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Mar 31, 2020
Perdoceo Q1 2020 Earnings Report
Reported an increase in revenue and operating income, driven by enrollment growth.
Key Takeaways
Perdoceo Education Corporation reported an 8.3% increase in revenue to $171.0 million and a 24.5% increase in operating income to $37.3 million for the quarter ended March 31, 2020. The growth was supported by total student enrollment growth across both universities. The company ended the quarter with $285.6 million in cash, cash equivalents, restricted cash and available-for-sale short-term investments.
Revenue increased by 8.3 percent to $171.0 million.
Operating income increased 24.5 percent to $37.3 million.
Earnings per diluted share of $0.41 as compared to earnings per diluted share of $0.35.
Ended the quarter with $285.6 million in cash, cash equivalents, restricted cash and available-for-sale short-term investments.
Perdoceo
Perdoceo
Perdoceo Revenue by Segment
Revenue by Segment
CTU Revenue
CapyFin.comAIUS Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
The Company is providing the following outlook, subject to the key assumptions identified below. The outlook now incorporates the Trident acquisition, including known acquisition and restructuring costs, as well as known costs associated with COVID-19, such as transitioning our students and employees to a remote environment.
Positive Outlook
- Company expects growth in new and total student enrollments at both universities for the full year of 2020.
- Company expects growth in CTU’s new student enrollments as compared to the prior year quarter.
- AIU’s second quarter new student enrollments are expected to show significant growth due to 50 percent more enrollment days in the second quarter of 2020 as compared to the prior year quarter, as well as the Trident acquisition.
- Increase is expected to more than offset the decline in new student enrollments from the first quarter of 2020 such that on a combined basis AIU is expected to show growth for the first half of 2020, even after excluding the positive impact from the Trident acquisition.
- Company expects AIU’s enrollment days for the third and fourth quarters of 2020 to be relatively comparable to the respective prior year periods.
Challenges Ahead
- Prospective student interest in the Company’s programs remains consistent with recent experience.
- Initiatives and investments in student-serving operations continue to positively impact enrollment trends.
- No material changes in the current legal or regulatory environment, and excludes legal and regulatory liabilities and other related impacts which are not probable and estimable at this time, and any impact of new or proposed regulations, including the “borrower defense to repayment” regulations.
- No significant operating impacts from the settlements with the U.S. Federal Trade Commission and state attorneys general or other legal or regulatory matters, including the March 2020 letter from the U.S. Department of Veterans Affairs (the “VA”) regarding the potential disapproval, for purposes of educational assistance programs administered by the VA, of the enrollment of individuals at the Company’s institutions if the Company fails to remedy the deficiency identified in the letter.
- No significant operating or financial impacts from the COVID-19 pandemic beyond the known costs which have been incorporated in the outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income