Perdoceo Education Corporation Reports Third Quarter and Year to Date 2024 Results

Rhea-AI Summary

Perdoceo Education (NASDAQ: PRDO) reported Q3 2024 results with mixed performance. Total student enrollments increased 11.0%, with CTU up 13.6% and AIUS up 4.0%. Despite enrollment growth, revenue decreased 5.6% to $169.8 million due to operational changes. Operating income rose 4.0% to $44.8 million, while adjusted operating income increased 2.8% to $48.6 million. Earnings per diluted share were $0.57, down from $0.62 in the prior year. The company ended Q3 with $722.6 million in cash and investments, and declared a quarterly dividend of $0.13 per share.

Positive

• Total student enrollments increased 11.0% year-over-year
• Operating income increased 4.0% to $44.8 million
• Strong cash position of $722.6 million
• Net cash from operations increased 56.3% to $51.0 million
• Company increased full-year outlook

Negative

• Revenue decreased 5.6% to $169.8 million
• Earnings per diluted share declined to $0.57 from $0.62
• AIUS operating income decreased 41.9% to $9.1 million
• Year-to-date revenue down 10.2% to $504.8 million

Insights

Financial Analyst

The Q3 results show mixed performance with notable strengths and challenges. Total student enrollments increased 11.0%, driven by CTU's 13.6% growth. However, revenue declined 5.6% to $169.8 million, reflecting operational changes impact. Operating income grew 4.0% to $44.8 million.

The company maintains a strong financial position with $722.6 million in cash and investments. The increased quarterly dividend of $0.13 per share and robust operating cash flow of $51.0 million demonstrate financial stability. The raised full-year guidance suggests management's confidence in ongoing performance improvements.

Education Industry Analyst

The enrollment growth amid revenue decline reflects a strategic shift in educational offerings. CTU's simplified professional development programs and AIUS's operational changes show a focus on core educational services. The pending acquisition of University of St. Augustine marks a significant expansion into health sciences education, diversifying the company's portfolio.

Strong student retention and engagement metrics, coupled with continued investments in student support and technology, indicate a sustainable growth trajectory. The 4.0% AIUS enrollment increase suggests successful adaptation to previous operational changes.

SCHAUMBURG, Ill.--(BUSINESS WIRE)-- Perdoceo Education Corporation (NASDAQ: PRDO) today reported operating and financial results for the quarter and year to date ended September 30, 2024.

Third Quarter 2024 Results as Compared to Prior Year Quarter

• Total student enrollments increased by 11.0% supported by a 13.6% increase at CTU and a 4.0% increase at AIUS.
• Operating income increased 4.0% to $44.8 million, while adjusted operating income increased 2.8% to $48.6 million.*
• As expected, revenue for the quarter was lower by 5.6% due to the lag impact from the 2023 operational changes at AIUS and simplification of our professional development offerings at CTU.
• Earnings per diluted share were $0.57 as compared to $0.62, while adjusted earnings per diluted share were $0.59 as compared to $0.64.* The prior year quarter earnings per diluted share included a non-recurring tax benefit.
• Ended the quarter with $722.6 million in cash, cash equivalents, restricted cash and available-for-sale-short-term investments.

Year to Date 2024 Results as Compared to Prior Year to Date

• Operating income increased 1.9% to $137.1 million, while adjusted operating income decreased 4.2% to $149.0 million.*
• As expected, revenue decreased 10.2% to $504.8 million, driven by the lag impact from the 2023 operational changes at AIUS and simplification of our professional development offerings at CTU.
• Earnings per diluted share were $1.73 as compared to $1.92, while adjusted earnings per diluted share were $1.80 as compared to $1.83.* The prior year quarter earnings per diluted share included a non-recurring tax benefit.

