SCHAUMBURG, Ill.–(BUSINESS WIRE)–Perdoceo Education Corporation (NASDAQ: PRDO) today reported operating and financial results for quarter and year to date ended June 30, 2021.
Second Quarter 2021 Results as Compared to Prior Year Quarter
- Revenue decreased 0.3 percent to $175.5 million. Revenue declined at AIU, partially offset by growth at CTU.
- Operating income decreased 3.8 percent to $36.0 million while adjusted operating income increased 1.8 percent to $42.3 million.*
- Earnings per diluted share was $0.37 as compared to $0.40 while adjusted earnings per diluted share was $0.41 for each period.*
- Total student enrollments at June 30, 2021 increased by 7.5 percent, with CTU experiencing a 14.2 percent increase that was partially offset by a 1.8 percent decrease within AIU. Total student enrollments at CTU were positively impacted by the academic calendar redesign.
- Ended the quarter with $480.7 million in cash, cash equivalents, restricted cash and available-for-sale-short-term investments.
Year to Date 2021 Results as Compared to Prior Year to Date
- Revenue increased 3.5 percent to $359.2 million with both CTU and AIU contributing to the growth.
- Operating income increased 2.6 percent to $76.6 million while adjusted operating income increased 6.8 percent to $87.2 million.*
- Earnings per diluted share was $0.80 for both the current and prior year to date periods while adjusted earnings per diluted share was $0.85 as compared to $0.81.*
*See GAAP (U.S. generally accepted accounting principles) to non-GAAP reconciliation attached to this press release
“Student experiences, retention and academic outcomes remain the focus of our operations as we and our students adjust to the evolving pandemic environment and its economic and social impacts,” said Todd Nelson, President and Chief Executive Officer. “We continue to optimize our operations to serve and educate students as efficiently and effectively as possible. Our balance sheet remains a source of strength that enables us to continue investing in our existing operations while also reviewing opportunities to acquire academic programs that will expand the breadth of our program offerings.”
BUSINESS ACQUISITION
On August 2, 2021, Perdoceo Education Corporation (the “Company”) acquired substantially all of the assets of DigitalCrafts. Launched in 2015, DigitalCrafts has helped provide individuals an opportunity in the technology area through reskilling and upskilling courses within the areas of web development, web design and cybersecurity. The acquisition of DigitalCrafts fits well with the Company’s overall objective of extending the breadth of our academic program offerings while diversifying revenue away from federal student financial aid funding. Learners are looking for ways to elevate their skills in a targeted manner without a long term commitment of time and the Company believes the programs at DigitalCrafts offer that opportunity.
The initial cash consideration for the acquisition of $16.25 million was funded with the Company’s available cash balances on the date of acquisition and is subject to a working capital adjustment. In addition, a post-closing contingent consideration payment of up to $2.5 million is expected to be paid in early 2024 based upon the level of achievement of certain financial metrics.
REVENUE
- For the quarter ended June 30, 2021, total revenue of $175.5 million decreased 0.3 percent compared to total revenue of $176.0 million for the prior year quarter. AIU’s revenue decline for the quarter ended June 30, 2021 was partially offset with CTU’s revenue increase.
- For the year to date ended June 30, 2021, total revenue of $359.2 million increased 3.5 percent compared to total revenue of $347.0 million for the prior year to date.
