Perdoceo Education Corporation Reports Third Quarter and Year to Date 2022 Results
Perdoceo Education Corporation (PRDO) announced its operating and financial results for Q3 2022, reporting a 3.2% decline in revenue to $168.4 million and a 22.5% drop in operating income to $29.3 million. Year-to-date revenue also fell 2.6% to $519.1 million. Total student enrollments decreased by 2.1%, with CTU increasing by 2.7% while AIUS saw a significant 9.5% decline. The company ended Q3 with $525.2 million in cash and raised its full-year operating income outlook, anticipating improved student retention.
- Improved student retention and engagement, raising full-year operating income outlook.
- Strong cash position with $525.2 million in available funds.
- Revenue decreased by 3.2% in Q3 2022 compared to Q3 2021.
- Operating income fell by 22.5% in Q3 2022 compared to Q3 2021.
- Total student enrollments dropped by 2.1%, with AIUS declining by 9.5%.
Third Quarter 2022 Results as Compared to Prior
-
Revenue decreased
3.2% to , with a$168.4 million 6.9% decrease at CTU partially offset by a2.4% increase at AIUS. -
Operating income decreased
22.5% to , while adjusted operating income decreased$29.3 million 16.5% to .*$38.7 million -
Earnings per diluted share was
as compared to$0.32 , while adjusted earnings per diluted share was$0.39 as compared to$0.39 .*$0.45 -
Total student enrollments at
September 30, 2022 decreased by2.1% . CTU experienced a2.7% increase in total student enrollments that was more than offset by a9.5% decrease at AIUS. -
Ended the quarter with
in cash, cash equivalents, restricted cash and available-for-sale-short-term investments.$525.2 million
Year to Date 2022 Results as Compared to Prior Year to Date
-
Total revenue decreased
2.6% to , with a$519.1 million 0.5% decline at CTU and a5.7% decline at AIUS. -
Operating income decreased
6.5% to , while adjusted operating income decreased$107.0 million 1.5% to .*$131.5 million -
Earnings per diluted share was
as compared to$1.16 for the prior year period, while adjusted earnings per diluted share was$1.19 as compared to$1.32 .*$1.29
*See GAAP (
"During the quarter, student retention and engagement experienced meaningful improvements, and we now expect our full year operating income to be higher than the previously provided outlook,” said
REVENUE
-
For the quarter ended
September 30, 2022 , total revenue of decreased$168.4 million 3.2% compared to total revenue of for the prior year quarter.$174.0 million -
For the year to date ended
September 30, 2022 , total revenue of decreased$519.1 million 2.6% compared to total revenue of for the prior year to date.$533.2 million
|
|
For the Quarter Ended
|
|
|
For the Year to Date Ended
|
|
||||||||||||||||||||
Revenue ($ in thousands) |
|
2022(1) |
|
|
|
2021 |
|
|
% Change |
|
|
2022(1) |
|
|
|
2021 |
|
|
% Change |
|
||||||
CTU |
|
$ |
97,562 |
|
|
|
$ |
104,788 |
|
|
|
-6.9 |
% |
|
$ |
311,171 |
|
|
|
$ |
312,645 |
|
|
|
-0.5 |
% |
AIUS |
|
|
70,582 |
|
|
|
|
68,948 |
|
|
|
2.4 |
% |
|
|
207,034 |
|
|
|
|
219,648 |
|
|
|
-5.7 |
% |
Corporate and Other |
|
|
276 |
|
|
|
|
262 |
|
|
NM |
|
|
|
858 |
|
|
|
|
882 |
|
|
NM |
|
||
Total |
|
$ |
168,420 |
|
|
|
$ |
173,998 |
|
|
|
-3.2 |
% |
|
$ |
519,063 |
|
|
|
$ |
533,175 |
|
|
|
-2.6 |
% |
(1) |
AIUS’ results of operations include an acquisition completed on |
TOTAL STUDENT ENROLLMENTS
-
As of
September 30, 2022 , CTU’s total student enrollments increased2.7% , while AIUS’ total student enrollments decreased9.5% as compared to the prior year quarter end.
