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): February 21, 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 February 21, 2024, Perdoceo Education Corporation (the “Company”) issued a press release describing the Company’s financial results for the quarter and year ended December 31, 2023 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 ended December 31, 2023 and 2024 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 February 21, 2024 reporting the Company’s financial results for the quarter and year ended December 31, 2023.
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: February 21, 2024

 

 

 

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Exhibit 99.1

 

 

PERDOCEO EDUCATION CORPORATION REPORTS FOURTH QUARTER AND

FULL YEAR 2023 RESULTS

 

Schaumburg, Ill. (February 21, 2024) – Perdoceo Education Corporation (NASDAQ: PRDO) today reported operating and financial results for the quarter and year ended December 31, 2023.

 

 

Full Year 2023 Results as Compared to Prior Year

 

 

 

Fourth Quarter 2023 Results as Compared to Prior Year Quarter

 

 

 

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

 

"We delivered strong results for the full year 2023, supported by ongoing improvements in student retention and engagement across both our academic institutions,” said Todd Nelson, President and Chief Executive Officer. “We remain committed to making investments in our student support teams and technology that we believe will further enhance student retention and academic outcomes across both our academic institutions.”

 

 

 

 

 

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REVENUE

 

 

		For the Quarter Ended December 31,												For the Year Ended December 31,
Revenue ($ in thousands)		2023				2022				% Change				2023				2022				% Change
CTU		$	104,590			$	108,446				-3.6	%		$	468,926			$	419,617				11.8	%
AIUS			43,172				67,445				-36.0	%			240,300				274,479				-12.5	%
Corporate and Other			157				254			NM					778				1,112			NM
Total		$	147,919			$	176,145				-16.0	%		$	710,004			$	695,208				2.1	%

 

TOTAL STUDENT ENROLLMENTS

 

 

		At December 31,
Total Student Enrollments(1)		2023				2022				% Change
CTU			26,000				25,200				3.2	%
AIUS			8,500				14,000				-39.3	%
Total			34,500				39,200				-12.0	%

 

 

 

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OPERATING INCOME

 

 

 

 

		For the Quarter Ended December 31,												For the Year Ended December 31,
Operating Income ($ in thousands)		2023				2022				% Change				2023				2022				% Change
CTU		$	25,376			$	34,082				-25.5	%		$	144,008			$	141,622				1.7	%
AIUS			600				3,469				-82.7	%			45,283				33,315				35.9	%
Corporate and Other			(10,033	)			(14,877	)		NM					(38,845	)			(45,300	)		NM
Total		$	15,943			$	22,674				-29.7	%		$	150,446			$	129,637				16.1	%

 

 

 

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 December 31,								For the Year Ended December 31,
Adjusted Operating Income ($ in thousands)		2023				2022				2023				2022
Operating income		$	15,943			$	22,674			$	150,446			$	129,637
Depreciation and amortization (1)			3,449				4,878				16,887				19,734
Legal fee expense related to certain matters (2)			5				4,869				7,579				14,597
Adjusted Operating Income		$	19,397			$	32,421			$	174,912			$	163,968
Increase (Decrease)			-40.2	%							6.7	%

 

 

 

 

 

 

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NET INCOME AND EARNINGS PER DILUTED SHARE

For the quarter ended December 31, 2023, the Company recorded:

For the year ended December 31, 2023, the Company recorded:

 

 

		For the Quarter Ended December 31,								For the Year Ended December 31,
		2023				2022				2023				2022
Reported Earnings Per Diluted Share		$	0.26			$	0.23			$	2.18			$	1.39
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets (1)			0.02				0.03				0.11				0.11
Legal fee expense related to certain matters (2)			-				0.07				0.11				0.21
Gain on sale of intangible asset (3)			-				-				(0.32	)			-
Tax effect of adjustments (4)			(0.01	)			(0.02	)			0.02				(0.08	)
Adjusted Earnings Per Diluted Share		$	0.27			$	0.31			$	2.10			$	1.63

 

 

 

 

 

 

 

 

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DIVIDEND PAYMENT

 

The board of directors declared a quarterly dividend as part of the Company’s dividend policy of $0.11 per share, which will be paid on March 15, 2024 for holders of record of common stock as of March 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.

