PRDO Perdoceo Education Corporation

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 31, 2024

 

Perdoceo Education Corporation

(Exact Name of Registrant as Specified in Charter)

 

Delaware		0-23245		36-3932190
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

1750 E. Golf Road, Schaumburg, IL		60173
(Address of Principal Executive Offices)		(Zip Code)

 

Registrant’s telephone number, including area code: (847) 781-3600

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	PRDO	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02. Results of Operations and Financial Condition.

On July 31, 2024, Perdoceo Education Corporation (the “Company”) issued a press release describing the Company’s financial results for the quarter and year to date ended June 30, 2024 and providing the Company’s 2024 outlook. A copy of the press release is being furnished as Exhibit 99.1, and the information contained therein is incorporated herein by reference. Following the issuance of the press release, the Company will host a conference call and webcast on which its financial results for the quarter and year to date ended June 30, 2024 and outlook will be discussed.

The information contained in Item 2.02 of this Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall the information be deemed incorporated by reference into any filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

 

The exhibits required by Item 601 of Regulation S-K are listed in the “Exhibit Index” which is contained in this Current Report on Form 8-K and are incorporated by reference herein.

 

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Exhibit Index

Exhibit Number		Description of Exhibits
99.1		Press release of the Company dated July 31, 2024 reporting the Company’s financial results for the quarter and year to date ended June 30, 2024.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

PERDOCEO EDUCATION CORPORATION
By:		/s/ Ashish R. Ghia
		Ashish R. Ghia
		Senior Vice President and Chief Financial Officer

 

Date: July 31, 2024

 

 

 

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Exhibit 99.1

 

 

PERDOCEO EDUCATION CORPORATION REPORTS SECOND QUARTER AND

YEAR TO DATE 2024 RESULTS

 

Increases second quarter per share dividend by 18.2% to $0.13 per share

Schaumburg, Ill. (July 31, 2024) – Perdoceo Education Corporation (NASDAQ: PRDO) today reported operating and financial results for the quarter and year to date ended June 30, 2024.

 

 

Second Quarter 2024 Results as Compared to Prior Year Quarter

 

 

 

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

 

 

 

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

 

"Our second quarter results exceeded expectations, as both of our academic institutions continued to experience high levels of student retention and engagement,” said Todd Nelson, President and Chief Executive Officer. “Our year-to-date results and enrollment trends have been supported by various operating process changes and technology upgrades within our onboarding, academic and student support processes. Our faculty and student support staff continue to focus on further enhancing student experiences and academic outcomes and we will continue to make informed investments in technology and student support processes.”

 

 

 

 

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REVENUE

 

 

		For the Quarter Ended June 30,												For the Year to Date Ended June 30,
Revenue ($ in thousands)		2024				2023				% Change				2024				2023				% Change
CTU		$	112,828			$	119,292				-5.4	%		$	226,397			$	243,784				-7.1	%
AIUS			53,722				67,062				-19.9	%			108,227				137,902				-21.5	%
Corporate and Other			190				210			NM					380				476			NM
Total		$	166,740			$	186,564				-10.6	%		$	335,004			$	382,162				-12.3	%

 

TOTAL STUDENT ENROLLMENTS

 

 

		At June 30,
Total Student Enrollments(1)		2024				2023				% Change
CTU			29,700				25,900				14.7	%
AIUS			9,900				12,100				-18.2	%
Total			39,600				38,000				4.2	%

 

 

 

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OPERATING INCOME

 

 

 

 

		For the Quarter Ended June 30,												For the Year to Date Ended June 30,
Operating Income ($ in thousands)		2024				2023				% Change				2024				2023				% Change
CTU		$	42,890			$	40,451				6.0	%		$	85,046			$	84,141				1.1	%
AIUS			12,926				17,078				-24.3	%			22,212				29,081				-23.6	%
Corporate and Other			(9,810	)			(9,435	)			-4.0	%			(14,974	)			(21,792	)			31.3	%
Total		$	46,006			$	48,094				-4.3	%		$	92,284			$	91,430				0.9	%

 

 

 