|
|
|
For the Quarter Ended June 30, |
|
|
For the Year to Date Ended June 30, |
|
||||||||||||||||||
|
Revenue ($ in thousands) |
|
2021 |
|
|
2020 |
|
|
% Change |
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
||||||
|
CTU |
|
$ |
102,035 |
|
|
$ |
100,193 |
|
|
|
1.8 |
% |
|
$ |
207,857 |
|
|
$ |
203,781 |
|
|
|
2.0 |
% |
|
AIU (1) |
|
|
73,223 |
|
|
|
75,835 |
|
|
|
-3.4 |
% |
|
|
150,700 |
|
|
|
143,231 |
|
|
|
5.2 |
% |
|
Corporate and Other |
|
|
281 |
|
|
|
7 |
|
|
NM |
|
|
|
620 |
|
|
|
17 |
|
|
NM |
|
||
|
Total |
|
$ |
175,539 |
|
|
$ |
176,035 |
|
|
|
-0.3 |
% |
|
$ |
359,177 |
|
|
$ |
347,029 |
|
|
|
3.5 |
% |
|
(1) |
AIU’s results of operations include the acquisition of substantially all of the assets of Trident University International (the “Trident acquisition”) commencing on the March 2, 2020 date of acquisition and therefore the year to date ended June 30, 2020 does not reflect a full six months of results for Trident. |
TOTAL STUDENT ENROLLMENTS
- CTU’s total student enrollments increased 14.2 percent as of June 30, 2021 as compared to June 30, 2020 due to the timing impact of the academic calendar redesign at CTU, while AIU’s total student enrollments decreased 1.8 percent.
|
|
|
At June 30, |
|
|||||||||
|
Total Student Enrollments |
|
2021 |
|
|
2020 |
|
|
% Change |
|
|||
|
CTU |
|
|
26,600 |
|
|
|
23,300 |
|
|
|
14.2 |
% |
|
AIU |
|
|
16,500 |
|
|
|
16,800 |
|
|
|
-1.8 |
% |
|
Total |
|
|
43,100 |
|
|
|
40,100 |
|
|
|
7.5 |
% |
OPERATING INCOME
- For the quarter ended June 30, 2021, operating income decreased by 3.8 percent to $36.0 million as compared to the prior year quarter.
- For the year to date ended June 30, 2021, operating income increased by 2.6 percent to $76.6 million as compared to the prior year to date.
|
|
|
For the Quarter Ended June 30, |
|
|
For the Year to Date Ended June 30, |
|
||||||||||||||||||
|
Operating Income ($ in thousands) |
|
2021 |
|
|
2020 |
|
|
% Change |
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
||||||
|
CTU |
|
$ |
35,398 |
|
|
$ |
33,076 |
|
|
|
7.0 |
% |
|
$ |
71,541 |
|
|
$ |
67,695 |
|
|
|
5.7 |
% |
|
AIU (1) |
|
|
9,218 |
|
|
|
10,476 |
|
|
|
-12.0 |
% |
|
|
20,541 |
|
|
|
19,852 |
|
|
|
3.5 |
% |
|
Corporate and Other |
|
|
(8,654 |
) |
|
|
(6,184 |
) |
|
|
-39.9 |
% |
|
|
(15,503 |
) |
|
|
(12,876 |
) |
|
|
-20.4 |
% |
|
Total |
|
$ |
35,962 |
|
|
$ |
37,368 |
|
|
|
-3.8 |
% |
|
$ |
76,579 |
|
|
$ |
74,671 |
|
|
|
2.6 |
% |
|
(1) |
AIU’s results of operations include the Trident acquisition commencing on the March 2, 2020 date of acquisition and therefore the year to date ended June 30, 2020 does not reflect a full six months of results for Trident. |
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 June 30, 2021, adjusted operating income of $42.3 million increased 1.8 percent compared to adjusted operating income of $41.5 million for the prior year quarter.
- For the year to date ended June 30, 2021, adjusted operating income of $87.2 million increased 6.8 percent compared to adjusted operating income of $81.6 million for the prior year to date.
