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Sep 30, 2020
Perdoceo Q3 2020 Earnings Report
Revenue increased due to enrollment growth at both CTU and AIU, and operating income also increased.
Key Takeaways
Perdoceo Education Corporation reported a 9.1% increase in revenue and an increase in operating income for the third quarter of 2020, driven by enrollment growth at both CTU and AIU. The company ended the quarter with $367.7 million in cash, cash equivalents, restricted cash and available-for-sale short-term investments.
Revenue increased by 9.1 percent to $169.1 million.
Operating income increased to $32.1 million as compared to $24.3 million.
Earnings per diluted share of $0.56 compared to earnings per diluted share of $0.25.
Total student enrollments at September 30, 2020 increased 17.2 percent.
Perdoceo
Perdoceo
Perdoceo Revenue by Segment
Revenue by Segment
CTU Revenue
CapyFin.comAIUS Revenue
CapyFin.com Forward Guidance
The company is providing an updated outlook, expecting growth in new and total student enrollments at both CTU and AIU for the fourth quarter and full year 2020.
Positive Outlook
- 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.
- No significant operating impacts from the settlements with the U.S. Federal Trade Commission and state attorneys general or other legal or regulatory matters.
- No significant operating or financial impacts from the COVID-19 pandemic beyond known costs which have been incorporated in the outlook.
Challenges Ahead
- Operating income may not follow the same trends stated in the outlook because of adjustments made for certain significant and non-cash items.
- Adjustments include lease expenses for vacated space offset with any sublease income as well as depreciation, amortization, asset impairment charges, significant restructuring charges and significant legal settlements.
- The company excludes legal and regulatory liabilities and other related impacts which are not probable and estimable at this time.
- The company excludes any impact of new or proposed regulations, including the “borrower defense to repayment” regulations
- Any future impact from the Company’s stock repurchase program is excluded.
Revenue & Expenses
Visualization of income flow from segment revenue to net income