Grand Canyon Education(US:LOPE)2024-08-06 20:09Financial Performance - Service revenue for the three months ended June 30, 2024, was $227,463, an increase of 8.9% compared to $210,577 for the same period in 2023[5]. - Operating income for the six months ended June 30, 2024, reached $127,197, up 15.6% from $109,919 in the prior year[5]. - Net income for the three months ended June 30, 2024, was $34,878, representing a 20.5% increase from $28,973 in the same quarter of 2023[11]. - Basic earnings per share for the three months ended June 30, 2024, was $1.19, compared to $0.96 for the same period in 2023, reflecting a 24.0% increase[5]. - Net income for the six months ended June 30, 2024, was $102,888,000, compared to $88,537,000 for the same period in 2023, representing a 16.5% increase[17]. - Net income for Q2 2024 was $34.9 million, an increase of $5.9 million, or 20.4%, compared to $29.0 million in Q2 2023[76]. - Net income for the six months ended June 30, 2024 was $102.9 million, an increase of $14.4 million, or 16.2%, compared to $88.5 million for the same period in 2023[81]. Assets and Liabilities - Total assets as of June 30, 2024, were $992,691, an increase from $930,463 at the end of 2023, representing a growth of 6.7%[10]. - Total liabilities as of June 30, 2024, were $233,496, compared to $212,449 at the end of 2023, indicating an increase of 9.9%[9]. - The company’s total stockholders' equity increased to $759,195 as of June 30, 2024, from $718,014 at the end of 2023, reflecting a growth of 5.7%[10]. - Cash and cash equivalents increased to $241,317 as of June 30, 2024, from $146,475 at the end of 2023, marking a significant rise of 64.6%[10]. - The balance of retained earnings increased to $2,347,600,000 as of June 30, 2024, from $2,244,712,000 at the end of 2023, reflecting a growth of 4.6%[17]. Cash Flow - Cash flows provided by operating activities increased to $183,526,000 for the six months ended June 30, 2024, up from $157,128,000 in 2023, indicating a growth of 16.8%[17]. - Total cash and cash equivalents and restricted cash at the end of the period was $241,317,000, up from $142,925,000 at the end of June 30, 2023, marking a 68.7% increase[17]. - Cash generated from operating activities increased due to higher income and changes in working capital, with accrued liabilities rising by $8.8 million from December 31, 2023, to June 30, 2024[87]. - Net cash provided by operating activities was $183.5 million for the six months ended June 30, 2024, compared to $157.1 million for the same period in 2023[85]. - Cash used in investing activities decreased to $20.0 million in the six months ended June 30, 2024, from $48.1 million in the same period of 2023[89]. - Net cash used in financing activities was $68.7 million in the six months ended June 30, 2024, down from $86.6 million in 2023[88]. Expenses - Technology and academic services expenses for Q2 2024 were $41.0 million, a 5.2% increase from $39.0 million in Q2 2023, with expenses as a percentage of revenue decreasing to 18.0% from 18.5%[74]. - Counseling services and support expenses increased to $78.1 million in Q2 2024, up 7.9% from $72.4 million in Q2 2023, with expenses as a percentage of revenue decreasing to 34.3%[74]. - Marketing and communication expenses rose to $52.9 million in Q2 2024, a 4.1% increase from $50.8 million in Q2 2023, with expenses as a percentage of revenue decreasing to 23.3%[74]. - General and administrative expenses decreased to $10.6 million in Q2 2024, down 2.2% from $10.9 million in Q2 2023, with expenses as a percentage of revenue decreasing to 4.7%[76]. - Technology and academic services expenses were $80.1 million for the six months ended June 30, 2024, an increase of $3.6 million, or 4.8%, from $76.5 million in the same period of 2023[79]. - Counseling services and support expenses rose to $161.0 million, an increase of $15.3 million, or 10.5%, compared to $145.7 million for the six months ended June 30, 2023[79]. - Marketing and communication expenses increased to $108.2 million, up $4.5 million, or 4.4%, from $103.7 million for the same period in 2023[79]. Shareholder Information - The company reported a total of 29,285 basic weighted average shares outstanding for the three months ended June 30, 2024, down from 30,183 in the same period of 2023[5]. - The company repurchased common shares totaling $68,695,000 during the six months ended June 30, 2024, compared to $86,555,000 in the prior year[17]. - The company repurchased 453 shares of common stock for an aggregate cost of $61,249 during the six months ended June 30, 2024, leaving $203,804 available under its current share repurchase authorization[64]. - The company has authorized share repurchases of up to $2,045,000, with the current authorization expiring on March 1, 2025[64]. - The company has 962 shares available for grants under the 2017 Equity Incentive Plan as of June 30, 2024[59]. Legal Matters - The company’s motion to dismiss a shareholder derivative lawsuit was denied on March 28, 2023, with an amended complaint expected by August 12, 2024[58]. - The company is involved in a qui tam lawsuit alleging violations of the False Claims Act, with trial scheduled for late April 2024[58]. - The company has ongoing legal matters, including a securities class action complaint, but management does not believe these will have a material adverse effect on its financial condition[56]. Strategic Initiatives - The company provided education services to 22 university partners across the United States as of June 30, 2024[19]. - The company plans to continue adding university partners and introducing additional programs with existing and new partners[70]. - The company’s ability to manage risks associated with strategic initiatives, including potential acquisitions, is a key factor affecting its future performance[66].