|
|
|
For the Quarter Ended June 30, |
|
|
For the Year to Date Ended June 30, |
|
||||||||||
|
Adjusted Operating Income ($ in thousands) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 (1) |
|
||||
|
Operating income |
|
$ |
35,962 |
|
|
$ |
37,368 |
|
|
$ |
76,579 |
|
|
$ |
74,671 |
|
|
Depreciation and amortization |
|
|
3,913 |
|
|
|
4,151 |
|
|
|
7,915 |
|
|
|
6,790 |
|
|
Legal fee expense related to certain matters (1) |
|
|
2,416 |
|
|
|
22 |
|
|
|
2,658 |
|
|
|
163 |
|
|
Adjusted Operating Income (2) |
|
$ |
42,291 |
|
|
$ |
41,541 |
|
|
$ |
87,152 |
|
|
$ |
81,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) |
|
|
1.8 |
% |
|
|
|
|
|
|
6.8 |
% |
|
|
|
|
|
(1) |
Legal fee expense related to acquisitions and responses to the Department of Education (“the Department”) relating to borrower defense to repayment applications from former students. |
|
|
|
||
|
(2) |
Beginning in 2021, the Company no longer adjusts operating income for expenses related to the vacated facilities at closed campuses as these expenses are expected to be immaterial. Additionally, the Company began adjusting for legal fee expense related to acquisitions and responses to the Department related to borrower defense to repayment applications from former students during the second quarter of 2021. The Company believes that these expenses are not reflective of underlying operating performance. Prior period amounts were recast for these items to maintain comparability. |
NET INCOME AND EARNINGS PER DILUTED SHARE
For the quarter ended June 30, 2021, the Company recorded:
- Net income of $26.6 million compared to $28.2 million for the prior year quarter.
- Earnings per diluted share of $0.37 compared to $0.40 for the prior year quarter.
- Adjusted earnings per diluted share of $0.41 for both the current and 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 June 30, 2021, the Company recorded:
- Net income of $57.4 million compared to $57.3 million for the prior year to date.
- Earnings per diluted share of $0.80 for both the current and prior year to date.
- Adjusted earnings per diluted share of $0.85 compared $0.81 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 June 30, |
|
|
For the Year to Date Ended June 30, |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Earnings Per Diluted Share |
|
$ |
0.37 |
|
|
$ |
0.40 |
|
|
$ |
0.80 |
|
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax adjustments included in operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization for acquired intangible assets (1) |
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
Legal fee expense related to certain matters (2) |
|
|
0.04 |
|
|
|
– |
|
|
|
0.04 |
|
|
|
– |
|
|
Tax effect of adjustments (3) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
Adjusted Earnings Per Diluted Share (4) |
|
$ |
0.41 |
|
|
$ |
0.41 |
|
|
$ |
0.85 |
|
|
$ |
0.81 |
|
|
(1) |
Amortization for acquired intangible assets relates to definite-lived intangible assets associated with the Trident acquisition. |
|
|
(2) |
Legal fee expense related to acquisitions and responses to the Department related to borrower defense to repayment applications from former students. |
|
|
(3) |
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. |
|
|
(4) |
Beginning in 2021, the Company no longer adjusts earnings per diluted share for expenses related to vacated facilities at closed campuses as these expenses are expected to be immaterial. Additionally, the Company began adjusting for legal fee expense related to acquisitions and responses to the Department related to borrower defense to repayment applications from former students during the second quarter of 2021. The Company believes that these expenses are not reflective of underlying operating performance. Prior period amounts were recast for these items to maintain comparability. |
BALANCE SHEET AND CASH FLOW
- For the quarter ended June 30, 2021, net cash provided by operating activities was $38.0 million, compared to net cash provided by operating activities of $60.6 million during the prior year quarter. The quarter ended June 30, 2021 includes payments made for federal income taxes as compared to no payments in the prior year quarter.
- At June 30, 2021 and December 31, 2020, cash, cash equivalents, restricted cash and available-for-sale short-term investments totaled $480.7 million and $410.4 million, respectively.