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 June 30,								For the Year to Date Ended June 30,
Adjusted Operating Income ($ in thousands)		2024				2023				2024				2023
Operating income		$	46,006			$	48,094			$	92,284			$	91,430
Depreciation and amortization			3,069				4,369				6,085				9,524
Legal fee expense related to certain matters (1)			1,815				2,709				2,045				7,328
Adjusted Operating Income		$	50,890			$	55,172			$	100,414			$	108,282
Increase (Decrease)			-7.8	%							-7.3	%

 

 

 

 

 

 

 

 

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NET INCOME AND EARNINGS PER DILUTED SHARE

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

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

 

 

		For the Quarter Ended June 30,								For the Year to Date Ended June 30,
		2024				2023				2024				2023
Reported Earnings Per Diluted Share		$	0.57			$	0.80			$	1.16			$	1.30
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets			0.02				0.03				0.04				0.07
Legal fee expense related to certain matters (1)			0.03				0.04				0.03				0.11
Gain on sale of intangible asset			-				(0.32	)			-				(0.32	)
Tax effect of adjustments (2)			(0.02	)			0.06				(0.02	)			0.03
Adjusted Earnings Per Diluted Share		$	0.60			$	0.61			$	1.21			$	1.19

 

 

 

 

 

 

 

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QUARTERLY DIVIDEND PAYMENT

 

On July 31, 2024, the board of directors approved its first dividend increase since implementing its dividend policy last year. The board of directors declared a quarterly dividend of $0.13 per share, an increase of 18.2%, which will be paid on September 13, 2024 for holders of record of common stock as of September 1, 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.

 

 

AGREEMENT TO ACQUIRE University of St. Augustine for Health sciences

 

On July 16, 2024, the Company announced that it has signed a definitive agreement to acquire 100% ownership of the University of St. Augustine for Health Sciences, LLC (USAHS). USAHS is one of the nation’s leading universities offering graduate health sciences degrees, primarily in physical therapy, occupational therapy, speech language therapy and nursing, as well as continuing education programs.

 

Perdoceo expects to pay approximately $142 million to $144 million in cash at closing. The actual cash paid will depend on adjustments for cash, debt and working capital based on the final closing balance sheet. Once completed, the Company expects that the acquisition will support further growth and diversification of its academic program offerings and will mark Perdoceo’s foray into health science degrees in a meaningful way. For the year ended December 31, 2023, USAHS had revenues of approximately $170 million, operating income of approximately $35 million and served approximately 4,500 graduate and post-graduate students across multiple health sciences disciplines. Perdoceo expects the transaction to be immediately accretive to the Company’s adjusted operating income beginning in 2025.

 

Please refer to our Form 8-K filed on July 16, 2024 for other details, material terms and other conditions related to the pending acquisition.

 

 

BALANCE SHEET AND CASH FLOW

 

 

		For the Quarter Ended June 30,												For the Year to Date Ended June 30,
Selected Cash Flow Items ($ in thousands)		2024				2023				% Change				2024				2023				% Change
Net cash provided by operating activities		$	38,525			$	61,648				-37.5	%		$	93,017			$	66,220				40.5	%
Capital expenditures		$	824			$	1,687				-51.2	%		$	2,022			$	3,612				-44.0	%

 

 

 

 

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OUTLOOK

The Company is providing the following third quarter outlook along with a full year 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 September 30,			For the Year Ending December 31,
	OUTLOOK	ACTUAL		OUTLOOK	ACTUAL
	2024	2023		2024	2023
Operating Income	$41.6M - $43.6M	$43,073		$161.8M - $172.8M	$150,446
Depreciation and amortization	$3.1M	$3,914		$14.1M	16,887
Legal fee expense related to certain matters (1)	$0.3M	$246		$3.1M	7,579
Adjusted Operating Income	$45.0M - $47.0M	$47,233		$179.0M - $190.0M	$174,912
Earnings Per Diluted Share	$0.51 - $0.53	$0.62		$2.04 - $2.16	$2.18
Amortization of acquired intangible assets	$0.02	$0.03		$0.08	$0.11
Legal fee expense related to certain matters (1)	-	-		$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	$0.52 - $0.54	$0.64		$2.13 - $2.25	$2.10

 

 

 

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 28% for the third quarter and approximately 27% 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.