*See GAAP (U.S. generally accepted accounting principles) to non-GAAP reconciliation attached to this press release

"Operating performance for the quarter was ahead of our expectations as both academic institutions continued to experience strong student retention and engagement through the quarter,” said Todd Nelson, President and Chief Executive Officer. “We remain committed to making investments in our student support teams and technology that will further enhance academic outcomes. We are on track to close the acquisition of University of St. Augustine in December and are excited about the opportunity to significantly increase the number of students we serve in the health science field.”

REVENUE

• For the quarter ended September 30, 2024, revenue of $169.8 million decreased 5.6% compared to revenue of $179.9 million for the prior year quarter.
• For the year to date ended September 30, 2024, revenue of $504.8 million decreased 10.2% compared to revenue of $562.1 million for the prior year to date.

		For the Quarter Ended September 30,												For the Year to Date Ended September 30,
Revenue ($ in thousands)		2024				2023				% Change				2024				2023				% Change
CTU		$	115,742			$	120,552				-4.0	%		$	342,139			$	364,336				-6.1	%
AIUS			53,887				59,226				-9.0	%			162,114				197,128				-17.8	%
Corporate and Other			199				145			NM					579				621			NM
Total		$	169,828			$	179,923				-5.6	%		$	504,832			$	562,085				-10.2	%

TOTAL STUDENT ENROLLMENTS

• As of September 30, 2024, CTU’s total student enrollments increased 13.6%, while AIUS’ total student enrollments increased 4.0% as compared to September 30, 2023.

		At September 30,
Total Student Enrollments(1)		2024				2023				% Change
CTU			30,000				26,400				13.6	%
AIUS			10,400				10,000				4.0	%
Total			40,400				36,400				11.0	%

(1)	Total student enrollments do not include learners participating in: a) non-degree seeking and professional development programs, and b) degree seeking, non-Title IV, self-paced programs at the Company's universities.

OPERATING INCOME

• For the quarter ended September 30, 2024, operating income increased by 4.0% to $44.8 million as compared to the prior year quarter.

• For the year to date ended September 30, 2024, operating income increased by 1.9% to $137.1 million as compared to the prior year to date.

		For the Quarter Ended September 30,												For the Year to Date Ended September 30,
Operating Income ($ in thousands)		2024				2023				% Change				2024				2023				% Change
CTU		$	44,199			$	34,491				28.1	%		$	129,245			$	118,632				8.9	%
AIUS			9,063				15,602				-41.9	%			31,275				44,683				-30.0	%
Corporate and Other			(8,468	)			(7,020	)			-20.6	%			(23,442	)			(28,812	)			18.6	%
Total		$	44,794			$	43,073				4.0	%		$	137,078			$	134,503				1.9	%

ADJUSTED OPERATING INCOME

The Company believes it is useful to present non-GAAP financial measures, which exclude certain significant and non-cash items, as a means to understand the performance of its operations. (See table below and the GAAP to non-GAAP reconciliation attached to this press release for further details.)

• For the quarter ended September 30, 2024, adjusted operating income of $48.6 million increased 2.8% compared to adjusted operating income of $47.2 million for the prior year quarter.
• For the year to date ended September 30, 2024, adjusted operating income of $149.0 million decreased 4.2% compared to adjusted operating income of $155.5 million for the prior year to date.

		For the Quarter Ended September 30,								For the Year to Date Ended September 30,
Adjusted Operating Income ($ in thousands)		2024				2023				2024				2023
Operating income		$	44,794			$	43,073			$	137,078			$	134,503
Depreciation and amortization			3,053				3,914				9,138				13,438
Legal fee expense related to certain matters (1)			719				246				2,764				7,574
Adjusted Operating Income		$	48,566			$	47,233			$	148,980			$	155,515
Increase (Decrease)			2.8	%							-4.2	%

(1)	Legal fee expense associated with (i) responses to the Department of Education (the “Department”) relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts.

NET INCOME AND EARNINGS PER DILUTED SHARE

For the quarter ended September 30, 2024, the Company recorded:

• Net income of $38.3 million compared to $41.3 million for the prior year quarter.
• Earnings per diluted share of $0.57 compared to $0.62 for the prior year quarter.
• Adjusted earnings per diluted share of $0.59 compared to $0.64 for the prior year quarter. (See table below and the GAAP to non-GAAP reconciliation attached to this press release for further details.)