|
|
|
For the Quarter Ended June 30, |
|
|
For the Year to Date Ended June 30, |
|
||||||||||||||||||
|
Selected Cash Flow Items ($ in thousands) |
|
2021 |
|
|
2020 |
|
|
% Change |
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
||||||
|
Net cash provided by operating activities |
|
$ |
38,037 |
|
|
$ |
60,596 |
|
|
|
-37.2 |
% |
|
$ |
82,745 |
|
|
$ |
105,364 |
|
|
|
-21.5 |
% |
|
Capital expenditures |
|
$ |
2,017 |
|
|
$ |
2,424 |
|
|
|
-16.8 |
% |
|
$ |
3,059 |
|
|
$ |
3,439 |
|
|
|
-11.0 |
% |
OUTLOOK
The Company is providing the following outlook, subject to the key assumptions identified below. The Company has not adjusted its outlook to reflect the acquisition of DigitalCrafts because it currently believes that the acquisition will not significantly impact its 2021 operating results. 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 September 30, |
|
For the Year Ending December 31, |
||
|
|
OUTLOOK |
ACTUAL |
|
OUTLOOK |
ACTUAL |
|
|
2021 |
2020 |
|
2021 |
2020 |
|
Operating Income |
$35.5M – $37.0M |
$32.1M |
|
$146.3M – $152.3M |
$142.9M |
|
Depreciation and amortization |
$4.0M |
$4.0M |
|
$16.0M |
$14.8M |
|
Legal fee expense related to certain matters (1) |
– |
– |
|
$2.7M |
$1.3M |
|
Adjusted Operating Income (2) |
$39.5M – $41.0M |
$36.1M |
|
$165.0M – $171.0M |
$159.0M |
|
|
|
|
|
|
|
|
Earnings Per Diluted Share |
$0.37 – $0.38 |
$0.56 |
|
$1.52 – $1.58 |
$1.74 |
|
Amortization of acquired intangible assets |
$0.01 |
$0.01 |
|
$0.04 |
$0.04 |
|
Legal fee expense related to certain matters (1) |
– |
– |
|
$0.04 |
$0.02 |
|
Tax effect of adjustments |
– |
– |
|
($0.02) |
($0.02) |
|
Release of valuation allowance |
– |
$0.22 |
|
– |
($0.22) |
|
Adjusted Earnings Per Diluted Share (2) |
$0.38 – $0.39 |
$0.35 |
|
$1.58 – $1.64 |
$1.56 |
|
(1) |
Legal fee expense related to acquisitions and responses to the Department related to borrower defense to repayment applications from former students. These amounts represent expense incurred through June 30, 2021 and do not include potential future expense for these matters because they cannot be reliably quantified without unreasonable efforts by the Company due to the inherent difficulty of forecasting the timing and amount of legal fee expense related to these matters. For the same reason, the Company is unable to address the probable significance of the unavailable information. Future legal fee expense related to these matters will impact the operating income and earnings per diluted share outlook amounts in the table above, which may cause these outlook amounts to vary materially from the actual GAAP results. |
|
|
|
||
|
(2) |
Beginning in 2021, the Company no longer adjusts operating income or earnings per diluted share for expenses related to vacated facilities at closed campuses as these expenses are expected to be immaterial. Additionally, the Company began adjusting for legal fee expense related to acquisitions and responses to the Department related to borrower defense to repayment applications from former students during the second quarter of 2021. The Company believes that these expenses are not reflective of underlying operating performance. Prior period amounts were recast for these items to maintain comparability. |
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 such as significant legal settlements and legal fees for certain matters. The operating income, adjusted operating income, earnings per share and adjusted earnings per share outlook provided above for 2021 are based on the following key assumptions and factors, among others: (i) prospective student interest for online postsecondary academic programs remains consistent with recent industry trends, (ii) no significant impact of new or proposed regulations, including the “borrower defense to repayment” regulations, or other adverse changes in the legal or regulatory environment, (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) no significant future operating or financial impacts relating to the COVID-19 pandemic, (v) earnings per diluted share outlook assumes an effective income tax rate of approximately 26.25% for the third quarter and full year, and (vi) any future impact from the Company’s stock repurchase program is excluded. 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 shareholder value may impact the outlook provided above.
CONFERENCE CALL INFORMATION
Perdoceo Education Corporation will host a conference call on Thursday, August 5, 2021 at 5:30 p.m. Eastern time to discuss second quarter and year to date 2021 results and 2021 outlook. Interested parties can access the live webcast of the conference at www.perdoceoed.com in the Investor Relations section of the website. Participants can also listen to the conference call by dialing 1-844-378-6484 (domestic) or 1-412-542-4179 (international). 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 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 – Colorado Technical University (“CTU”) and the American InterContinental University System (“AIU”) – provide degree programs through the master’s or doctoral level as well as associate and bachelor’s levels. Perdoceo’s universities offer students industry-relevant and career-focused academic programs that are designed to meet the educational needs of today’s busy adults. CTU and AIU continue to show innovation in higher education, advancing personalized learning technologies like their intellipath® learning platform and using data analytics and technology to support students and enhance learning. 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; 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 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; rulemaking 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 eligibility to participate in educational assistance programs for veterans or other military personnel; increased competition; the impact of management changes; and changes in the overall U.S. economy which may continue to be impacted by the COVID-19 pandemic. 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, 2020 and its subsequent filings with the Securities and Exchange Commission.