|
|
At |
|
|||||||||
Total Student Enrollments(1) |
|
2022 |
|
|
2021 |
|
|
% Change |
|
|||
CTU |
|
|
26,500 |
|
|
|
25,800 |
|
|
|
2.7 |
% |
AIUS |
|
|
15,200 |
|
|
|
16,800 |
|
|
|
-9.5 |
% |
Total |
|
|
41,700 |
|
|
|
42,600 |
|
|
|
-2.1 |
% |
(1) |
Total student enrollments do not include learners participating in: a) non-degree seeking professional development and continuing education offerings, and b) degree seeking, non-Title IV, self-paced programs at our universities |
OPERATING INCOME
-
For the quarter ended
September 30, 2022 , operating income decreased by22.5% to as compared to the prior year quarter.$29.3 million
-
For the year to date ended
September 30, 2022 , operating income decreased by6.5% to as compared to the prior year to date.$107.0 million
|
|
For the Quarter Ended
|
|
|
For the Year to Date Ended
|
|
||||||||||||||||||
Operating Income ($ in thousands) |
|
2022(1) |
|
|
2021 |
|
|
% Change |
|
|
2022(1) |
|
|
2021 |
|
|
% Change |
|
||||||
CTU |
|
$ |
31,506 |
|
|
$ |
41,217 |
|
|
|
-23.6 |
% |
|
$ |
107,540 |
|
|
$ |
112,758 |
|
|
|
-4.6 |
% |
AIUS |
|
|
9,590 |
|
|
|
8,334 |
|
|
|
15.1 |
% |
|
|
29,846 |
|
|
|
28,875 |
|
|
|
3.4 |
% |
Corporate and Other |
|
|
(11,772 |
) |
|
|
(11,690 |
) |
|
NM |
|
|
|
(30,423 |
) |
|
|
(27,193 |
) |
|
NM |
|
||
Total |
|
$ |
29,324 |
|
|
$ |
37,861 |
|
|
|
-22.5 |
% |
|
$ |
106,963 |
|
|
$ |
114,440 |
|
|
|
-6.5 |
% |
(1) |
AIUS’ results of operations include an acquisition completed on |
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, 2022 , adjusted operating income of decreased$38.7 million 16.5% compared to adjusted operating income of for the prior year quarter.$46.3 million
-
For the year to date ended
September 30, 2022 , adjusted operating income of decreased$131.5 million 1.5% compared to adjusted operating income of for the prior year to date.$133.5 million
|
|
For the Quarter Ended
|
|
|
For the Year to Date Ended
|
|
||||||||||
Adjusted Operating Income ($ in thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Operating income |
|
$ |
29,324 |
|
|
$ |
37,861 |
|
|
$ |
106,963 |
|
|
$ |
114,440 |
|
Depreciation and amortization (1) |
|
|
5,065 |
|
|
|
3,887 |
|
|
|
14,856 |
|
|
|
11,802 |
|
Legal fee expense related to certain matters (2) |
|
|
4,294 |
|
|
|
4,583 |
|
|
|
9,728 |
|
|
|
7,241 |
|
Adjusted Operating Income |
|
$ |
38,683 |
|
|
$ |
46,331 |
|
|
$ |
131,547 |
|
|
$ |
133,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Increase (Decrease) |
|
|
-16.5 |
% |
|
|
|
|
|
-1.5 |
% |
|
|
|
(1) |
Amortization relates to definite-lived intangible assets associated with acquisitions. |
|
|
|
|
(2) |
Legal fee expense associated with (i) responses to the |
NET INCOME AND EARNINGS PER DILUTED SHARE
For the quarter ended
-
Net income of
compared to$22.1 million for the prior year quarter.$27.8 million -
Earnings per diluted share of
compared to$0.32 for the prior year quarter.$0.39 -
Adjusted earnings per diluted share of
compared$0.39 for the prior year quarter. (See table below and the GAAP to non-GAAP reconciliation attached to this press release for further details.)$0.45
For the year to date ended
-
Net income of
compared to$79.9 million for the prior year to date.$85.2 million -
Earnings per diluted share of
compared to$1.16 for the prior year to date.$1.19 -