 

STOCK REPURCHASE PROGRAM

 

The board of directors approved a new stock repurchase program commencing March 1, 2024 which authorizes the Company to repurchase up to $50.0 million of the Company’s outstanding common stock. The program expires September 30, 2025 and replaces the existing stock repurchase program that expires on September 30, 2024.

 

 

BALANCE SHEET AND CASH FLOW

 

 

 

		For the Quarter Ended December 31,												For the Year Ended December 31,
Selected Cash Flow Items ($ in thousands)		2023				2022				% Change				2023				2022				% Change
Net cash provided by operating activities		$	13,192			$	40,546				-67.5	%		$	112,025			$	148,186				-24.4	%
Capital expenditures		$	1,610			$	3,515				-54.2	%		$	6,411			$	12,620				-49.2	%

 

 

 

 

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2024 FINANCIAL OUTLOOK

The Company is providing the following 2024 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 March 31,			For the Year Ending December 31,
	OUTLOOK	ACTUAL		OUTLOOK	ACTUAL
	2024	2023		2024	2023
Operating Income	$40.1M - $42.1M	$43.3M		$154.6M - $174.6M	$150.4M
Depreciation and amortization	$2.9M	$5.2M		$12.4M	$16.9M
Legal fee expense related to certain matters (1)	-	$4.6M		$3.0M	$7.6M
Adjusted Operating Income	$43.0M - $45.0M	$53.1M		$170.0M - $190.0M	$174.9M
Earnings Per Diluted Share	$0.52 - $0.54	$0.50		$1.96 - $2.18	$2.18
Amortization of acquired intangible assets	$0.02	$0.04		$0.07	$0.11
Legal fee expense related to certain matters (1)	-	$0.07		$0.04	$0.11
Gain on sale of intangible asset	-	-		-	($0.32)
Tax effect of adjustments	($0.01)	($0.03)		($0.03)	$0.02
Adjusted Earnings Per Diluted Share	$0.53 - $0.55	$0.58		$2.04 - $2.26	$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 recent experiences, (ii) no significant impact of new or proposed regulations, or new interpretations of existing regulations, including recent Department negotiated rulemaking initiatives, FTC enforcement activity, FCC rulemaking or other adverse changes in the legal or regulatory environment or our institutions participation in Title IV programs, which may require further operational changes in the way the Company’s academic institutions market to, contact, 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 federal student aid initiatives implemented by the current administration remains consistent with management's estimates, (v) no significant impact from the further delays by the Department to its implementation of a simplified FAFSA required by the FAFSA Simplification Act and the related delay of providing institutions with students' relevant aid eligibility and award information, (vi) earnings per diluted share outlook assumes an effective income tax rate of approximately 25.5% for the first quarter and approximately 26% for the full year, and (vii) 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, February 21, 2024 at 5:30 p.m. Eastern time to discuss fourth quarter and full year 2023 results and 2024 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 1-888-596-4144 (domestic) or 1-646-968-2525 (international). Both dial-in numbers will use the access code 6410615. Viewers can also access the conference call by following this link https://events.q4inc.com/attendee/980571149. 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's institutions are 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

Davis Snyder or Nick Nelson

(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

CONSOLIDATED BALANCE SHEETS

(In thousands)

 