|
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
||||||||
|
|
|
June 30, |
|
|
December 31, |
|
||
|
|
|
2021 |
|
|
2020 |
|
||
|
|
|
(unaudited) |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, unrestricted |
|
$ |
87,343 |
|
|
$ |
105,684 |
|
|
Restricted cash |
|
|
4,000 |
|
|
|
4,000 |
|
|
Short-term investments |
|
|
389,310 |
|
|
|
300,676 |
|
|
Total cash and cash equivalents, restricted cash and short-term investments |
|
|
480,653 |
|
|
|
410,360 |
|
|
|
|
|
|
|
|
|
|
|
|
Student receivables, net |
|
|
51,682 |
|
|
|
44,682 |
|
|
Receivables, other |
|
|
2,568 |
|
|
|
2,873 |
|
|
Prepaid expenses |
|
|
10,986 |
|
|
|
8,209 |
|
|
Inventories |
|
|
619 |
|
|
|
596 |
|
|
Other current assets |
|
|
2,637 |
|
|
|
341 |
|
|
Total current assets |
|
|
549,145 |
|
|
|
467,061 |
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
24,807 |
|
|
|
27,761 |
|
|
Right of use asset, net |
|
|
40,821 |
|
|
|
44,773 |
|
|
Goodwill |
|
|
118,312 |
|
|
|
118,312 |
|
|
Intangible assets, net |
|
|
13,856 |
|
|
|
15,522 |
|
|
Student receivables, net |
|
|
1,467 |
|
|
|
1,303 |
|
|
Deferred income tax assets, net |
|
|
31,782 |
|
|
|
40,351 |
|
|
Other assets |
|
|
6,229 |
|
|
|
6,434 |
|
|
TOTAL ASSETS |
|
$ |
786,419 |
|
|
$ |
721,517 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
|
Lease liability – operating |
|
$ |
9,779 |
|
|
$ |
9,789 |
|
|
Accounts payable |
|
|
11,533 |
|
|
|
13,259 |
|
|
Accrued expenses: |
|
|
|
|
|
|
|
|
|
Payroll and related benefits |
|
|
19,495 |
|
|
|
22,661 |
|
|
Advertising and marketing costs |
|
|
11,615 |
|
|
|
10,249 |
|
|
Income taxes |
|
|
1,522 |
|
|
|
1,402 |
|
|
Other |
|
|
18,614 |
|
|
|
11,921 |
|
|
Deferred revenue |
|
|
45,214 |
|
|
|
34,534 |
|
|
Total current liabilities |
|
|
117,772 |
|
|
|
103,815 |
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
|
Lease liability – operating |
|
|
40,565 |
|
|
|
43,405 |
|
|
Other liabilities |
|
|
14,470 |
|
|
|
18,390 |
|
|
Total non-current liabilities |
|
|
55,035 |
|
|
|
61,795 |
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
– |
|
|
|
– |
|
|
Common stock |
|
|
879 |
|
|
|
873 |
|
|
Additional paid-in capital |
|
|
666,470 |
|
|
|
658,423 |
|
|
Accumulated other comprehensive income |
|
|
20 |
|
|
|
364 |
|
|
Retained earnings |
|
|
199,737 |
|
|
|
142,335 |
|
|
Treasury stock |
|
|
(253,494 |
) |
|
|
(246,088 |
) |
|
Total stockholders’ equity |
|
|
613,612 |
|
|
|
555,907 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
786,419 |
|
|
$ |
721,517 |
|
|
PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts and percentages) |
||||||||||||||||
|
|
|
For the Quarter Ended June 30, |
|
|||||||||||||
|
|
|
2021 |
|
|
% of Total Revenue |
|
|