Adjusted earnings per diluted share of
compared to$1.32 for the prior year to date. (See table below and the GAAP to non-GAAP reconciliation attached to this press release for further details.)$1.29
|
|
For the Quarter Ended
|
|
|
For the Year to Date Ended
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reported Earnings Per Diluted Share |
|
$ |
0.32 |
|
|
$ |
0.39 |
|
|
$ |
1.16 |
|
|
$ |
1.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pre-tax adjustments included in operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization for acquired intangible assets (1) |
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.08 |
|
|
|
0.03 |
|
Legal fee expense related to certain matters (2) |
|
|
0.06 |
|
|
|
0.06 |
|
|
|
0.14 |
|
|
|
0.10 |
|
Tax effect of adjustments (3) |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.06 |
) |
|
|
(0.03 |
) |
Adjusted Earnings Per Diluted Share |
|
$ |
0.39 |
|
|
$ |
0.45 |
|
|
$ |
1.32 |
|
|
$ |
1.29 |
|
(1) |
Amortization relates to definite-lived intangible assets associated with acquisitions. |
|
|
|
|
(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) |
The tax effect of adjustments was calculated by multiplying the pre-tax adjustments with a tax rate of |
BALANCE SHEET AND CASH FLOW
-
For the quarter ended
September 30, 2022 , net cash provided by operating activities was , compared to net cash provided by operating activities of$52.9 million for the prior year quarter.$61.5 million -
At
September 30, 2022 andDecember 31, 2021 , cash, cash equivalents, restricted cash and available-for-sale short-term investments totaled and$525.2 million , respectively.$499.4 million
|
|
For the Quarter Ended
|
|
|
For the Year to Date Ended
|
|
||||||||||||||||||
Selected Cash Flow Items ($ in thousands) |
|
2022 |
|
|
2021 |
|
|
% Change |
|
|
2022 |
|
|
2021 |
|
|
% Change |
|
||||||
Net cash provided by operating activities |
|
$ |
52,861 |
|
|
$ |
61,461 |
|
|
|
-14.0 |
% |
|
$ |
107,640 |
|
|
$ |
144,206 |
|
|
|
-25.4 |
% |
Business acquisitions, net of
|
|
$ |
32,037 |
|
|
$ |
56,947 |
|
|
|
-43.7 |
% |
|
$ |
39,037 |
|
|
$ |
56,947 |
|
|
|
-31.5 |
% |
Capital expenditures |
|
$ |
2,340 |
|
|
$ |
3,217 |
|
|
|
-27.3 |
% |
|
$ |
9,105 |
|
|
$ |
6,276 |
|
|
|
45.1 |
% |
OUTLOOK
The Company is raising its full year outlook, supported by improved student retention and engagement, and is 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 |
|
For the Year Ending |
||
|
OUTLOOK |
ACTUAL |
|
OUTLOOK |
ACTUAL |
|
2022 |
2021 |
|
2022 |
2021 |
Operating Income |
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
Legal fee expense related to certain matters (1) |
|
|
|
|
|
Adjusted Operating Income |
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Diluted Share |
|
|
|
|
|
Amortization of acquired intangible assets |
|
|
|
|
|
Legal fee expense related to certain matters (1) |
|
|
|
|
|
Tax effect of adjustments |
( |
( |
|
( |
( |
Adjusted Earnings Per Diluted Share |
|
|
|
|
|
(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 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 2022 are based on the following key assumptions and factors, among others: (i) prospective student interest in the Company’s programs and student retention remain consistent with management’s estimates, (ii) no significant impact of new or proposed regulations, including recent
