Strategic Education(STRA)2025-02-27 11:35Financial Performance - Revenue increased 7.7% to 1,132.9 million in 2023[2] - Net income rose to 69.8 million in 2023, representing a 61.4% increase[2] - Adjusted EBITDA for 2024 was 196.5 million in 2023, reflecting an 18.9% growth[2] - Diluted earnings per share increased to 2.91 in 2023, marking a 60.5% rise[2] - Net income for the twelve months ended December 31, 2024, rose to 69,791 thousand in 2023[16] - Basic earnings per share for Q4 2024 decreased to 1.67 in Q4 2023, while diluted EPS fell to 1.63[16] - Net income for the three months ended December 31, 2024, was 39,129,000 in 2023, reflecting a decrease of 21.5%[25] - Operating margin improved from 11.6% in Q4 2023 to 13.0% in Q4 2024, indicating enhanced operational efficiency[25] - The company reported an operating income of 155,628,000 in 2023, a growth of 1.1%[28] Revenue Segments - Student enrollment in the U.S. Higher Education segment increased 6.4% in 2024 compared to 2023, reaching 88,860 students[7] - Revenue in the Education Technology Services segment surged 39.3% to 21.9 million in Q4 2023[7] - The Australia/New Zealand segment saw a 5.4% revenue increase to 63.3 million in Q4 2023[7] - U.S. Higher Education segment revenues for Q4 2024 decreased to 217,551 thousand in Q4 2023[21] - Education Technology Services segment revenues for the twelve months ended December 31, 2024, increased to 80,453 thousand in 2023[21] - U.S. Higher Education segment revenues for Q4 2023 were 214.3 million in Q4 2024, while the twelve-month revenues increased from 857.9 million, a growth of 4.7%[31] - Education Technology Services segment revenues for Q4 2023 were 30.5 million in Q4 2024, with twelve-month revenues increasing from 104.9 million, a growth of 30.3%[31] Cash Flow and Assets - Cash provided by operations in 2024 was 117.1 million in 2023[7] - Cash provided by operating activities for the year ended December 31, 2024, was 117,119 thousand in 2023[19] - The company reported a net cash used in investing activities of 48,545 thousand in 2023[19] - Total current assets decreased to 329,069 thousand in 2023, primarily due to a decline in cash and cash equivalents[18] - Total liabilities decreased to 472,695 thousand in 2023, reflecting a reduction in long-term debt[18] - Total stockholders' equity increased to 1,652,518 thousand in 2023, indicating a stable financial position[18] Costs and Expenses - Total costs and expenses for Q4 2024 were 248,478,000 in Q4 2023, a reduction of 6.9%[25] - The total costs and expenses for the twelve months ended December 31, 2024, were 1,064,302,000 in 2023[28] - Consolidated bad debt expense as a percentage of revenue was 4.5% in Q4 2024, up from 3.7% in Q4 2023[8] Strategic Initiatives and Future Outlook - The company anticipates continued growth in revenues and operational improvements in the upcoming quarters[29] - Strategic initiatives include ongoing integration efforts from recent mergers and a focus on expanding educational offerings in international markets[29] - The company is focusing on market expansion and new product development, particularly in the Education Technology Services sector, to drive future growth[31] - The company incurred restructuring costs of 16.3 million, indicating ongoing efforts to streamline operations[31]