Enrollment Trends - Total student enrollments increased by 4.2% as of June 30, 2024, with Colorado Technical University (CTU) up 14.7% and American InterContinental University System (AIUS) down 18.2%[56] - Total student enrollments increased by 4.2% to 39,600 as of June 30, 2024, compared to 38,000 in the prior year[72] Revenue and Income - Revenue for the current quarter decreased by 10.6% or $19.8 million compared to the prior year quarter, with CTU down 5.4% or $6.5 million and AIUS down 19.9% or $13.3 million[57] - Adjusted operating income was $50.9 million for the current quarter compared to $55.2 million for the prior year quarter[57] - Net income for Q2 2024 was $38,429, a decrease of 29.7% compared to $54,673 in Q2 2023[61] - Total revenue for Q2 2024 decreased by 10.6% to $166.74 million from $186.56 million in Q2 2023[61] - Adjusted Operating Income for Q2 2024 was $50,890, down 7.3% from $55,172 in Q2 2023[58] Operational Performance - Operating income for the current quarter decreased to $46.0 million from $48.1 million in the prior year quarter[57] - Current quarter operating income decreased by 4.3% or $2.1 million, while year to date operating income increased by 0.9% or $0.9 million compared to the prior year period[67] - The company anticipates continued revenue challenges due to operational changes and enrollment trends[62] Expenses and Cost Management - Total general and administrative expenses for Q2 2024 were $89,311, down 11.2% from $100,588 in Q2 2023[64] - Educational services and facilities expense decreased by 16.0% to $27,516 in Q2 2024 from $32,748 in Q2 2023[63] - Bad debt expense for Q2 2024 was $6,075, a decrease of 25.6% compared to $8,170 in Q2 2023[64] - General and administrative expenses decreased by 11.2% or $11.3 million for the current quarter and 17.1% or $36.5 million year to date compared to the prior year periods[65] - Total bad debt expense improved by 25.6% or $2.1 million for the current quarter and 33.3% or $6.3 million year to date compared to the prior year periods[66] Tax and Regulatory Environment - The effective tax rate for Q2 2024 was 27.5%, compared to 26.7% in Q2 2023[61] - The effective tax rate for the quarter ended June 30, 2024, was 27.5%, compared to 26.7% for the prior year quarter[68][69] - The company operates in a highly regulated environment, facing scrutiny from various governmental and consumer advocacy groups[53] - Regulatory changes have led to operational adjustments at AIUS, impacting prospective student enrollment and marketing strategies[53] Future Outlook and Investments - The company anticipates strong levels of student retention and engagement to continue through the remainder of 2024[56] - The company expects full year revenue for 2024 to be lower primarily due to the lag impact on revenue from lower beginning total student enrollments at AIUS[56] - The company is committed to investing in technology to enhance the educational experience and improve operational efficiency[56] Cash Flow and Financial Position - Cash balances totaled $675.2 million as of June 30, 2024, with expectations to generate cash during the remainder of 2024[75] - Net cash flows provided by operating activities increased to $93.0 million for the year to date ended June 30, 2024, compared to $66.2 million for the same period in 2023, primarily due to timing differences in cash inflows related to academic session start dates[76] - Net cash flows used in investing activities totaled $60.1 million for the year to date ended June 30, 2024, up from $30.5 million in 2023, with a net cash outflow from purchases and sales of available-for-sale investments of $58.1 million[77] - Net cash flows used in financing activities increased to $23.0 million for the year to date ended June 30, 2024, compared to $4.6 million in 2023, including share repurchase payments of $6.8 million[78] Student Financials - Student receivables, net increased by 19% to $34.855 million as of June 30, 2024, from $29.398 million at December 31, 2023, driven by timing of academic terms and increased student enrollments[80] - Deferred revenue rose by 49% to $55.390 million as of June 30, 2024, compared to $37.215 million at December 31, 2023, influenced by academic term timing and enrollment growth[80] - Payroll and related benefits decreased by 23% to $25.295 million as of June 30, 2024, from $32.684 million at December 31, 2023, due to annual incentive compensation payments[81] - Income taxes increased by 64% to $6.502 million as of June 30, 2024, compared to $3.974 million at December 31, 2023, primarily related to estimated federal and state income tax payments for 2024[81] Stock and Borrowing - The Board of Directors approved a new stock repurchase program for up to $50.0 million, effective from March 1, 2024, to September 30, 2025[75] - The company has no outstanding borrowings under its credit facility as of June 30, 2024, with interest rates subject to a minimum of 3.0%[83] - The company believes that exposure to adverse changes in interest rates applicable to investments or borrowings is not significant, with a 10% change in interest rates not materially impacting future earnings or cash flows[83] Accreditation - The Higher Learning Commission reaffirmed AIUS' accreditation, with the next review scheduled for 2033-2034[59] Operating Margin - Operating margin for the total company improved to 27.6% in the current quarter from 25.8% in the prior year quarter[70]