CONFERENCE CALL INFORMATION
ABOUT
Perdoceo’s 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 accredited institutions –
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; 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 90-10, financial responsibility and administrative capability standards prescribed by the
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
2022 |
|
|
2021 |
|
||
|
|
(unaudited) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
CURRENT ASSETS: |
|
|
|
|
|
|
||
Cash and cash equivalents, unrestricted |
|
$ |
147,120 |
|
|
$ |
319,982 |
|
Restricted cash |
|
|
2,191 |
|
|
|
5,196 |
|
Short-term investments |
|
|
375,871 |
|
|
|
174,213 |
|
Total cash and cash equivalents, restricted cash and short-term investments |
|
|
525,182 |
|
|
|
499,391 |
|
|
|
|
|
|
|
|
||
Student receivables, net |
|
|
43,059 |
|
|
|
43,033 |
|
Receivables, other |
|
|
2,261 |
|
|
|
1,692 |
|
Prepaid expenses |
|
|
9,251 |
|
|
|
6,919 |
|
Inventories |
|
|
2,041 |
|
|
|
904 |
|
Other current assets |
|
|
521 |
|
|
|
2,514 |
|
Total current assets |
|
|
582,315 |
|
|
|
554,453 |
|
|
|
|
|
|
|
|
||
NON-CURRENT ASSETS: |
|
|
|
|
|
|
||
Property and equipment, net |
|
|
26,290 |
|
|
|
28,355 |
|
Right of use asset, net |
|
|
30,313 |
|
|
|
36,664 |
|
|
|
|
184,135 |
|
|
|
162,579 |
|
Intangible assets, net |
|
|
44,262 |
|
|
|
32,208 |
|
Student receivables, net |
|
|
1,328 |
|
|
|
1,372 |
|
Deferred income tax assets, net |
|
|
24,015 |
|
|
|
25,114 |
|
Other assets |
|
|
6,545 |
|
|
|
6,688 |
|
TOTAL ASSETS |
|
$ |
899,203 |
|
|
$ |
847,433 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
CURRENT LIABILITIES: |
|
|
|
|
|
|
||
Lease liability - operating |
|
$ |
5,963 |
|
|
$ |
9,400 |
|
Accounts payable |
|
|
13,285 |
|
|
|
10,838 |
|
Accrued expenses: |
|
|
|
|
|
|
||
Payroll and related benefits |
|
|
26,733 |
|
|
|
25,312 |
|
Advertising and marketing costs |
|
|
9,550 |
|
|
|
8,690 |
|
Income taxes |
|
|
8,082 |
|
|
|
211 |
|
Other |
|
|
14,813 |
|
|
|
15,180 |
|
Deferred revenue |
|
|
61,978 |
|
|
|
70,613 |
|
Total current liabilities |
|
|
140,404 |
|
|
|
140,244 |
|
|
|
|
|
|
|
|
||
NON-CURRENT LIABILITIES: |
|
|
|
|
|
|
||
Lease liability - operating |
|
|
30,385 |
|
|
|
35,549 |
|
Other liabilities |
|
|
22,192 |
|
|
|
21,530 |
|
Total non-current liabilities |
|
|
52,577 |
|
|
|
57,079 |
|
|
|
|
|
|
|
|
||
STOCKHOLDERS' EQUITY: |
|
|
|
|
|
|
||
Preferred stock |
|
|
- |
|
|
|
- |
|
Common stock |
|
|
894 |
|
|
|
887 |
|
Additional paid-in capital |
|
|
681,385 |
|
|
|
674,242 |
|
Accumulated other comprehensive loss |
|
|
(6,317 |
) |
|
|
(96 |
) |
Retained earnings |
|
|
331,884 |
|
|
|
251,972 |
|
|
|
|
(301,624 |
) |
|
|
(276,895 |
) |
Total stockholders' equity |
|
|
706,222 |
|
|
|
650,110 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
899,203 |
|
|
$ |
847,433 |
|
|
|
|
|
|
|
|
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES |
||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||
(In thousands, except per share amounts and percentages) |
||||||||||||||||
|
|
For the Quarter Ended |
|
|||||||||||||
|
|
2022 |
|
|
% of
|
|
|
2021 |
|
|
% of
|
|
||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Tuition and fees, net |
|
$ |
166,437 |
|
|
|
98.8 |
% |
|
$ |
172,595 |
|
|
|
99.2 |