		December 31,				December 31,
		2023				2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents, unrestricted		$	118,009			$	109,408
Restricted cash			1,012				9,476
Short-term investments			485,135				399,315
Total cash and cash equivalents, restricted cash and short-term investments			604,156				518,199
Student receivables, net			29,398				42,551
Receivables, other			4,539				3,457
Prepaid expenses			11,712				8,411
Inventories			5,004				1,904
Other current assets			155				597
Total current assets			654,964				575,119
NON-CURRENT ASSETS:
Property and equipment, net			21,371				26,038
Right of use asset, net			19,096				26,156
Goodwill			241,162				243,540
Intangible assets, net			36,219				53,564
Student receivables, net			3,859				1,850
Deferred income tax assets, net			23,804				24,613
Other assets			6,841				6,488
TOTAL ASSETS		$	1,007,316			$	957,368
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Lease liability - operating		$	5,701			$	6,555
Accounts payable			10,766				13,518
Accrued expenses:
Payroll and related benefits			32,684				40,306
Advertising and marketing costs			7,196				8,977
Income taxes			3,974				7,814
Other			13,503				14,621
Deferred revenue			37,215				71,590
Total current liabilities			111,039				163,381
NON-CURRENT LIABILITIES:
Lease liability - operating			21,346				27,286
Other liabilities			33,510				40,856
Total non-current liabilities			54,856				68,142
STOCKHOLDERS' EQUITY:
Preferred stock			-				-
Common stock			903				894
Additional paid-in capital			694,798				684,183
Accumulated other comprehensive loss			(666	)			(5,447	)
Retained earnings			480,606				347,839
Treasury stock			(334,220	)			(301,624	)
Total stockholders' equity			841,421				725,845
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,007,316			$	957,368

 

 

 

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PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts and percentages)

 

		For the Quarter Ended December 31,
		2023				% of Total Revenue				2022				% of Total Revenue
REVENUE:
Tuition and fees, net		$	146,822				99.3	%		$	174,012				98.8	%
Other			1,097				0.7	%			2,133				1.2	%
Total revenue			147,919								176,145
OPERATING EXPENSES:
Educational services and facilities			30,223				20.4	%			31,217				17.7	%
General and administrative			92,756				62.7	%			114,610				65.1	%
Depreciation and amortization			3,449				2.3	%			4,878				2.8	%
Asset impairment			5,548				3.8	%			2,766				1.6	%
Total operating expenses			131,976				89.2	%			153,471				87.1	%
Operating income			15,943				10.8	%			22,674				12.9	%
OTHER INCOME:
Interest income			6,421				4.3	%			3,169				1.8	%
Interest expense			(116	)			-0.1	%			(102	)			-0.1	%
Miscellaneous income (expense)			129				0.1	%			(1,313	)			-0.7	%
Total other income			6,434				4.3	%			1,754				1.0	%
PRETAX INCOME			22,377				15.1	%			24,428				13.9	%
Provision for income taxes			5,189				3.5	%			8,473				4.8	%
NET INCOME			17,188				11.6	%			15,955				9.1	%
NET INCOME PER SHARE - BASIC:		$	0.26							$	0.24
NET INCOME PER SHARE -DILUTED:		$	0.26							$	0.23
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic			65,610								67,165
Diluted			67,185								68,423
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
		For the Quarter Ended December 31,
(In Thousands)		2023								2022
NET INCOME		$	17,188							$	15,955
OTHER COMPREHENSIVE INCOME, net of tax:
Foreign currency translation adjustments			53								217
Unrealized gain on investments			4,280								653
Total other comprehensive income			4,333								870
COMPREHENSIVE INCOME		$	21,521							$	16,825

 

 

 

 

 

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PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts and percentages)

 

 

 