 

 

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CONFERENCE CALL INFORMATION

 

Perdoceo Education Corporation will host a conference call on Wednesday, July 31, 2024 at 5:30 p.m. Eastern time to discuss second 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 5668214. Viewers can also access the conference call by following this link https://events.q4inc.com/attendee/614624375. 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.

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CONTACT

 

Investors:

Alpha IR Group

Sam Gibbons

(312) 445-2870

PRDO@alpha-ir.com

 

Or

 

Media:

Perdoceo Education Corporation

(847) 585-2600

media@perdoceoed.com

 

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PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

		June 30,				December 31,
		2024				2023
		(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents, unrestricted		$	127,852			$	118,009
Restricted cash			1,037				1,012
Short-term investments			546,273				485,135
Total cash and cash equivalents, restricted cash and short-term investments			675,162				604,156
Student receivables, net			34,855				29,398
Receivables, other			4,982				4,539
Prepaid expenses			12,558				11,712
Inventories			4,467				5,004
Other current assets			457				155
Total current assets			732,481				654,964
NON-CURRENT ASSETS:
Property and equipment, net			19,087				21,371
Right of use asset, net			16,455				19,096
Goodwill			241,162				241,162
Intangible assets, net			34,002				36,219
Student receivables, net			5,267				3,859
Deferred income tax assets, net			23,242				23,804
Other assets			6,545				6,841
TOTAL ASSETS		$	1,078,241			$	1,007,316
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Lease liability - operating		$	5,397			$	5,701
Accounts payable			13,267				10,766
Accrued expenses:
Payroll and related benefits			25,295				32,684
Advertising and marketing costs			6,984				7,196
Income taxes			6,502				3,974
Other			22,023				13,503
Deferred revenue			55,390				37,215
Total current liabilities			134,858				111,039
NON-CURRENT LIABILITIES:
Lease liability - operating			18,443				21,346
Other liabilities			25,416				33,510
Total non-current liabilities			43,859				54,856
STOCKHOLDERS' EQUITY:
Preferred stock			-				-
Common stock			910				903
Additional paid-in capital			701,153				694,798
Accumulated other comprehensive loss			(1,721	)			(666	)
Retained earnings			543,606				480,606
Treasury stock			(344,424	)			(334,220	)
Total stockholders' equity			899,524				841,421
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,078,241			$	1,007,316

 

 

 

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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,
		2024				% of Total Revenue				2023				% of Total Revenue
REVENUE:
Tuition and fees, net		$	165,404				99.2	%		$	184,520				98.9	%
Other			1,336				0.8	%			2,044				1.1	%
Total revenue			166,740								186,564
OPERATING EXPENSES:
Educational services and facilities			27,516				16.5	%			32,748				17.6	%
General and administrative			89,311				53.6	%			100,588				53.9	%
Depreciation and amortization			3,069				1.8	%			4,369				2.3	%
Asset impairment			838				0.5	%			765				0.4	%
Total operating expenses			120,734				72.4	%			138,470				74.2	%
Operating income			46,006				27.6	%			48,094				25.8	%
OTHER INCOME:
Interest income			7,190				4.3	%			4,531				2.4	%
Interest expense			(112	)			-0.1	%			(96	)			-0.1	%
Miscellaneous (expense) income			(70	)			0.0	%			22,074				11.8	%
Total other income			7,008				4.2	%			26,509				14.2	%
PRETAX INCOME			53,014				31.8	%			74,603				40.0	%
Provision for income taxes			14,585				8.7	%			19,930				10.7	%
NET INCOME			38,429				23.0	%			54,673				29.3	%
NET INCOME PER SHARE - BASIC:		$	0.59							$	0.81
NET INCOME PER SHARE -DILUTED:		$	0.57							$	0.80
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic			65,611								67,421
Diluted			67,077								68,533
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
		For the Quarter Ended June 30,
(In Thousands)		2024								2023
NET INCOME		$	38,429							$	54,673
OTHER COMPREHENSIVE LOSS, net of tax:
Foreign currency translation adjustments			(8	)							(3	)
Unrealized loss on investments			(93	)							(1,497	)
Total other comprehensive loss			(101	)							(1,500	)
COMPREHENSIVE INCOME		$	38,328							$	53,173