% |
Other |
|
|
1,983 |
|
|
|
1.2 |
% |
|
|
1,403 |
|
|
|
0.8 |
% |
Total revenue |
|
|
168,420 |
|
|
|
|
|
|
173,998 |
|
|
|
|
||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Educational services and facilities |
|
|
30,149 |
|
|
|
17.9 |
% |
|
|
25,961 |
|
|
|
14.9 |
% |
General and administrative |
|
|
103,882 |
|
|
|
61.7 |
% |
|
|
106,289 |
|
|
|
61.1 |
% |
Depreciation and amortization |
|
|
5,065 |
|
|
|
3.0 |
% |
|
|
3,887 |
|
|
|
2.2 |
% |
Total operating expenses |
|
|
139,096 |
|
|
|
82.6 |
% |
|
|
136,137 |
|
|
|
78.2 |
% |
Operating income |
|
|
29,324 |
|
|
|
17.4 |
% |
|
|
37,861 |
|
|
|
21.8 |
% |
OTHER INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
2,270 |
|
|
|
1.3 |
% |
|
|
154 |
|
|
|
0.1 |
% |
Interest expense |
|
|
(96 |
) |
|
|
-0.1 |
% |
|
|
(572 |
) |
|
|
-0.3 |
% |
Miscellaneous expense |
|
|
(206 |
) |
|
|
-0.1 |
% |
|
|
(117 |
) |
|
|
-0.1 |
% |
Total other income (expense) |
|
|
1,968 |
|
|
|
1.2 |
% |
|
|
(535 |
) |
|
|
-0.3 |
% |
PRETAX INCOME |
|
|
31,292 |
|
|
|
18.6 |
% |
|
|
37,326 |
|
|
|
21.5 |
% |
Provision for income taxes |
|
|
9,225 |
|
|
|
5.5 |
% |
|
|
9,557 |
|
|
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME |
|
|
22,067 |
|
|
|
13.1 |
% |
|
|
27,769 |
|
|
|
16.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME PER SHARE - BASIC: |
|
$ |
0.33 |
|
|
|
|
|
$ |
0.40 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME PER SHARE -DILUTED: |
|
$ |
0.32 |
|
|
|
|
|
$ |
0.39 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
WEIGHTED AVERAGE SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
67,506 |
|
|
|
|
|
|
70,089 |
|
|
|
|
||
Diluted |
|
|
68,550 |
|
|
|
|
|
|
71,466 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
|||||||||||||||
|
|
For the Quarter Ended |
|
|
|
|
||||||||||
(In Thousands) |
|
2022 |
|
|
|
|
|
2021 |
|
|
|
|
||||
NET INCOME |
|
$ |
22,067 |
|
|
|
|
|
$ |
27,769 |
|
|
|
|
||
OTHER COMPREHENSIVE LOSS, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation adjustments |
|
|
(138 |
) |
|
|
|
|
|
(74 |
) |
|
|
|
||
Unrealized (loss) gain on investments |
|
|
(3,005 |
) |
|
|
|
|
|
51 |
|
|
|
|
||
Total other comprehensive loss |
|
|
(3,143 |
) |
|
|
|
|
|
(23 |
) |
|
|
|
||
COMPREHENSIVE INCOME |
|
$ |
18,924 |
|
|
|
|
|
$ |
27,746 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|||||||||||||
|
|
2022 |
|
|
% of
|
|
|
2021 |
|
|
% of
|
|
||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Tuition and fees, net |
|
$ |
513,660 |
|
|
|
99.0 |
% |
|
$ |
530,230 |
|
|
|
99.4 |
% |
Other |
|
|
5,403 |
|
|
|
1.0 |
% |
|
|
2,945 |
|
|
|
0.6 |
% |
Total revenue |
|
|
519,063 |
|
|
|
|
|
|
533,175 |
|
|
|
|
||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Educational services and facilities |
|
|
85,506 |
|
|
|
16.5 |
% |
|
|
83,467 |
|
|
|
15.7 |
% |
General and administrative |
|
|
311,510 |
|
|
|
60.0 |
% |
|
|
323,466 |
|
|
|
60.7 |
% |
Depreciation and amortization |
|
|
14,856 |
|
|
|
2.9 |
% |
|
|
11,802 |
|
|
|
2.2 |
% |
Asset impairment |
|
|
228 |
|
|
|
0.0 |
% |
|
|
- |
|
|
|
0.0 |
% |
Total operating expenses |
|
|
412,100 |
|
|
|
79.4 |
% |
|
|
418,735 |
|
|
|
78.5 |
% |
Operating income |
|
|
106,963 |
|
|
|
20.6 |
% |
|
|
114,440 |
|
|
|
21.5 |
% |
OTHER INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
3,697 |
|
|
|
0.7 |
% |
|
|
835 |