2020 |
|
|
% of Total Revenue |
|
||||
|
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tuition and fees |
|
$ |
174,804 |
|
|
|
99.6 |
% |
|
$ |
175,499 |
|
|
|
99.7 |
% |
|
Other |
|
|
735 |
|
|
|
0.4 |
% |
|
|
536 |
|
|
|
0.3 |
% |
|
Total revenue |
|
|
175,539 |
|
|
|
|
|
|
|
176,035 |
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Educational services and facilities |
|
|
28,532 |
|
|
|
16.3 |
% |
|
|
28,676 |
|
|
|
16.3 |
% |
|
General and administrative |
|
|
107,132 |
|
|
|
61.0 |
% |
|
|
105,840 |
|
|
|
60.1 |
% |
|
Depreciation and amortization |
|
|
3,913 |
|
|
|
2.2 |
% |
|
|
4,151 |
|
|
|
2.4 |
% |
|
Total operating expenses |
|
|
139,577 |
|
|
|
79.5 |
% |
|
|
138,667 |
|
|
|
78.8 |
% |
|
Operating income |
|
|
35,962 |
|
|
|
20.5 |
% |
|
|
37,368 |
|
|
|
21.2 |
% |
|
OTHER INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
322 |
|
|
|
0.2 |
% |
|
|
1,011 |
|
|
|
0.6 |
% |
|
Interest expense |
|
|
(280 |
) |
|
|
-0.2 |
% |
|
|
(43 |
) |
|
|
0.0 |
% |
|
Miscellaneous (expense) income |
|
|
(35 |
) |
|
|
0.0 |
% |
|
|
125 |
|
|
|
0.1 |
% |
|
Total other income |
|
|
7 |
|
|
|
0.0 |
% |
|
|
1,093 |
|
|
|
0.6 |
% |
|
PRETAX INCOME |
|
|
35,969 |
|
|
|
20.5 |
% |
|
|
38,461 |
|
|
|
21.8 |
% |
|
Provision for income taxes |
|
|
9,319 |
|
|
|
5.3 |
% |
|
|
10,272 |
|
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS |
|
|
26,650 |
|
|
|
15.2 |
% |
|
|
28,189 |
|
|
|
16.0 |
% |
|
Loss from discontinued operations, net of tax |
|
|
(1 |
) |
|
|
0.0 |
% |
|
|
(22 |
) |
|
|
0.0 |
% |
|
NET INCOME |
|
|
26,649 |
|
|
|
15.2 |
% |
|
|
28,167 |
|
|
|
16.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER SHARE – BASIC: |
|
$ |
0.38 |
|
|
|
|
|
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER SHARE -DILUTED: |
|
$ |
0.37 |
|
|
|
|
|
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
70,299 |
|
|
|
|
|
|
|
69,094 |
|
|
|
|
|
|
Diluted |
|
|
71,679 |
|
|
|
|
|
|
|
70,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
|||||||||||||||
|
|
|
For the Quarter Ended June 30, |
|
|
|
|
|
|||||||||
|
(In Thousands) |
|
2021 |
|
|
|
|
|
|
2020 |
|
|
|
|
|
||
|
NET INCOME |
|
$ |
26,649 |
|
|
|
|
|
|
$ |
28,167 |
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
28 |
|
|
|
|
|
|
|
53 |
|
|
|
|
|
|
Unrealized (loss) gain on investments |
|
|
(22 |
) |
|
|
|
|
|
|
1,431 |
|
|
|
|
|
|
Total other comprehensive income |
|
|
6 |
|
|
|
|
|
|
|
1,484 |
|
|
|
|
|
|
COMPREHENSIVE INCOME |
|
$ |
26,655 |
|
|
|
|
|
|
$ |
29,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contacts
Investors:
Alpha IR Group
Wyatt Turk or Chris Hodges
(312) 445-2870
PRDO@alpha-ir.com
Or
Media:
Perdoceo Education Corporation
(847) 585-2600
media@perdoceoed.com
