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Sep 30, 2022
Perdoceo Q3 2022 Earnings Report
Revenue and operating income decreased while adjusted operating income also saw a decrease. Earnings per diluted share decreased, and total student enrollments experienced a slight decline.
Key Takeaways
Perdoceo Education Corporation reported a decrease in revenue for Q3 2022, with a 3.2% drop to $168.4 million. Operating income also decreased by 22.5% to $29.3 million. Earnings per diluted share decreased to $0.32 compared to $0.39 in the prior year quarter. Total student enrollments decreased by 2.1%. The company ended the quarter with $525.2 million in cash, cash equivalents, restricted cash, and available-for-sale short-term investments.
Revenue decreased by 3.2% to $168.4 million, with a 6.9% decrease at CTU partially offset by a 2.4% increase at AIUS.
Operating income decreased by 22.5% to $29.3 million, while adjusted operating income decreased by 16.5% to $38.7 million.
Earnings per diluted share was $0.32 as compared to $0.39, while adjusted earnings per diluted share was $0.39 as compared to $0.45.
Total student enrollments decreased by 2.1%, with CTU experiencing a 2.7% increase offset by a 9.5% decrease at AIUS.
Perdoceo
Perdoceo
Perdoceo Revenue by Segment
Revenue by Segment
CTU Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
The Company is raising its full year outlook, supported by improved student retention and engagement, and is also providing the following fourth quarter outlook, subject to the key assumptions identified below.
Positive Outlook
- Operating Income $17.3M - $20.3M
- Depreciation and amortization $5.2M
- Legal fee expense related to certain matters $3.0M
- Adjusted Operating Income $25.5M - $28.5M
- Earnings Per Diluted Share $0.22 - $0.25
Challenges Ahead
- prospective student interest in the Company’s programs and student retention remain consistent with management’s estimates
- no significant impact of new or proposed regulations, including recent Department of Education negotiated rulemaking initiatives, or other adverse changes in the 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
- earnings per diluted share outlook assumes an effective income tax rate of approximately 25.0% for the fourth quarter and 27.0% for the full year
- any future impact from the Company’s stock repurchase program is excluded
Revenue & Expenses
Visualization of income flow from segment revenue to net income