High Demand Fuels Positive Growth Outlook for 2024
TEMECULA, Calif., Oct. 7, 2024 /PRNewswire/ -- Legacy Education
Inc. (NYSE American: LGCY), an award-winning, nationally
accredited, for-profit post-secondary education company founded in
2009, today announced financial and operating results for
the fourth quarter and full year ended
June 30, 2024.
Fourth Quarter 2024 Financial Highlights
- Revenue grew 34.1% to $12.8
million
- New student starts increased 27.1%
- EBITDA of $0.9 million and
adjusted EBITDA of $2.7 million
- Net income of $1.0 million
- Earnings per share of $0.10
Full Year 2024 Financial Highlights
- Revenue grew 29.7% to $46.0
million
- New student starts increased 21.8%
- EBITDA of $6.5 million and
adjusted EBITDA of $8.4 million
- Net income of $5.1 million
- Earnings per share of $0.55
- Ended year with student population of 2,187, 28.3% higher than
2023
"We are pleased to report results in our annual earnings report,
underscoring Legacy Education Inc.'s commitment to delivering
high-quality educational experiences," said LeeAnn Rohmann, Chief Executive Officer. "This
year's performance reflects our strategic growth initiatives and
dedication to empowering individuals through transformative
learning. We remain focused on expanding our reach and enhancing
the value we provide to our students, partners and
shareholders."
YEAR END FINANCIAL RESULTS
(Year ended June 30,
2024 compared to June 30, 2023)
- Revenue was approximately $46.0 million in fiscal 2024 compared to
approximately $35.5 million in fiscal
2023, an increase of approximately $10.5
million, or approximately 29.7%. The increase was primarily
due to increased student enrollment and the increase in pricing of
certain programs.
- Educational services was approximately
$26.4 million in fiscal 2024 compared
to approximately $20.8 million in
fiscal 2023, an increase of approximately $5.6 million, or approximately 26.8%. The
increase is primarily a result of increased instructional and
staffing required to support the increase in enrollments as well as
a non-cash compensation charge of approximately $1.9 million related to stock option grants, of
which, approximately $1.8 million
pertain to options that vested immediately upon the granting of the
awards.
- General and administrative expense was
approximately $13.0 million in fiscal
2024, compared to approximately $10.7
million in fiscal 2023, an increase of approximately
$2.3 million, or approximately 22.0%.
The increase was primarily related increased marketing and bad debt
expense. We anticipate general and administrative expense will
continue to increase as our business continues to move towards
decentralization, reflecting (i) that we are now more corporate and
campus-based, with additional management overseeing various
campuses, and (ii) additional professional fees as we pursue
potential acquisitions of new institutions. Of the total general
and administrative expense, $4.1
million and $3.5 million
related to sales and marketing expense for fiscal 2024 and 2023,
respectively
|
(Table to
Follow
in Thousands)
|
|
|
Three Months
Ended
|
Year
Ended
|
|
June
30
|
June
30
|
|
2024
|
2023
|
2024
|
2023
|
|
Unaudited
|
Unaudited
|
|
|
|
REVENUE
|
|
|
|
|
|
Tuition and related
income, net
|
$
12,752,420
|
$
9,509,864
|
$
46,000,316
|
$ 35,455,948
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
Educational
services
|
8,548,697
|
5,600,550
|
26,351,326
|
20,785,421
|
|
General and
administrative
|
3,253,367
|
2,722,619
|
12,999,164
|
10,651,402
|
|
General and
administrative - related party
|
42,000
|
47,000
|
168,000
|
173,000
|
|
Depreciation and
amortization
|
75,865
|
55,306
|
265,036
|
224,488
|
|
Total costs and
expenses
|
11,919,929
|
8,425,475
|
39,783,526
|
31,834,311
|
|
|
OPERATING
INCOME
|
832,491
|
1,084,389
|
6,216,790
|
3,621,637
|
|
|
Interest
expense
|
(14,864)
|
(16,943)
|
(118,162)
|
(96,259)
|
|
Interest
income
|
359,814
|
190,438
|
886,834
|
339,102
|
|
Total other
income
|
344,950
|
173,495
|
768,672
|
242,843
|
|
|
INCOME BEFORE INCOME
TAXES
|
$ 1,177,441
|
$
1,257,884
|
$
6,985,462
|
$
3,864,480
|
|
|
Income tax
expense
|
(216,099)
|
(463,121)
|
(1,870,610)
|
(1,197,741)
|
|
Net income
(loss)
|
961,342
|
794,763
|
$
5,114,852
|
2,666,739
|
|
|
Net income per
share
|
|
|
|
|
|
Basic
net income per
share
|
$
0.10
|
$
0.09
|
$
0.55
|
$
0.29
|
|
Diluted
net income per
share
|
$
0.10
|
$
0.08
|
$
0.53
|
$
0.28
|
|
|
|
|
|
|
|
Basic weighted average
shares outstanding
|
9,291,149
|
9,254,881
|
9,291,149
|
9,216,949
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
9,691,149
|
9,654,881
|
9,691,149
|
9,616,949
|
|
|
(1) Shares outstanding
and per share amounts have been retroactively adjusted to reflect
the 2-for-1 reverse split of our common stock effected on September
9, 2024.