|
|
|
0.2 |
% |
Interest expense |
|
|
(298 |
) |
|
|
-0.1 |
% |
|
|
(961 |
) |
|
|
-0.2 |
% |
Miscellaneous expense |
|
|
(521 |
) |
|
|
-0.1 |
% |
|
|
(22 |
) |
|
|
0.0 |
% |
Total other income (expense) |
|
|
2,878 |
|
|
|
0.6 |
% |
|
|
(148 |
) |
|
|
0.0 |
% |
PRETAX INCOME |
|
|
109,841 |
|
|
|
21.2 |
% |
|
|
114,292 |
|
|
|
21.4 |
% |
Provision for income taxes |
|
|
29,929 |
|
|
|
5.8 |
% |
|
|
29,121 |
|
|
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME |
|
|
79,912 |
|
|
|
15.4 |
% |
|
|
85,171 |
|
|
|
16.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME PER SHARE - BASIC: |
|
$ |
1.17 |
|
|
|
|
|
$ |
1.21 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME PER SHARE -DILUTED: |
|
$ |
1.16 |
|
|
|
|
|
$ |
1.19 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
WEIGHTED AVERAGE SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
68,193 |
|
|
|
|
|
|
70,179 |
|
|
|
|
||
Diluted |
|
|
69,131 |
|
|
|
|
|
|
71,649 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
|||||||||||||||
|
|
For the Year to Date Ended |
|
|
|
|
||||||||||
(In Thousands) |
|
2022 |
|
|
|
|
|
2021 |
|
|
|
|
||||
NET INCOME |
|
$ |
79,912 |
|
|
|
|
|
$ |
85,171 |
|
|
|
|
||
OTHER COMPREHENSIVE LOSS, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation adjustments |
|
|
(383 |
) |
|
|
|
|
|
(175 |
) |
|
|
|
||
Unrealized loss on investments |
|
|
(5,838 |
) |
|
|
|
|
|
(192 |
) |
|
|
|
||
Total other comprehensive loss |
|
|
(6,221 |
) |
|
|
|
|
|
(367 |
) |
|
|
|
||
COMPREHENSIVE INCOME |
|
$ |
73,691 |
|
|
|
|
|
$ |
84,804 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES |
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands) |
||||||||
|
|
For the Year to Date Ended
|
|
|||||
|
|
2022 |
|
|
2021 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income |
|
$ |
79,912 |
|
|
$ |
85,171 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Asset impairment |
|
|
228 |
|
|
|
- |
|
Depreciation and amortization expense |
|
|
14,856 |
|
|
|
11,802 |
|
Bad debt expense |
|
|
32,284 |
|
|
|
36,360 |
|
Compensation expense related to share-based awards |
|
|
6,234 |
|
|
|
11,287 |
|
Deferred income taxes |
|
|
1,099 |
|
|
|
9,938 |
|
Changes in operating assets and liabilities |
|
|
(26,973 |
) |
|
|
(10,352 |
) |
Net cash provided by operating activities |
|
|
107,640 |
|
|
|
144,206 |
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Purchases of available-for-sale investments |
|
|
(410,493 |
) |
|
|
(269,739 |
) |
Sales of available-for-sale investments |
|
|
202,927 |
|
|
|
357,280 |
|
Purchases of property and equipment |
|
|
(9,105 |
) |
|
|
(6,276 |
) |
Business acquisitions, net of cash acquired |
|
|
(39,037 |
) |
|
|
(56,947 |
) |
Net cash (used in) provided by investing activities |
|
|
(255,708 |
) |
|
|
24,318 |
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Issuance of common stock |
|
|
916 |
|
|
|
793 |
|
Purchase of treasury stock |
|
|
(23,117 |
) |
|
|
(5,372 |
) |
Payments of employee tax associated with stock compensation |
|
|
(1,612 |
) |
|
|
(2,034 |
) |
Release of cash held in escrow |
|
|
(3,986 |
) |
|
|
- |
|
Net cash used in financing activities |
|
|
(27,799 |
) |
|
|
(6,613 |
) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
(175,867 |
) |
|
|
161,911 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of the period |