For the year to date ended September 30, 2024, the Company recorded:

• Net income of $116.1 million compared to $130.5 million for the prior year to date.
• Earnings per diluted share of $1.73 compared to $1.92 for the prior year to date.
• Adjusted earnings per diluted share of $1.80 compared to $1.83 for the prior year to date. (See table below and the GAAP to non-GAAP reconciliation attached to this press release for further details.)

		For the Quarter Ended September 30,								For the Year to Date Ended September 30,
		2024				2023				2024				2023
Reported Earnings Per Diluted Share		$	0.57			$	0.62			$	1.73			$	1.92
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets			0.02				0.03				0.06				0.09
Legal fee expense related to certain matters (1)			0.01				-				0.04				0.11
Gain on sale of intangible asset			-				-				-				(0.32	)
Tax effect of adjustments (2)			(0.01	)			(0.01	)			(0.03	)			0.03
Adjusted Earnings Per Diluted Share		$	0.59			$	0.64			$	1.80			$	1.83

(1)	Legal fee expense associated with (i) responses to the Department relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts.
(2)	The tax effect of adjustments was calculated by multiplying the pre-tax adjustments with a tax rate of 25.0%. This tax rate is intended to reflect federal and state taxable jurisdictions as well as the nature of the adjustments.

QUARTERLY DIVIDEND PAYMENT

On November 12, 2024, the board of directors declared a quarterly dividend of $0.13 per share, which will be paid on December 13, 2024 for holders of record of common stock as of December 2, 2024. Any decision to pay future cash dividends, however, will be made by the board of directors and depend on the Company’s available retained earnings, financial condition and other relevant factors. The Company expects quarterly dividend payments to be an integral and growing part of its balanced capital allocation strategy that also prioritizes investments in student support and technology projects, while also evaluating acquisitions and share repurchases.

BALANCE SHEET AND CASH FLOW

• For the quarter ended September 30, 2024 net cash provided by operating activities was $51.0 million, compared to net cash provided by operating activities of $32.6 million for the prior year quarter.
• For the year to date ended September 30, 2024, net cash provided by operating activities was $144.0 million, compared to net cash provided by operating activities of $98.8 million in the prior year to date.
• As of September 30, 2024 and December 31, 2023, cash, cash equivalents, restricted cash and available-for-sale short-term investments totaled $722.6 million and $604.2 million, respectively.

		For the Quarter Ended September 30,											For the Year to Date Ended September 30,
Selected Cash Flow Items ($ in thousands)		2024				2023				% Change			2024				2023				% Change
Net cash provided by operating activities		$	50,978			$	32,613				56.3%		$	143,995			$	98,833				45.7%
Capital expenditures		$	975			$	1,189				-18.0%		$	2,997			$	4,801				-37.6%

OUTLOOK

The Company is increasing its full year outlook while also providing the following fourth quarter outlook, subject to the key assumptions identified below. Please see the GAAP to non-GAAP reconciliation for adjusted operating income and adjusted earnings per diluted share attached to this press release for further details.

	Total Company Outlook
	For Quarter Ending December 31,			For the Year Ending December 31,
	OUTLOOK	ACTUAL		OUTLOOK	ACTUAL
	2024	2023		2024	2023
Operating Income	$33.0M - $36.0M	$15,943		$170.1M - $173.1M	$150,446
Depreciation and amortization	$5.5M	3,449		$14.6M	16,887
Legal fee expense related to certain matters (1)	$0.5M	5		$3.3M	7,579
Adjusted Operating Income	$39.0M - $42.0M	$19,397		$188.0M - $191.0M	$174,912
Earnings Per Diluted Share	$0.43 - $0.46	$0.26		$2.15 - $2.18	$2.18
Amortization of acquired intangible assets	$0.03	$0.02		$0.09	$0.11
Legal fee expense related to certain matters (1)	$0.01	-		$0.05	$0.11
Gain on sale of intangible asset	-	-		-	($0.32)
Tax effect of adjustments	($0.01)	($0.01)		($0.04)	$0.02
Adjusted Earnings Per Diluted Share	$0.46 - $0.49	$0.27		$2.25 - $2.28	$2.10

(1)	Legal fee expense associated with (i) responses to the Department relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts.

