 actions ordinaires au deuxième trimestre 2024. L'entreprise a fourni des prévisions mises à jour pour l'ensemble de l'année 2024, prévoyant des revenus de services compris entre 945,0 millions et 955,0 millions de dollars.
Grand Canyon Education (LOPE) hat seine Ergebnisse für das zweite Quartal 2024 veröffentlicht und eine Korrektur zur zuvor veröffentlichten Pressemitteilung vorgenommen. Das Unternehmen berichtete von Umsatz aus Dienstleistungen in Höhe von 210,6 Millionen US-Dollar, was einem Anstieg von 3,8 % im Vergleich zum gleichen Zeitraum 2023 entspricht. Das Betriebsergebnis stieg um 6,4 % auf 51,0 Millionen US-Dollar. Der netto Gewinn wuchs um 8,3 % auf 41,3 Millionen US-Dollar, während der verwässerte Gewinn pro Aktie um 13,4 % auf 1,35 US-Dollar anstieg.
Die Partnerinstitutionen von LOPE verzeichneten ein Wachstum der Gesamteinschreibungen um 5,2%, was 112.049 Studierenden zum 30. Juni 2024 entspricht. Das Unternehmen hielt eine starke finanzielle Position mit ungebundenem Bargeld und Investitionen von 304,4 Millionen US-Dollar. LOPE hat zudem im zweiten Quartal 2024 316.093 Aktien zurückgekauft. Das Unternehmen gab eine aktualisierte Prognose für das gesamte Jahr 2024 heraus und erwartet Einnahmen aus Dienstleistungen zwischen 945,0 Millionen und 955,0 Millionen US-Dollar.
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In the news release, GRAND CANYON EDUCATION, INC. REPORTS SECOND QUARTER 2024 RESULTS, issued 06-Aug-2024 by Grand Canyon Education, Inc. over PR Newswire, we are advised by the company that the sentence above Forward Looking-Statements should read "The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of
GRAND CANYON EDUCATION, INC. REPORTS SECOND QUARTER 2024 RESULTS
Grand Canyon Education, Inc. Reports Second Quarter 2024 Results
For the three months ended June 30, 2024:
- Service revenue for the three months ended June 30, 2024 was
$227.5 million $16.9 million 8.0% , as compared to service revenue of$210.6 million 7.0% over enrollments at June 30, 2023, an increase in university partner enrollments at our off-campus classroom and laboratory sites to 4,377 at June 30, 2024, an increase of12.1% over enrollments at June 30, 2023, which includes 746 and 350 GCU students at June 30, 2024 and 2023, respectively, and an increase in revenue per student year over year. The increase in revenue per student between years is primarily due to the service revenue impact of the increased room, board and other ancillary revenues at GCU in the second quarter of 2024 as compared to the prior year period. In addition, service revenue per student for Accelerated Bachelor of Science in Nursing ("ABSN") students at off-campus classroom and laboratory sites generates a significantly higher revenue per student than we earn under our agreement with GCU, as these agreements generally provide us with a higher revenue share percentage, the partners have higher tuition rates than GCU and the majority of their students take more credits on average per semester. The increase in revenue per student in the three months ended June 30, 2024 was lessened somewhat by the timing of the Spring semester for the ground traditional campus. The Spring semester started one day earlier in 2024 than in 2023, which had the effect of shifting$2.1 million - Partner enrollments totaled 106,307 at June 30, 2024 as compared to 99,526 at June 30, 2023. University partner enrollments at our off-campus classroom and laboratory sites were 4,377, an increase of
12.1% over enrollments at June 30, 2023, which includes 746 and 350 GCU students at June 30, 2024 and 2023, respectively. We opened five new off-campus classroom and laboratory sites in the year ended December 31, 2023 and four sites in the three months ended June 30, 2024, increasing the total number of these sites to 43 at June 30, 2024. Enrollments for GCU ground students were 7,397 at June 30, 2024 up from 7,327 at June 30, 2023. GCU online enrollments were 95,279 at June 30, 2024, up from 88,645 at June 30, 2023, an increase of7.5% between years. GCU enrollment declines between March 31 and June 30 of each year as ground enrollment at GCU at June 30 of each year only includes traditional-aged students taking summer school classes, which is a small percentage of GCU's traditional-aged student body. The Spring semester for GCU's traditional-aged student body ends near the end of April each year. - Operating income for the three months ended June 30, 2024 was
$42.7 million $7.3 million $35.4 million 18.8% and16.8% , respectively. The second quarter operating margin was negatively impacted on a year over year basis by the timing difference between years in the start of the Spring semester for GCU's ground traditional campus and$1.1 million - Income tax expense for the three months ended June 30, 2024 was