		For the Year Ended December 31,
		2023				% of Total Revenue				2022				% of Total Revenue
REVENUE:
Tuition and fees, net		$	702,920				99.0	%		$	687,672				98.9	%
Other			7,084				1.0	%			7,536				1.1	%
Total revenue			710,004								695,208
OPERATING EXPENSES:
Educational services and facilities			130,324				18.4	%			116,723				16.8	%
General and administrative			398,084				56.1	%			426,120				61.3	%
Depreciation and amortization			16,887				2.4	%			19,734				2.8	%
Asset impairment			14,263				2.0	%			2,994				0.4	%
Total operating expenses			559,558				78.8	%			565,571				81.4	%
Operating income			150,446				21.2	%			129,637				18.6	%
OTHER INCOME:
Interest income			19,980				2.8	%			6,866				1.0	%
Interest expense			(404	)			-0.1	%			(400	)			-0.1	%
Miscellaneous income (expense)			22,099				3.1	%			(1,834	)			-0.3	%
Total other income			41,675				5.9	%			4,632				0.7	%
PRETAX INCOME			192,121				27.1	%			134,269				19.3	%
Provision for income taxes			44,469				6.3	%			38,402				5.5	%
NET INCOME			147,652				20.8	%			95,867				13.8	%
NET INCOME PER SHARE - BASIC:		$	2.22							$	1.41
NET INCOME PER SHARE -DILUTED:		$	2.18							$	1.39
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic			66,468								67,934
Diluted			67,826								69,031
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
		For the Year Ended December 31,
(In Thousands)		2023								2022
NET INCOME		$	147,652							$	95,867
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
Foreign currency translation adjustments			45								(166	)
Unrealized gain (loss) on investments			4,736								(5,185	)
Total other comprehensive income (loss)			4,781								(5,351	)
COMPREHENSIVE INCOME		$	152,433							$	90,516

 

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PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

		For the Year Ended December 31,
		2023				2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	147,652			$	95,867
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairment			14,263				2,994
Gain on sale of asset			(22,086	)			-
Depreciation and amortization expense			16,887				19,734
Bad debt expense			33,215				41,574
Compensation expense related to share-based awards			8,078				8,751
Deferred income taxes			3,761				(720	)
Changes in operating assets and liabilities:
Student receivables, gross			15,929				6,380
Allowance for credit losses			(38,573	)			(38,992	)
Receivables, other			(3,922	)			(1,670	)
Inventories, prepaid expenses, and other current assets			(2,994	)			2,640
Other non-current assets			478				843
Accounts payable			(4,878	)			1,922
Accrued expenses and other non-current liabilities			(19,235	)			22,332
Deferred revenue			(34,375	)			(11,767	)
Right of use asset and lease liabilities			(2,175	)			(1,702	)
Net cash provided by operating activities			112,025				148,186
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale investments			(314,279	)			(492,100	)
Sales of available-for-sale investments			238,184				262,277
Purchases of property and equipment			(6,411	)			(12,620	)
Business acquisitions, net of cash acquired			-				(84,308	)
Earnout payment related to business acquisition			(6,000	)			-
Net cash used in investing activities			(88,506	)			(326,751	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock			(8,301	)			(23,117	)
Issuance of common stock			2,545				1,197
Payments of employee tax associated with stock compensation			(2,209	)			(1,612	)
Payments of cash dividends			(14,417	)			-
Release of cash held in escrow			(1,000	)			(4,197	)
Net cash used in financing activities			(23,382	)			(27,729	)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH			137				(206,294	)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of the period			118,884				325,178
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of the period		$	119,021			$	118,884

 

 

 

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PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED SELECTED SEGMENT INFORMATION

(In thousands, except percentages)

 

 

		For the Quarter Ended December 31,
		2023 (1)				2022
REVENUE:
CTU		$	104,590			$	108,446
AIUS			43,172				67,445
Corporate and Other			157				254
Total		$	147,919			$	176,145
OPERATING INCOME (LOSS):
CTU		$	25,376			$	34,082
AIUS			600				3,469
Corporate and Other			(10,033	)			(14,877	)
Total		$	15,943			$	22,674
OPERATING MARGIN (LOSS):
CTU			24.3	%			31.4	%
AIUS			1.4	%			5.1	%
Corporate and Other		NM				NM
Total			10.8	%			12.9	%