 

 

 

 

 

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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 June 30,
		2024				% of Total Revenue				2023				% of Total Revenue
REVENUE:
Tuition and fees, net		$	332,402				99.2	%		$	377,839				98.9	%
Other			2,602				0.8	%			4,323				1.1	%
Total revenue			335,004								382,162
OPERATING EXPENSES:
Educational services and facilities			57,374				17.1	%			66,599				17.4	%
General and administrative			176,793				52.8	%			213,274				55.8	%
Depreciation and amortization			6,085				1.8	%			9,524				2.5	%
Asset impairment			2,468				0.7	%			1,335				0.3	%
Total operating expenses			242,720				72.5	%			290,732				76.1	%
Operating income			92,284				27.5	%			91,430				23.9	%
OTHER INCOME:
Interest income			13,983				4.2	%			8,349				2.2	%
Interest expense			(447	)			-0.1	%			(191	)			0.0	%
Miscellaneous income			45				0.0	%			22,068				5.8	%
Total other income			13,581				4.1	%			30,226				7.9	%
PRETAX INCOME			105,865				31.6	%			121,656				31.8	%
Provision for income taxes			27,994				8.4	%			32,499				8.5	%
NET INCOME			77,871				23.2	%			89,157				23.3	%
NET INCOME PER SHARE - BASIC:		$	1.19							$	1.32
NET INCOME PER SHARE -DILUTED:		$	1.16							$	1.30
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic			65,583								67,328
Diluted			66,956								68,512
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
		For the Year to Date Ended June 30,
(In Thousands)		2024								2023
NET INCOME		$	77,871							$	89,157
OTHER COMPREHENSIVE LOSS, net of tax:
Foreign currency translation adjustments			(39	)							23
Unrealized loss on investments			(1,016	)							(197	)
Total other comprehensive loss			(1,055	)							(174	)
COMPREHENSIVE INCOME		$	76,816							$	88,983

 

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PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

		For the Year to Date Ended June 30,
		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	77,871			$	89,157
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairment			2,468				1,335
Gain on sale of asset			-				(22,086	)
Depreciation and amortization expense			6,085				9,524
Bad debt expense			12,631				18,927
Compensation expense related to share-based awards			4,557				4,315
Deferred income taxes			562				2,975
Changes in operating assets and liabilities			(11,157	)			(37,927	)
Net cash provided by operating activities			93,017				66,220
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale investments			(204,060	)			(159,183	)
Sales of available-for-sale investments			145,945				132,325
Purchases of property and equipment			(2,022	)			(3,612	)
Net cash used in investing activities			(60,137	)			(30,470	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock			1,805				313
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			(14,613	)			-
Net cash used in financing activities			(23,012	)			(4,625	)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH			9,868				31,125
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of the period			119,021				118,884
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of the period		$	128,889			$	150,009

 

 

 

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PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED SELECTED SEGMENT INFORMATION

(In thousands, except percentages)

 

 

		For the Quarter Ended June 30,
		2024				2023
REVENUE:
CTU		$	112,828			$	119,292
AIUS			53,722				67,062
Corporate and Other			190				210
Total		$	166,740			$	186,564
OPERATING INCOME (LOSS):
CTU		$	42,890			$	40,451
AIUS			12,926				17,078
Corporate and Other			(9,810	)			(9,435	)
Total		$	46,006			$	48,094
OPERATING MARGIN (LOSS):
CTU			38.0	%			33.9	%
AIUS			24.1	%			25.5	%
Corporate and Other		NM				NM
Total			27.6	%			25.8	%

 

 

 

 

 

 

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PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED SELECTED SEGMENT INFORMATION

(In thousands, except percentages)

 

 