$12.0 million $2.9 million 32.0% , as compared to income tax expense of$9.1 million 25.5% during the second quarter of 2024 compared to23.8% during the second quarter of 2023. The effective tax rate increased year over year due to higher state income taxes. - Net income increased
20.4% to$34.9 million $29.0 million $37.3 million $30.6 million - Diluted net income per share was
$1.19 $0.96 $1.27 $1.01 - Adjusted EBITDA increased
22.6% to$58.5 million $47.7 million
For the six months ended June 30, 2024:
- Service revenue for the six months ended June 30, 2024 was
$502.1 million $41.4 million 9.0% , as compared to service revenue of$460.7 million 7.0% over enrollments at June 30, 2023, an increase in university partner enrollments at our off-campus classroom and laboratory sites to 4,377 at June 30, 2024, an increase of12.1% over enrollments at June 30, 2023, which includes 746 and 350 GCU students at June 30, 2024 and 2023, respectively, and an increase in revenue per student year over year. The increase in revenue per student between years is primarily due to the service revenue impact of the increased room, board and other ancillary revenues at GCU in the six months ended June 30, 2024 as compared to the prior year period. In addition, service revenue per student for ABSN students at off-campus classroom and laboratory sites generates a significantly higher revenue per student than we earn under our agreement with GCU, as these agreements generally provide us with a higher revenue share percentage, the partners have higher tuition rates than GCU and the majority of their students take more credits on average per semester. The additional day for leap year in 2024 added additional service revenue of$1.5 million - Operating income for the six months ended June 30, 2024 was
$127.2 million $17.3 million $109.9 million 25.3% and23.9% , respectively. The six months ended June 30, 2024 operating margin was positively impacted on a year over year basis by an extra day in 2024 for leap year and was negatively impacted by$1.1 million - Income tax expense for the six months ended June 30, 2024 was
$32.1 million $6.0 million 23.2% , as compared to income tax expense of$26.1 million 23.8% during the six months ended June 30, 2024 compared to22.8% during the six months ended June 30, 2023. Although the effective tax rate was favorably impacted in the six months ended June 30, 2024 by excess tax benefits of$1.5 million $0.9 million - Net income increased
16.2% to$102.9 million $88.5 million $107.0 million $91.9 million - Diluted net income per share was
$3.48 $2.91 $3.62 $3.02 - Adjusted EBITDA increased
16.9% to$157.1 million $134.4 million
Liquidity and Capital Resources
Our liquidity position, as measured by cash and cash equivalents and investments increased by
Grand Canyon Education, Inc. Reports Second Quarter 2024 Results and Full Year Outlook 2024
2024 Outlook
Q3 2024:
- Service revenue of between
$238.0 million $240.5 million - Operating margin of between
19.7% and20.4% ; - Effective tax rate of
20.8% ; - Diluted EPS of between
$1.37 $1.43 - 29.1 million diluted shares.
The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of
Q4 2024:
- Service revenue of between
$286.5 million $291.5 million - Operating margin of between
34.7% and35.7% ; - Effective tax rate of
21.7% ; - Diluted EPS of between
$2.78 $2.91 - 28.9 million diluted shares.
The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of
Full Year 2024:
- Service revenue of between
$1,026.6 million $1,034.1 million - Operating margin of between
26.7% and27.2% ; - Effective tax rate of
22.4% ; - Diluted EPS between
$7.63 $7.81 - 29.3 million diluted shares.
The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of
Forward-Looking Statements
This news release contains "forward-looking statements" which include information relating to future events, future financial performance, strategies expectations, competitive environment, regulation, and availability of resources. These forward-looking statements include, without limitation, statements regarding: proposed new programs; whether regulatory, economic, or business developments or other matters may or may not have a material adverse effect on our financial position, results of operations, or liquidity; projections, predictions, expectations, estimates, and forecasts as to our business, financial and operating results, and future economic performance; and management's goals and objectives and other similar expressions concerning matters that are not historical facts. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions, the negative of these expressions, as well as statements in future tense, identify forward-looking statements.
Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause our actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements include, but are not limited to: legal and regulatory actions taken against our university partners that impact their businesses and that directly or indirectly reduce the service revenue we can earn under our master services agreements; the occurrence of any event, change or other circumstance that could give rise to the termination of any of the key university partner agreements; our ability to properly manage risks and challenges associated with strategic initiatives, including potential acquisitions or divestitures of, or investments in, new businesses, acquisitions of new properties and new university partners, and expansion of services provided to our existing university partners; our failure to comply with the extensive regulatory framework applicable to us either directly as a third-party service provider or indirectly through our university partners, including Title IV of the Higher Education Act and the regulations thereunder, state laws and regulatory requirements, and accrediting commission requirements, and the results of related legal and regulatory actions that arise from such failures; the harm to our business, results of operations, and financial condition, and harm to our university partners resulting from epidemics, pandemics, or public health crises; the harm to our business and our ability to retract and retain students resulting from capacity constraints, system disruptions, or security breaches in our online computer networks and phone systems; the ability of our university partners' students to obtain federal Title IV funds, state financial aid, and private financing; potential damage to our reputation or other adverse effects as a result of negative publicity in the media, in the industry or in connection with governmental reports or investigations or otherwise, affecting us or other companies in the education services sector; risks associated with changes in applicable federal and state laws and regulations and accrediting commission standards, including pending rulemaking by the United States Department of Education applicable to us directly or indirectly through our university partners; competition from other education service companies in our geographic region and market sector, including competition for students, qualified executives and other personnel; our expected tax payments and tax rate; our ability to hire and train new, and develop and train existing employees; the pace of growth of our university partners' enrollment and its effect on the pace of our own growth; fluctuations in our revenues due to seasonality; our ability to, on behalf of our university partners, convert prospective students to enrolled students and to retain active students to graduation; our success in updating and expanding the content of existing programs and developing new programs in a cost-effective manner or on a timely basis for our university partners; risks associated with the competitive environment for marketing the programs of our university partners; failure on our part to keep up with advances in technology that could enhance the experience for our university partners' students; our ability to manage future growth effectively; the impact of any natural disasters or public health emergencies; general adverse economic conditions or other developments that affect the job prospects of our university partners' students; and other factors discussed in reports on file with the Securities and Exchange Commission, including as set forth in Part I, Item 1A of our Annual Report on Form 10-K for period ended December 31, 2023, as updated in our subsequent reports filed with the Securities and Exchange Commission on Form 10-Q or Form 8-K.
Forward-looking statements speak only as of the date the statements are made. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
Grand Canyon Education, Inc. Reports Second Quarter 2024 Results
Conference Call
Grand Canyon Education, Inc. will discuss its second quarter 2024 results and full year 2024 outlook during a conference call scheduled for today, August 6, 2024 at 4:30 p.m. Eastern time (ET).
Live Conference Dial-In:
Those interested in participating in the question-and-answer session should follow the conference dial-in instructions below. Participants may register for the call here to receive the dial-in numbers and unique PIN to access the call seamlessly. Please dial in at least ten minutes prior to the start of the call. Journalists are invited to listen only.
Webcast and Replay:
Investors, journalists and the general public may access a live webcast of this event at: Q2 2024 Grand Canyon Education Inc. Earnings Conference Call. A webcast replay will be available approximately two hours following the conclusion of the call at the same link.
About Grand Canyon Education, Inc.
Grand Canyon Education, Inc. ("GCE"), incorporated in 2008, is a publicly traded education services company that currently provides services to 22 university partners. GCE is uniquely positioned in the education services industry in that its leadership has over 30 years of proven expertise in providing a full array of support services in the post-secondary education sector and has developed significant technological solutions, infrastructure and operational processes to provide superior services in these areas on a large scale. GCE provides services that support students, faculty and staff of partner institutions such as marketing, strategic enrollment management, counseling services, financial services, technology, technical support, compliance, human resources, classroom operations, content development, faculty recruitment and training, among others. For more information about GCE visit the Company's website at www.gce.com.