Operating income, which is the most directly comparable GAAP measure to adjusted operating income, and earnings per diluted share, which is the most directly comparable GAAP measure to adjusted earnings per diluted share, may not follow the same trends stated in the outlook above because of adjustments made for certain significant and non-cash items. The operating income, adjusted operating income, earnings per share and adjusted earnings per share outlook provided above for 2024 are based on the following key assumptions and factors, among others: (i) prospective student interest in the Company’s programs and trends in student retention and engagement remain consistent with management’s estimates, (ii) no significant additional impact of new or proposed regulations, including recent Department negotiated rulemaking initiatives, or other adverse changes in the legal or regulatory environment, which may require further operational changes in the way the Company’s academic institutions enroll, support and educate current and prospective students, among other impacts, (iii) no significant operating impacts from the settlements with the U.S. Federal Trade Commission and state attorneys general or other legal or regulatory matters, (iv) the impact from student loan initiatives implemented by the current administration remains consistent with management's estimates, (v) earnings per diluted share outlook assumes an effective income tax rate of approximately 26% for the fourth quarter and approximately 26.5% for the full year, and (vi) excludes any future impact from the Company’s stock repurchase program. Although these estimates and assumptions are based upon management’s good faith beliefs regarding current and future circumstances and actions that may be undertaken, actual results could differ materially from these estimates. In addition, decisions the Company makes in the future as it continues to evaluate diverse strategies to enhance stockholder value may impact the outlook provided above.

CONFERENCE CALL INFORMATION

Perdoceo Education Corporation will host a conference call on Tuesday, November 12, 2024 at 5:00 p.m. Eastern time to discuss third quarter and year to date 2024 results and outlook. Interested parties can access the live webcast of the conference call at www.perdoceoed.com in the Investor Relations section of the website. Participants can also listen to the conference call by dialing 1-800-715-9871 (domestic) or 1-646-307-1963 (international). Both dial-in numbers will use the access code 4671240. Viewers can also access the conference call by following this link https://events.q4inc.com/attendee/345979070. Please log-in or dial-in at least 10 minutes prior to the start time to ensure a connection. An archived version of the webcast will be accessible for 90 days at www.perdoceoed.com in the Investor Relations section of the website.

ABOUT PERDOCEO EDUCATION CORPORATION

Perdoceo’s accredited academic institutions offer a quality postsecondary education primarily online to a diverse student population, along with campus-based and blended learning programs. The Company’s academic institutions – Colorado Technical University (“CTU”) and the American InterContinental University System (“AIUS” or “AIU System”) – provide degree programs from the associate through doctoral level as well as non-degree seeking and professional development programs. Perdoceo’s academic institutions offer students industry-relevant and career-focused academic programs that are designed to meet the educational needs of today’s busy adults. CTU and AIUS continue to show innovation in higher education, advancing personalized learning technologies like their intellipath® learning platform and using data analytics and technology to serve and educate students while enhancing overall learning and academic experiences. Perdoceo is committed to providing quality education that closes the gap between learners who seek to advance their careers and employers needing a qualified workforce. For more information, please visit www.perdoceoed.com.