		For the Year to Date Ended June 30,
		2024				2023
REVENUE:
CTU		$	226,397			$	243,784
AIUS			108,227				137,902
Corporate and Other			380				476
Total		$	335,004			$	382,162
OPERATING INCOME (LOSS):
CTU		$	85,046			$	84,141
AIUS			22,212				29,081
Corporate and Other			(14,974	)			(21,792	)
Total		$	92,284			$	91,430
OPERATING MARGIN (LOSS):
CTU			37.6	%			34.5	%
AIUS			20.5	%			21.1	%
Corporate and Other		NM				NM
Total			27.5	%			23.9	%

 

 

 

 

 

 

 

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PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1)

(In thousands, unless otherwise noted)

 

 

		For the Quarter Ended June 30,								For the Year to Date Ended June 30,
		ACTUAL								ACTUAL
Adjusted Operating Income		2024				2023				2024				2023
Operating income		$	46,006			$	48,094			$	92,284			$	91,430
Depreciation and amortization			3,069				4,369				6,085				9,524
Legal fee expense related to certain matters (2)			1,815				2,709				2,045				7,328
Adjusted Operating Income		$	50,890			$	55,172			$	100,414			$	108,282
		For the Quarter Ending September 30,								For the Year Ending December 31,
		OUTLOOK				ACTUAL				OUTLOOK				ACTUAL
		2024				2023				2024				2023
Operating income		$41.6M - $43.6M				$	43,073			$161.8M - $172.8M				$	150,446
Depreciation and amortization		3.1M					3,914			14.1M					16,887
Legal fee expense related to certain matters (2)		0.3M					246			3.1M					7,579
Adjusted Operating Income		$45.0M - $47.0M				$	47,233			$179.0M - $190.0M				$	174,912

 

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PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (cont’d)

 

		For the Quarter Ended June 30,								For the Year to Date Ended June 30,
		ACTUAL								ACTUAL
		2024				2023				2024				2023
Reported Earnings Per Diluted Share		$	0.57			$	0.80			$	1.16			$	1.30
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets			0.02				0.03				0.04				0.07
Legal fee expense related to certain matters (2)			0.03				0.04				0.03				0.11
Gain on sale of intangible asset (3)			-				(0.32	)			-				(0.32	)
Total pre-tax adjustments		$	0.05			$	(0.25	)		$	0.07			$	(0.14	)
Tax effect of adjustments (4)			(0.02	)			0.06				(0.02	)			0.03
Total adjustments after tax			0.03				(0.19	)			0.05				(0.11	)
Adjusted Earnings Per Diluted Share		$	0.60			$	0.61			$	1.21			$	1.19
		For the Quarter Ending September 30,								For the Year Ending December 31,
		OUTLOOK				ACTUAL				OUTLOOK				ACTUAL
		2024				2023				2024				2023
Reported Earnings Per Diluted Share		$0.51 - $0.53				$	0.62			$2.04 - $2.16				$	2.18
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets		0.02					0.03			0.08					0.11
Legal fee expense related to certain matters (2)			-				-			0.05					0.11
Gain on sale of intangible asset (3)			-				-				-				(0.32	)
Total pre-tax adjustments		$0.02				$	0.03			$0.13				$	(0.10	)
Tax effect of adjustments (4)		(0.01)					(0.01	)		(0.04)					0.02
Total adjustments after tax		0.01					0.02			0.09					(0.08	)
Adjusted Earnings Per Diluted Share		$0.52 - $0.54				$	0.64			$2.13 - $2.25				$	2.10

 

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PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ITEMS (1) (cont’d)

 

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.

 

 

 

 

 

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v3.24.2

Document and Entity Information	Jul. 31, 2024
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 31, 2024
Entity Registrant Name	Perdoceo Education Corporation
Entity Central Index Key	0001046568
Entity Emerging Growth Company	false
Entity File Number	0-23245
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-3932190
Entity Address, Address Line One	1750 E. Golf Road
Entity Address, City or Town	Schaumburg
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60173
City Area Code	(847)
Local Phone Number	781-3600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, $0.01 par value
Trading Symbol	PRDO
Security Exchange Name	NASDAQ

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