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Dec 31, 2021
Perdoceo Q4 2021 Earnings Report
Reported a decrease in revenue and operating income, but adjusted operating income remained almost flat compared to the prior year quarter.
Key Takeaways
Perdoceo Education Corporation reported a decrease in revenue for Q4 2021, primarily driven by a decrease in total student enrollments. Operating income also decreased, while adjusted operating income saw a slight increase. The company's total student enrollments decreased, with CTU experiencing a slight increase offset by a decrease within the AIU System. The company ended the year with a strong cash position.
Revenue decreased by 6.6 percent to $159.9 million.
Operating income decreased by 4.5 percent to $34.6 million.
Adjusted operating income increased by 1.7 percent to $42.0 million.
Earnings per diluted share was $0.35, while adjusted earnings per diluted share was $0.40.
Perdoceo
Perdoceo
Perdoceo Revenue by Segment
Revenue by Segment
CTU Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
The Company is providing the following 2022 outlook, subject to the key assumptions identified below.
Positive Outlook
- Prospective student interest in the Company’s programs remains consistent with recent experience.
- 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.
- No significant future operating or financial impacts relating to the COVID-19 pandemic.
- Earnings per diluted share outlook assumes an effective income tax rate of approximately 27.0% for the first quarter and 26.0% for the full year.
Challenges Ahead
- Operating income, which is the most directly comparable GAAP measure to adjusted operating income, and earnings per diluted share may not follow the same trends stated in the outlook above because of adjustments made for certain significant and non-cash items.
- Although these estimates and assumptions are based upon management’s good faith beliefs regarding current and future circumstances and actions that may be undertaken, actual results could differ materially from these estimates.
- Decisions the Company makes in the future as it continues to evaluate diverse strategies to enhance stockholder value may impact the outlook provided above.
- Any future impact from the Company’s stock repurchase program is excluded.
- Legal fee expense associated with (i) responses to the Department relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income