Except for the historical and present factual information contained herein, the matters set forth in this release, including statements identified by words such as “believe,” “will,” “expect,” “continue,” “outlook,” “remain,” “focused on,” “should” and similar expressions, are forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on information currently available to us and are subject to various assumptions, risks, uncertainties and other factors that could cause our results of operations, financial condition, cash flows, performance, business prospects and opportunities to differ materially from those expressed in, or implied by, these statements. Except as expressly required by the federal securities laws, we undertake no obligation to update or revise such factors or any of the forward-looking statements contained herein to reflect future events, developments or changed circumstances, or for any other reason. These risks and uncertainties, the outcomes of which could materially and adversely affect our financial condition and operations, include, but are not limited to, the following: declines in enrollment or interest in our programs or our ability to market to and contact prospective students; our continued compliance with and eligibility to participate in Title IV Programs under the Higher Education Act of 1965, as amended, and the regulations thereunder (including the terms of any potential changes to or conditions imposed on our continued participation in the Title IV programs under new program participation agreements, the new 90-10, financial responsibility and administrative capability standards prescribed by the U.S. Department of Education), as well as applicable accreditation standards and state regulatory requirements; the impact of various versions of “borrower defense to repayment” regulations; the final outcome of various legal challenges to the Department's loan discharge and forgiveness efforts; rulemaking or changing interpretations of existing regulations, guidance or historical practices by the U.S. Department of Education or any state or accreditor and increased focus by Congress and governmental agencies on, or increased negative publicity about, for-profit education institutions; the success of our initiatives to improve student experiences, retention and academic outcomes; our continued ability to participate in educational assistance programs for key employers, veterans or other military personnel; our ability to pay dividends on our common stock and execute our stock repurchase program; increased competition; the impact of management changes; and changes in the overall U.S. economy. Further information about these and other relevant risks and uncertainties may be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and its subsequent filings with the Securities and Exchange Commission.

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
		September 30,				December 31,
		2024				2023
		(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents, unrestricted		$	238,049			$	118,009
Restricted cash			773				1,012
Short-term investments			483,772				485,135
Total cash and cash equivalents, restricted cash and short-term investments			722,594				604,156
Student receivables, net			32,018				29,398
Receivables, other			4,114				4,539
Prepaid expenses			10,665				11,712
Inventories			3,870				5,004
Other current assets			263				155
Total current assets			773,524				654,964
NON-CURRENT ASSETS:
Property and equipment, net			18,099				21,371
Right of use asset, net			15,669				19,096
Goodwill			241,162				241,162
Intangible assets, net			32,894				36,219
Student receivables, net			5,904				3,859
Deferred income tax assets, net			23,010				23,804
Other assets			6,494				6,841
TOTAL ASSETS		$	1,116,756			$	1,007,316
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Lease liability - operating		$	4,969			$	5,701
Accounts payable			13,647				10,766
Accrued expenses:
Payroll and related benefits			33,517				32,684
Advertising and marketing costs			7,969				7,196
Income taxes			10,396				3,974
Other			21,322				13,503
Deferred revenue			49,347				37,215
Total current liabilities			141,167				111,039
NON-CURRENT LIABILITIES:
Lease liability - operating			17,317				21,346
Other liabilities			22,841				33,510
Total non-current liabilities			40,158				54,856
STOCKHOLDERS' EQUITY:
Preferred stock			-				-
Common stock			910				903
Additional paid-in capital			704,346				694,798
Accumulated other comprehensive income (loss)			1,568				(666	)
Retained earnings			573,031				480,606
Treasury stock			(344,424	)			(334,220	)
Total stockholders' equity			935,431				841,421
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,116,756			$	1,007,316