Founded in 1979, USAHS is one of the nation's leading universities known for its graduate health sciences degrees in physical therapy, occupational therapy, speech-language therapy, nursing and continuing education programs. The university operates campuses in San Marcos, CA; St. Augustine and Miami, FL; and Austin and Dallas, TX, in addition to offering online programs. USAHS holds accreditation from the Western Association of Schools and Colleges (WASC). Shares of this Zacks Rank #3 (Hold) company have ga ...

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits. The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P ...

One company value investors might notice is Perdoceo Education (PRDO) . PRDO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.73 right now. For comparison, its industry sports an average P/E of 18.87. Over the past year, PRDO's Forward P/E has been as high as 11.06 and as low as 6.59, with a median of 8.35. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on trad ...

We should also highlight that PRDO has a P/B ratio of 1.77. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.83. Over the past year, PRDO's P/B has been as high as 1.85 and as low as 1.03, with a median of 1.38. These are just a handful of the figures considered in Perdoceo Education's great Value grade. Still, they help show that the sto ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive. Inv ...

Investors with an interest in Schools stocks have likely encountered both Perdoceo Education (PRDO) and Grand Canyon Education (LOPE) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnin ...

Financial Data and Key Metrics Changes - First quarter operating income was $46.3 million, an increase of $2.9 million compared to the prior year, primarily driven by approximately $30 million in lower expenses [13] - First quarter revenue decreased by 14% to $168.3 million from $195.6 million in the prior year, attributed to fewer revenue earning days and lag impact from operational changes [20] - Net income for the first quarter was $39.4 million or $0.59 per diluted share, compared to $34.5 million or $0.50 per diluted share in the prior year [19] - Adjusted earnings per diluted share was $0.60, slightly up from $0.58 in the prior year [19] Business Line Data and Key Metrics Changes - Revenue at CTU decreased by 8.8% to $113.6 million, with operating income at $42.2 million, down from $43.7 million [24] - AIU System's revenue was $54.5 million, a decline of 23.1% compared to the prior year, with operating income of $9.3 million, down by $2.7 million [25][26] - Total student enrollments for CTU increased by 28.5%, while AIU System experienced a decline of 22.9% [22][48] Market Data and Key Metrics Changes - Total enrollments for the first quarter were approximately 30% higher than the low point in the fourth quarter of 2023 [23] - The academic calendar at CTU is expected to have a negative impact on revenue during the first half of 2024, with a more normalized second half [24][36] Company Strategy and Development Direction - The company is focused on investing in technology and improving processes to enhance student experiences and academic outcomes [46][38] - Capital allocation strategy prioritizes investments in organic projects and technology initiatives, while also evaluating acquisitions [31][38] - The company expects to continue share repurchases as part of its long-term capital allocation strategy [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong levels of student retention and engagement, expecting these trends to persist through 2024 [42][43] - The outlook for full year 2024 adjusted operating income is now expected to range between $175 million and $190 million, reflecting better than expected performance in the first quarter [6] - The company anticipates revenue growth in the second half of 2024, particularly in the fourth quarter, as the lag impact on revenue at AIU System moderates [21][34] Other Important Information - The company recorded a provision for income taxes of $13.4 million, resulting in an effective tax rate of 25.4% for the first quarter [28] - Capital expenditures for the first quarter were approximately $1.2 million, with expectations for the full year to be between 1% to 2% of revenues [51] Q&A Session Summary Question: What are the expectations for the second quarter of 2024? - The company expects adjusted operating income to be in the range of $48 million to $50 million, compared to $55.2 million in the prior year quarter, with adjusted earnings per diluted share ranging between $0.57 and $0.59 [35]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number: 0-23245 PERDOCEO EDUCATION CORPORATION (Exact name of registrant as specified in its charter) Registrant's telephone number, includ ...

PRDO ANNOUNCES 1Q24 RESULTS …PG 1 Exhibit 99.1 PERDOCEO EDUCATION CORPORATION ANNOUNCES FIRST QUARTER 2024 RESULTS Schaumburg, Ill. (May 1, 2024) – Perdoceo Education Corporation (NASDAQ: PRDO) today reported operating and financial results for the quarter ended March 31, 2024. First Quarter 2024 Results as Compared to Prior Year Quarter *See GAAP (U.S. generally accepted accounting principles) to non-GAAP reconciliation attached to this press release "First quarter results were better than expected, as bot ...