|
|
|
Selected
Consolidated Balance Sheet Data:
|
June 30,
2024
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
10,376,149
|
|
Current
assets
|
|
24,587,609
|
|
Total assets
|
|
35,173,050
|
|
Current
liabilities
|
|
10,466,242
|
|
Total stockholders'
equity
|
|
22,419,012
|
Important Information Regarding Non-GAAP Financial
Information
To supplement Legacy Education's consolidated financial
statements presented in accordance with GAAP, Legacy Education
furnishes certain adjusted non-GAAP supplemental information to our
financial results regarding EBITDA and adjusted EBITDA. This
reconciliation adjust the related GAAP financial measures to
exclude operating income to adjust the impact of non cash
compenation in the periods presented. We use such adjusted non-GAAP
financial measures to evaluate our period-over-period operating
performance because our management team believes that by excluding
the effects of such adjusted GAAP-related items that, in their
opinion, do not reflect the ordinary earnings of our operations, it
enhances investors' overall understanding of our current financial
performance and our prospects for the future by (i) providing
a more comparable measure of our continuing business, as well as
greater understanding of the results from the primary operations of
our business, (ii) affording a view of our operating results that
may be more easily compared to our peer companies, and (iii)
enabling investors to consider our operating results on both a GAAP
and adjusted non-GAAP basis (including following the integration
period of our prior and proposed acquisitions). However, this
adjusted non-GAAP information is not in accordance with, or an
alternative to, generally accepted accounting principles
in the United States ("GAAP") and should be considered in
conjunction with our GAAP results as the items excluded from the
adjusted non-GAAP information may have a material impact on
Legacy's financial results. A reconciliation of adjusted non-GAAP
adjustments to Legacy's GAAP financial results is included in the
tables at the end of this press release.
In the noted fiscal periods, we adjusted net income for the
items identified from our GAAP financial results to arrive at our
adjusted non-GAAP financial measures:
Stock-based compensation - We exclude stock-based
compensation to be consistent with the way management and, in our
view, the overall financial community, evaluates our performance
and the methods used by analysts to calculate consensus estimates.
The expense related to stock-based awards is generally not
controllable in the short-term and can vary significantly based on
the timing, size and nature of awards granted. As such, we do not
include these charges in operating plans.
|
RECONCILIATION OF
NET INCOME, EBITDA, AND ADJUSTED EBITDA
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
June
30
|
|
June
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
|
|
$
961,342
|
|
$
794,763
|
|
$
5,114,852
|
|
$
2,666,739
|
|
|
|
|
|
|
|
|
|
|
Adjusted to exclude the
following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
(income), net
|
|
(344,950)
|
|
(173,495)
|
|
(768,672)
|
|
(242,843)
|
|
Provison for income
taxes
|
|
216,099
|
|
463,121
|
|
1,870,610
|
|
1,197,741
|
|
Depreciation and
amortization
|
|
75,865
|
|
55,306
|
|
265,036
|
|
224,488
|
|
EBITDA
|
|
908,356
|
|
1,139,695
|
|
6,481,826
|
|
3,846,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non cash
compensation
|
|
1,882,064
|
|
0
|
|
1,882,064
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
2,790,420
|
|
$
1,139,695
|
|
$
8,363,890
|
|
$
3,846,125
|
|
|
|
|
|
|
|
|
|
ABOUT LEGACY EDUCATION
Legacy Education (NYSE: LGCY) is an award-winning, nationally
accredited, for-profit post-secondary education company founded in
2009. Legacy Education provides career-focused education primarily
in the healthcare field, with certificates and degrees for nursing,
medical technicians, dental assisting, business administrative, and
several others. The company offers a wide range of educational
programs and services to help students achieve their professional
goals. Legacy Education's focus is on providing high-quality
education that is accessible and affordable. Legacy Education is
committed to growing it's education footprint via organic
enrollment growth, addition of new programs and accretive
acquisitions. For more information, please visit
www.legacyed.com or on LinkedIn @legacy-education-inc.
FORWARD-LOOKING STATEMENTS
Statements in this press release about future expectations,
plans, and prospects, as well as any other statements regarding
matters that are not historical facts, may constitute
"forward-looking statements." These statements include, but are not
limited to, statements relating to the expected trading
commencement and closing dates, expected use of proceeds, the
Company's operations and business strategy and the Company's
expected financial results. The words "anticipate," "believe,"
"continue," "could," "estimate," "expect," "intend," "may," "plan,"
"potential," "predict," "project," "should," "target," "will,"
"would" and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. The forward-looking
statements contained in this press release are based on
management's current expectations and are subject to substantial
risks, uncertainty and changes in circumstances. Actual results may
differ materially from those indicated by these forward-looking
statements as a result of various important factors, including,
without limitation, market conditions and the factors described in
the section entitled "Risk Factors" in Legacy's most recent Annual
Report on Form 10-K and Legacy's other filings made with the U.S.
Securities and Exchange Commission. All such statements speak only
as of the date of this press release. Consequently, forward-looking
statements should be regarded solely as Legacy's current plans,
estimates, and beliefs. Legacy cannot guarantee future results,
events, levels of activity, performance or achievements. Legacy
does not undertake and specifically declines any obligation to
update or revise any forward-looking statements to reflect new
information, future events or circumstances or to reflect the
occurrences of unanticipated events, except as may be required by
applicable law.
Contact Legacy Education Inc.
Investor Relations
ir@legacyed.com
Amato and Partners, LLC
Investors Relations Council
admin@amatoandpartners.com
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SOURCE Legacy Education Inc.