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts and percentages)
		For the Quarter Ended September 30,
		2024				% of Total Revenue				2023				% of Total Revenue
REVENUE:
Tuition and fees, net		$	168,442				99.2	%		$	178,259				99.1	%
Other			1,386				0.8	%			1,664				0.9	%
Total revenue			169,828								179,923
OPERATING EXPENSES:
Educational services and facilities			28,287				16.7	%			33,502				18.6	%
General and administrative			93,694				55.2	%			92,054				51.2	%
Depreciation and amortization			3,053				1.8	%			3,914				2.2	%
Asset impairment			-				0.0	%			7,380				4.1	%
Total operating expenses			125,034				73.6	%			136,850				76.1	%
Operating income			44,794				26.4	%			43,073				23.9	%
OTHER INCOME:
Interest income			7,702				4.5	%			5,210				2.9	%
Interest expense			(82	)			0.0	%			(97	)			-0.1	%
Miscellaneous expense			(52	)			0.0	%			(98	)			-0.1	%
Total other income			7,568				4.5	%			5,015				2.8	%
PRETAX INCOME			52,362				30.8	%			48,088				26.7	%
Provision for income taxes			14,107				8.3	%			6,781				3.8	%
NET INCOME			38,255				22.5	%			41,307				23.0	%
NET INCOME PER SHARE - BASIC:		$	0.58							$	0.63
NET INCOME PER SHARE -DILUTED:		$	0.57							$	0.62
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic			65,699								65,634
Diluted			67,312								67,103
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
		For the Quarter Ended September 30,
(In Thousands)		2024								2023
NET INCOME		$	38,255							$	41,307
OTHER COMPREHENSIVE INCOME, net of tax:
Foreign currency translation adjustments			46								(31	)
Unrealized gain on investments			3,243								653
Total other comprehensive income			3,289								622
COMPREHENSIVE INCOME		$	41,544							$	41,929

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts and percentages)
		For the Year to Date Ended September 30,
		2024				% of Total Revenue				2023				% of Total Revenue
REVENUE:
Tuition and fees, net		$	500,844				99.2	%		$	556,098				98.9	%
Other			3,988				0.8	%			5,987				1.1	%
Total revenue			504,832								562,085
OPERATING EXPENSES:
Educational services and facilities			85,661				17.0	%			100,101				17.8	%
General and administrative			270,487				53.6	%			305,328				54.3	%
Depreciation and amortization			9,138				1.8	%			13,438				2.4	%
Asset impairment			2,468				0.5	%			8,715				1.6	%
Total operating expenses			367,754				72.8	%			427,582				76.1	%
Operating income			137,078				27.2	%			134,503				23.9	%
OTHER INCOME:
Interest income			21,685				4.3	%			13,559				2.4	%
Interest expense			(529	)			-0.1	%			(288	)			-0.1	%
Miscellaneous (expense) income			(7	)			0.0	%			21,970				3.9	%
Total other income			21,149				4.2	%			35,241				6.3	%
PRETAX INCOME			158,227				31.3	%			169,744				30.2	%
Provision for income taxes			42,101				8.3	%			39,280				7.0	%
NET INCOME			116,126				23.0	%			130,464				23.2	%
NET INCOME PER SHARE - BASIC:		$	1.77							$	1.95
NET INCOME PER SHARE -DILUTED:		$	1.73							$	1.92
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic			65,622								66,758
Diluted			67,110								68,072
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
		For the Year to Date Ended September 30,
(In Thousands)		2024								2023
NET INCOME		$	116,126							$	130,464
OTHER COMPREHENSIVE INCOME, net of tax:
Foreign currency translation adjustments			7								(8	)
Unrealized gain on investments			2,227								456
Total other comprehensive income			2,234								448
COMPREHENSIVE INCOME		$	118,360							$	130,912

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
		For the Year to Date Ended September 30,
		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	116,126			$	130,464
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairment			2,468				8,715
Gain on sale of asset			-				(22,086	)
Depreciation and amortization expense			9,138				13,438
Bad debt expense			21,364				26,519
Compensation expense related to share-based awards			7,385				6,651
Deferred income taxes			794				4,249
Changes in operating assets and liabilities			(13,280	)			(69,117	)
Net cash provided by operating activities			143,995				98,833
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale investments			(266,842	)			(205,529	)
Sales of available-for-sale investments			277,111				179,139
Purchases of property and equipment			(2,997	)			(4,801	)
Net cash provided by (used in) investing activities			7,272				(31,191	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock			2,170				749
Purchase of treasury stock			(6,769	)			(2,729	)
Payments of employee tax associated with stock compensation			(3,435	)			(2,209	)
Payments of cash dividends and dividend equivalents			(23,156	)			(7,222	)
Release of cash held in escrow			(276	)			(1,000	)
Net cash used in financing activities			(31,466	)			(12,411	)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH			119,801				55,231
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of the period			119,021				118,884
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of the period		$	238,822			$	174,115