 

 

 

 

 

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PERDOCEO EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED SELECTED SEGMENT INFORMATION

(In thousands, except percentages)

 

 

		For the Year Ended December 31,
		2023 (1)				2022 (1)
REVENUE:
CTU		$	468,926			$	419,617
AIUS			240,300				274,479
Corporate and Other			778				1,112
Total		$	710,004			$	695,208
OPERATING INCOME (LOSS):
CTU		$	144,008			$	141,622
AIUS			45,283				33,315
Corporate and Other			(38,845	)			(45,300	)
Total		$	150,446			$	129,637
OPERATING MARGIN (LOSS):
CTU			30.7	%			33.8	%
AIUS			18.8	%			12.1	%
Corporate and Other		NM				NM
Total			21.2	%			18.6	%

 

 

 

 

 

 

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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 December 31,								For the Year Ended December 31,
		ACTUAL								ACTUAL
Adjusted Operating Income		2023				2022				2023				2022
Operating income		$	15,943			$	22,674			$	150,446			$	129,637
Depreciation and amortization (2)			3,449				4,878				16,887				19,734
Legal fee expense related to certain matters (3)			5				4,869				7,579				14,597
Adjusted Operating Income		$	19,397			$	32,421			$	174,912			$	163,968
		For the Quarter Ending March 31,								For the Year Ending December 31,
		OUTLOOK				ACTUAL				OUTLOOK				ACTUAL
		2024				2023				2024				2023
Operating income		$40.1M - $42.1M				$	43,336			$154.6M - $174.6M				$	150,446
Depreciation and amortization (2)		$2.9M					5,155			$12.4M					16,887
Legal fee expense related to certain matters (3)			-				4,619			$3.0M					7,579
Adjusted Operating Income		$43.0M - $45.0M				$	53,110			$170.0M - $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 December 31,								For the Year Ended December 31,
		ACTUAL								ACTUAL
		2023				2022				2023				2022
Reported Earnings Per Diluted Share		$	0.26			$	0.23			$	2.18			$	1.39
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets (2)			0.02				0.03				0.11				0.11
Legal fee expense related to certain matters (3)			-				0.07				0.11				0.21
Gain on sale of intangible asset (4)			-				-				(0.32	)			-
Total pre-tax adjustments		$	0.02			$	0.10			$	(0.10	)		$	0.32
Tax effect of adjustments (5)			(0.01	)			(0.02	)			0.02				(0.08	)
Total adjustments after tax			0.01				0.08				(0.08	)			0.24
Adjusted Earnings Per Diluted Share		$	0.27			$	0.31			$	2.10			$	1.63
		For the Quarter Ending March 31,								For the Year Ending December 31,
		OUTLOOK				ACTUAL				OUTLOOK				ACTUAL
		2024				2023				2024				2023
Reported Earnings Per Diluted Share		$0.52 - $0.54				$	0.50			$1.96 - $2.18				$	2.18
Pre-tax adjustments included in operating expenses:
Amortization for acquired intangible assets (2)		$0.02					0.04			$0.07					0.11
Legal fee expense related to certain matters (3)			-				0.07			$0.04					0.11
Gain on sale of intangible asset (4)			-				-				-				(0.32	)
Total pre-tax adjustments		$0.02				$	0.11			$0.11				$	(0.10	)
Tax effect of adjustments (5)		($0.01)					(0.03	)		($0.03)					0.02
Total adjustments after tax		$0.01					0.08			$0.08					(0.08	)
Adjusted Earnings Per Diluted Share		$0.53 - $0.55				$	0.58			$2.04 - $2.26				$	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 reflective of its underlying 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.

Results of operations include the Coding Dojo acquisition as of December 1, 2022 and the CalSouthern acquisition as of July 1, 2022.

 

 

 

 

 

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v3.24.0.1

Document and Entity Information	Feb. 21, 2024
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 21, 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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