Grand Canyon Education, Inc., 2600 W. Camelback Road,
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GRAND CANYON EDUCATION, INC. | ||||||||||||
Consolidated Income Statements | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
(In thousands, except per share data) | ||||||||||||
Service revenue | $ | 227,463 | $ | 210,577 | $ | 502,138 | $ | 460,702 | ||||
Costs and expenses: | ||||||||||||
Technology and academic services | 41,001 | 38,957 | 80,126 | 76,469 | ||||||||
Counseling services and support | 78,107 | 72,392 | 160,991 | 145,741 | ||||||||
Marketing and communication | 52,895 | 50,806 | 108,248 | 103,700 | ||||||||
General and administrative | 10,636 | 10,875 | 21,366 | 20,663 | ||||||||
Amortization of intangible assets | 2,105 | 2,105 | 4,210 | 4,210 | ||||||||
Total costs and expenses | 184,744 | 175,135 | 374,941 | 350,783 | ||||||||
Operating income | 42,719 | 35,442 | 127,197 | 109,919 | ||||||||
Interest expense | (2) | (7) | (4) | (26) | ||||||||
Investment interest and other | 4,112 | 2,590 | 7,841 | 4,743 | ||||||||
Income before income taxes | 46,829 | 38,025 | 135,034 | 114,636 | ||||||||
Income tax expense | 11,951 | 9,052 | 32,146 | 26,099 | ||||||||
Net income | $ | 34,878 | $ | 28,973 | $ | 102,888 | $ | 88,537 | ||||
Earnings per share: | ||||||||||||
Basic income per share | $ | 1.19 | $ | 0.96 | $ | 3.50 | $ | 2.92 | ||||
Diluted income per share | $ | 1.19 | $ | 0.96 | $ | 3.48 | $ | 2.91 | ||||
Basic weighted average shares outstanding | 29,285 | 30,183 | 29,372 | 30,321 | ||||||||
Diluted weighted average shares outstanding | 29,415 | 30,287 | 29,527 | 30,462 | ||||||||
GRAND CANYON EDUCATION, INC. | ||||||
Consolidated Balance Sheets | ||||||
As of June 30, | As of December 31, | |||||
(In thousands, except par value) | 2024 | 2023 | ||||
ASSETS: | (Unaudited) | |||||
Current assets | ||||||
Cash and cash equivalents | $ | 241,317 | $ | 146,475 | ||
Investments | 100,498 | 98,031 | ||||
Accounts receivable, net | 29,454 | 78,811 | ||||
Income taxes receivable | 5,504 | 1,316 | ||||
Other current assets | 13,052 | 12,889 | ||||
Total current assets | 389,825 | 337,522 | ||||
Property and equipment, net | 173,827 | 169,699 | ||||
Right-of-use assets | 101,893 | 92,454 | ||||
Amortizable intangible assets, net | 164,171 | 168,381 | ||||
Goodwill | 160,766 | 160,766 | ||||
Other assets | 2,209 | 1,641 | ||||
Total assets | $ | 992,691 | $ | 930,463 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||
Current liabilities | ||||||
Accounts payable | $ | 22,466 | $ | 17,676 | ||
Accrued compensation and benefits | 33,776 | 31,358 | ||||
Accrued liabilities | 31,935 | 26,725 | ||||
Income taxes payable | 94 | 10,250 | ||||
Deferred revenue | 7,216 | — | ||||
Current portion of lease liability | 11,980 | 11,024 | ||||
Total current liabilities | 107,467 | 97,033 | ||||
Deferred income taxes, noncurrent | 26,992 | 26,749 | ||||
Other long-term liabilities | 1,538 | 410 | ||||
Lease liability, less current portion | 97,499 | 88,257 | ||||
Total liabilities | 233,496 | 212,449 | ||||
Commitments and contingencies | ||||||
Stockholders' equity | ||||||
Preferred stock, | — | — | ||||
Common stock, | 541 | 540 | ||||
Treasury stock, at cost, 24,541 and 24,017 shares of common stock at June 30, 2024 and | (1,918,810) | (1,849,693) | ||||
Additional paid-in capital | 329,990 | 322,512 | ||||
Accumulated other comprehensive loss | (126) | (57) | ||||
Retained earnings | 2,347,600 | 2,244,712 | ||||
Total stockholders' equity | 759,195 | 718,014 | ||||
Total liabilities and stockholders' equity | $ | 992,691 | $ | 930,463 | ||
GRAND CANYON EDUCATION, INC. | ||||||
Consolidated Statements of Cash Flows | ||||||
(Unaudited) | ||||||
Six Months Ended | ||||||
June 30, | ||||||
(In thousands) | 2024 | 2023 | ||||
Cash flows provided by operating activities: | ||||||
Net income | $ | 102,888 | $ | 88,537 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Share-based compensation | 7,479 | 6,622 | ||||