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED SELECTED SEGMENT INFORMATION
(In thousands, except percentages)
		For the Quarter Ended September 30,
		2024				2023
REVENUE:
CTU		$	115,742			$	120,552
AIUS			53,887				59,226
Corporate and Other			199				145
Total		$	169,828			$	179,923
OPERATING INCOME (LOSS):
CTU		$	44,199			$	34,491
AIUS			9,063				15,602
Corporate and Other			(8,468	)			(7,020	)
Total		$	44,794			$	43,073
OPERATING MARGIN (LOSS):
CTU			38.2	%			28.6	%
AIUS			16.8	%			26.3	%
Corporate and Other		NM				NM
Total			26.4	%			23.9	%

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED SELECTED SEGMENT INFORMATION
(In thousands, except percentages)
		For the Year to Date Ended September 30,
		2024				2023
REVENUE:
CTU		$	342,139			$	364,336
AIUS			162,114				197,128
Corporate and Other			579				621
Total		$	504,832			$	562,085
OPERATING INCOME (LOSS):
CTU		$	129,245			$	118,632
AIUS			31,275				44,683
Corporate and Other			(23,442	)			(28,812	)
Total		$	137,078			$	134,503
OPERATING MARGIN (LOSS):
CTU			37.8	%			32.6	%
AIUS			19.3	%			22.7	%
Corporate and Other		NM				NM
Total			27.2	%			23.9	%

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1)
(In thousands, unless otherwise noted)
		For the Quarter Ended September 30,								For the Year to Date Ended September 30,
		ACTUAL								ACTUAL
Adjusted Operating Income		2024				2023				2024				2023
Operating income		$	44,794			$	43,073			$	137,078			$	134,503
Depreciation and amortization			3,053				3,914				9,138				13,438
Legal fee expense related to certain matters (2)			719				246				2,764				7,574
Adjusted Operating Income		$	48,566			$	47,233			$	148,980			$	155,515
		For the Quarter Ending December 31,								For the Year Ending December 31,
		OUTLOOK				ACTUAL				OUTLOOK				ACTUAL
		2024				2023				2024				2023
Operating income		$33.0M - $36.0M				$	15,943			$170.1M - $173.1M				$	150,446
Depreciation and amortization		5.5M					3,449			14.6M					16,887
Legal fee expense related to certain matters (2)		0.5M					5			3.3M					7,579
Adjusted Operating Income		$39.0M - $42.0M				$	19,397			$188.0M - $191.0M				$	174,912

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (cont’d)
		For the Quarter Ended September 30,								For the Year to Date Ended September 30,
		ACTUAL								ACTUAL
		2024				2023				2024				2023
Reported Earnings Per Diluted Share		$	0.57			$	0.62			$	1.73			$	1.92
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets			0.02				0.03				0.06				0.09
Legal fee expense related to certain matters (2)			0.01				-				0.04				0.11
Gain on sale of intangible asset (3)			-				-				-				(0.32	)
Total pre-tax adjustments		$	0.03			$	0.03			$	0.10			$	(0.12	)
Tax effect of adjustments (4)			(0.01	)			(0.01	)			(0.03	)			0.03
Total adjustments after tax			0.02				0.02				0.07				(0.09	)
Adjusted Earnings Per Diluted Share		$	0.59			$	0.64			$	1.80			$	1.83
		For the Quarter Ending December 31,								For the Year Ending December 31,
		OUTLOOK				ACTUAL				OUTLOOK				ACTUAL
		2024				2023				2024				2023
Reported Earnings Per Diluted Share		$0.43 - $0.46				$	0.26			$2.15 - $2.18				$	2.18
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets		0.03					0.02			0.09					0.11
Legal fee expense related to certain matters (2)		0.01					-			0.05					0.11
Gain on sale of intangible asset (3)			-				-				-				(0.32	)
Total pre-tax adjustments		0.04				$	0.02			0.14				$	(0.10	)
Tax effect of adjustments (4)		(0.01)					(0.01	)		(0.04)					0.02
Total adjustments after tax		0.03					0.01			0.10					(0.08	)
Adjusted Earnings Per Diluted Share		$0.46 - $0.49				$	0.27			$2.25 - $2.28				$	2.10

PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (cont’d)
(1)		The Company believes it is useful to present non-GAAP financial measures which exclude certain significant and non-cash items as a means to understand the performance of its operations. As a general matter, the Company uses non-GAAP financial measures in conjunction with results presented in accordance with GAAP to help analyze the performance of its operations, assist with preparing the annual operating plan, and measure performance for some forms of compensation. In addition, the Company believes that non-GAAP financial information is used by analysts and others in the investment community to analyze the Company’s historical results and to provide estimates of future performance.
		The Company believes adjusted operating income and adjusted earnings per diluted share allow it to analyze and assess its operations and compare current operating results with the operational performance of other companies in its industry because it does not give effect to potential differences caused by items it does not consider reflective of underlying operating performance, such as amortization for acquired intangible assets, significant legal settlements and legal fee expense related to certain matters. The Company believes the items it is adjusting for are not normal operating expenses necessary to run its business. In evaluating adjusted operating income and adjusted earnings per diluted share, investors should be aware that in the future the Company may incur expenses similar to the adjustments presented above. The presentation of adjusted operating income and adjusted earnings per diluted share should not be construed as an inference that the Company's future results will be unaffected by expenses that are unusual, non-routine or non-recurring. Adjusted operating income and adjusted earnings per diluted share have limitations as an analytical tool, and should not be considered in isolation, or as a substitute for net income, operating income, earnings per diluted share, or any other performance measure derived in accordance and reported under GAAP or as an alternative to cash flow from operating activities or as a measure of liquidity.
		Non-GAAP financial measures, when viewed in a reconciliation to corresponding GAAP financial measures, provide an additional way of viewing the Company’s results of operations and the factors and trends affecting the Company’s business. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding financial results presented in accordance with GAAP.
(2)		Legal fee expense associated with (i) responses to the Department relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts.
(3)		Non-cash gain associated with the sale of the LCB tradename in exchange for outstanding shares of Perdoceo's stock.
(4)		The tax effect of adjustments was calculated by multiplying the pre-tax adjustments with a tax rate of 25.0%. This tax rate is intended to reflect federal and state taxable jurisdictions as well as the nature of the adjustments.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241112617316/en/

Investors:

Alpha IR Group

Stephen Poe or Nick Nelson

(312) 445-2870

PRDO@alpha-ir.com

Or

Media:

Perdoceo Education Corporation

(847) 585-2600

media@perdoceoed.com

Source: Perdoceo Education Corporation

FAQ

What was Perdoceo Education's (PRDO) revenue in Q3 2024?

Perdoceo Education reported revenue of $169.8 million in Q3 2024, representing a 5.6% decrease from $179.9 million in the prior year quarter.

How much did PRDO's student enrollment grow in Q3 2024?

Total student enrollments increased by 11.0%, with CTU up 13.6% to 30,000 students and AIUS up 4.0% to 10,400 students.

What was PRDO's earnings per share in Q3 2024?

Perdoceo Education reported earnings per diluted share of $0.57 in Q3 2024, compared to $0.62 in the prior year quarter.

What dividend did PRDO declare for Q3 2024?

Perdoceo Education declared a quarterly dividend of $0.13 per share, payable on December 13, 2024, to shareholders of record as of December 2, 2024.