|
|
325,178 |
|
|
|
109,684 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of the period |
|
$ |
149,311 |
|
|
$ |
271,595 |
|
|
|
|
|
|
|
|
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES |
||||||||
UNAUDITED SELECTED SEGMENT INFORMATION |
||||||||
(In thousands, except percentages) |
||||||||
|
|
For the Quarter Ended |
|
|||||
|
|
2022(1) |
|
|
2021 |
|
||
REVENUE: |
|
|
|
|
|
|
||
CTU |
|
$ |
97,562 |
|
|
$ |
104,788 |
|
AIUS |
|
|
70,582 |
|
|
|
68,948 |
|
Corporate and Other |
|
|
276 |
|
|
|
262 |
|
Total |
|
$ |
168,420 |
|
|
$ |
173,998 |
|
|
|
|
|
|
|
|
||
OPERATING INCOME (LOSS): |
|
|
|
|
|
|
||
CTU |
|
$ |
31,506 |
|
|
$ |
41,217 |
|
AIUS |
|
|
9,590 |
|
|
|
8,334 |
|
Corporate and Other |
|
|
(11,772 |
) |
|
|
(11,690 |
) |
Total |
|
$ |
29,324 |
|
|
$ |
37,861 |
|
|
|
|
|
|
|
|
||
OPERATING MARGIN (LOSS): |
|
|
|
|
|
|
||
CTU |
|
|
32.3 |
% |
|
|
39.3 |
% |
AIUS |
|
|
13.6 |
% |
|
|
12.1 |
% |
Corporate and Other |
|
NM |
|
|
NM |
|
||
Total |
|
|
17.4 |
% |
|
|
21.8 |
% |
|
|
|
|
|
|
|
(1) |
AIUS’ results of operations include the CalSouthern acquisition as of the |
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES |
||||||||
UNAUDITED SELECTED SEGMENT INFORMATION |
||||||||
(In thousands, except percentages) |
||||||||
|
|
For the Year to Date Ended
|
|
|||||
|
|
2022(1) |
|
|
2021 |
|
||
REVENUE: |
|
|
|
|
|
|
||
CTU |
|
$ |
311,171 |
|
|
$ |
312,645 |
|
AIUS |
|
|
207,034 |
|
|
|
219,648 |
|
Corporate and Other |
|
|
858 |
|
|
|
882 |
|
Total |
|
$ |
519,063 |
|
|
$ |
533,175 |
|
|
|
|
|
|
|
|
||
OPERATING INCOME (LOSS): |
|
|
|
|
|
|
||
CTU |
|
$ |
107,540 |
|
|
$ |
112,758 |
|
AIUS |
|
|
29,846 |
|
|
|
28,875 |
|
Corporate and Other |
|
|
(30,423 |
) |
|
|
(27,193 |
) |
Total |
|
$ |
106,963 |
|
|
$ |
114,440 |
|
|
|
|
|
|
|
|
||
OPERATING MARGIN (LOSS): |
|
|
|
|
|
|
||
CTU |
|
|
34.6 |
% |
|
|
36.1 |
% |
AIUS |
|
|
14.4 |
% |
|
|
13.1 |
% |
Corporate and Other |
|
NM |
|
|
NM |
|
||
Total |
|
|
20.6 |
% |
|
|
21.5 |
% |
|
|
|
|
|
|
|
(1) |
AIUS’ results of operations include the CalSouthern acquisition as of the |
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES |
||||||||||||||||
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) |
||||||||||||||||
(In thousands, unless otherwise noted) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
For the Quarter Ended
|
|
|
For the Year to Date Ended
|
|
||||||||||
|
|
ACTUAL |
|
|
ACTUAL |
|
||||||||||
Adjusted Operating Income |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Operating income |
|
$ |
29,324 |
|
|
$ |
37,861 |
|
|
$ |
106,963 |
|
|
$ |
114,440 |
|
Depreciation and amortization (2) |
|
|
5,065 |
|
|
|
3,887 |
|
|
|
14,856 |
|
|
|
11,802 |
|
Legal fee expense related to certain matters (3) |
|
|
4,294 |
|
|
|
4,583 |
|
|
|
9,728 |
|
|
|
7,241 |
|
Adjusted Operating Income |
|
$ |
38,683 |
|
|
$ |
46,331 |
|
|
$ |
131,547 |
|
|
$ |
133,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
For the Quarter Ending
|
|
|
For the Year Ending
|
|
||||||||||
|
|
OUTLOOK |
|
|
ACTUAL |
|
|
OUTLOOK |
|
|
ACTUAL |
|
||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Operating income |
|
|
|
|
$ |
34,576 |
|
|
|
|
|
$ |
149,016 |
|
||
Depreciation and amortization (2) |
|
5.2M |
|
|
|
4,964 |
|
|
20.1M |
|
|
|
16,766 |
|
||