Depreciation and amortization | 13,581 | 10,939 | ||||
Amortization of intangible assets | 4,210 | 4,210 | ||||
Deferred income taxes | 266 | 1,160 | ||||
Other, including fixed asset disposals | (457) | 842 | ||||
Changes in assets and liabilities: | ||||||
Accounts receivable from university partners | 49,357 | 52,731 | ||||
Other assets | (749) | (1,332) | ||||
Right-of-use assets and lease liabilities | 759 | 787 | ||||
Accounts payable | 4,986 | 2,323 | ||||
Accrued liabilities | 8,334 | (460) | ||||
Income taxes receivable/payable | (14,344) | (18,341) | ||||
Deferred revenue | 7,216 | 9,110 | ||||
Net cash provided by operating activities | 183,526 | 157,128 | ||||
Cash flows used in investing activities: | ||||||
Capital expenditures | (17,933) | (17,599) | ||||
Additions of amortizable content | (170) | (488) | ||||
Purchases of investments | (48,594) | (73,807) | ||||
Proceeds from sale or maturity of investments | 46,708 | 43,837 | ||||
Net cash used in investing activities | (19,989) | (48,057) | ||||
Cash flows used in financing activities: | ||||||
Repurchase of common shares and shares withheld in lieu of income taxes | (68,695) | (86,555) | ||||
Net cash used in financing activities | (68,695) | (86,555) | ||||
Net increase in cash and cash equivalents and restricted cash | 94,842 | 22,516 | ||||
Cash and cash equivalents and restricted cash, beginning of period | 146,475 | 120,409 | ||||
Cash and cash equivalents and restricted cash, end of period | $ | 241,317 | $ | 142,925 | ||
Supplemental disclosure of cash flow information | ||||||
Cash paid for interest | $ | 4 | $ | 26 | ||
Cash paid for income taxes | $ | 44,220 | $ | 42,460 | ||
Supplemental disclosure of non-cash investing and financing activities | ||||||
Purchases of property and equipment included in accounts payable | $ | 1,713 | $ | 1,644 | ||
ROU Asset and Liability recognition | $ | 9,439 | $ | 3,727 | ||
Excise tax on treasury stock repurchases | $ | 422 | $ | 641 | ||
GRAND CANYON EDUCATION, INC.
Adjusted EBITDA (Non-GAAP Financial Measure)
Adjusted EBITDA is defined as net income plus interest expense, less interest income and other gain (loss) recognized on investments, plus income tax expense, and plus depreciation and amortization (EBITDA), as adjusted for (i) contributions to private
We believe Adjusted EBITDA allows us to compare our current operating results with corresponding historical periods and with the operational performance of other companies in our industry because it does not give effect to potential differences caused by variations in capital structures (affecting relative interest expense, including the impact of write-offs of deferred financing costs when companies refinance their indebtedness), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses), the book amortization of intangibles (affecting relative amortization expense), and other items that we do not consider reflective of underlying operating performance. We also present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors, and other interested parties as a measure of performance.
In evaluating Adjusted EBITDA, investors should be aware that in the future we may incur expenses similar to the adjustments described above. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by expenses that are unusual, non-routine, or non-recurring. Adjusted EBITDA has limitations as an analytical tool in that, among other things it does not reflect:
- cash expenditures for capital expenditures or contractual commitments;
- changes in, or cash requirements for, our working capital requirements;
- interest expense, or the cash required to replace assets that are being depreciated or amortized; and
- the impact on our reported results of earnings or charges resulting from the items for which we make adjustments to our EBITDA, as described above and set forth in the table below.
