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Dec 31, 2019
Perdoceo Q4 2019 Earnings Report
Reported an increase in revenue and operating income, driven by enrollment growth and operating efficiency.
Key Takeaways
Perdoceo Education Corporation reported an 8.9% increase in revenue to $158.5 million and a 58.6% increase in operating income to $32.0 million for the fourth quarter of 2019. Earnings per diluted share were $0.38, compared to $0.20 in the prior year quarter. Adjusted earnings per diluted share were $0.33, compared to $0.30 in the prior year quarter. Total student enrollments increased by 6.4% year over year.
Revenue increased by 8.9 percent to $158.5 million.
Operating income increased 58.6 percent to $32.0 million.
Earnings per diluted share of $0.38 compared to earnings per diluted share of $0.20.
CTU and AIU's total student enrollments increased 4.4 percent and 10.2 percent, respectively.
Perdoceo
Perdoceo
Perdoceo Revenue by Segment
Revenue by Segment
CTU Revenue
CapyFin.comAIUS Revenue
CapyFin.com Forward Guidance
The Company is providing the following outlook, subject to the key assumptions identified below. This outlook reflects the Company’s expectation of growth in new and total student enrollments at both universities for 2020.
Positive Outlook
- Expects growth in CTU’s new student enrollments as compared to the prior year quarter.
- AIU’s first quarter new student enrollments are expected to decline due to 31 percent less enrollment days in the first quarter of 2020 as compared to the prior year quarter
- Decline is expected to be more than offset with new student enrollment growth in the second quarter which has approximately 50 percent more enrollment days than the prior year quarter.
- AIU’s enrollment days for the third and fourth quarters of 2020 will be relatively comparable to the respective prior year periods.
- Operating income, adjusted operating income, earnings per share, adjusted earnings per share and enrollment outlook provided above for 2020 are based on the key assumptions and factors
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 within the University Group
- 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
- Any future impact from the Company’s stock repurchase program is excluded, and (viii) any results of operations from Trident University are excluded.
Revenue & Expenses
Visualization of income flow from segment revenue to net income