Legal fee expense related to certain matters (3) |
|
3.0M |
|
|
|
2,494 |
|
|
12.7M |
|
|
|
9,735 |
|
||
Adjusted Operating Income |
|
|
|
|
$ |
42,034 |
|
|
|
|
|
$ |
175,517 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES |
||||||||||||||||
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (cont’d) |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
For the Quarter Ended
|
|
|
For the Year to Date Ended
|
|
||||||||||
|
|
ACTUAL |
|
|
ACTUAL |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Reported Earnings Per Diluted Share |
|
$ |
0.32 |
|
|
$ |
0.39 |
|
|
$ |
1.16 |
|
|
$ |
1.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pre-tax adjustments included in operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization for acquired intangible assets (2) |
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.08 |
|
|
|
0.03 |
|
Legal fee expense related to certain matters (3) |
|
|
0.06 |
|
|
|
0.06 |
|
|
|
0.14 |
|
|
|
0.10 |
|
Total pre-tax adjustments |
|
$ |
0.09 |
|
|
$ |
0.07 |
|
|
$ |
0.22 |
|
|
$ |
0.13 |
|
Tax effect of adjustments (4) |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.06 |
) |
|
|
(0.03 |
) |
Total adjustments after tax |
|
|
0.07 |
|
|
|
0.06 |
|
|
|
0.16 |
|
|
|
0.10 |
|
Adjusted Earnings Per Diluted Share |
|
$ |
0.39 |
|
|
$ |
0.45 |
|
|
$ |
1.32 |
|
|
$ |
1.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
For the Quarter Ending
|
|
|
For the Year Ending
|
|
||||||||||
|
|
OUTLOOK |
|
|
ACTUAL |
|
|
OUTLOOK |
|
|
ACTUAL |
|
||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Reported Earnings Per Diluted Share |
|
|
|
|
$ |
0.35 |
|
|
|
|
|
$ |
1.55 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pre-tax adjustments included in operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization for acquired intangible assets (2) |
|
|
0.03 |
|
|
|
0.03 |
|
|
0.11 |
|
|
|
0.06 |
|
|
Legal fee expense related to certain matters (3) |
|
|
0.04 |
|
|
|
0.04 |
|
|
0.19 |
|
|
|
0.14 |
|
|
Total pre-tax adjustments |
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.30 |
|
|
$ |
0.20 |
|
Tax effect of adjustments (4) |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
(0.08) |
|
|
|
(0.05 |
) |
|
Total adjustments after tax |
|
0.05 |
|
|
|
0.05 |
|
|
0.22 |
|
|
|
0.15 |
|
||
Adjusted Earnings Per Diluted Share |
|
|
|
|
$ |
0.40 |
|
|
|
|
|
$ |
1.70 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
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. 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. |
|
|
Results of operations include the CalSouthern acquisition as of |
|
(2) |
Amortization for acquired intangible assets relate to definite-lived intangible assets associated with acquisitions. |
|
(3) |
Legal fee expense associated with (i) responses to the Department relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts. |
|
|
|
|
(4) |
The tax effect of adjustments was calculated by multiplying the pre-tax adjustments with a tax rate of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221107006030/en/
Investors:
(312) 445-2870
PRDO@alpha-ir.com
Or
Media:
(847) 585-2600
media@perdoceoed.com
Source:
FAQ
What were Perdoceo's Q3 2022 revenue figures?
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What is Perdoceo's outlook for the rest of 2022?
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