In addition, other companies, including other companies in our industry, may calculate these measures differently than we do, limiting the usefulness of Adjusted EBITDA as a comparative measure. Because of these limitations, Adjusted EBITDA should not be considered as a substitute for net income, operating income, or any other performance measure derived in accordance with and reported under GAAP, or as an alternative to cash flow from operating activities or as a measure of our liquidity. We compensate for these limitations by relying primarily on our GAAP results and only use Adjusted EBITDA as a supplemental performance measure.
The following table provides a reconciliation of net income to Adjusted EBITDA, which is a non-GAAP measure for the periods indicated:
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
(Unaudited, in thousands) | (Unaudited, in thousands) | |||||||||||
Net income | $ | 34,878 | $ | 28,973 | $ | 102,888 | $ | 88,537 | ||||
Plus: interest expense | 2 | 7 | 4 | 26 | ||||||||
Less: investment interest and other | (4,112) | (2,590) | (7,841) | (4,743) | ||||||||
Plus: income tax expense | 11,951 | 9,052 | 32,146 | 26,099 | ||||||||
Plus: amortization of intangible assets | 2,105 | 2,105 | 4,210 | 4,210 | ||||||||
Plus: depreciation and amortization | 6,928 | 5,402 | 13,581 | 10,939 | ||||||||
EBITDA | 51,752 | 42,949 | 144,988 | 125,068 | ||||||||
Plus: loss on fixed asset disposal | 44 | 54 | 44 | 135 | ||||||||
Plus: litigation and regulatory reserves | 1,601 | 1,474 | 3,471 | 2,547 | ||||||||
Plus: severance costs | 1,133 | — | 1,133 | — | ||||||||
Plus: share-based compensation | 3,996 | 3,253 | 7,479 | 6,622 | ||||||||
Adjusted EBITDA | $ | 58,526 | $ | 47,730 | $ | 157,115 | $ | 134,372 | ||||
Non-GAAP Net Income and Non-GAAP Diluted Income Per Share
The Company believes the presentation of non-GAAP net income and non-GAAP diluted income per share information that excludes amortization of intangible assets, loss on disposal of fixed assets and severance costs allows investors to develop a more meaningful understanding of the Company's performance over time. Accordingly, for the six-months ended June 30, 2024 and 2023, the table below provides reconciliations of these non-GAAP items to GAAP net income and GAAP diluted income per share, respectively:
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
(Unaudited, in thousands except per share data) | ||||||||||||
GAAP Net income | $ | 34,878 | $ | 28,973 | $ | 102,888 | $ | 88,537 | ||||
Amortization of intangible assets | 2,105 | 2,105 | 4,210 | 4,210 | ||||||||
Loss on disposal of fixed assets | 44 | 54 | 44 | 135 | ||||||||
Severance costs | 1,133 | — | 1,133 | — | ||||||||
Income tax effects of adjustments(1) | (837) | (515) | (1,282) | (989) | ||||||||
As Adjusted, Non-GAAP Net income | $ | 37,323 | $ | 30,617 | $ | 106,993 | $ | 91,893 | ||||
GAAP Diluted income per share | $ | 1.19 | $ | 0.96 | $ | 3.48 | $ | 2.91 | ||||
Amortization of intangible assets (2) | 0.05 | 0.05 | 0.11 | 0.11 | ||||||||
Loss on disposal of fixed assets (3) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
Severance costs (4) | 0.03 | — | 0.03 | — | ||||||||
As Adjusted, Non-GAAP Diluted income per share | $ | 1.27 | $ | 1.01 | $ | 3.62 | $ | 3.02 | ||||
____________________ | |
(1) | The income tax effects of adjustments are based on the effective income tax rate applicable to adjusted (non-GAAP) results. |
(2) | The amortization of acquired intangible assets per diluted share is net of an income tax benefit of |
(3) | The loss on disposal of fixed assets per diluted share is net of an income tax benefit of nil for both of the three months ended June 30, 2024 and 2023, and net of an income tax benefit of nil for both of the six months ended June 30, 2024 and 2023. |
(4) | The severance costs per diluted share is net of an income tax benefit of |
Investor Relations Contact:
Daniel E. Bachus
Chief Financial Officer
Grand Canyon Education, Inc.
602-639-6648
Dan.bachus@gce.com
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SOURCE Grand Canyon Education, Inc.
FAQ
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